Necessity of mobility of production and reform of the banking and consumption system
The structural problem of the Iranian economy is consumption-oriented rather than production-oriented. The reform of laws to facilitate production and prevent unauthorized activities, economic intermediaries and rent-seeking and corruption in the Majlis is one of the necessary measures to correct the problem.
Sayyed Jamaleddin Mohseni Zenouzi, Economist: Most economists believe that the Iranian economy has structural problems that were created prior to the revolution due to the incorrect development policies and lack of consideration of Iran's economic advantages along with the incomplete implementation of development policies such as import substitution policy. . The late Dr. Azimi has mentioned these problems in his book, Underdeveloped Circuits of the Iranian Economy.
One of the structural problems in Iran, which is one of the underdeveloped circuits in the country, is the lack of production mobility. According to Dr. Azimi, this problem is due to the dependence of industrial production on foreign raw materials and the incomplete implementation of the import substitution policy and the relative advantages of the Iranian economy in the agricultural, petroleum and petrochemical sectors. In addition, the North-South and East-West transport corridors face problems in the country's development policies in terms of government production and investment, which are compounded by cultural problems and national uncertainty about demand. have given.
I believe that the solution to the problem of productive mobility should be found in the policies of the resisting economy and the slogans of the Supreme Leader of the Revolution. The slogans of reforming consumption patterns, economic jihad, relying on national production, Iranian labor and capital, a resisting economy and ultimately a boom in production all point to the correction of this structural problem. Adopt endogenous development policy and rely on domestic production capability, pay attention to the knowledge-based economy, popularize the economy by properly handing down government-owned companies through stock exchange and reducing government tenure, cultural work, and leading government officials to use goods. Iran is one of the economic solutions to the above structural problem.
The second structural problem of the Iranian economy is the weakness of the banking system in directing liquidity and capital resources towards the production and dependence of the state budget on oil revenues. The liquidity of the country has been desirable over several periods. In 1989, according to Dr. Azimi, it was three and a half times the limit, which means three hundred and fifty percent of hidden inflation, which is waiting for an economic shock or a political shock to emerge, with the implementation of the economic adjustment policy from 1993 to 1995. Inflation hidden in the economy appeared.
In 2010, due to high oil revenues and the functioning of the banking system, according to Mr. Mesbahi Moghadam, the liquidity in the economy was three times higher than in 2010, due to the shock of boycott of this hidden inflation in the economy. In September 2016, according to the Central Bank statistics, the country's liquidity was three and a half times the limit due to high bank interest (20%) and the Central Bank's car loan scheme (two hundred and fifty million loans to hundreds and ten thousand people). And the banks have been making a lot of money by borrowing money illegally and borrowing money from the central bank.
To address the second structural problem of the economy, reforming the country's banking system and enhancing the transparency of banks and central banks is necessary. The good practice of integrating the banks of the military entities into the Sepah Bank is one of the appropriate steps to reform the banking system that is appreciated. Reforming the Islamic banking law, which is demanded by Islamic economists, enhances the transparency of banks and the central bank, monitors the production of credit and counteracts formal banking transactions and the use of formal contracts as necessary measures to reform the country's banking system.
The third structural problem of the Iranian economy is the consumption-oriented rather than the production-oriented nature of the Iranian economy. In Iran, surpluses of annual necessity are usually spent on consumption (foreign travel, imports, currency speculation activities, gold coins, housing, cars, etc.) rather than production, indicating limited business space, change There are constant laws, too many laws and too much administrative bureaucracy in the process of producing and weakening the rules or the lack of rules in the brokerage sector.
Amendments to the law to facilitate the production and prevention of unproductive activities, intermediaries and economic rentals and corruption in the Majlis are essential to address the above structural problem. The above amendment requires the election of world-class, healthy and revolutionary representatives to be fulfilled in the test of the March elections this year.
* Tasnim
