Iran News ...


6/18/03

Iran ranks 37th globally in terms of economic power

Deputy Minister of Industry and Mines Reza Vaiseh said here Tuesday that Iran ranks 37th in the world in terms of 'economic power' and 69th in terms of 'purchasing power,' IRNA reported from Tehran.

Speaking at a seminar on industry and culture, he added that Iran's income per capita is dlrs 1,400 in nominal value and dlrs 5,500 in terms of purchasing power.

"The world averages are dlrs 5,600 and dlrs 7,500 respectively," he stated.

This figure points to presence of a wide-gap in living standards between Iran and developed countries which is mainly due to low productivity of factors of production, inefficient management, and low work ethics.

"Therefore, we need to plan for higher production capacity for good and services," he said.

He said that the trade balance for non-oil goods was a negative dlrs 16 billion last year. This is at the time when the total oil and non-oil revenues toped dlrs 20 billion last year (ended March 20).

To acquire the equivalent of the oil income over dlrs 100 billion worth of goods and service have to be produced in the country, Vaiseh underlined.

He said Iran lags behind in the vital prerequisites of socio-economic development including: conducive economic, social, political and cultural atmosphere, suitable work environment for economic activities and strategic vision in organizations and companies.

He also lamented the results of studies carried out in 50 countries showing Iran last when it came to conduciveness of work-related environment.

A major contributing factor to a suitable working atmosphere is culture traits, the deputy minister noted.

On a beleaguered Iran's industrial sector, the English-language daily 'Iran News' on Monday highlighted concrete measures on a massive scale to remedy the disastrous status quo in industrial sector.

There are 'thousands of inefficient, unproductive and economically unfeasible industrial factories in Iran that lose millions upon millions of dollars year in and year out," the article added.

The fact is that instead of renovating the factories that were destroyed during the Iraqi-imposed war of 1980s, priority was given to the reconstruction of new factories, the daily noted.

These factories are now obsolete with antiquated equipment that is now beyond rescue, it pointed out. The fact that these units were consistently money losing endeavors was of secondary importance, added the daily.

In post-revolutionary Iran, the economic policy has largely had no clear-cut strategy, rather, it has mainly consisted of stop gap measures and tactical decisions that are hardly adequate for economic growth, development and prosperity as well as to reverse the seemingly unending cycle of recession, it said.

The direct result is that 'our economy is mired in perpetual economic recession bordering depression, a gluttony of human resources who cannot find decent jobs, not enough investment in the all-crucial advanced technology needed for economic boom, sub par quality products, unfeasible and unproductive manufacturing sector, astounding levels of debt, high interest rates, and last but not the least, the inability of domestic products to compete globally', it pointed out.

No wonder a substantial number of state-owned and operated plants and factories are on the verge of bankruptcy, it added.

None but Iran's beleaguered private sector is the biggest loser in this, considering that the public sector is provided with subsidies and other facilities such as short term and long term loans to help continue their unprofitable existence, the daily pointed out.

... Payvand News - 6/18/03 ... --



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