Government's Push for 'Sea-Based Economy'; Development Captive to Khamenei's Rhetoric

The Deputy for Economic Coordination and Regional Development of the Ministry of Interior of the Islamic Republic announced the issuance of 'sea-based economy development' policies in 10 points, marking the government's official move to implement Khamenei's directives and usher Iran's economy into a new era of 'rhetoric.' According to the state-run ILNA news agency, Mehdi Doosti stated in the first online meeting on the sea-based economy with economic deputies from four southern coastal provinces and three northern coastal provinces that 'the policies pertain to current and future projects that have been communicated to seven coastal provinces, and our emphasis is on optimal resource management and addressing issues.' Critics believe that implementing sea-based development policies and establishing an economy based on ideas inconsistent with the country's overall development policies could merely lead to resource waste and create frustration among the public and economic activists. Some experts believe the government intends to advance this new approach based on Khamenei's directive issued in November 2023. On November 16, 2023, Khamenei communicated the general policies for 'sea-based development' to the heads of the three branches of government and the head of the Expediency Council, emphasizing that the government 'must effectively engage in the coast, offshore, sea, and ocean, utilizing it as a driver and axis of the country's development to achieve a deserving regional and global position in utilizing the sea.' Critics of the announced policies refer to the 20-year outlook document, which was supposed to transform Iran into the 'first economic power in the region' by the end of the current year and play a significant role in global economic relations. However, after 20 years and hundreds of billions of dollars spent on multiple plans, Iran's economy has fallen behind countries such as the UAE, Turkey, Saudi Arabia, Qatar, Kuwait, Azerbaijan, and even Oman, and according to statistics, in terms of human development index, it ranks alongside Afghanistan and Pakistan at the bottom of the regional list. Khamenei's new policy gained attention with the proposal to relocate the capital to Makran, but few have addressed the reasons behind this transfer. The government spokesperson explained that the sea-based economy task force in Makran and the capital relocation are being pursued simultaneously. Reports indicate that the proposal to move the capital to Makran, aside from economic and security issues and even estimating a 25-year timeline for this transfer, has pursued profit-driven goals. Mohammad Mahdi Mirbagheri, a member of the Assembly of Experts, stated after this transfer was raised in a television program that 40 oil, petrochemical, mining, and banking companies have purchased land in Makran after profiting from dollar fluctuations and are now seeking to increase their property values. The warning Mirbagheri issued became a reality less than a week after the capital relocation heated up, as Moien al-Din Saeedi, a former representative of Chabahar in the Islamic Consultative Assembly, stated on January 23 that the topic of relocating the capital to Makran 'has only increased the cost of services and living for the people slightly, and it has had no benefit for our people.' The Mehr News Agency, affiliated with the Islamic Propagation Organization, also reported on this issue, stating that according to some economic experts, the news of relocating the economic capital to Makran has no practical basis and has only led to increased land and housing prices in the region. Mehr emphasized in its report that 'traveling a hundred-year road overnight is impossible. It requires hard work and patience; however, in our country, with a single news item and statement, a hundred-year journey can be claimed to be completed overnight. It is enough for this statement to come from officials, similar to the topics currently raised by officials and making headlines in the media. The 'capital relocation' plan.' Critics believe that an organized network of individuals, institutions, and organizations affiliated with power circles and the security apparatus of the regime seeks to create economic power independent of the current structure, and these activities are defined within this framework. From the perspective of these critics, ultimately, the sea-based economy will not be realized, just as the capital will not move to Makran, and in the meantime, the people of the Makran region, who have the lowest development indicators and still a large percentage of residents lack piped water, must endure rising costs and skyrocketing living expenses alongside all their other problems. The first deputy of the parliament stated: 'If the issue of relocating the capital becomes serious, one of the options is Makran.' A strike by a number of contract workers at the Makran petrochemical plant in Chabahar. The Minister of Interior announced the examination of the plan to divide the Sistan and Baluchestan province; Baluch groups: The demographic change in Baluchistan is being pursued.