Download Economic Freedom Score Country Comparisons Freedom Trend

SYRIA
Economic Freedom Score
25
50
75
Least
free 0
World Rank: Not Ranked
Regional Rank: Not Ranked
Most
100 free
This economy is not graded
rading of Syria’s overall economic freedom remains susG
pended in the 2015 Index due to the political turmoil that
has led to civil war and a significant deterioration in the quali-
Freedom Trend
54
ty of publicly available economic statistics. Facets of economic
freedom for which data are still available have been individually scored. As a “mostly unfree” economy with a score of 51.2,
Syria was ranked fourth lowest in the Middle East/North Africa region when it was last graded in the 2012 Index.
Civil war has left Syria’s economy in ruins. The government
does not control portions of the major cities, and the war has
killed nearly 200,000 people and displaced millions. The rule
of law has been ravaged by extrajudicial killings, kidnappings,
and torture. Inflation has grown as the Syrian pound has
become an unreliable medium of exchange.
The little formal economic activity that continues is impeded
by weak structural and institutional foundations. The president, his cabinet, and close family members dominate many
of the major economic sectors. Rampant corruption has
destroyed any entrepreneurial dynamism. Continuing conflict limits trade and investment, and currency controls limit
the free flow of capital.
BACKGROUND: The Assad family’s iron grip on Syria, which
it has ruled since Hafez al-Assad’s military coup in 1970, faces
serious challenges. Bashar al-Assad, who succeeded his father
in 2000, has failed to deliver on promises to reform Syria’s
socialist economy and ease political repression. Arab Spring
protests in 2011 were met with brutal crackdowns. By 2012,
the uprising against Assad had spiraled into a sectarian civil
war with Sunni-dominated rebels pitted against the Alawitedominated regime. By mid-2014, the terrorist group Islamic
State of Iraq and Syria (ISIS) had gained control of much of
the northern half of the country. The conflict has triggered a
severe economic recession. Before the conflict, Syria’s economy was hobbled by a large state bureaucracy, falling oil production, rising budget deficits, and inflation.
How Do We Measure Economic Freedom?
See page 475 for an explanation of the methodology
or visit the Index Web site at heritage.org/index.
53
52
51
50
2011
2012
2013
2014
2015
Country Comparisons
Country n/a
World
Average
60.4
Regional
Average
61.6
Free
Economies
84.6
0
20
40
60
80
100
Quick Facts
Population: 19.1 million
GDP (PPP): $70.0 billion
–20.6% growth in 2013
5-year compound annual growth n/a
$3,640 per capita
Unemployment: n/a
Inflation (CPI): 89.6%
FDI Inflow: n/a
Public Debt: n/a
2013 data unless otherwise noted.
Data compiled as of September 2014.
417
SYRIA (continued)
THE TEN ECONOMIC FREEDOMS
Score
RULE OF
LAW
Country
World Average
Property Rights 10.0
Freedom from Corruption 17.0
0
20
40
60
80
Rank
1–Year
Change
165th
176th
0
–6.3
100
Even before the armed conflict and ongoing disintegration of Syria, government institutions
lacked public accountability and were plagued by corruption. Members of the ruling family
and their inner circle are said to own and control a major portion of the economy. Corruption is also present in rebel-held areas on a smaller scale. The judiciary is neither transparent
nor independent.
Fiscal Freedom n/a
GOVERNMENT
Government Spending n/a
SIZE
n/a
n/a
—
—
0
20
40
60
80
100
Syria’s top individual income tax rate is 22 percent, and its top corporate tax rate is 28 percent.
Other taxes include a tax on inheritance and a property tax. Ongoing civil conflict has rendered
fiscal policy and tax administration (if any) opaque. It has been reported that budget deficits
have been on the rise.
REGULATORY
EFFICIENCY
Business Freedom 57.3
Labor Freedom 49.1
Monetary Freedom n/a
124th
141st
—
0
20
40
60
80
–3.1
–6.0
n/a
100
The repressive business environment, severely impaired by the ongoing civil war and uncertainty, suppresses entrepreneurial activity and prolongs economic stagnation. The labor
market is heavily state-controlled and undermined by instability. The Assad regime spent 45
percent of its 2014 budget on subsidies and attempted to “suppress” the inflation rate, which
is one of the world’s highest, with price controls.
OPEN
MARKETS
Trade Freedom n/a
Investment Freedom 0.0
Financial Freedom 20.0
—
176th
163rd
0
20
40
60
80
n/a
0
0
100
Syria has a 6.1 percent average tariff rate, and foreign investment is subject to government
screening. The ongoing political turmoil is a major deterrent to international trade and investment, and the financial system has been under significant strain. The stock market has been
running out of monetary resources, and bank deposits have dwindled, especially with capital
fleeing the country.
Long-Term Score Change: n/a
GOVERNMENT
SIZE
RULE OF LAW
Property Rights
Freedom from
Corruption
418
n/a
n/a
Fiscal Freedom
Government
Spending
REGULATORY
EFFICIENCY
n/a
n/a
Business Freedom
Labor Freedom
Monetary Freedom
2015 Index of Economic Freedom
OPEN MARKETS
n/a
n/a
n/a
Trade Freedom
Investment Freedom
Financial Freedom
n/a
n/a
n/a