The Third Economic Development Plan of Iran, the ninth development plan in the past 50 years, was finally approved by the Parliament in November last year in 207 articles.
The focus of the Third Plan is on reforming structures rather than development. In this line, the government has opted for reforming infrastructures so that the nation can witness a sustainable growth which fulfills the needs of the country in the future. Main objectives of the plan are:

Some of the predictions in the plan include: average annual growth of the country 6%, growth in annual investment 7%, annual inflation rate 15.9%, growth in the export of non-oil commodities per annum 18.5%, and the unemployment rate 11%. The main two aspects of the Third Plan are “economic growth, increasing employment,” and “conducting efforts to realize a comprehensive social security system.”
An important point is that the objectives of the Third Plan would be attainable only when proper grounds are prepared for them, for example an annual growth of 18.5% would be achieved if investments increase. If unnecessary laws are not eliminated and procedures are not reformed, the goals pursued by the plan would not be realized, while if the government changes the laws regarding property ownership and increases security for investors, then we can anticipate positive outcomes of the plan.
Also creating 600,000 job opportunities annually cannot be done solely by the government; the private sector should be developed so that it can properly absorb the unemployed population, mostly young people. Moreover, the 16% reduction in inflation rate is possible only when the laws surrounding the manufacturing activities, export and investments are reformed; it lies with the government to cerate a proper climate for the private sector to absorb investments and direct them into manufacturing activities by which employment opportunities would grow and as a result, the export activities would expand. True, the goals of the Third Plan are not ambitious, but we should see what measures the government is to take to realize them?
If enough security is provided for investments, manufacturing work is not facilitated and exports are not encouraged, then the government can invite expert manpower to get more involved in economic affairs. If this happens, the 7% increase in investments, which has been predicted by the government, would be possible.
It is advisable for the Islamic Republic of Iran government, the Ministries of Industry, Commerce and Finance and Economic Affairs to set up expert committees, reduce opportunity and transaction costs, so that manufacturers and exporters would not be tangled with unneeded laws.
From an expert viewpoint, the most important feature of the Third Plan is realistically considering the prevailing conditions of the country, and it is believed the Plan has been unique in the past fifty years of the Iranian history, in terms of budgeting and precision.
The attention that designers of the plan paid to structures and preparing the grounds for a sustainable development is another feature. “The Third Plan is the product of an accurate political vision and a collective wisdom of experts,” observers believe. Based on these facts and since the plan enjoys public support, it is totally defendable. Although being a unique plan comparing to previous economic schemes, some of the policies presented there seem to be only unattainable slogans, such as the objectives defined in the field of research and technology. Some of the policies introduced in the Plan are quite new, because they are based on new visions recently adopted regarding economic issues. These new visions can be seen in anti-monopoly provisions of the Plan.
In the introduction of the Third Plan, to be effective from 2000-2005, it has been mentioned that the improvement of the country’s economic conditions is dependent upon heeding all aspects of issues. The Plan should include the political imperatives in order to resolve the most important issues of development. Furthermore, the success of the Plan lies with the participation of all fundamentals of decision-making systems in an organized body.
Based on the expert views at the Plan and Budget Organization, there are differences between what was offered by the Organization and what passed to the Majlis by the government.
In the Third Plan, a 25% increase in the price of energy would mean that the petrol price would be 1,500 rials per liter. The increase in energy prices without an effective social security system would prompt wide-scale opposition against the Plan.
Despite its weaknesses, economists believe that overall, the Third Economic, Social and Cultural Development Plan would bring about the most effective economic adjustments in the country.