Official: Government and semi-government entities run 80 per cent of Iran’s economy

Iran Materials 18 September 2013 12:42 (UTC +04:00)

Azerbaijan, Baku, Sep.18/ Trend F.Karimov/

Government and semi-government entities run 80 per cent of Iran's economy, the Fars News Agency quoted Iran's chamber of commerce member Mahmoud Eslamian as saying.

This model of the economy has not been successful so far in any country in the world, he said, adding that the former Soviet Union's economy could not survive due to its government-based ruling.

Government-based economies are usually corrupt, he said.

During the administration of ex-president Mahmoud Ahmadinejad (2005-2013), security and military organisations and in particular the Islamic Revolutionary Guard Corps (IRGC), and the semi-state companies affiliated with them gained a big share of the privatised assets.

Experts and some officials have criticised allowing military forces into the economic activities of Iran.

"The private sector in Iran had been stymied by the government sector for a long time, but it is now stuck in hands of a semi-governmental semi-military sector.

Iran's inflation hit 35.1 per cent in the fifth calendar month of the current year (July 22 - August 21), which is 1.2 per cent more than its preceding month, the Statistical Centre of Iran announced.

Central Bank of Iran Governor Valiollah Seif has said that special attention must be paid to curbing runaway inflation, especially the rising price of consumer goods in order to help reform the national economy.

Regulating the volume of liquidity, adopting proper monetary policies to get the country out of recession and continuous monitoring of banks are some of the ways to help reform the national economy, he added.

Utilisation of modern technology in the banking system, revision of interest rates and strict supervision of finance and credit institutions are other measures that can be taken to boost the national economy.