The Forum for Partners in Iran's Marketplace
 
 
 
 
 
 
 
 
 
 
 
     

July 2013, No. 67


Economy

We Are Facing
the Worst Economic Int'l Conditions

Mohammad-Reza Nematzadeh

Due to the policies adopted in recent years, our country Iran is now facing the worst economic and international conditions. Iran's current situation is such that even a small country in the region could bully Iran. This shows the extent of our country's international power and authority! Inside the country every year we are witnessing discrepancies at different levels. In recent years due to different economic and political issues and policies adopted and implemented in this regard we noticed numerous social problems and abnormalities. Unemployment which is known as the root cause of many problems has increased in these years.

Inflation in these years has been caused by an imbalance between supply and demand so that supply has always been less than demand due to the low level of production. This has resulted in a price hike. Since the incumbent government possessed money it embarked on importing all types of imports with an aim of establishing a balance between supply and demand and thus increased supply.

Such an adverse and wrong policy resulted in exerting pressure on production and employment sectors and further tied their hands. Instead a group played the role of brokers and middleman and placed the country in a reverse cycle.

Meanwhile, the country needed attraction of new investments which has so far been neglected. Under the present condition it is likely that the movement of economic cycles in the short run impose pressures on the weak and low-income groups. The government, in order to protect these groups, should take measures to pay proper subsidies in proportion to their situation. In circumstances under which the goal and target is to reduce the yawning gap between classes certain amounts of money should be allocated for monthly payment to those without a breadwinner, the aged or those under the protection of Imam Khomeini Relief Committee or other supportive organizations. The amount could even be increased as compared to the current subsidies.

However, at present the time is not ripe for making any change in the subsidies or even eliminating them. The payment should be continued in its present form until a clear and transparent solution is found for supporting the weak masses in the society.  

In countries such as Russia, the US and Britain coupons are prepared for target groups according to which people could supply their foodstuff. This method is even better and more decent.

In the meantime, people could be assured that each month they would get a certain amount of protein and dairy. At the beginning of the 1979 revolution and when I served as the Minister of Industries, grounds were prepared for coupons for a variety of commodities such as cooking oil and sugar among all classes of the society. We set the average global rate as the consumption rate for every person and no one was dissatisfied. Now the same system could be applied once again.

 

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  July 2013
No. 67