Hassan Rouhani, the President of Iran, criticized the roles of state and military institutions in Iran's economy on Thursday evening, emphasizing the necessity of transferring the economy to a 'real' private sector. According to the presidential website, Rouhani stated during a meeting with economic activists: 'The announcement of the policies of Article 44 was meant to hand over the economy to the people and for the government to withdraw from the economy, but what did we do? We handed over part of the economy that was in the hands of a gunless government to a government with guns; this is not privatization.' The President of the 11th government added: 'They were afraid of the government that had no guns, let alone that we handed the economy to a government that has guns, media control, and everything else, and no one dares to compete with them.' Rouhani mentioned: 'According to the statistics of the transfers of the 11th government, all were correct and to the real private sector, but the transfers of the previous government, according to this data, were at most 13 percent to the real private sector, which is very low.' While Rouhani criticized the presence of state and military institutions in Iran's economy on Thursday, he had previously expressed similar concerns about the consolidation of political, military, and economic power in one institution, stating: 'If information, guns, money, newspapers, news agencies, and other manifestations of power are concentrated in one institution, even if they are Abu Dharr and Salman, it becomes corrupt.' Although Rouhani did not directly name such an institution, the extensive economic and intelligence activities of the Islamic Revolutionary Guard Corps (IRGC) have drawn criticism even among figures close to the Iranian regime. Fereydoun Khavand, an economic expert, had previously told Radio Farda about privatization in Iran that a very large part of Iran's economy is under the control of foundations and military institutions. The country remains trapped in widespread corruption. The privatization process, aimed at ending the dominance of state and quasi-state units over Iran's economy, has practically reached a deadlock. In another part of his remarks, Rouhani pointed out that all branches and relevant officials must provide security to the private sector, stating: 'Security is not only threatened by ISIS; the government, parliament, and judiciary can daily disrupt security by issuing regulations and disturbing market tranquility, or conversely, they can strengthen security.' The President of Iran emphasized: 'It has always been said that our private sector is weak, but in the last two years, it has become clear to us that the private sector is indeed very weak, as a very good environment for exports was created in Russia and several other countries, but we saw that there were no strong traders in the country to carry this out.' He added: 'If we consider the ultimate goal to be the people, then our production, distribution, and trade, and the efforts of our guilds, ultimately all mean serving the people, and if this situation is created, it is correct. It is true that trade means making a profit, and there must be profit to create movement, but the essence and ultimate goal of this activity must be serving the people.' Rouhani also emphasized his view on the role of the people in governance. He stated: 'God tells His Prophet that you are not a lawyer to be above the people and command them; rather, you are obliged to show the way of guidance to the people so that anyone who wishes can choose that path. However, some of us think we command over the people and they are executors of commands. The Prophet and the Imams were not like this either. The field must be a field of tolerance, and we must tolerate, accept, and recognize each other's thoughts and different tastes.' In recent days, a verbal war has erupted between the supporters of the Leader of Iran and Hassan Rouhani over the role of the people in governance. Initially, Rouhani stated that the opinion and choice of the people are the 'foundations of guardianship and governance.' These remarks provoked a reaction from the Leader's supporters. The Assembly of Experts, in a statement signed by Ahmad Jannati, its chairman, stated that 'allegiance' to the Prophet and Imams does not mean 'legitimizing the governance of the Prophet or Imam by the people and the pledgers' but rather 'an emphasis on declaring loyalty and obedience to the divine leaders.' Ayatollah Naser Makarem Shirazi, a Shia cleric in Qom, also stated that the choice of a ruler in Islam is not up to the people, but 'God must appoint the guardian.' Meanwhile, Mohammad Mojtahed Shabestari, a religious researcher and reformist figure in Iran, responded to Ayatollah Makarem Shirazi by saying: 'Abu Bakr al-Baghdadi (the leader of ISIS) also makes the same claim as you do and, based on some of the principles and arguments similar to yours, claims to be appointed by God. How can you prove that he is not appointed by God while maintaining the same principles and arguments?' In this context, the Assembly of Experts called for Rouhani to avoid 'divisive discussions.'
Rouhani: Part of the Economy That Was in the Hands of a Gunless Government Was Handed Over to a Gun-Wielding Government
Hassan Rouhani criticized the transfer of economic power from a non-military government to a military one, emphasizing the need for genuine privatization and the dangers of consolidating power in military institutions. He highlighted the weakness of the private sector and the importance of providing security for it, while also engaging in a broader debate about the role of the people in governance amidst rising tensions with the leadership's supporters.
👥 Key Players
📰 What Happened
President Hassan Rouhani criticized the transfer of economic control from non-military to military entities, highlighting the need for genuine privatization and warning against the concentration of power in military institutions.
- Rouhani emphasized that the privatization process has been ineffective, with significant portions of the economy still controlled by military and state institutions.
- A debate has arisen over the role of the people in governance, with Rouhani advocating for public involvement and facing opposition from religious leaders.
💡 Why It Matters
📚 Background
Iran's economy has long been dominated by state and military entities, with privatization efforts often criticized as ineffective. The IRGC's economic role is a contentious issue both domestically and internationally.
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%