Shouldering a Mega Merger |
Esshaq Jahangiri was born in the city of Sirjan, Kerman
Province in 1957. Holding an M.Sc. in industrial management from Sharif Industrial
University, he was completing a Ph.D. program with Stafford University (England) in the
field of Planning when heavy responsibilities came in the way.
After the Islamic
Revolution, Jahangiri served as the head of Jiroft Construction Jihad Organization for two
years as well as a member of Construction Jihad Council of Kerman Province. He represented
Jiroft constituency in the second and third terms of the Majlis, and was later appointed
as the governor general of Isfahan Province in 1992.
When President Khatami introduced Esshaq Jahangiri as his proposed minister of mines &
metals, he obtained a vote of confidence from the parliament with 182 votes out of a total
of 260. However, his approval as the man in charge of the newly-established Ministry of
Industries & Mines was a lot smoother at the parliament. This may have two reasons:
Either Jahangiri has proved his capabilities beyond a single ministry, or the parliament
(Sixth Majlis) is reluctant to debate a cabinet which is near the end of its four-year
term.
This article looks at the challenges of leading a ministry as huge as Industries &
Mines, the status of the industrial and mining sectors in terms of international
partnership, and the very vital steps that should soon be taken to direct this ministry
where it is expected to be.
| Through a dynamic performance both locally
and internationally, the newly-established Ministry of Industries and Mines is expected to
show a few good reasons for its emergence |
Targeting More Than Numbers: Based on the plans and programs announced
prior to the merger, the then ministries of Mines & Metals and Industries were aiming
for certain numbers: 14.7 million tons of annual steel output by the end of the Third
Development Plan, 500,000 vehicles, x tons of aluminum, x tons of copper, x million of
revenues, etc. But is that all there is to development?
Esshaq Jahangiri once stressed that under
President Khatamis administration, the countrys economy and industry had both
grown remarkably, arguing with those who questioned the economic performance of President
Khatamis system. Bringing instances in support of his claim, Jahangiri stated,
Iranian steel has demands in most industrial countries due to its fine quality. For
production of each ton of steel in 1996, Iran had to spend $100 on raw materials while
this cost dropped to $45 last year. In the past 3 years, the Iranian steel industry has
experienced 3 million tons of increase in smelting capacity and 2.79 million tons of
increase in final production capacity.
These are clear indications that Jahangiri is aware of the fact that development goes way
beyond targeting numbers. For a developing country like Iran which also happens to be
dependent on oil revenues, true development in the industries and mines sector demands
greater efforts locally and shaking hands with efficient partners internationally.
The Ministry of Industries and Mines is expected to target something more than numbers:
potentials, long-term cooperation, international partnership and modern management.
Working in international partnership, affiliated companies of
the Ministry of Industries and Mines may get ahead of the Ministry if it shows a slow
progress |
Partners Around the World: The former Minister of Mines & Metals
has on occasion pointed to the effects of international environment and political issues
on economic and industrial progress, declaring that the slow progress of some industrial
operations between 1989-1996 was mainly due to the fact that the international political
environment was not much in favor of the Islamic Republic of Iran in that period. Drawing
on improved international relations, the Ministry of Mines & Metals later signed five
steel contracts for the value of $700 million with Italys Danieli.
The Ministry of Industries and Mines has now
giants under its umbrella like National Iranian Steel Industries Company (NISCO), Iran
Khodro Auto Manufacturing Group, National Iranian Copper Industries Company (NICICO),
Saipa Auto Manufacturing Group and IRALCO. Working with some world-class partners across
Europe and the Far East, these companies are likely to get ahead of the Ministry in
pursuit of their global ambitions if the Ministry of Industries and Mines proves slow in
progress and management.
Great Expectations: For a country that is struggling to
promote non-oil exports, almost every commodity produced by subsidiaries of the Ministry
of Industries and Mines is expected to be exported for the sake of job creation and
increase in forex revenues. This demands a strong determination to comply with
international standards in terms of quantity and quality.
Privatization, re-activation of some existing
industrial plants, establishing greater links between the Iranian industrial-mining sector
and global players, providing greater facilities for small and medium industries, and
offering more room to industrialists and exporters are some of the measures that the new
ministry can adopt to achieve the progress that it is expected to make.
The Ministry of Industries and Mines has the opportunity, and the responsibility, of
playing a leading role in internationalization of Iranian economy. |