Syria entered a new phase with the death of its long-serving leader, Hafiz al-Asad, and the accession of his son Bashar in 2000. Here, the author analyses the factors of economic and political change in the country, and gives a portrait of its new leadership.

Economic reform is clearly underway in Syria, but its reach and impact is limited by political factors. A new leadership generation is in place. But while these young leaders have a much deeper understanding of the country's reform needs, they are clearly not willing to risk their own hold on power. Also, the regional geopolitical situation has not made the task of reformers easier - rather, renewed tension in the Middle East has strengthened the hand of conservative elements in this regime. This short but detailed study of the political, economic and geopolitical factors that impact on Syria's path under its new leadership builds on the author's long acquaintance with the country and complements his earlier work on that country's politics and economy.

INTRODUCTION
Syria in a Period of Change
1. Managing Modernisation: Domestic Politics and the Limits of Change
Changing generations
Reforming the system or modernising authoritarianism
2. Economic Challenges and Policy Responses
Major challenges
New approaches, old constraints
Conflicting views, practical obstacles
The pace of reform
The economic importance of regional politics
3. Coping with external challenges
Patterns, interests and capabilities
European opportunities
Neighbourhood matters
Iraq and the American threat
The 'Strategic Option' on hold: Syria and the peace process
CONCLUSION
Domestic Demands and Regional Risks
Regime stability
Domestic development and external conflict
NOTES