http://syria-today.com/index.php/component/content/article/32-business-news/21315-qaa-muhammad-zafer-muhabbek-minister-of-economy-and-foreign-trade
Q&A Muhammad Zafer Muhabbek, Minister of Economy and Foreign Trade
November 2012
Syria Today talks with the former head of Syria's Central Bank in Aleppo,
professor and head of the Economic Sciences Association, about the government's
solutions for the country's economic crisis.
ByRasha Faek
PhotoAdel Samara After 19 months of crisis, how do you characterise the
Syrian economy today?
It is undergoing a very exceptional phase caused by oppressively imposed
foreign policies which have significantly restricted most commercial
activities, hit citizens’ basic needs, and paralysed key economic sectors.
The government always talks about alternatives and solutions: what are
they?
Unfortunately, due to past economic policies, most of our trade relations
were in one direction only, ignoring other markets in various countries. That
is why the sanctions’ impact was extensive. Now, we are working to find
alternative markets and develop new economic relations with friendly,
supportive countries. Syria is a rich country with various resources and we
have to rethink the best way to use them.
This search for friendly markets is not new, but until now, citizens face
increasing difficulties in meeting their basic daily needs. When will we really
experience the effects of this solution?
This transformation process is not easy; it needs radical changes in
policies, conventions, and even in the form and content of Syrian products.
Also, any commercial deal certainly means financial transfers, which under
sanctions become very difficult. Moreover, many private international companies
from friendly countries are interested in dealing with the Syrian market but
fear being subjected to international sanctions. However, the Syrian government
is still providing for all citizens’ basic needs. We faced brief shortages but
were quickly able to overcome them.
How do you comment on the many international and local reports on Syria
suggesting a significant decline in various economic indicators?
Of course there is a kind of decline, but the Syrian economy is still
surviving. In such a situation, the numbers could not show the reality since
many trade activities cannot be officially counted or registered. The informal
economy has a key role in the country’s economy today. For example, Syrian
non-oil exports in 2011 were greater than in 2010. According to official
figures, import volume declined, but no products were missing from the local
market, which illuminates the important role of the shadow economy currently.
Official statements contradict each other concerning wage increases:
while the minister of Internal Trade and Consumer Protection called for
increasing the minimum wage to SYP 30,000 (USD 441), you declared such an
increase impossible. Why this discrepancy in visions?
There is no discrepancy in visions; however, there is a difference
between our wishes and the reality. We all wish we could increase wages, but we
cannot adopt such a change now. This increase is mentioned in the ministerial
statement as a strategic objective we have to work to achieve, but not in the
short-term. The same goes for lowering prices: under such circumstances we
cannot reduce them, but we are working hard to make sure all products are
available.
The business sector has suffered greatly during the last year, mostly due
to unstable governmental strategies. Do you have any strategies to support this
sector?
Unfortunately, Syrian investments projects abroad are bigger than those
inside the country. We have to figure out why and find solutions to facilitate
business and investment procedures. Therefore, we have formed two working
groups. One is a consultative council comprised of experts that will convene
monthly to handle issues related to the current economic situation,
particularly the real needs of Syrian businessmen, exporters and
industrialists. The other is a committee tasked with receiving complaints from
citizens and economic and trade figures, and submitting a weekly report
suggesting means of handling them.
Is there any kind of governmental support for owners of small and medium
projects?
Certainly, these projects top our current priorities. This sector has
suffered greatly from negligence and lack of regulation. We are working to make
these projects integrated production units capable of providing products that
are marketable abroad.
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