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To attain more economic clout in the world markets,
every country must seek to remove problems and domestic bottlenecks,
determine suitable economic strategies for growth and change economic,
social, political and cultural structures. |
Global developments during the past two
decades have proven that the role of every country in international politics
is determined by the economic might of that country. The winners will have a
bigger share of global trade. Therefore, to attain more economic clout in the
world markets, every country must seek to remove problems and domestic
bottlenecks, determine suitable economic strategies for growth in production,
change economic, social, political and cultural structures for administrative
and organizational coordination in line with developmental strategies and,
finally, get the society to the limits of welfare by taking full advantage of
production capabilities and increasing volume of exports.
Under these circumstances, attention to
the role of international factors in determining the direction and pace of
economic developments of various countries becomes more important than before.
So that, the global economic system in view of the influence of each of the
international factors, has nearly turned into a unified global system based on
division of labor and this has added to complexities of global trade.
The experience of global transactions
has proved that excessive reliance on domestic resources to meet domestic
needs might succeed in meeting those needs, but would lead to lowered economic
welfare.
Closing the doors on imports, would face
the country with other limitations including reduced quality of domestic
products, lack of technology transfer and blocking the way to new production
methods, which would in turn led to the serious downfall in social welfare.
Therefore, imports will bring with them a wave of new developments,
recognitions and technology that would provide motivations for qualitative and
quantitative growth of domestic products.
On the other hand, the need for new
investments—which calls for new technologies, machinery and technical
equipment—will reveal the corresponding need to a forex source for developing
countries. Therefore, these countries export raw materials including oil as
well as traditional and agricultural products, which frequently do not exceed
one or two products. Reliance on export revenues from the said sources will
make forex revenues unstable due to their downward and shaky trend in global
trade, which will be ensued with shakiness and instability of developmental
plans in such countries. On the other hand, diversification of exports for
earning forex revenues and stability for formulating developmental plans and
increasing imports would require adoption of a dynamic, long-term policy that
is known by the economists as the export development policy. Even import
replacement policies need export development as a factor for bolstering forex
resources.
Therefore, development of exports and
increased capacity of the country’s export revenues can strengthen development
planning and transfer of new technologies to increase domestic production
capacity and even develop products to replace imports.
On the whole, the following points can
be mentioned with regard to positive effects of the export development policy:
1. Export development based on free
trade would guarantee higher efficiency and production. Therefore, development
will also boost the welfare of consumers through increasing their revenues and
choosing opportunities.
2. Development of exports would pave the
way for savings in many modern industries, which will in turn slash average
expenditure and the cost of products and increase competition at global
markets.
3. Expanding trade and developing
exports will push the economy towards production and sale of products for
which the country enjoys relative advantages or, at least, can produce them at
a relatively lower cost, provided there are similar motivations and
encouragements for sales.
4. It is believed that the prerequisite
of an export development policy is total liberalization of import of raw
materials as well as intermediate and capital goods for increasing quality of
production. However, precise supervision over exports in order to prevent
export of low-quality goods is a must. Therefore, considering the amazing
effects that export development can have on the economy, to get rid of the
economic problems such as unemployment, inflation and low economic growth
rate; the export development policy must be the pivot of the Fourth Economic
Development Plan.
Therefore, the planning system of the
country must focus on this issue to lay suitable grounds for qualitative
enhancement of products and identification of target markets in view of Iran’s
geographic situation as well as the availability of rich energy resources and
inexpensive labor. This can be accomplished by paying due attention to the
advantages of export development for creating jobs, increasing forex resources
and boosting economic welfare.