Iran's New Industrial Strategy

Radio Farda - In a 204-page document titled 'Strategic Program' published by Iran's Ministry of Industry, Mine, and Trade, the current state of the country's industrial sector and its prospects have been examined. Reza Valizadeh asked economist Fereydoun Khavand, who resides in Paris, what key points are emphasized in this document? Fereydoun Khavand: The strategic program of the Ministry of Industry, Mine, and Trade, which is fully accessible on the ministry's website, mainly highlights five points: The first point is the examination of the current state of Iran's industry in relation to important domestic and global economic indicators. The second point is the potential opportunities for industrial development in Iran, ranging from vast energy reserves to geographical advantages and the quality of human resources. The third point addresses the challenges that Iranian industry faces, which have kept it weak, such as lack of access to modern technologies, the presence of quasi-monopolistic structures in the economy, an unsuitable business environment, and inability to attract foreign investment, among others. The fourth point, which is very significant, is the introduction of industries that have a strategic aspect for Iran. Finally, the fifth point outlines strategies proposed for advancing industry, mining, and trade in Iran. What industries are prioritized in the Ministry's strategic program? This is a fundamental discussion for all experts on Iran's economic issues. It concerns the country's role in international division of labor and what industries Iran should focus on if it wishes to move away from its current status as a country dependent on oil exports, aside from those that are somewhat reliant on oil and gas. The strategic program prioritizes seven industrial sectors: automotive, steel, textiles and apparel, cement, tires and tubes, household appliances, and ceramics. What methods are suggested for advancing Iran's industrial development? The Ministry's program emphasizes increasing the competitiveness of enterprises, developing foreign investment, advancing new industries, diversifying financing tools, and so on. These solutions are effective, but the main remedy is to implement fundamental reforms that end the dominance of state and quasi-state monopolies over Iran's economy and pave the way for the growth of a real private sector that can, without fear of competition from rent-seekers and free from concerns about domestic and international political tensions and adventures, lift Iran's industry from its current dire state, create job opportunities, and export goods. Without these reforms, the Ministry's strategic program will meet the same fate as previous similar programs.