Friday, September 10, 2010

Syria's Good Week

The Syrian Lebanese relations are progressing and producing dividents, as they should. Hariri's clear statement in an interview with al Sharq al Awsat this week exonerating Syria; saying that Syria was wrongly accused in his fathers assasination in 2004, will only advance the bilateral relations further.

Syria's foreign policy towards Lebanon had adjusted to the Syrian military withdrawal five years ago in record time and was able to utilize Lebanese factionalism to turn around key Lebanese players. Aun, Jumblat and Hariri are but some of Lebanese officials who admitted a fundamental geopolitical reality: Syria can be a strong Lebanese ally in the region.

The Economic and trade relations between the two countries are vital, while Syria was able to redirect its flow of hard currency after 2005 by improving its own finacial infrastructer, especially the private one, Lebanon was and is still reliant on open boarders with Syria. While Lebanon has strong political leverage and economic linkeges with western countries, Syria is the strong man in the neighborhood. Both countries might have finally come to terms with their own strengths and how they can be best utilizied for the benefit and interests of both countries.

In addition, Syria recieved its first international financial rating, by Capital Intelligence which is based in Cyprys but owns a subsidiary in Lebanon. This rating of (BB minus) of Syria's foreign credit profile is important as it highlights Syria's strong solvency and liquidity indicators, hence Syria's commitment to economic reform. The usual weaknesses of political risk and underdeveloped financiall system are still relavent, but achieving this rating is a step forward for Syria's economic developments

It has been a good week for Syria..Looking forward to many more to come.

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