TEHRAN, June 27 (Mehr News Agency) – Mohammad Javad Asemi, an expert on economic affairs told Mehr, “To attract foreign investment in to the country a change in attitude, policies, and reform of economic fundamentals is a must. A different approach in national behavior is the precursor to international conduct.”

He believes that since foreign investors study the private sector activity in the target county before committing any funds, it is possible to attract foreign investment by establishing proper grounds to promote the nation’s private sector. 

 

Asemi says, “It is necessary to increase the level of investment by the domestic private sector in order to lure foreign investment. But so far, the conditions to capture private sector investment domestically have not yet materialized.”

 

He thinks the failure behind conferences trying to introduce various investment potentials to domestic and foreign investors is due to the fear of nationalization and the consequent loss of investment ownership rights.

 

The expert notes that Iran has only been able to capture a one percent share from a global investment market worth $500b.

 

He also adds that, the associated political and economic risk is yet another reason for the flight of capital from the country. “Until such time that the nation’s economy is used as a means to reach certain political objectives, it will not be possible to stop the capital flight.

Ironically, in most countries politics is considered as a tool to achieve the desired economic goals.”

 

Asemi considers privatization and an open economy as prerequisites in attracting foreign investment.  

 

MR/MR

News Code 344

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