A member of Iran's Chamber of Commerce criticized the Islamic Republic's government interventions in 'pricing', stating: 'An efficient economy' is one where the 'supply and demand' mechanism determines prices, especially since 'factors of production' are also variable. Ali Naqib, head of the Industry and Mining Commission of the Tehran Chamber of Commerce, pointed out that society is grappling with a 'command pricing system' and told the state news agency 'IRNA': 'The heavy shadow of the command system' in Iran's economy over the past years has led to 'unfortunate consequences' such as 'job reduction, jeopardizing the survival of industries, capital flight, and benefiting a few rent-seekers.' He also emphasized that the command pricing system has cast a shadow over various sectors of Iran's economy at both 'macro and micro' levels. According to Article 44 of the Islamic Republic's Constitution, Iran's economic system consists of three distinct sectors: 'public, cooperative, and private.' Accordingly, the 'public sector' includes 'all large industries, mother industries, foreign trade, large mines, banking, insurance, power supply, dams and large water supply networks, radio and television, postal services, telecommunications, aviation, shipping, roads, and railways,' which are under 'public ownership' and controlled by the 'government' entity. The Islamic Republic's Constitution also defines the 'cooperative sector' as 'cooperative production and distribution companies and institutions' formed in 'cities and villages' according to 'Islamic regulations.' In this context, the 'private sector' includes that part of 'agriculture, animal husbandry, industry, trade, and services' that 'complements the economic activities of the public and cooperative sectors.' The head of the Industry and Mining Commission of the Tehran Chamber of Commerce criticized the current structure of Iran's economy, stating that if the command approach to the economy continues, it will result in nothing but 'factory closures and shutdowns.' This member of the Chamber of Commerce further stated that the Islamic Republic government prevents the price of 'bread' from increasing by providing subsidies; however, the 'implementation of a command pricing system' for 'durable consumer goods' like cars causes the 'economy to lose its efficiency.' With increasing economic inefficiencies, public criticism of official policies has intensified, to the extent that the newspaper 'Jomhouri Islami,' close to the ruling traditional clerics in Iran, wrote on April 3rd: it is clearly understood that 'the authorities do not intend to relent in their failed policies' in any area. Ali Khamenei, the leader of the Islamic Republic, communicated the 'general policies of Article 44 of the Constitution' to the heads of the three branches of government and the head of the Expediency Discernment Council in June 2005, leading the state organization 'Privatization Organization' to take actions that were later heavily criticized and interpreted as 'privatizations' referring to the transfer of public assets to affiliates and close associates of government managers. Ali Naqib, a member of the Tehran Chamber of Commerce, also commented on the effect of 'preferential exchange rates on the market,' stating that currencies allocated as 'quotas' in the form of 'rent' to individuals 'are not only not beneficial to the people and consumers,' but also go into the pockets of 'a few speculators and rent-seekers,' while producers and the public 'gain no benefit from this policy.' Ebrahim Raisi, the president of the Islamic Republic, began eliminating the '4200 Toman supportive currency' and liberalizing the prices of some goods such as flour for industries and crafts under the title of 'economic surgery' since May 2022, which has also faced significant criticism. The continuous rise in the prices of medicines and many essential goods in recent months and years, alongside inflation growth, has pushed many segments of Iranian society below the poverty line. The Sixth Development Plan | A program that led to the development of poverty; a 62% increase in the beneficiaries of the Imam Khomeini Relief Foundation. A prominent economics professor rejected the Islamic Republic's official statistics; the real inflation is one and a half times the announced figure. The annual inflation rate in May of this year; unprecedented in the past 78 years. Statistics indicate that inflation has disrupted social relations. Livelihood protests; telecommunications retirees gathered in at least 11 cities.
Chamber of Commerce Member: 'Command Economy' Has Rendered Iran's Economy Inefficient
Ali Naqib, a member of Iran's Chamber of Commerce, criticized the government's command pricing system for causing economic inefficiencies and negative consequences like job loss and capital flight. He highlighted the need for a market-driven economy based on supply and demand to improve conditions. This issue is significant as it reflects growing discontent with economic policies and the potential for unrest in Iran.
👥 Key Players
📰 What Happened
Ali Naqib criticized Iran's command economy for causing inefficiencies and negative outcomes like job loss and capital flight. He advocated for a market-driven economy to improve economic conditions.
- Iran's economy is heavily influenced by government intervention in pricing.
- Public criticism is growing against the government's economic policies, which are seen as benefiting a few at the expense of the broader population.
💡 Why It Matters
📚 Background
Iran's economy is structured into public, cooperative, and private sectors, with significant government control over large industries and trade. Recent economic policies have faced criticism for exacerbating inflation and poverty.
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%