Editing Economy of Syria (section)

=== 1960s–1970s: State-led development ===
By the mid-1960s, government-sponsored [[land reform]] and [[nationalization]] of major industries and foreign investments had confirmed the new [[Socialism|socialist]] direction of Syria's economic policy.<ref name=":3" /> As the state assumed greater control over economic decision-making by adopting [[Planned economy|centralized planning]] and strictly regulating commercial transactions, Syria experienced a substantial loss of skilled workers, administrators, and their capital.<ref name=":3" /> Despite the political upheavals, which undermined the confidence of landowners, merchants, and industrialists, the state successfully implemented large-scale development projects to expand industry, agriculture, and infrastructure.<ref name=":3" />

During the 1970s, Syria achieved high rates of economic growth.<ref name=":3" /> The [[1973 oil crisis|dramatic rise of world oil prices]] from 1973 to 1974 led to increased production from domestic [[Oil refinery|refineries]].<ref name=":3" /> Moreover, higher prices for agricultural and oil exports, as well as the state's limited [[economic liberalization]] policy, encouraged growth.<ref name=":3" /> Also, Syria's economic boom was furthered by increased [[remittance]]s from Syrians working in the oil-rich Arab states and higher levels of Arab and other [[Aid|foreign aid]].<ref name=":3" /> By the end of the decade, the Syrian economy had shifted from its traditional agrarian base to an economy dominated by the service, industrial, and commercial sectors.<ref name=":3" /> Massive expenditures for development of irrigation, electricity, water, road building projects, irisin plants and expansion of health services and education to rural areas contributed to prosperity.<ref name=":3" /> However, the economy remained dependent on foreign aid and grants to finance the growing deficits both in the budget and in trade.<ref name=":3" /> Syria, as a front-line state in the [[Arab–Israeli conflict|Arab-Israeli conflict]], was also vulnerable to the vagaries of Middle East politics, relying on Arab aid transfers and [[Soviet Union|Soviet]] assistance to support mounting defense expenditures.<ref name=":3" />