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Table of Contents SME SUPPORT PROGRAMME Project No. (SSP) MED/2005/17542 Programme funded by the European Union and implemented through the SEBC Syrian General Institutional Survey ToR No.: WP3/099 Experts: Kyriakos Fragkozidis & Faihaa Al Naser November 2009 PROJECT NO. MEDA/2005/17542 EUROPEAID/122282/C/SV/SY 2 DISCLAIMER This document was produced by the SME Support Programme (SSP) – a private sector development programmed with the overall objective of supporting the development of the Syrian economy through direct assistance to the Syrian private sector. The European Commission funds the SSP based on the financing agreement signed between the European Community and the Syrian Arab Republic, ref.:MED/2005/17542. The SME Support Programme (SSP) is hosted and implemented by the National Institution; Syrian Enterprise and Business Centre (SEBC) in close collaboration with the Ministry of Economy and Trade under a Service Contract for European Community External Actions identification number EuropeAid/122282/C/SV/SY with GOPA. The content of this document is the sole responsibility of the author and can in no way be taken to reflect the views of the European Community nor SEBC or the Syrian Government. The document's recommendations do not entail any legal commitment on the part of the European Commission or the SEBC/SSP. The company/client/reader accepts that this service is without warranty of any kind, explicit or implied. The company/client/reader assumes all risks related to the use of information provided to him or her. In no event is SEBC/SSP liable for any damages resulting from use or misuse of the information provided. The content of this report may be fully or partially reproduced provided that the source is acknowledged. Published by: SME Support Programme © 2010 3 Table of Contents Table of Contents .................................................................................................................... 4 Acronyms ................................................................................................................................. 6 Executive Summary ................................................................................................................. 8 Introduction ............................................................................................................................ 20 Background ........................................................................................................................ 20 Scope ................................................................................................................................ 22 Expected Outputs .............................................................................................................. 22 Methodological Approach - Definitions ............................................................................... 23 Chapter 1 - Review of the 2003 General Institutional Survey ................................................. 27 1.1. Overview of the recent developments ..................................................................... 27 1.1.1 General changes occurred from 2003 to 2009 with regard to BSIs area ......... 27 1.1.2 Changes occurred in the BSIs area by field of economic activity .................... 31 1.2. Comparative approach of the selected institutions .................................................. 35 1.3. Conclusions ............................................................................................................ 56 Chapter 2 - The 2009 Institutional Maps ................................................................................ 62 2.1. The current demographic - economic situation ....................................................... 62 2.2. Current Status of the Business Support Institutions Environment ........................... 71 2.2.1 Legal framework ............................................................................................. 71 2.2.2 Structure ......................................................................................................... 74 2.2.3 Efficiency and Effectiveness ........................................................................... 87 2.2.4 Sufficiency of the Services provided ............................................................... 95 2.3. The new General Institutional Map ......................................................................... 97 2.3.1 Matrix by Category of Institution and Economic Sectors ................................. 97 Chapter 3 – International experience by selected Countries .................................................. 99 3.1. European Union - France ..................................................................................... 100 3.1.1 Legal and Institutional Framework ................................................................ 100 3.1.2 Services provided ......................................................................................... 104 3.2. European Union - Italy .......................................................................................... 105 3.2.1 Legal and Institutional Framework ................................................................ 105 3.2.2 Services provided ......................................................................................... 109 3.3. European Union - Romania .................................................................................. 110 3.3.1 Legal and Institutional Framework ................................................................ 110 3.3.2 Services provided ......................................................................................... 113 3.4. Japan ................................................................................................................... 115 3.4.1 Legal and Institutional Framework ................................................................ 115 3.4.2 Services provided ......................................................................................... 119 3.5. U.S.A. ................................................................................................................... 121 3.5.1 Legal and Institutional Framework ................................................................ 121 3.5.2 Services provided ......................................................................................... 123 Chapter 4 - Identification of Areas of Intervention & Conclusions ......................................... 126 4.1. Areas of improvement .......................................................................................... 126 4.1.1 Legal and Regulatory Framework ................................................................. 126 4.1.2 Institutional Framework ................................................................................. 128 4.1.3 Information .................................................................................................... 130 4.1.4 Entrepreneurship promotion.......................................................................... 131 4.1.5 Innovation and Technology ........................................................................... 132 4.1.6 Export Development ..................................................................................... 132 4.2. Proposed new institutions to be established ......................................................... 133 4.3. Conclusions and Recommendations .................................................................... 137 SEBC/SSP Page 4 Annexes ............................................................................................................................... 140 1. General Institutional Map / Sectoral Institutional Maps ................................................. 140 2. Detailed analysis of the selected institutions ................................................................ 140 3. Legal Framework - list of relevant laws, by-laws, decisions, etc. .................................. 140 4. List of Institutions established 2005 -2009 .................................................................... 140 5. List of Meetings ............................................................................................................ 140 6. Technical Fiche (Template) .......................................................................................... 140 7. Questionnaire ............................................................................................................... 140 SEBC/SSP Page 5 Acronyms BESP Business Environment Simplification Programme BIDAYA Boosting and Inspiring Dynamic Youth Achievement BSIs Business Support Institutions CBS Central Bureau of Statistics EC European Commission ECD European Commission Delegation in Syria EDF Export Development Fund EDPA Export Development and Promotion Agency of Syria EIB European Investment Bank EPO European Patterns Organisation EU European Union FIRDOS Fund for Integrated Rural Development of Syria FYP Five Years Plan GAFTA Greater Arab Free Trade Agreement GDP Gross Domestic Product GFTO General Foreign Trade Organisation GIS General Institutional Survey GTZ The German Foreign Technical Assistance Organisation HCSR Higher Commission for Scientific Research JCI Junior Chamber International JICA Japan International Cooperation Agency METI Ministry of Economy, Trade and Industry of Japan MoET Ministry of Economy and Trade MoI Ministry of Industry MoSAL Ministry of Social Affairs and Labour MoU Memorandum of Understanding PCEED Public Corporation
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