On the third day of the Bahman month, the first session of a series of sessions was held to review the Industrial Strategic Roadmap document. The session was organized in collaboration with the Strategic Studies Center of the Presidency and the Iranian Entrepreneurs Forum at the center's location.
According to the Information Center of the Iranian Entrepreneurs Forum, Mostafa Zamanian, the head of the Strategic Studies Center of the Presidency, said at the beginning of this session that the drafting of the industrial policy document has a relatively long history. It was also emphasized by the Supreme Leader of the Islamic Revolution during the thirteenth government.
He added: More than 2 years have passed since the thirteenth government. In my opinion, now is a good time for us to have a major role in preparing the industrial development document. due to this reason, our colleagues at the Strategic Studies Center and the Iranian Entrepreneurs Forum decided to prepare a report on this matter and present it to the President after holding a series of sessions. Considering the potential opportunities in the global economic chain, such as BRICS and Shanghai, and our interactions with Saudi Arabia and China, it is crucial to pay greater attention to this area.
Zamanian continued: As Iran is among the first countries to join the new economic order of BRICS, it presents a unique opportunity for the country. However, we are concerned that any delays in document writing, interpretation, and other similar issues may cause us to miss out on these opportunities and any future ones that may arise.
The head of the Strategic Studies Center of the Presidency stated that a few years ago, during the preparation of the industrial policy document, the country had two strategic advantages of accessing energy sources and cheap labor, but I'm not sure if we have a position in these two factors today. We are in a state of policy inflation in the country, and the decisions of the government and the parliament in Iran are not comparable to any other country. Therefore, as long as we hide ourselves under the burden of these policies and programs, there's no way to breathe, develop, and progress."
This official position continued: In these realistic conditions, we must look at the issue of industrial development with precise and transparent thinking, not waiting for the approval of this document. The next point is if this document is not implemented correctly and put in the right place, we will not achieve the desired result. We have lots of political experience, but with these strategic opportunities, we have not lacked experiences like this, and policy-making experience should be on the agenda. As a researcher, I believe that part of industrial development should happen while writing the document. One of the characteristics I have reached through research and experience is that if this document cannot summarize all the points in one sentence, it is flawed.
In continuation of this session, Asghar Ebrahimi Asl, Deputy for International Affairs and Regional Cooperation, First Deputy of the Presidency, said: China With a $1.2 billion investment and the cooperation of reputable domestic and international consulting companies, this country was able to develop its industrial development document. It was discussed and exchanged in the party of this country and ultimately had two options ahead. First, in the past 200 years, this country had part of its land colonized by the colonial powers of England and America, which in these conditions, they should seek war and territorial expansion. Second, with planning in the field of trade, they should have productions that different countries would be willing to buy from them.
He continued: In the early years of the Islamic Revolution, China had $8 billion in exports and Iran $12.3 billion but now this country is the second largest economy in the world and the situation in Iran is also obvious.
Ebrahimi Asl criticized the drafted document, stating: In this document, they have used more upper-level documents and records, and they have used information and statistics from 7-8 years ago. This is while we should draft a document that we can use for the next 50 years. We find no solution in this document, and is rhetorical without considering the realities, just like the error we wrote in a 20-year plan.
Ruhollah Izadkhah, a member of the Industries Commission of the Islamic Consultative Assembly, said as one of the speakers in this session: The environmental situation prevailing over the industry, which includes sanctions, imbalances, budget deficits, depreciation of the national currency, inflation, etc. has caused many internal capacities such as mining, sea, solar energy, etc. to be neglected.
He continued: In addition to these issues, the lack of will and leadership in industrial policy is another problem we face. Despite the 40-year history of studies and drafting of pseudo-industrial development documents that began during the Reformist government, the government or a minister has not shown a coherent will to draft or implement industrial development policies. We are engaged in macroeconomic regulation, and the program and budget are also based on regulation.
The member of the Industries Commission of the Parliament stated that governance is at the chain and regional level and added: As it is discussed at the macro and national level, it is done proportionally at the chain and regional levels. Regional development based on industry and the development of industrial chains is strongly emphasized in scientific literature. We have a lack of responsible and accountable individuals for the chains in our country. For example, in the field of microelectronics, there is no chain manager, and ministries are involved in it.
Izadkhah referred to the resistance economy and said: The spirit of this document is production and popularization, which can give us a bright horizon and a way to move forward.
He added: Another issue is the revision of influential and active factors in the industrial space, which are involved in a kind of turmoil. This revision is not directed and coordinated, and these factors cannot use their maximum capacity in the path of industrial development.
During this session, Hamidreza Fouladgar, an advisor to the Economic Commission of the Expediency Discernment Council, explained that the document being discussed is an intermediate stage between policies and laws. The general policies of the system that are approved by the Supreme Leader and examined in the Expediency Discernment Council are binding for all three branches of the government. The document, on the other hand, is an executable guideline prepared by the government for its executive system. It should be based on the general policies of the system and provide further explanations. Therefore, this document requires some modifications to align it with the general policies of the system.
Fouladgar continued, Based on our past experiences with different governments, the issue of discourse and consensus building remains a challenge for us. Although a draft of the industrial development document has been prepared, it has not reached its final stage yet. I hope that we can finalize this document by engaging in constructive discourse and reaching a consensus. Our commercial backwardness is a warning sign for our economy. Unless we resolve these issues and invest in our country, we cannot expect any significant change. Therefore, it is crucial that we finalize and conclude this document. If this document does not lead to investment, it is useless. And ultimately, our main problem is the existence of obstacles to people's investment.
Masoud Sezavar Zakerian, the deputy of Golrang Company and a member of the Strategic Council of the Entrepreneurs' Forum, also stated in this session, "The document that is presented must be mature and strategic so that future generations can also make optimal use of it. Currently, in the world, we are facing a GDP equivalent to trillions of dollars. While only 0.4 of this share is allocated to Iran. Iran is supposed to achieve a position in the industrial sector of the world. As a professional working in this industry, I must understand my responsibilities as outlined in this document. The laws should be clear in specifying our duties and guiding us toward achieving our goals. Without proper guidance and clarity, we won't be able to make any progress.
Sezavar continued, "Iran has allocated one percent of the world's population to itself, so if we look at this issue in terms of population share, our share is more than the current level. According to the available statistics, between 7 to 8 percent of the world's resources are available to our country.
He added, "For example, as a policy maker, I need to identify strengths and opportunities in various areas such as industry, mining, trade, and strategic geographical position to evaluate and select laws and relations with foreign governments. We cannot determine and choose the path of development correctly, so a policymaker should be able to choose the right path after recognizing the precise conditions and situation.
This document should be approved as fundamental and strategic. So we need to ensure that the Iranian industry continues on the path of development with a clear strategic document.
Alireza Gharshasbi, the Director of Planning and Monitoring at the Ministry of Industry, also said, "We have already passed the issue of formulating industrial policies and now we need to negotiate about their implementation. Considering the importance of technological production, we should focus on our main domain, which is production, as any issues related to it also affect other sectors of the industry.
Gharshasbi added, "From 1338 to 1401 when we look at the share of production in the industry, we find that in the past three decades, the share of industry has reached around 20 percent and has stagnated. In general, it means that the industry is not able to continue its growth in the national economy. This matter has prevented the talents resulting from industrial development from spilling over into the national economy.
He continued, "Despite this situation and numerous efforts, we haven't been able to succeed in preparing a policy document. Therefore, we need to respond to this duality, for example, it should be determined whether this document is intended to be an industrial policy document or a strategic industrial program, as both subjects are different and have multiple requirements. Even if we can determine and clarify this duality and move beyond it."
The Director General of Planning and Monitoring of the Ministry of Industry, Mine and Trade stated: Another issue that is raised is whether governance and regulation should remain in the hands of the government or not. We should know that our approach in this document is either productive or commercial, or whether we should benefit from the commercial capacities of the region or focus on domestic production initially. In the next stages, the question arises whether this document should be at a sectoral level or a national level, or whether we should pursue a horizontal or functional policy approach. Of course, the next duality is the issue of participation or concentration.
Gharshasbi said: Based on the experiences of newly developed countries, we find that these countries have benefited from networks. Now the question arises about our approach in this area and to what extent we are supposed to use the private sector. Therefore, all of these issues are key topics, and paying attention to them is very important.
Either with the seventh development plan, this document will have a level of necessity, or the definition of it will be made, or it will be a roadmap. Therefore, as long as we cannot provide convincing answers to these questions, the fate of this document and the strategic plan may not be clear.
Furthermore, in continuation, Mehdi Ghasemi Aliabadi, the Secretary of the Commission on Infrastructure, Industry, and Environment of the Office of the Government, said: The document presented to the government is a preliminary version of this document prepared by the Institute of Higher Education for Management and Planning. The President and the First Deputy also emphasize that this issue should be raised in the government commission so that we can create convergence among the agencies and use the capacities of the private sector to develop an implementable document.
He continued: The preliminary draft of the document was discussed in specialized commissions. One of the important points, in his opinion, is the need for responsible institutions to participate seriously after the census and evaluation. The government accepted the proposal that was raised in the commission under the title of the preliminary draft, so it was decided to discuss this issue with them as well. The commission sent this proposal to the government, suggesting the establishment of a working group that would consist of responsible institutions and the private sector, with the opinion of Dr. Fatemi Amin, to finalize the document. The supervisory commission also has the foundation to use the opinions of responsible institutions and the private sector.
Qasemi Ali Abadi added: In the supervisory commission, which is chaired by Dr. Mehrabian, all commission members emphasized that there are no longer any unused documents in the country, so we believe that all institutions should come together to take positive steps. Thank God, the interaction with other institutions, both governmental and private, in the supervisory commission is highly positive, and we promise that this matter will be concluded in the most appropriate way possible.
Issa Mansouri, who holds the opinion in the realm of policy-making and industrial development, stated: It is expected that this document and its final output will be above the policies of governments that have been written so far, and even above existing laws. In a way that when governments come to power, they can implement their policies based on this comprehensive framework. Therefore, we generally need this document to become a law and new laws to be formulated and prepared based on it.
He added: If such an action is taken without the participation of the private sector, the government, and academic individuals, there will be no national consensus, there will be no social capital for its implementation, and it will not be successful in practice. In my opinion, this document should not be limited to the industrial sector only, but it should cover the areas of economics, policy-making, governance, etc.
Infrastructure development and regional relations that align with industrial growth are crucial. Today, we are in a new phase of globalization where regionalism is strongly emerging. The debate now is about which countries should become regional hubs. This is an opportunity as recent events such as the 2008 economic crisis and the global spread of COVID-19 have led to shorter and more regional supply chains. My suggestion is to hold multiple meetings and have detailed discussions about this document to achieve the best result.
Alinaghi Mashayekhi, an opinion holder and a professor of management at the Sharif University of Technology, also stated: "We need to think before taking action. In my opinion, the prepared document does not have a passing grade. Most of the issues have been ignored and the document mainly points out the problems and backwardness, without discussing the necessary solutions."
Mashayekhi added: "The transformation of conditions and industries is the result of the collective efforts of people, including entrepreneurs, industrialists, state-owned and semi-state-owned companies, etc., and the efforts of individuals influenced by implemented policies. But the question is, which policy has been wrongly implemented that has led to the current undesirable situation?"
He continued: "We should pay attention to two categories of policies. The first category is macroeconomic policies that regulate the direction of economic development, such as existing rents, foreign relations, foreign policies, direct government intervention in pricing and resource allocation, etc. These policies are the foundation of development and should be examined over the past few years to make the necessary reforms and changes to formulate an industrial policy based on correct policies. Only through this process can we prepare a comprehensive document and outline the future, and in this way, we will not achieve any results."
Mashayekhi added: "If these policies are incorrect and our industry is unconnected to the global industrial cycle, nothing will happen. In my opinion, the discussion about the document must be based on economic conditions, policies, geography, and the point we want to reach."
The management professor of Sharif University of Technology added: The current conditions and problems have not arisen out of thin air, and it is good that this document addresses the past. If we don't learn from past mistakes, we will repeat the same flawed policies. When preparing a document for industrial development, it is important to clearly outline the key policies that affect industrial growth. This includes policies related to energy, education, and other relevant areas. It is worth noting that economic policies provide the foundation for industrial policies, while infrastructure policies create the necessary conditions for industrial activity to take place.
Javad Nouri, a faculty member of the research center at Sharif University of Technology concluded the discussion by highlighting the findings of a report presented by the Court of Audit. The report indicates that there are significant numbers involved in the field of domestic construction policies. Specifically, it mentions that only 26 percentage of these policies have been implemented and 74 percentage have not been executed. The policymaker must do something to change the behavior of the actors, whether the actors are the private sector, customs, holdings, etc.
He added: Every policy starts from the top layer of the policy maker, which is the esteemed Supreme Leader, and then includes legislative and regulatory matters, etc. If it is not created at the end of the process, this policy will face problems. Therefore, policymaking that is unconnected to legislation, legislation that is unconnected to lawmaking, and ultimately unconnected to implementation is essentially futile.
Nouri added: If this policy has maximum added value, then we can say we have a policy. The reality is that in many subjects, we only have the name of the industry, while many industries in the country source raw materials or necessary components from outside the country, or more precisely, the added value is outside the country.