• Like
Syria and the Economic Freedom of the Arab World Report 2009
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Syria and the Economic Freedom of the Arab World Report 2009

  • 734 views
Published

 

Published in News & Politics , Business , Travel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
734
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
18
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Syria & Economic Freedom in the Arab World Report 2009 Fatima Aljijakli
  • 2. BRIEF HISTORICAL BACKGROUND
    • 1946 -1958 *: Syria had a relatively well-developed promising agricultural and industrial base under Free Market .
    • 1958-1961: When Arab Nationalist and socialites ideas dominated Syria the economy went under sever nationalization movement that targeted all sectors.
    • 1963-2005: With Ba’ath Party assumed power, Syrian economy entered a new ear of centralized controlled economy.
    • 1991: As the world was moving toward globalization, Syrian Government had to move fast to maintain income stability and new investment law was in order.
    • 2006: Syria government made a what was described back then as a historical decision into moving toward the social market economy.
    * Source: Report Of A Mission Organized by the International Bank for Reconstruction and Development 1956, World Bank Group.
  • 3. Components of The Economic Freedom of the World Index
    • Size of government and taxation
    • Private property and the rule of law
    • Soundness of money
    • Trade regulation and tariffs
    • Regulation of business, labor and capital markets
    • Based entirely on objective or third party data for 141 countries
  • 4. Economic Freedom Report of the Arab World: 2009 Annual Report Source: Economic Freedom of the World: 2009 Annual Report, Fraser Institute
  • 5.  
  • 6. Syrian EFW World Rank 1980-2007 Note: In 2002 Fraser Report introduced new Arab Countries, that’s why Syria Regional Ranking had deteriorated more than the total score.
  • 7. Syrian EFW Summary Rating 1980-2007 Syria had been fallen behind Arab countries average rating by 1.5-2 point since 1980 till date. Source: Frasier Institute
  • 8. Executive Summary
    • The level of economic "freedom" remains low in Syria according to an
    • annual survey published by the Fraser Institute.
    • Syria ranked Index (EFW), 124 out of 141 countries covered by the 2009 edition of the Economic Freedom with a score of 5.78.
    • Syria scored and ranked best in the sound money area, it ranked 82 globally and had a score of 7.79. Sound money covers divisions such as money growth, standard deviation of inflation, inflation rate and freedom to own foreign currency bank account.
    • Syria did worst in regulations, especially in labor market regulation with a rank of 123 and a score of 3.7.
    • As for the other indictors Syria raking was slightly unchanged ranging improvements or declines by fractions.
    • In the region, Syria ranked before last with only Algeria doing worst.
  • 9. Size of Government
    • Size of Government: 5.81
    • General government consumption spending 7.44
    • Transfers and subsidies N/A
    • Government enterprises and investment
    • D. Top marginal tax rate: 2.00
    • (i) Top marginal income tax rate 8.00
    • (ii) Top marginal income and payroll tax rates:8.00
    Source: Economic Freedom of the World: 2009 Annual Report, Fraser Institute
  • 10. Size of Government Expenditure, Taxes and Enterprises Source: Economic Freedom of the World: 2009 Annual Report, Fraser Institute
  • 11. Syrian Arab Republic: Selected Economic Indicators, 2004-08 Source: Syrian Authorities & International Monterey Fund Staff Estimates and Projections, January 2009.         Prel. Proj   2004 2005 2006 2007 2008     (Change in percent, unless otherwise indicated) Total population (millions) 18.8 19.3 20.4 20.8 21.3 Government finances           Revenue 27.2 24.0 25.5 22.3 21.4 Oil- related revenue 11.2 7.1 7.3 4.9 4.7 Non-oil revenue 16.1 16.9 18.2 17.3 16.7 Expenditure 31.4 28.5 26.6 25.7 24.9 Current expenditure 19.0 18.1 16.3 16.1 15.4 Development expenditure 12.4 10.4 10.3 9.6 9.5 Credit to public enterprises 0.5 1.7 3.4 7.6 9.2 Credit to private sector 4.3 6.9 3.5 4.3 6.0 Credit to private sector (change in percent) 35.0 45.9 17.9 20.2 25.8 Credit to private sector (in percent of GDP) 11.7 14.5 14.9 15.1 15.0   (In billions of U.S. dollars, unless otherwise indicated) Balance of payments           Current account balance -0.4 -0.6 -0.9 -1.4 -2.3 (in percent of GDP) -1.6 -2.2 -2.8 -3.3 -4.1
  • 12. Legal Structure and Security of Property Rights
    • Legal Structure and Security of Property Rights 5.12
    • Judicial independence 4.36
    • Impartial courts 4.23
    • Protection of property rights 7.69
    • Military interference 3.33
    • Integrity of the legal system 8.33
    • Legal enforcement of contracts 3.22
    • Regulatory restrictions of sale of real property 4
    Source: Economic Freedom of the World: 2009 Annual Report, Fraser Institute
  • 13. Legal Structure and Security of Property Rights Source: Doing Business 2010 Syrian Arab Republic Report, World Bank Group –IFC, 2009
  • 14. Access to Sound Money
    • Access to Sound Money 7.79
    • Money growth 8.68
    • Standard deviation of inflation 8.25
    • Inflation: most recent year 9.22
    • Freedom to own foreign currency bank accounts 5.00
  • 15. Access to Sound Money Standard deviation of inflation 8.25 Inflation: most recent year 9.22 Money growth 8.68
  • 16. Freedom to Trade Internationally
    • Freedom to Trade Internationally 5.60
    • A. Taxes on international trade 5.17
    • (i) Revenue from trade taxes (% of trade sector) 7.55
    • (ii) Mean tariff rate 6.08
    • (iii) Standard deviation of tariff rates 1.89
    • B. Regulatory trade barriers 6.30
    • (i) Non-tariff trade barriers 5.01
    • (ii) Compliance cost of importing and exporting 7.60
    • C. Size of trade sector relative to expected 5.38
    • D. Black-market exchange rates 8.69
    • E. International capital market controls 2.44
    • (i) Foreign ownership/investment restrictions 4.89
    • (ii) Capital controls 0.00
  • 17. Freedom to Trade Internationally Black-market exchange rates
  • 18. Freedom to Trade Internationally Source: Doing Business 2010 Syrian Arab Republic Report, World Bank Group –IFC, 2009
  • 19. Regulation of Credit, Labor and Business
    • Regulation of Credit, Labor and Business 4.50
    • A. Credit market regulations 4.79
    • (i) Ownership of banks 0.00
    • (ii) Foreign bank competition N/A
    • (iii) Private sector credit 4.36
    • (iv) Interest rate controls/negative real int. rates 10.00
    • B. Labor market regulations 3.69
    • (i) Minimum wage 4.02
    • (ii) Hiring and firing regulations 3.66
    • (iii) Centralized collective bargaining 7.01
    • (iv) Mandated cost of hiring 4.83
    • (v) Mandated cost of worker dismissal 2.58
    • (vi) Conscription 0.00
    • C. Business regulations 5.02
    • (i) Price controls 2.00
    • (ii) Burden of regulations 3.84
    • (iii) Bureaucracy costs 5.80
    • (iv) Starting a business 5.93
    • (v) Extra payments/bribes 3.77
    • (vi) Licensing restrictions 7.57
    • (vii) Cost of tax compliance 6.23
  • 20. Regulation of Credit, Labor and Business 2009 The Syrian Arab Republic eased business start-up by lowering the paid-in minimum capital requirement and allowing online access to standardized incorporation forms. * A. Credit market regulations * Source: Doing Business 2010 Syrian Arab Republic Report, World Bank Group –IFC, 2009
  • 21. Regulation of Credit, Labor and Business Doing Business Report 2010 * Source: Doing Business 2010 Syrian Arab Republic Report, World Bank Group –IFC, 2009
  • 22.  
  • 23. RECENT GOVERNMENT ACTION TO IMPROVE ECONOMICAL FREEDOM 2009
    • Recent changes in regional -international relation had foster the reform -linearization environment in Syria, where the Syrian government had lunched or will launch the a new pack of policies and programmers such as:
    • A. Size of the Government:
    • Lunching Public –Privet Partnership
    • Fostering the implantation of B.O.T and upgrading relevant laws.
    • Lunching Syria Public Sector ( industrial-Services-Touristic) Enterprises into B.O.T contract.
    • Reducing the petroleum subsidies.
    • B. Legal Structure and Security of Property Rights:
    • Modernizing juridical system.
    • Property Right Laws.
  • 24.
    • C . Access to Sound Money:
    • Lunching Syria First Stock Market.
    • Loosen up regulation on Banking, Insurances and Private Exchange Firms.
    • Allowing Private Public Banks to expend their Capitals.
    • C. Freedom To Trade Internationally:
    • Euro-Mediterranean Partnership.
    • Bilateral Agreement with Turkey.
    • Arab Common Market.
    • D. Regulation of Credit, Labor and Business:
    • Labor: New Labor Law had been effective this year 2009 which sets a new modern laws between employees and employees but still hold minimum wages and other restrictions.
    • Creating Career Management Center: Prepare and guide to new university graduate into the business world.
    • Modernizing higher and applied education.
    • Business: Fighting corruption, bureaucracy and a study to modernize business regulation to attract investors.
  • 25. FINALLY TRACING BACK POLICES CHANGES IN SYRIA DURING THE PAST 60YRS SETS UP A GOOD EXAMPLE HOW CAN ECONOMICAL FREEDOM FOSTER GROWTH.
  • 26.
    • THAK YOU