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A New Syria: From the Ashes of War to a Sustainable Economy – A Roadmap to a Strong and Sustainable Economy



Today, Syria stands on the brink of a pivotal moment in its history. The economic and social destruction left by the long years of war waged by the people against the old regime is not the end of the road, but rather a new beginning, opening the door for a radical transformation in the economy and its mechanisms. Syria can rise like the phoenix, emerging from the ashes to build a stronger and more sustainable economy. The shift towards a “market-oriented free economy” is not just an option, but a necessity for repositioning Syria economically on both the regional and global stage. This article discusses historical lessons from global economies and explains how the model of a market-oriented economy and specialization for competitive advantage can serve as the foundation for a more stable economic future.


Historical Context: Lessons from Successful Countries

History is filled with lessons that Syria can draw from. After World War II, Germany adopted economic policies that blended free market principles with government intervention, forming a “social market economy” that led to economic stability and rapid growth. In the 1970s, South Korea directed its resources toward specific industries like electronics and automobiles, turning it into a global economic powerhouse. These historical examples illustrate that a successful economy requires an integrated vision that combines free markets with strategic planning.


When Traditional Solutions Are Not Enough: Short-Term Solutions

Historical examples demonstrate that the balance between market freedom and government regulation is key to economic success. Take post-WWII Germany as an example; its economy did not recover through market forces alone, but through smart policies aimed at protecting workers and combating monopolies. South Korea’s experience in the 1970s shows how governments can direct resources toward strategic industries such as electronics and automobiles, transforming the country from a poor state into a global economic giant. These models suggest that building a successful economy does not lie in allowing the market to operate with complete freedom, but in managing it wisely to strike a balance between economic freedom and social development.


From Isolation to Competition: Building a Competitive Edge for the Syrian Economy

In today’s modern economy, success is measured by differentiation and specialization. Countries today, like companies, need a clear competitive edge to carve out a prominent position in the global market. Look at Switzerland, which has excelled in precision industries and finance, or South Korea, which built its economic identity through specialization in technology and automobile industries.


Syria has rich natural resources and fertile agricultural land, but its past economic policies were isolationist, aiming to produce everything domestically without focusing on true strengths. This approach is akin to someone trying to be good at everything but mastering nothing. The result? A weak and uncompetitive economy.


The first step is “smart specialization”: high-quality agriculture, manufacturing industries, and renewable energy. These sectors, if strategically invested in, can transform Syria into a powerful economic player.


What is a Market-Oriented Free Economy?

A market-oriented free economy is an economic system that combines the dynamics of a free market with the government’s role as a regulator and strategic planner. In this system, supply and demand forces determine the prices of goods and services, enhancing efficiency and innovation. However, the government intervenes at the right time to ensure economic stability and protect it from market-induced crises, such as monopolies or social gaps.


We can liken this system to a ship’s captain who allows the winds to fill the sails, but steers the ship to ensure it moves in the right direction and avoids obstacles. For example, the government intervenes to direct resources toward strategic sectors like agriculture, manufacturing, and energy, stimulating growth by providing infrastructure and ensuring social justice.


In successful cases such as Germany and South Korea, this model played a central role in achieving economic revival, where the free market was a tool for efficiency, while government intervention was a guarantee of stability and direction toward specific developmental goals. This balanced combination makes a market-oriented free economy an ideal model for countries undergoing reconstruction, such as Syria, because it combines the freedom of economic growth with the direction to achieve public and sustainable benefits.


The Real Economy: The Foundation for Sustainability

Real growth comes only from sectors that produce tangible goods and services. Investing in agriculture, industry, technology, and energy is not just an option, but a necessity.


1. Agriculture: An Untapped Power

Syria possesses some of the richest agricultural lands in the region. By modernizing irrigation systems, improving seed quality, and providing technical support, agriculture could become a backbone of the economy. The Netherlands provides inspiration; despite its small size, it has become the second-largest agricultural exporter globally due to modern technologies in the field. Syria can replicate this success by focusing on developing high-quality crop production for export, which will also meet domestic needs as a result.


2. Manufacturing: Adding Value to the Economy

Manufacturing adds value to local raw materials and enhances competitiveness globally. This added value generates real profits by turning raw materials into gold. Vietnam’s experience is a prime example; it focused on manufacturing electronics and textiles with the support of innovative government policies, making it one of the fastest-growing economies. Syria is capable of building strong manufacturing industries, such as processed agricultural products, food, and pharmaceuticals, if infrastructure is improved and workers are adequately trained.


3. Renewable Energy: An Unstoppable Source

With the increasing global demand for clean energy, Syria can leverage its natural resources to become a leader in this sector. Solar and wind energy could be key to providing affordable energy, exporting surplus, and also becoming increasingly important in transportation and supply networks as alternative energies are increasingly adopted.


Conclusion: The Path to True Recovery

The Syrian economy needs a radical transformation, moving away from temporary solutions and crisis management tools without a clear strategy outlining a specific focus. Structural reforms that focus on the real economy—agriculture, industry, and energy—are the only path to achieving true economic sustainability.


While the challenges seem immense, the opportunity still exists to rebuild an economy that places productivity and sustainability at the heart of its strategy. The question remains: Will Syria seize this historic opportunity to write a new chapter of success, or will it remain captive to the failed policies of the past?


References

1. Gerber, James. International Economics. Pearson, 2021.

2. De Schutter, Olivier, Johan Swinnen, Jan Wouters. Foreign Direct Investment and Human Development. Routledge, 2012.

3. Mody, Ashoka. Foreign Direct Investment and the World Economy. Routledge, 2006.

4. North, Douglass. Institutions, Institutional Change and Economic Performance. Cambridge University Press, 1990.

5. Innovations in Foreign Direct Investment Attraction. Published Report, 2021.

6. Attracting Foreign Direct Investments. Published Report, 2019.

 
 
 

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