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Global Interaction a Must for Iran
We cannot treat such an important issue as joining the WTO with the same
literature that we used 20 years ago.
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Dr. Saeed Shirkavand, Deputy Minister of Economic Affairs and Finance |
Many, including Dr. Saeed Shirkavand the Deputy Minister of Economic Affairs
and Finance, believe the current situation of Iran is optimal for its presence
in the international economy.
If we are to attract $8 billion in foreign investments per year, we must
rearrange our relations with foreign governments, organizations, companies as
well as international bodies. We must see what obstacles exist in the way of
foreign investments? Is the main problem legal or related to investment
security? For this reason, I refer to the 20-year outlook document as a
commitment of the system (and not the government). The whole system must be
held responsible. If we have not been on friendly terms with the rest of the
world for any reason, we must find the root causes. If our image has been
negative, we must correct that image.
With regard to global competitive economy and activation of the Iranian
economy in that competition, if we consider running economic affairs a
science, we can take advantage of other countries’ experiences. We cannot look
for solutions in jurisprudential books. Such experiences have been gained
during the past 200 years. If we were living under pre-1991 conditions we
might have discrepancies with regard to how to reach the results. When we say
that the world has changed, it means that we must make the most of those
changes. After implosion of the Eastern bloc, such an attitude has been
prevailing even in China, Cuba and North Korea.
The biggest achievement was made in 1991 when the world came to realize that
issuing orders by the ruling system would solve no problems. Allocation of
resources according to superiors’ orders has not helped increase productivity
anywhere in the world.
I noticed two points in the draft bill of the Fourth Economic Development
Plan, which had precedence in previous plans, but were further highlighted in
the Fourth Plan bill. Firstly, increasing competition in economy; and
secondly, effective and constructive interaction with the outside world. When
I talk about human experiences, I mean these two points.
Competitive economy means an economy with an equal index, a transparent
economy free of any biases. A competitive economy would mean that the private
sector would be able to work as much as it can within the framework of laws
and regulations. It would mean a downsized government. Profit should be
balanced before allocation of resources. You cannot encourage producers to
invest in an underground economy with a profit rate of above 50%. Since our
economy is dependent on abundant oil revenues, it has never been competitive.
The other important point is constructive and effective interaction with the
rest of the world. We cannot distance ourselves from the outside world any
longer. Even if we accept that America is a raging bull, it would not be
logical to expose ourselves to its attacks. There must be ways to get along
with the world. We cannot close our borders on the pretext that economic
relations are exploitative. We must realize that something important has
happened in the field of international relations.
We cannot treat such an important issue as joining the World Trade
Organization (WTO) with the same literature that we used 20 years ago. If we
are to have exports, we must mend our fences with the rest of the world.
Establishing good ties with the world depends on the establishment of
respectful relations (while protecting national interests) with international
monetary and financial institutions. We cannot close our eyes to the rest of
the world. Establishing more active ties with the world has requisites; we
cannot order the whole world to come and invest in Iran.
Attracting foreign investments requires a suitable environment. If the
environment we have is not suitable, no investments will be made. As a result,
the total structure of the plan will face problems. Some colleagues think that
we can carry out a major surgery without bleeding. We say that this is not
possible. Achieving our ideals is dependent on following suit with successful
experiences. |
