Linda Matar examines Syria's failure to promote
employment-generating investment prior to the uprising. Tackling
the thorny issue of the inapplicability of modern investment theory
to a developing country, she situates the analysis of investment in
Syria in its historical context and examines the socioeconomic
structure and political preconditions that set the course of
capital accumulation. Matar argues that the class in charge of
development, which oversaw the allocation of resources during the
Hafiz and Bashar Assad regimes, precipitated a crisis of capital
accumulation. Difficult-to-access data and information compiled
from fieldwork reveal how neoliberal reforms failed to build
productive capacity and instead enriched a few through short-term
speculative and mercantile ventures. Productive investment in Syria
prior to the uprising lurched downward, and the key related
socio-economic variables followed. These deteriorating conditions
contributed to the social explosion in 2011. Exploring the poor
quality and quantity of investment, this study probes how the cant
of the free market served as a veneer behind which the
institutional decisions distorted income distribution in a way that
would inevitably lead to collapse.
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