Syrian government prepares a white coupe over the public sector
Syria, Politics, 12/22/2000

Well-informed economic sources in Damascus said on December 19 that the Syrian government is currently studying a memorandum prepared by officials sides to make reforms in the public sector, according to a plan which is close to " a white coupe over this sector."

The sources added that the memorandum which was drawn jointly by the ministries of planning, finance, the economy and the central commission for inspection and audition, besides the cabinet and a high ranking Baath party ranking side, was drawn according to serious recommendations in order to discuss means of reforming the public sectors with its both industrial and economic aspects, but, according to a formula that ensures the "holiness" of " preserving the state's general ownership."

According to the same sources, among topics to be reformed are: " the idea of converting all the public sector's productive establishments and commissions into share- holders companies through merging them and setting up a board council that runs all these companies altogether," so as they will be converted into " holding " companies that take mainly into account attaining profits to be as an objective in the course of a " certain developmental framework."

As for the labor forces which represents 31% of the total population of which 1.2 million recruited in the productive public sector, the memorandum discusses two options: either to transfer the extra number of this labor force and re-distribute them on services and administrative establishments, or exempting this surplus number and send " unneeded workers- to their homes and giving them an early retirement salary according to a criterion that have links to the age, the efficiency and the job significance."

However the Syrian public sector is indebted for the Commercial Bank of Syria of a sum of 175 billion Syrian pounds.

Certain Syrian circles blames his sector of having its economic role changed into a social role by containing " unqualified workers" in a country where there is s drastic need for 55,000 job opportunities every year.

However, what the Syrian economy was built on since 50 years is till outside the criterion of changes as the sources added that proposals and recommendations to this effect can be made, except the question of ownership which is " a holy thing that the state does not want to violate."

Yet observers considered that the set plan should result at the ultimate end to a sort of privatization starts at a small rate and develops gradually in line with implementing the public sector reformation plan, which the circles expected to take tens of years " if a precise and systemic reform program is embarked on."

The sources added that privatization process is eventually coming as the state starts to give up establishments and sectors since a period of time, noting that economic reforms measures in Syria started in 1985 but it was then of " selective nature." A matter which had made it then hesitant and not sure of its own attitude especially in withstanding those who used to consider " any change is damaging to their interests ." However, " time has changed and reforms have become a need necessitated by outside changes more than internal ones."

Yet, official government sources, for its part, under expected economic changes in Syria on that: " Strategic principles in Syria still valid and have not moved ."

Earlier, government's official sources announced that the Syrian leadership will concentrate in its coming meetings on the Syrian industry with its " public, private and joint sectors," in the framework of " completing approval of the comprehensive economic reforms strategies programs in Syria." This will be following brave relations that ended the state's monopoly of the financial and banking sector since 37 years ( the March revolution of 1963).

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