Economy
Despite periods of political instability and enormous military expenditures, Syria has greatly strengthened its economy since the early 1950's. It has moved in successive stages from a centuries-old system controlled by powerful families with vast holdings toward a planned, largely socialist economy. Syria's first five-year plan began in 1961 and others followed. The country has received much financial aid from other Arab countries, which are among Syria's main trading partners. Other major trading partners include Germany, Italy, and France.
Probably the greatest change has occurred in agriculture, the principal sector of the economy. Large estates have been broken up and sold to former tenants and farmworkers. Syria's irrigated area has been greatly increased, much wasteland has been reclaimed, and new agricultural machinery and techniques have been introduced. In other sectors of the economy, including manufacturing and banking, nationalization has been widespread.
One of the greatest development projects was the building of the Euphrates Dam, completed in 1975 with the assistance of the Soviet Union. It supplies large amounts of hydroelectric power, conserves water, and makes extensive irrigation possible.
Although the economic changes have been disruptive and only partly successful, many Syrians are beginning to enjoy an improved standard of living. Many others, however, especially those in rural areas and villages, are still impoverished and live in a way that has remained virtually unchanged for centuries.
About 40 per cent of Syria's workers are engaged in farming. Much of the cultivated land lies in the west, between Damascus, Aleppo, and the Mediterranean coast. Other agricultural areas include the Euphrates and Khabur valleys and the extreme northeast, where dry farming is practiced. Nearly 20 per cent of the farmland is irrigated; irrigation is slowly being expanded. The Syrian Desert has little or no agricultural value except for nomadic herding.
Cereals, primarily wheat and barley, are the most widely grown and abundantly produced crops. Fruits, led by grapes and olives, rank second. Also grown in large amounts are sugar beets, tomatoes, potatoes, and other vegetables. Cotton is the leading industrial crop and the most valuable agricultural export. Most of it is grown in the Orontes, Euphrates, and Khabur valleys.
The raising of livestock, partly for export, is important. Sheep, valued for wool, hides, meat, and milk, are the most numerous animals; goats rank second. Both can be raised on land too rough or too dry for the growing of crops.
The ancient crafts, such as metalworking, leatherworking, and the handweaving of textiles, are still practiced, and they account for many of the items sold in local markets. They are, however, of secondary importance compared with modern manufacturing, which is still relatively limited by Western standards but is developing. Most of the large manufacturing concerns are owned and operated by the government. Textile manufacturing, especially of cottons, and the processing of foods are the major industries. Others include petroleum refining and the making of tobacco products, cement, glass, plastics, and a variety of consumer goods, such as soap, shoes, apparel, refrigerators, and television sets. Damascus, Aleppo, Homs, Hamah, and Latakia are the chief industrial centers.
Petroleum, phosphate rock, asphalt and rock salt are produced in Syria. Petroleum, the nation's leading export, comes from a number of oil fields and is brought westward by pipeline to Homs for refining and to Tartus for export. Most of the nation's power requirements are met with domestically produced petroleum and the Euphrates Dam. Syria's fishing industry is small.
About 40 percent of Syria's workers are employed in service jobs, in such areas as government, teaching, medicine, and tourism.
Syria's road and railway systems are most heavily concentrated in the west, where they run generally north-south. Syrian Arab Airlines is the national airline. Major airports are at Damascus and Aleppo. Latakia is the chief general-cargo port; Baniyas and Tartus are mainly petroleum ports.
In addition to the pipelines from Syria's own oil fields, there are two foreign pipelines, both crossing the country on the way to the Mediterranean—one from Iraq and one from Saudi Arabia. Except when the pipelines are closed by war in the Middle East, their transit royalties contribute substantially to Syria's economy.
