Economic pluralism: Future Perspectives

Dr. FOUAD AL-SAYED

The current arguments between market economy defendant and those who advocate state interference, has led to an incorrect result which supposes that the economic role of the state will inevitably contradict the market rules or that the market necessitates that the state should step aside in this field.

Economic pluralism, as a strategy for the Syrian economy, has been built on three pillars:

- The leading role of the public sector.

- The private sector role as an essential partner.

- The common (joint sector) as an approach to cooperation between public and private sector .

After having gone through The Syrian experience in E.P one can write down the following evaluating points:

- The public sector contribution to agriculture is far less that of the private sector (7% of GDP and 26% successively in 1999)

- Publics dominance in mining with 5.9% of GDP and 0.1% for private.

- The increasing percentage of the private sector contribution to transferring industry.

- Complete monopoly of public sector in water and electricity sector.

- A constant relative importance of publics in construction building sector.

- Its decreasing contribution to total fixed capital **

- 1990-1997 with the private sector increasing its share after 1997 the public sector returned to play greater role here.

- Private consumption is several time more than public one.

- The public sector contribution to investment decreased during the period 90-97 then it began to increase again.

- Public sector share to lending is far bigger than the private sector one.

- Public sector is completely dominant in exports while the private sector is always increasing its imports compared with public sector.

- Public sector employ 73% of the Syrian work force 26% private and 0.2% joint.

In spite of the crucial role of the public sector during the last three decades in realizing economic and social development in Syria, it is still suffering from many drawbacks:

- Laws and regulation have remained undeveloped, which has weakened the ability to face challenges.

- The low level of salaries and wages with an outbreak of mask unemployment.

- Low productivity.

- Low level of qualifications and competence.

- Back of interest in planning clear aims and policies and in defining various roles of the 3 s sectors within the framework of the economic pluralism which has widened the gap between our economy and its counterparts in the region.

- Heavily bureaucratic system and too many testamentary and supervision authorities.

The results the joint sector has realized have been modest in general. The joint sector phenomenon should be closely studied in order that it could contribute to the development process with the framework of economic pluralism.

However, the Syrian economy still has to face the inevitable necessity of modernity and development so that it would be capable to stand the winds of change.

It has also to define short, medium and long-term goals and policies and to clear the roles of both public and private sector.

Modernizing programs success depends on a health investment climate and competition climate.

The first requires comprehensive economic and political reforms, better financing tools in motional as well as foreign currency, more savings, stock market, more private and shareholding companies, greater local market, and final it is necessary to let the private sector help in financing programs to develop the public sector invested of privatizing it.

The competitive climate requires equal chances among the three sectors in local and international markets, more focus on high privileged industries, wider use of information and data bases, better quality standards, competent management. Transference and finally more concentration on the added value created by Syrian nationals themselves.