The Forum for Partners in Iran's Marketplace
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     

January 2017, No. 82


Economy

Extroversion Means Interaction with the World


Naturally, for getting out of recession and reaching prosperity, it is necessary for the side of demand to be activated and expanded.


Dr. Ali-Naghi Mashayekhi, Economist

In my opinion, extroversion means interaction with the world and the surrounding environment. This keyword, contrary to introversion, which means directing one’s attention within oneself, has different dimensions; interaction for the exchange of commodities and services, knowledge and technology are among these dimensions and attainment of this kind of interaction with the world is essential for a society.

The reason is also clear. Development of science, technology, economic progress and so on is prevalent in every corner of the world and no country could claim it has all the achievements within itself.

As a result, if domestic goods, services, and competitive advantages could be presented at the world level and, advantage could be taken from the top commodities and services of others, this will cause progress. In addition, in interacting with the world, findings and results of research works could be exchanged and this trend will accelerate progress of the society in scientific, technological and economic fields.

In fact, this issue in the contemporary world is imperative. In other words, if a country neglects extroversion it can hardly keep pace with the humanity and will be affected by some sort of backwardness. Now, if a country lags behind other societies, then its economic, political and military security will be overshadowed. Therefore, extroversion is one of the necessities of each society, a requirement which has soundly been referred to in general policies of the Economy of Resistance.

In Iran’s economy, now there are a number of small and big problems. One of these problems is recession which alone causes another complication called unemployment. Naturally, for getting out of recession and reaching prosperity, it is necessary for the side of demand to be activated and expanded. To this end, it is also necessary that work and job be created and investment be made, in order to motivate the general demand and make exit from recession possible.

Meanwhile, capital resources within the country are limited to such an extent that government investment with regard to the outstanding drop in oil revenues has remarkably decreased. On the one hand, due to the existence of recession investment making will be faced with reduction. Because, investment is made when in response to the existing demand, capacities will need to be developed. Therefore, with regard to the recession and lack of capital and of course absence of demand, development of exports can be helpful: Exports that will surely be achieved in the light of extroversion.

As it was mentioned, extroversion means interaction with different countries and in different geographical locations. In interacting with these countries, we can link their existing or potential demand with our production capacities, and by relying on foreign demand, we can come out of the recession sooner.

Another point with regard to the shortcomings of domestic investment is the need of the economy for foreign investment. In an effort to expand some sectors such as oil and gas, mines and energy-consuming sectors, investment is needed. Therefore, if constructive and honorable interaction is forged with the world, the current of investments from the other side of the borders can be directed inside the country.

In this way, both infrastructures will be developed and domestic demands will increase. This will bring prosperity to the country in the short run and in the long-term will prepare the ground for appropriate economic growth.

The other important point is the necessity of absorbing technology in different fields with an aim of modernizing the mainly old industries of the country, which are operating at high costs.

Certainly, due to interaction with countries owning technology, the country’s industries can be renovated quickly through transfer of technology. This technology of course is not confined to product and production processes. In fact, we need the technology for improvement of management in our organizations.

Now it is necessary that managerial systems in different organizations of the country – especially in larger organizations, which of course need further complicated management and are mainly active with meager efficiency – be reformed.

On the one hand, acceleration of the management reform of these organizations is highly important and this will be attained in the light of interaction with the world. Therefore, in all the mentioned dimensions extroversion can help exit from the recession and realization of acceptable economic growth.

 

Subscribe to
IRAN INTERNATIONAL

CURRENT ISSUE
   
  January 2017
No. 82