CHAPTER 6 Agriculture, Trade, and Poverty in Syria


he Syrian Arab Republic has approximately 17 million inhabitants, of whom about half live in urban areas. Its per capita GDP is US$831, above that of the poorest MENA countries (Djibouti and Yemen) but below the others. The agricultural sector is relatively large, accounting for 23 percent of total GDP.


T


The Syrian government adopted socialism in the late 1950s and kept control of major industries, though private services and retail trade were allowed. The economy has been adversely affected by various conflicts in the region, including the Arab-Israeli wars of 1967 and 1973 and the Syrian intervention in Lebanon from 1976 until 2005. Limited economic reforms and a major expan- sion in oil exports stimulated economic growth in the early 1990s, but growth has been sluggish since then. Although international trade and the exchange rate have been partially liberalized, the government still imposes significant controls on the economy, including price controls, state monopolies in certain sectors, agricultural subsidies, and a large number of state-owned enterprises. Overall, Syria’s per capita GDP grew at 2.2 percent per year during the 1990s, an improvement over its performance during the 1980s, when it fell in real terms.


Like Jordan, Syria was adversely affected by the end of the United Nations Oil for Food program in Iraq and the subsequent war in Iraq, which disrupted trade flows. More recently, Syria has benefited from the conflict in Iraq and from high oil prices.


The Agricultural Sector Agricultural Production


Wheat is the most important food crop in Syria. Unlike most MENA countries, Syria is self-sufficient in wheat. As discussed later, its self-sufficiency in wheat is the result of policies that impose high barriers on imports. Barley and maize are also grown, but domestic production is not sufficient to sat- isfy demand. Cereal production is subject to weather-related fluctuations


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