Iran's Fourth Economic Development Plan –- Bright Prospects Ahead

In this regard, the Minister of Economy and Finance Tahmasb Mazaheri in a press conference last week elaborated on Iran's economic objectives, saying that strengthening the national currency, reducing inflation and achieving a one digit inflation rate are among the main objectives of the Fourth Five-Year Economic Development Plan.

The minister pointed to the positive economic growth of 6.5 percent, the decrease in unemployment rate to 11.2 percent from 16 percent over the past two years and stability of parity rate of foreign exchange reserves as instances of Iran's economic achievements in the last Iranian fiscal year.

As a matter of fact, Iran has recently taken positive initiatives to attract foreign investment, including ratification of a law to expand investment and an amendment to the taxation law. The growing trend of privatization and facilitation of banking operation are among other recent achievements in Iran's economic sectors.

Iran's Fourth Five-Year Economic Development Plan aims to promote investment and production through lifting monopolies, liberalizing prices, setting up special courts to deal with complaints raised by investors and traders, institutionalizing the economy as the main pillar of development, devising  financial schemes according to international standards and promoting contribution of the civil society to the decision making processes.

Although, following the September 11 terrorist attacks, full confidence has not yet been restored to international markets and the prospects for global economic growth seem shaky, the prospects for Iran's economic future seem bright.

It should be noted that Iran's positive economic performance was commented on at the 58th Annual International Monetary Fund (IMF) and World Trade Organization (WTO) meeting on September 22 in Dubai.

Moreover, Governor of the Central Bank of Iran Ebrahim Sheibani on Tuesday said that growing security in Iran has provided necessary incentives for foreign investment, motivating the Persian Gulf littoral states to transfer their capital to the country.

According to economic analysts, Iran is now at a stage of economic boom. Iran's non-oil exports rose by 22 percent in the first five months of the year compared to that in the corresponding period of the previous year.

During the Annual IMF-WTO Meeting in Dubai, Sheibani noted that Iran's economic growth keeps pace with that of China and India, and is two to three times bigger than that of the Persian Gulf littoral states.

Furthermore, under present conditions, Iran enjoys a strong position in terms of foreign exchange reserves which serves as an attractive variable for investment.

In fact, Iran's Fourth Five-Year Economic Development Plan is meant to be a logical continuation of the Third Development Plan in view of the present and future economic situation in Iran.

Generally speaking, the fourth economic development plan is based on 12 premises; continuous growth, enhancing people's livelihood and keeping in touch with the outside world in order to achieve a centralized economic growth.

As the Leader of the Islamic Republic of Iran stressed during his visit with the Islamic Republic's officials, thriving economy, employment, reduction in the inflation rate and self-sufficiency in agriculture should be the focus of attention in the economy sectors of the country. It should be noted that justice is the main indicative of the social section of the fourth economic development plan. However, a successful development plan is one in which social and economic justice, fair and just distribution of wealth are intended and accompanied, basically aimed at uprooting poverty in the society.

RA/SRM/IS

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MNA