Economy is realistic, not idealistic. From the time the economic development plan was formulated due to the country’s need for change, many economic experts noted that the plan should conform to the realities and maintained that though the country needs to make changes to its economic system, the plan should not be implemented in a hasty manner. However, no mechanism for implementation of the plan has been explained and this has evoked criticism from experts and private sector activists. Head of Tehran Chamber of Commerce, Industries and Mines noted that figures and indexes as well as tables given as part of the economic development plan do not constitute a new plan and should be revised.

Undoubtedly, development is much needed, but according to what plan? Based on what information? And in what direction? These questions should be addressed first.

The above facts attest to absence of a set plan because after several months that have passed since the announcement of the plan and although a workgroup has been establish to carry out the plan, its executive mechanism and goals have not been announced and information given to people is restricted to statements by cabinet members. Under such conditions, criticism of the plan is not complete and government officials have turned down critiques on grounds that they are not to the point. Yahya Alees-hagh has noted that economic change would not be possible through idealism and needs executive plan because economy is a practical field and state managers should avoid of idealism in this area. He has noted that every comprehensive plan should include transfer of 80 percent of governmental entities to the private sector.

Public Relations Department of Tehran Chamber of Commerce, Industries and Mines quoted him as saying that economic change is inevitable, adding, “When 80 percent of domestic economy is state-run or semi-governmental and when that 80 percent is to be transferred to the private sector, the need for a major development is felt more than any time before.”

Head of Tehran Chamber of Commerce, Industries and Mines said that no executive affair can be fulfilled through idealism. “For example, you cannot say that you wish for classification of production to change in the way you want or you wish for gross domestic product to hit a certain figure or wish for justice to be established. Ideals have no place in economy,” he said.

The official added, “Economy is a practical field and deals with scales, weights, paths and goals. These conform to practical realities and as long as practical ways have not been found, no solution could be found. In short, economy is realistic, not idealistic.”

“If we want change and plan to transfer 80 percent of a state-run economy to the private sector, we must begin at the very fundaments. The business atmosphere should be changed to pave the way for realization of the goals. For example, you cannot say that since we need refrigerators, all tile factories should produce refrigerators. Production plants cannot yield products according to our needs, but in accordance with their tools. Therefore, if we want to change direction of our plans, we must think about prerequisites.”

Head of Tehran Chamber of Commerce, Industries and Mines added that the primary subject of the so-called economic development plan should be made known. “We must know whether this is a policy, a strategy, an orientation, or a plan of action. Some call it a program, but an economic program has its own requirements. Strategy and policy have their own requirements which should be observed. At present, no clear plan has been presented. If it is a policy, its fundaments should be clarified. If it is an approach, its goals should be made clear,” he said.

“What has been announced as the economic development plan is, in fact, an announcement of needs; need for change in indexes and figures. It is true that we need change, but according to what plan, on the basis of what information and in what direction? These issues should be made clear.”

Alees-hagh further noted, “In my opinion, although such a plan is necessary, there are several points which need to be discussed. It should be noted that we need to change our economic system and this is not a voluntary option. Subsidies have put a heavy burden on our economy. If energy subsidies stood at, for example, 10 billion dollars in 1995, now the figure has increased to 100 billion dollars. That is, 900,000 billion rials should be accounted for in the budget bill. If the current trend continues, we will have to allocate the lion’s share of the budget to subsidies. Expenses are clear-cut, but it should also be made clear whence those expenses will be covered.”

The official further noted that there should be a way to cover those expenses.