President Ahmadinejad says wastage of national, human and management resources is the main challenge facing the nation.
At a joint meeting of the Cabinet and the parliament, President Mahmoud Ahmadinejad outlined his government’s new economic plan designed to improve production, curb inflation and liquidity growth, stabilize employment, attract more foreign direct investments, and institutionalize economic justice in line with the targets laid down in the Fourth Five-Year Economic Development Plan (2005-2010) and Vision 2025.
In the meeting late Saturday, in which Majlis Speaker Ali Larijani was also present, the secretary of a working group provided details about the comprehensive plan.
Ahmadinejad said the meeting could be a new start for resourceful and effective collaboration between the executive and legislative bodies, adding that the two sides should regularly exchange views on politics, culture, society and, of course, the economy.
In his words, despite major achievements in all spheres since the 1979 Islamic Revolution, there is still the feeling in society and the elite that the country and people have not yet made full use of the potentials, and that there is still room for further development and growth.
“Officials, the people and political groups and factions agree that there are still exceptional problems that need to be resolved rapidly and jointly.
The executive body, which is responsible for drawing up and implementing national policies and plans, and managing the economy, is duty-bound to identify and highlight these exceptional problems. These problems had also been highlighted by past administrations and parliaments.
Now is the time for proposing effective solutions for all of them,“ he noted.
Ahmadinejad referred to the wastage of national and human resources as the main challenge facing the nation, arguing that there has also been wastage of management and planning resources that need to be dealt with.
There is now a huge gap between the rich and the poor and the government is uneasy about the trend.
This is while one of the lofty principles of the Islamic Revolution has been and still is institutionalization of justice and elimination of poverty and inequality, he noted.
According to ISNA, Ahmadinejad reiterated that his government has identified a number of structural problems within the national economy and that the government has devised comprehensive policies and plans to resolve them.
To this end, he said, the government will need all the help it can get from the new parliament, experts, academic centers and affiliated organizations.
Iran has a transition economy where a continuing strong labor force growth unmatched by commensurate real economic growth is driving up unemployment to a level considerably higher than official estimates.
For the same reason, experts say that annual economic growth above five percent would be needed to keep pace with the 900,000 new entrants to the job market each year.
The government is also attempting to diversify its revenues away from petrodollars by investing in other areas of the economy, including, auto manufacturing, aerospace industries, consumer goods and electronics, petrochemicals and nuclear technology to stimulate the economy.
To this end, the government continues its drive toward privatization and economic liberalization as per Article 44 of the Constitution in line with a decree by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei ordering a major privatization of industries such as banking, mining, industrial, transport et al.
As a consequence, the role of the private sector has been on the increase.