The economic interventions can be understood based on the measures taken by government to reform the region. Rule of law represents the perceptions upon which the agents possess confidence and strictly adhere to the regulations of society and enforce quality in services and follow rules in courts. The rule of law graph as projected by World Bank shows that it is declining highly in the years 2013 and 2014 (World Bank, 2016).
The political turmoil has always been the area of doubt to people as it experienced unrest for a longer period. Due to high external debts, the political system insisted the government to oversell hard currencies as well as gold in black markets. All these fraudulent means appear to go against the Syrian economy literature. There was a change in the political leadership due to the outbreak of crisis. Nevertheless, Syrian government has taken sufficient steps to monetize and empower the economic condition. A typical example is the plan developed to build tourism industry. The idea in 2002 to develop ecological tourism was a big hit as it attracted large number of visitors and the land was quite friendly to them. However, the tourism industry faced a hit in 2011 when civil war continued to go ceaseless (Haddad, 2012).
In order to deal with high foreign debts, bilateral rescheduling deals were arranged. This helped Syria to pay off about 80% of its debt to Russia but the capital market is weak in Syria and needs a better trade agreement with thorough regulation of economy.
The economic performance can be understood based on four major factors namely, political risk, transaction risk, war risk and transfer risk. In the years 2014 to 2016, the political risk demonstrated high risk due to shortages in foreign exchange, revolutions, unexpected disasters, wars and unplanned government actions. As a result, it is expected to have a long term impact in the condition of Syria. Similar to political risk, the transaction risk is also high because of external debts and unfriendly nature of the country to attract foreign investments (South, 2006). The outbreak of wars has strongly impacted the economy of Syria. It is of no doubt that Syria has a high war risk and the country has to take immediate measures to deal with civil unrest, racial and ethnic tension, terrorism and socio economic conflicts. These three areas have also demonstrated high risk in solvency of trade and currencies.