Rami Makhlouf – the cousin of President Assad and Syria's most important businessman – has announced that he is giving up some of his business interests in a move apparently calculated to appease anti-government protesters.

Makhlouf, who is generally regarded as a symbol of corruption and privilege within the regime, was designated by the US Treasury in 2008 as a person who "improperly benefits from and aids the public corruption of Syrian regime officials".

According to the New York Times, he will be offering a portion of shares in his SyriaTel company to the poor, and donating profits – though this will still leave him with plenty of other interests. The Syria Comment blog discusses the significance of this move.

Though it does look like a concession to protesters, as with the various "reform" initiatives announced by the president it is probably too much of a half-measure to have much impact. At this stage, the demonstrators are unlikely to be satisfied with anything short of Makhlouf's arrest and the confiscation of his property.

Separately, it is reported that Hussein Salam, an unpopular Egyptian businessman and a crony of the former Mubarak regime, has been arrested in Spain on an international warrant. He is wanted in Egypt on charges of bribery and squandering public funds.

While it is good to see the problem of crony capitalism being acknowledged and (in some places) addressed, there is a popular but mistaken assumption that stamping it out will bring an economic transformation. Though crony capitalism is bad for any economy, it's not the only factor. This observation from "Ehsani" on Syria Comment puts it in perspective:

"The problems of Syria are not just Rami [makhlouf]. People think that he stole all their wealth and their incomes. Suppose Rami stole $10 billion. If he returned ALL that back tomorrow, each person in Syria will be entitled to $434. A family of five will make $2,170.

"I guess that is a substantial sum for some people. But, remember that this is a one shot cheque. What then? The real issue in Syria is the lack of economic growth. Only real growth will lift living standards year in and year out. People think that if Rami goes, their fortunes will suddenly look up. Wrong."

Posted by Brian Whitaker, 17 June 2011