Investment Liberalisation during the Hafiz Assad Regime: Moving to a ‘Freer’ Market

Abstract

This chapter examines the piecemeal economic liberalisation or infitah endorsed during the Hafiz Assad regime (1970–2000).¹ These reforms were characterised by being gradual, home-based, and tailored by the state bourgeoisie. The political economy of these selective reform measures is here explained. Although there were times when economic concerns pushed the regime toward market liberalisation, political considerations held primacy in the timing and the extent of the reforms. They were conducted under the decisive control of the ruling elites, preventing threats to the core power structure. This chapter will also discuss how the Hafiz regime maintained Syria’s slow pace of economic liberalisation by making use of the Lebanese free-market system that acted as a ‘backdoor’ economic liberalisation valve for Syria.