The Iranian economy has been most dependent on oil during the past two years than anytime before. This reality is taken into account by most economic analysts when analyzing the economic situation of the country. Taking into account Iran’s oil revenues during the said period, it seems that economic growth rate has not kept up with increasing oil revenues. At the same time, the Fourth Economic Development Plan has projected strategies for Iran’s economic growth and analysts maintain that if those strategies were taken into consideration, Iran’s economic situation would not have been as critical as it is right now.

It seems that this is part of the economic realities of Iran and that noncompliance with economic policies or lack of economic stability has emerged as a major problem. The Fourth Economic Development Plan can be a good example in this regard. The plan had been formulated by economic experts of Iran before being sent to the archives by the ninth government. According to Dr. Hamid Reza Baradaran Shoraka, the former head of Management and Planning Organization, in view of Iran’s oil revenues during the past two years, the Iranian economy should have experienced a 10-percent growth rate, but the most optimistic estimates give a figure of 5.5 percent. The comparison shows that Iran’s economy lags behind the projected goals by 4.5 percent. During a meeting at Baran Foundation, Dr. Bayazid Mardoukhi noted that during the past royal dynasties Iran lacked a concrete economic plan, but in contemporary times, intellectuals managed to convince the rulers that there are better ways to run the country. "This marked the beginning of the Constitutional Revolution. However, despite the arrival of ideas into our country, we were deprived of needed mechanisms," he added.

The expert stated that some intellectuals reached the conclusion in 1930s that something should be done and proposed that a roadmap should be formulated for the country, which led to introduction of the first 7-year development plan of the country in 1948.

Mardoukhi further noted that the first plan included a number of projects, which were implemented partially and brought relative stability to the country and the second plan followed the same lines. He said that after nationalization of the oil industry and the military coup of August 19, 1953, new directions were set. "The third development plan revolved around infrastructural and production plans which were relatively supplemented by the fourth and fifth plans," he said.

The expert noted that the sixth plan was drawn up by the then Plan and Budget Organization which sought to achieve ambitious goals. It followed the model experienced in South Korea, but due to problems and orders from the former Shah, it was not implemented before the Islamic Revolution.

"In 1982, the Plan and Budget Organization decided to draw up a plan for the years 1983 through 1987 and this paved the way for the implementation of the First Economic Development Plan. After the end of the Iraqi imposed war, planners aimed at rebuilding economic infrastructures and a number of projects were implemented during the Reconstruction Period without taking serious steps as to production. The Second Economic Development Plan pursued insignificant goals, but the Third Economic Development Plan targeted structural reforms. Planners reached the conclusion that as long as infrastructures have not been corrected, no plan could be successful. There were many innovations in those plans, but unemployment and inflationary pressures were not controlled," he said.

The expert noted that during that period, economic structures were relatively corrected. Thus, the Third Economic Development Plan was the most comprehensive plan that has been drawn up thus far.

"Development plans were bureaucratic plans and the role played by the people was insignificant. A question facing planners is how people can do their part for the formulation of such plans? The then president also emphasized that plans should be drawn up in such a way that they would pay attention to the people’s needs," he said.

Mardoukhi further stated that the least amount of delay in implementing development plans would lead to great lag in economic growth. "No plan can correct the social culture, but can provide the government with good means to do this. Economic development is defined as increasing material and spiritual capacities of the society to achieve goals. Therefore, creating jobs and increasing revenues can only be done through economic planning," he concluded.

Further in the meeting, Dr. Baradaran Shoraka noted that about 90 percent of the Iranian economy is dependent on oil and oil reserves are constitutionally at the possession of the government. "Oil is an inter-generational asset and we must think about future generations too," he added.

Shoraka emphasized that the Iranian society’s lack of suitable plans and vague information on people’s demands are the main reasons which abort planning in Iran. "Under these conditions, the country needs urgent planning and dissolution of the Management and Planning Organization should ring the alarms for the Iranian planners…. In Western countries, economic corporations formulate development plans outside the government. As long as such institutions have not come into being in Iran, we would need other institutions such as the Management and Planning Organization," he said.

Former head of the Management and Planning Organization (which was reduced to planning department of Presidential Office under the ninth government) further stated that sustainable development through a global approach was the main goal of the Fourth Economic Development Plan which aimed to help Iran rank the first in the region. "However, there are not fixed strategies in Iran and they change as the governments change," he said.

Baradaran Shoraka further stated that studies were conducted before the formulation of the Fourth Economic Development Plan which showed that the Iranian economy enjoyed a traditional and trade-based structure, which should be changed to a production-based, modern structure.

"The society, unfortunately, was looking forward to be offered a readymade prescription…. Every plan needs to pay attention to structures…. The Fourth Economic Development Plan had projected that political parties should be established to end government’s exclusive control on political matters. It also aimed to turn Iran into a modern and developed country by promoting nongovernmental organizations and encouraging their participation in social and cultural affairs," he said.