globalization

Raising efficiency and increasing  productivity in financial and  human resources of the country. Streamlining the government in  policy making matters.  Decreasing the redundant  governmental tasks and transferring  the non-governmental affairs to the  other economic sectors.  It is evident that the goals mentioned  above, will be farfetched if the  government fails to provide the  requisite conditions for  fulfillment  of tasks such as supporting of the  increased governmental investments  in state-run businesses alongside  with allocation of some of these  businesses to private sectors,  identification of the government’s  policy making areas and separation  of job production duties with state  affairs for the purpose of optimizing   governmental productivity in these  areas and omission of current  unnecessary rules and regulation  and formulation of new rules with  the intention of empowering private  and co-operative sectors.  In the forth five-year development  plan, the proposal for the transference  of authorities, liquidation and  integration of state owned agencies  with the intention of sustaining the  privatization plan and consolidating  the private sector was brought up   which properly supplemented the  previous regulations regarding  the privatization process. It also  introduced various methods  concerning the privatization excluding  the transference of state  owned stocks; presenting a scheduled  plan for specifying and segregation  of governmental, monopolistic and  other sectors’ activities that have the  least appeal for the private investors;  taking a leap towards the attainments  of some of the goals stated in the  previous privatization rule.  In spite of all these efforts,  privatization required more coherent,  complete and straightforward rules  which became feasible by the means  of general policies of the article 44  and codification of the respective  bills, emphasizing on the following  objectives:  Accelerating the national economic  growth.  Expansion of ownership in general  level of people for the purpose of  securing economic justice.  Improving the efficiency of firms  and productivity of human, financial   and technological resources.  Increasing the general employment  level.  Encouraging investments and savings  amongst people for the purpose of  remuneration improvements.  Privatization is an important factor  facilitating the process of reaching  these objectives, by playing a crucial  job in the job of transferring the  state-owned stocks, improving the   efficiency of the firms and lowering  the government financial and  managerial contribution level in the  economic activities of the country.  The international conference on  globalization, privatization and  economic justice was held in Tehran  on 6-8 of January, 2008. The opening  speeches of the conference were  carried out by Dr. Davoud Daesh  Jafari - the Minister of Finance and  Economic affairs, Dr. Mohammad  Nahavandian – the Head of Chamber  of Commerce, Industries and Mines  of Iran, Dr. Gholamali Haddad Adel –  Chairman of the Iranian Parliament,  Mr. Rahim Mashaee - the head of  National Center for Globalization  Studies and Gholamreza Heidari  Kord Zangeneh - the Executive  Director of Iranian Privatization  Organization.

  A large number of national and  international experts and highranking  authorities attended this  conference, enriching the seminar to  the higher levels.  “With regards to general policies  of the article 44 of the Iranian  constitution concerning the  expansion of the private sectors,  most of the economical problems  will be solved through transference  of the state owned firms and their  activities to the private sectors. It is  evident that fulfillment of this goal  is not probable in one or two-year   period and might require several economical plans” Dr. Davoud  Danesh Jafari continued, “we have to   confess that Iran’s economy has been  always dependant on government  investments, supervision and  financial power and above all oil  revenue; whenever the oil price was  in a good condition, some positive  actions have been done, in case  of the opposite, we always faced  problems”  Dr.Danesh Jafari added that; today,   our private sector is strong and  competent in financial matters and    incase of having a well-planned  strategy for the private sector  investments; we will be able to draw  on its positive benefits which are  constructiveness and also ceases the  inflation rate.  International and regional unions  and institutions have grown quite  recently and private economies  have flourished-besides national  ones. Such growth signifies the  need for Iran to bring about change  in national and regional economies.  State economies, with features  like inappropriate distribution  of resources and opportunities,  lack of functional stability and  clarity, political limitations and  unfamiliarity with international  trade and underdevelopment in  management and technology  generally moves toward inefficient  privatization. Thus Iran’s economy  lacks competitive potential on  the international playground and  cannot attract foreign investments;  meanwhile the Constitution of  Iran and Islam both advice and  emphasize on privatization. One  major privatization outcome is  to realize and activate the stock  market, manage prices, separation  of state from the private sector  affairs and bestow the impoverished  their fair share of the pie. Moreover,  training workshops and professional  commissions as part of article 44 are  keys to privatization in Iran.

 Dr. Gholamreza Heydari Kord  Zangeneh the Executive Director of  Iranian Privatization Organization  also stated that, the prerequisite  of the globalization is having an  open economy. Privatization is the   first step in globalization process,  with government stepping aside  gradually and just focusing on  supervision and control. He also  added that broadening the capital  market, encouraging the large scale   ownership of the stocks, softening  the rules and regulations, creating  motivation and enthusiasm between  the employees of the firms, fulfilling  the consumer interests and adjusting   the subsidy rates are amongst the  future objectives of the privatization  in the country. He declared that the  Iran’s Industry is old and obsolete  in some parts, leading to the lack  of competitive power amongst the   domestic products.  Dr. Mohammad Nahavandian, the  Head of Chamber of Commerce,  Industries and Mines also mentioned  that privatization should not be  narrowed to transference of just a  limited number of firms to the private  sector, rather it has to be utilized  in a way that helps our industry to  enter the global market-place; he  considered the economical statism  to be the main obstacle in economic  growth of the private firms and  added that, “we have to resort to a  kind of policy that makes the most  of our current possibilities leading  our firms and businesses into the  global market, and achievement of  such a goal is not possible without  the empowerment and improving  the private sector and it is just  through the active engagement in  globalization process that we would  be able to experience and create  globalization in its true and fair  nature”   One of the traits of the current  century regarding the international  trade-market is adopting policies that  broaden the export and import levels  respectively. Another characteristic  is streamlining and simplifying  the structure and dimensions of  the governments, strengthening  and focusing on the private sector  activities that encourage the  competitive environment, helping  the economy to gain from the positive  effects of the efficient exploitation of  the human and financial resources.  Liberalization of the trade and  globalization are progressing and  prevailing each day and expansion  of the information technology with  its unbelievable upswing , paves  the way for further growth of the  globalization.  In addition to the conference,  an exhibition including the  achievements of the governmental  firms in regards to privatization  has been hold, which drew a lot of  attention from the participants of the  conference.