The Syrian Economy from an Economic Perspective

Introduction:

Liberal and socialist theories are two major theories in macroeconomics, but there are many other theories that offer different explanations for macroeconomic phenomena and propose various economic policies.

Some other important macroeconomic theories include:

• New Keynesian Economics: This theory is a development of traditional Keynesian theory, taking into account rational expectations and price and wage rigidities.
• New Classical Economics: This theory relies on the assumptions of complete markets and general equilibrium, emphasizing the importance of stable monetary policies.
• Economic Growth Theory: This theory focuses on the factors that lead to long-term economic growth, such as technology and human capital.
• Business Cycle Theory: This theory seeks to explain fluctuations in economic activity, such as recessions and recoveries.
• Distribution Theory: This theory examines how income and wealth are distributed among members of society.

In addition to these theories, there are many other economic schools of thought that provide different perspectives on macroeconomics, such as the Austrian School, which emphasizes the importance of free markets in achieving economic equilibrium.

• Institutional Economics: This school emphasizes the role of social and political institutions in shaping the economy. Additionally, the Evolutionary School focuses on change and development in the economy over time.

Diversity of Economic Theories:

The diversity of these theories is due to several reasons, the most important of which is the complexity of the economy. The economy is a complex system influenced by many changing factors, making it difficult to develop a single theory that explains all economic phenomena.

Additionally, researchers’ ideological orientations influence the theories they develop. Some researchers tend to focus on the role of the state in the economy, while others focus on the role of the market. Economic conditions also change constantly, requiring the development of new theories to explain these changes.

In summary, macroeconomics is a broad and diverse field, and there are many theories that attempt to explain macroeconomic phenomena. There is no single theory that is correct for all times and places, but the appropriate theory must be chosen based on the conditions and problem being studied.

Economic Theories Followed by Developed Countries:

Developed countries do not strictly follow a single economic theory but rather blend elements from different theories and modify them to suit their specific conditions. This diversity is due to several factors, including:

• Historical Development: Each country has a unique economic history that influences its current economic policies.
• Economic Conditions: These vary between countries, requiring different policies.
• Political Ideologies: The ruling political ideologies also influence the choice of economic policies.

In general, it can be said that developed countries follow a mix of the following elements:

• Neoclassical Theories: These theories emphasize the importance of the free market, limited government intervention in the economy, and the efficiency of markets in allocating resources.
• Keynesian Theories: These theories emphasize the importance of the state’s role in achieving economic stability and managing aggregate demand.
• Institutional Theories: These theories focus on the role of social and political institutions in shaping the economy and the importance of trust and transparency in economic transactions.
• Evolutionary Theories: These theories study how economies change over time and how they are influenced by innovation and technology.

Examples of Economic Policies Followed by Developed Countries:

• Monetary Policies: These policies aim to achieve price stability and stimulate economic growth by controlling interest rates and money supply.
• Fiscal Policies: These policies aim to achieve economic stability and stimulate economic growth through government spending and taxes.
• Trade Policies: These policies aim to promote international trade and encourage foreign investment.
• Labor Market Policies: These policies aim to balance the supply and demand for labor and reduce unemployment rates.
• Social Security Policies: These policies aim to provide a social safety net for citizens, such as pensions and health insurance.

Examples of Developed Countries:

• The United States: One of the leading countries that follows liberal economic policies with a significant role for the free market.
• Germany: A country that blends liberal and social policies, focusing on innovation and technology.
• Japan: Known for active industrial policies and a strong government role in guiding the economy.

Based on these three examples, the following can be observed:

• There is no single model that fits all developed countries; each country follows economic policies that suit its specific conditions.
• The economic policies of developed countries change constantly in response to changes in global economic conditions.
• Developed countries face common economic challenges such as an aging population, climate change, and income inequality.

Syria from an Economic Perspective:

Determining the best economic theory for Syria at the present time is a significant challenge due to several reasons:

• Syria is suffering from a deep humanitarian and economic crisis resulting from years of conflict, making the strict application of any economic theory difficult.
• The Syrian economy is diverse, including agricultural, industrial, and service sectors, requiring a set of integrated economic policies.
• The economic conditions in Syria are subject to rapid and frequent changes, requiring flexibility in economic decision-making.
• Syria relies heavily on international aid, limiting its ability to make independent economic decisions.

However, some basic elements that any proposed economic theory for Syria should consider include:

• Financial Stability: Focus on restoring financial stability by combating inflation, reducing the budget deficit, and strengthening the local currency.
• Comprehensive Plans for Rebuilding Infrastructure: Provide job opportunities and stimulate investment.
• Diversifying the Syrian Economy: Reduce reliance on a single sector and encourage promising sectors such as tourism and technology.
• Implementing Effective Social Protection Programs: Alleviate poverty and unemployment and improve citizens’ living standards.
• Enhancing Transparency and Good Governance: Combat corruption and create an attractive environment for investment.
• Encouraging the Private Sector: Play a larger role in the economy and provide an attractive business environment for investors.

Based on this, there are some economic theories that could be useful in the Syrian context, taking into account specific circumstances, for example:

• Keynesian Economics: Which can be useful during the reconstruction phase by increasing government spending to stimulate economic growth.
• Neoliberal Economics: Which can be useful in encouraging the private sector and liberalizing markets, but caution must be exercised to avoid exacerbating social inequality.
• Islamic Economics: Which can be useful in incorporating principles of social justice and solidarity to develop more equitable economic policies.

Conclusion:

Relying on a single economic theory entirely in Syria is not feasible without a genuine political will to begin real solutions. Instead, elements from different theories should be combined to develop an economic model suitable for Syrian conditions.

The Economic Office of the Syrian Future Movement (SFM) also recommends considering the historical, cultural, and social context of Syria when choosing economic policies. Any economic approach for Syria should be comprehensive and integrated, taking into account the challenges facing the country and based on a clear vision for the future.

The Syrian crisis is complex and requires multifaceted solutions. It cannot be confined to the economic aspect alone, as the international community plays a crucial role in supporting reconstruction efforts in Syria. Strong and effective institutions must be built to manage the economy and implement economic policies.

Ammar Al-Amouri
Economic Office
Research and Studies Department
Articles
Syrian Future Movement