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Syria's economy reported near collapse

SPECIAL TO WORLD TRIBUNE.COM
Monday, September 27, 1999

WASHINGTON -- Syria's economy is nearing collapse and basic services are threatening to come to a halt, an Israeli researcher says.

Steven Plaut, an instructor at the Graduate School of Business Administration at the University of Haifa, writes in the September issue of Middle East Quarterly, that Syria's foreign debt has run out of control unable to buy basic goods let alone weapons.

"The impoverishment and lack of development not only hold the potential for increasing Syrian political instability, but they also seriously constrain the ability of the regime to acquire armaments and make serious trouble abroad," he writes. "Various sources report a decline of morale in the Syrian military, resulting at least in part from the fact that it operates aging Soviet-era equipment that often are missing spare parts."

On Friday, Israel's military intelligence chief, Maj.-Gen. Amos Malka, told Yediot Aharonot that over the last two years Syria has embarked on an intensive training program. "The Syrian chief of staff has dealt with the prepartion of the army in a very focused way in all sorts of frameworks including an initiated attack and total war," he said. "They are also improving some of their weapons. I am sure if you ask the Syrian CoS today if he is more ready than a year ago, he would answer positively."

Plaut says Syria's occupation of Lebanon has resulted in increasingly diminishing returns. About a million Syrians are said to work in Lebanon, a fifth of the country's labor force.

"Lebanon is also experiencing economic deterioration, having stagnated for several years with growth rates below population growth rates," Plaut writes. "The real growth rate for the Lebanese economy in 1998 was a fourth of what it was in 1994."

Plaut says Syria might find it increasingly difficult to feed its population. This year, he says, Syria imported barley for the first time in that nation's history. Rail passenger service in Syria has all but collapsed, dropping by 62 percent between 1991 and 1995.

Illiteracy remains widespread in Syria with the rate for males as high as 29 percent and a higher rate for females.

Foreign investments have been limited to oil development. Plaut says Syria has a foreign debt of $22 billion, growing by up to $1.5 billion a year. About half the current debt is to Russia.

Plaut says Israel's rush to reach agreement with Syria is the equivalent of the United States in 1989 trying to conclude an accord with the Soviet Union. "If anything, the present is probably the very worst time strategically to strike a deal with Syria because with each passing year Syria will be less capable of feeding and arming itself, and more susceptible to outside economic threats and pressures from the West," he said. "Israel should now be in the business not of making concessions to Damascus but of imposing additional economic burdens on it by strengthening Israel's military position. Western states can help this by imposing economic sanctions. Together, this could lead to a collapse of the totalitarian regime in Syria, and that in turn would redraw the strategic map of the Middle East, most likely in a direction that would benefit Syrians, Turks, Jordanians, Israelis, and everyone else."

Monday, September 27, 1999


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