Enab Baladi – Jana al-Issa
The presidential decision issued at the end of March regarding the ministerial formation of the Syrian government included the merging of several ministries, in an announcement that did not precisely address the justifications or reasons for the mergers.
In the new government formation, Syrian transitional president Ahmed al-Sharaa appointed Nidal al-Shaar as Minister of Economy and Industry, following the merger of the Ministries of Industry, Trade, and Economy.
Additionally, Mohammed al-Bashir was appointed Minister of Energy, following the merger of three previous ministries: Electricity, Oil, and Mineral Wealth and Water Resources.
Questions have been raised about the justifications for the decision, especially in light of the merging of sensitive ministries that are directly related to the economic and service reality in the country, while the Syrian public is awaiting positive change.
A realistic step
The new Syrian government formation included 23 ministers, thus reducing the number of ministries from previous configurations under the Syrian regime; for example, the last government formation in August 2024 included 29 ministries, but the current announcement merged several ministries and created two new ones: one for Youth and Sports and another for Emergencies and Disasters.
According to a report issued by the Harmoon Center for Contemporary Studies on April 2, it is noted that reducing the number of ministries from 29 to 23 through mergers not only reflects an organizational trend but may also respond realistically to resource scarcity and funding challenges, as reducing government spending is a necessity due to a weak general budget and difficulties in obtaining external support if sanctions are not lifted.
It is likely that these mergers reflect an attempt to reduce operational costs and increase efficiency; however, they may impose additional challenges on ministers who now hold double portfolios in the context of limited administrative staff and complex bureaucracy, according to the report.
Logical justifications
Economic researcher Khaled al-Turkawi believes that merging ministries can have multiple benefits for the country, indicating that there are several justifications for taking this step at this time.
Regarding the justifications for merging, al-Turkawi explained to Enab Baladi that “in a country that aspires to freedom, community participation is a primary demand, meaning that every citizen interested in public affairs should play a role—however small—that alleviates the burden on the government, making the capacity to address public files greater; hence, our need for employees in the public sector will be less than ever.”
The merging of ministries will encourage private investment and seek greater opportunities for the private sector, which necessitates that this sector has its role. Therefore, we should benefit from human resources within the private sector, especially those who have governmental experience. Additionally, wages in the private sector will be relatively higher than in the public sector, which means that the main human resource should shift to serve the private sector and engage in the market economy, rather than solely seeking public employment, according to the researcher.
Al-Turkawi also pointed out that government resources today are weak, and this means that the government’s ability to grant salaries and cover employee expenses is less than ever, unless the government maintains salaries that are insufficient for basic needs, in his words.
According to Ricardo’s theory of diminishing returns (one of the theorists of market economics), every increase in resources past a certain point yields diminishing (not increasing) returns or benefits. For example, if two employees can handle a job, adding a third will not improve performance; rather, it may hinder it.
Khaled al-Turkawi, Economic researcher
Since the beginning of this year, the new Syrian government has taken steps to restructure and reorganize state institutions, with government officials stating that hundreds of thousands of employees are not working at all, alongside others who are “ghost employees” drawing salaries without any actual work.
Under these assumptions, the government has dismissed an unspecified number of workers from state institutions through decisions of dismissal, suspensions, or long-term paid or unpaid leave, in addition to refraining from renewing contracts of temporary employees.
Need for recalibration
In addition to avoiding issues resulting from the previous justifications, such as saving the budget, supporting the market and its private sector, and increasing efficiency, the decision to merge ministries can bring many advantages in different contexts.
Economic researcher Khaled al-Turkawi explained that one of the most significant benefits would be that the structure will become clearer for the minister, director, head of the authority, and other employees, thus reducing administrative and legal complexities. Additionally, the merger will provide greater coordination among ministers, ministries, and directorates; the fewer the number, the greater the ability for coordination than ever before.
Another positive aspect of the merger is easier planning. Planning in the case of three or four authorities (as is currently the case) will be easier than planning in a scenario with 70 authorities as previously existed, thereby improving planning, coordination, and implementation, according to al-Turkawi.
However, on the other hand, the new structure may make senior government employees more concerned about the new reality, as reducing administrative bureaucracy (which can be beneficial at times) may lead to less deliberation and study in decision-making, thereby increasing the likelihood of errors. Additionally, the tasks within these merged ministries and authorities require recalibration, as the administrative work in the new form will take some time to organize.
Ministry employees.. Positive after some time
In light of the current data and figures, economic researcher Khaled al-Turkawi explained that one government employee costs the government approximately 25 dollars as a monthly salary, and about 25 dollars in other work-related expenses. This means that every 100,000 employees outside of government circles will reduce government spending by roughly 5 million dollars per month, or about 60 million dollars annually—translating to around 600 billion Syrian pounds annually with a 5% reduction in government employees (assuming there are one million employees).
On another front, which is more important, al-Turkawi believes that the reduction and merger will have positive and negative implications. On the negative side, some families will be deprived of government salaries, and government purchases from markets will decrease; however, this impact is short-term.
The significant positive aspect in the medium and long term will be the engagement of these employees in the market through their private enterprises or their roles in private sector institutions, leading to larger resources for families. For example, average wages in the private sector can reach five times those of public sector salaries, and production in the private sector has a quicker and larger impact on the national economy and gross domestic product.
The exit of 100,000 employees from the public sector will materially affect savings in the government budget, while the longer-term effects will be felt through these employees’ contributions to the gross domestic product by their direct involvement in the market through their projects or their presence in private sector institutions.
Khaled al-Turkawi, Economic researcher
At the beginning of this year, the former finance minister in the interim Damascus government, Mohammad Abazeid, stated that only 900,000 of the 1.3 million public sector employees work effectively, while 400,000 are “ghost employees.” Meanwhile, the Minister of Administrative Development, Mohammad al-Sakaf, indicated that the public sector does not require more than 550,000 to 600,000 employees.
According to Minister Abazeid, the government was surprised to find that the number of registered workers in public bodies greatly exceeded the actual numbers on the ground. In addition to discrepancies in the financial lists, there are fictitious names of individuals receiving salaries at home without being physically present in their directorates, “as a result of the previous regime’s policy of favoritism and nepotism.”
Merging Syrian ministries: Reducing financial burdens and increasing responsibilities Enab Baladi.
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