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January 2019, No. 90


Viewpoint

 

We Went the Wrong Way!


The sanctions are a huge loss for the country, but it can be viewed as an opportunity as well.


What people can do, you do not do it! Economic activity in the government has been concentrated and this sector would not quit its governance. As for the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) and the sanctions Iran is facing again, we conducted an interview with Ala Mir Mohammad Sadeqi, who is a seasoned Iranian entrepreneur and a member of Iran Chamber of Commerce, Industries, Mines and Agriculture. 

What is your advice to the government in the face of new US sanctions and Washington’s withdrawal from JCPOA?

Taking the status quo into account it is not possible to present effective solutions but there is one logical and sound strategy the government could consider if it is realistic. That is to delegate the economy to the people. If the people take control of the economy they would be able to steer it on the right path. The private sector needs liquidity in order to develop its activities, and the banks need to do something for them. In the current situation, banks do not seem to be able to act actively in terms of liquidity. Therefore, with the presence of the people, it is possible to eliminate the existing gaps.

The sanctions are a huge loss for the country, but it can be viewed as an opportunity as well. The people’s ability to engage in economic activity is such that they can achieve good success in production and even produce low cost goods. If this happens we will be able to cross the sanctions. 

The people would participate when they can trust the policymakers. Under the status quo how can people be expected to get involved in the economy?

Let’s not forget that 80 percent of the economy is in the hands of the public sector. When a country is not under sanctions and operates under normal circumstances, the state economy is to its disadvantage. Now with the sanctions, the state economy is like a deadly poison. If there is talk of reform in various areas, no reforms will be possible without the presence of the people. Now that our enemy (the US) has been provoked and wants to carry out different actions against Iran, it is better to use the power of the people to overcome the tension. Of course, people also want to participate in the domestic economy.

We have a significant number of wealthy people in the country who are ready to enter the economy, if they are reassured that the government would stop its governance and believes in the presence of the private sector and people’s investment. As a first step, I recommend that the government transfer its plants to the people under easy terms. The government has factories that are making losses and cannot continue business. By ceding such plants the economy can be saved. This Resistance Economy is one of the key strategies that can provide a way out of the problems for the Iranian economy. This discourse can be seen as a way out and a liberating approach.

There is a problem in achieving the goal of a resilient economy that is lack of a harmonious understanding of this concept. Perhaps this is why we are not successful in formulating and achieving the goals of the plans. The people of Iran also have more sympathy and empathy with this issue and I am sure that they will support Iranian goods with the same strategies. Economy and economic growth require a calm and balanced environment; on the other hand, we have to be self-confident and take steps on the path to self-sufficiency.

 

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  January 2019
No. 90