DAMASCUS - Rising oil prices, market liberalisation and severe weather conditions have crippled the purchasing power of Syrian consumers, forcing many citizens to take on two jobs to make ends meet.
Analysts blame the inflation on a government decision three years ago to reform the economy, while officials prefer to pin the problem on external factors such as the surge in oil prices on international markets.
"Consumer prices have increased by 20 percent compared to 2007," Economy Minister Amer Lotfi said at a meeting to discuss rising prices, according to statements carried by the official press.
"Public servants and workers with modest revenues, who form 75 percent of the (15 million) population, are those most affected," Lotfi admitted.
The price of vegetables, meat, milk and cooking oil have risen by 30 to 60 percent in a matter of weeks. Unofficial estimates put inflation at more than 10 percent.
Syrians have had to pay more for basic food because oil prices have spiralled "affecting the cost price of products in general," Lotfi said.
Economist Samir Seifan said Syria took a "direct" hit because it imports finished and semi-finished products and exports raw materials.
In a positive spinoff of the world's economic problems, however, Syrian officials say the country's exports reached record levels of 12 billion dollars in 2007.
Seifan also blamed the rise in prices to poor weather, including heavy rain falls and freezing temperatures, that has damaged agriculture.
But other analysts blamed the government's reform drive for the high prices.
In the 1990s the government used to intervene in fixing prices, something that the authorities have been doing less and less in recent years, said an economist who declined to be named.
In 2005, at the ruling Baath party congress, Syria committed itself to a process of economic liberalisation through a market economy system aimed at "attracting investments, relaunching growth and creating jobs".
The initiative "did not have a positive impact," according to the economic weekly Al-Iqtissadiya. "Rising prices have eroded (monthly) salaries."
Government officials agree that the transition to a market economy can not be achieved without growing pains but they insist that the economy is doing well, with growth of six percent in 2007.
The official Tishrin newspaper joined the blame-game, accusing "greedy distributors" of responsibility for the rise of some products.
The government has meanwhile launched a campaign to control prices amid appeals from the Baath party to take "every single measure capable of re-establishing an equilibrium between prices and (monthly) wages".
Seifan suggested a "radical reform of (monthly) wages" to help Syria come to terms with rising prices -- particularly as civil servants earn an average salary of only 175 dollars per month.
Many low-income Syrians waiting for a change are forced to take on a second job in order to make ends meet, like 30-year-old driver Bassam who now brings home 260 dollars each month thanks to two jobs..
"I spend 200 dollars on food, while the rest goes to paying the water and electricity bills and my cell phone costs," said Bassam, a father of five.
Omar, a 45-year-old father of eight, has been working in the public sector for the past 26 years and earns 220 dollars a month.
He also lives on credit like Bassam and has had to find a second job as a cleaner in an office building to earn an extra 40 dollars for him and his family.
rm/hkb/hc/nh
03/18/2008 03:11 GMT