Ali Khamenei, as is customary each year, has named the new year to set the main policies of the government; this year's focus is also economic, and amidst anti-production policies and self-made crises, it has been named 'Production Leap with People's Participation.' He stated: 'Barriers to people's participation in production must be removed and the great capacities of the people must be activated.' The Supreme Leader has consistently emphasized what he calls people's participation in production, referring to privatization policies in Iran; policies that have led to the closure of factories and companies and the unemployment of a large number of the workforce. While he has called for a 'production leap,' producers have recently complained about the lack of a clear outlook. Mahmoud Najafi-Arab, President of the Tehran Chamber of Commerce, stated on March 16 of last year to the newspaper 'Donya-e-Eqtesad': 'Structural problems tell us that as long as these barriers exist, we will not have growth. We have hope; we do not want to inject despair, but we must realistically monitor the problems.' Keyvan Kashafi, a member of the Iran Chamber of Commerce board, also predicted a very difficult year for production and told the newspaper: 'The Central Bank has allocated a specific quota with its forecast for currency for each of these ministries and has informed these ministries that they must announce their needs based on the specified quota with a specific formula.' Abbas Argon, a member of the Tehran Chamber of Commerce board, stated: 'We do not see serious corrective action from officials, and as a result, given the deposit interest rate, the minimum inflation will be 40 percent.' Ali-Asghar Jom'eie, a member of the Iran Chamber of Commerce representatives, also mentioned that he does not believe the economic community, especially the private sector, will thrive, and discussions of 8 percent growth are not conceivable under these conditions. Alongside these conditions, which arise from issues such as the Islamic Republic's nuclear adventures and financial and military support for Tehran's proxy groups in the region, the topic of 'people's participation' in 'production leap' also holds no meaning in today's context. Several experts have consistently emphasized that people's participation in production means utilizing the capacities and potentials of experienced and specialized human resources, which seems far-fetched under current circumstances. Furthermore, widespread migration from elite individuals and specialists to simple labor has been one of Iran's major challenges in recent years, to the extent that on January 7, 2024, the head of the Strategic Studies Center of the Presidency stated that the root of migration in Iran is not economic, and with no clear picture of the future, people migrate to not be in Iran. Morteza Izati, a university professor and economic expert, also told the 'Khabar Online' website that the Iranian economy is embroiled in serious crises, and migration in any form can exacerbate this crisis, with its consequences soon manifesting in society and the economy. The newspaper 'Ham-Mihan' also wrote in its editorial on February 6 that migration has reached from real individuals to legal entities, with companies and startups also migrating from Iran. Media outlets have cited poor internet conditions, tax regulations, pricing, instability of economic policies, disruptions in foreign relations, and currency and trade exchanges as causes for the expansion of migration phenomena, indicating the lack of suitable conditions for production. Experts have warned about the increasing desire to migrate and the depletion of Iran's skilled workforce as well as simple labor, believing that production will be accompanied by a depletion of capacity.
The Year is Once Again Named Economic; 'Production Leap with People's Participation' Alongside Anti-Production Policies
Ali Khamenei has named the new year 'Production Leap with People's Participation,' emphasizing the need for public involvement in production despite ongoing economic crises and anti-production policies. Experts express skepticism about the feasibility of this initiative given the current economic challenges and widespread migration of skilled workers from Iran. This situation highlights the disconnect between government rhetoric and the realities facing the Iranian economy.
👥 Key Players
📰 What Happened
Ali Khamenei has declared the new year as 'Production Leap with People's Participation,' focusing on economic growth despite ongoing challenges. Experts express skepticism about the feasibility of this initiative due to structural economic issues and skilled worker migration.
- Khamenei emphasizes removing barriers to public participation in production.
- Experts highlight structural economic problems and high migration rates as major obstacles.
💡 Why It Matters
📚 Background
Iran faces significant economic challenges, including high inflation, unemployment, and a brain drain, exacerbated by international sanctions and regional conflicts.
🏷️ Entities Mentioned
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