When Bashar came to power, following the dictates of the IMF and World Bank, wide ranging neo-liberal economic reforms were implemented. State farms were privatized, a private banking system was introduced, there was a promotion of private-sector led investment with key industrial sectors brought under private sector control, and a reduction in subsides. International investment flooded in particularly from the Gulf. These reforms were not accompanied by policies to re-distribute wealth or ensure social protection. Inequality grew between the rich and poor and the urban/rural divide was exacerbated. Assad loyalists and the business class benefited from these policies. Bashar’s inner circle, including from his family and members of the Alawite sect to which he belongs became very wealthy. It is estimated that Bashar’s cousin, Rami Makhlouf, controlled about 60% of the Syrian economy through his business interests. The Sunni and Christian bourgeois also benefited from these policies as the regime built economic ties with individuals from different communities to ensure their loyalty. Meanwhile the poor were disenfranchised and the cost of living rose. Syrians living under poverty line increased from 11 per cent in 2000 to 34.5 per cent in 2010 (7 million people) in rural areas it stood at 62 per cent. Unemployment rates were high, especially for the youth who lacked job opportunities.
Posted on: Thu, 28 Nov 2013 18:50:40 +0000
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