In the summer of 2000, Bashar al-Asad inherited the presidency of Syria from his father, the long-ruling Hafiz al-Asad. This Paper evaluates the capacity of the new leadership to meet growing societal, economic, political and foreign policy demands. Halfway through Bashar al-Asadαs first term, Syria finds itself in a rapidly changing regional environment. The country is undergoing a process of economic change which, in the long run, may add up to a full transformation from étatism to a market economy.

Adelphi Paper 366. Published by Oxford University Press for the International Institute of Strategic Studies.

Introduction: Syria in a period of change -- Managing modernisation: domestic politics and the limits of change -- Economic challenges and policy responses -- Coping with external challenges -- Conclusion: Domestic demands and regional risks.