Wednesday, September 28, 2022

Deregulation; Best Way to Save Iran’s Economy

An Iranian analyst believes deregulation of the Iranian economy is the most suitable solution for strengthening the country's economy.

Amir Hossein Khaleqi, a PhD holder in Policy-Making from the University of Tehran, has said in an article in the Donya-e-Eqtesad daily newspaper on Wednesday that the three important factors that make doing business harder for businessmen are ‘financial difficulties’, ‘inefficient government bureaucracy’, and ‘lack of stability in policies.’

“The fundamental problem should be sought in the legal structures and numerous regulations and procedures. It can be seen in the competitiveness report that Iran, on the one hand, interacts with other countries of the world with a ‘system of inefficient tariffs’, ‘numerous barriers to foreign trade and direct investment’, as well as ‘the absence of foreign companies in the country’.

On the other hand, there is no proper legal framework for ‘assuring investors, especially the microfinance shareholders’, “corporate governance mechanisms’, and ‘accredited reporting and auditing procedures’.”

“The same shortcomings can also be proposed to improve competitiveness for the country’s economic development. The Iranian economy does not need many regulations and licenses, what it needs is a minimum of good rules. We should allow good rules replace discretionary orders and bureaucracies of the government.”

“These rules are also for ordering and better functioning of the people involved with the economy. These rules does not originate from the opinion of governments, but instead originate from science, collective wisdom and the experience of the experts. Interacting with the world and opening up the economy to the world is a direction that may require more than anything else the consensus of the politicians,” the articles reads.

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