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Iran: Larijani highly critical of the state-run economy model

Ali Larijani (file photo)

TEHRAN, June 21 (Mehr News Agency) -- Majlis Speaker Ali Larijani on Saturday called the government's "monopolization of economic opportunities" the "worst form of injustice."

"The monopolization of economic activities and opportunities by the government... will create an inflationary economy which, in my opinion, is the worst form of injustice," Larijani told a meeting entitled Supervising the Implementation of Article 44 of the Constitution.

"Unlike those who, in the early days of the Islamic Revolution, believed that the nationalization of the economy is more Islamic, experience has proven that nationalization leads to an ailing economy and promotes injustice."

"Over the years, the administration has taken the role of the people in production. This runs counter to Islamic thinking which is opposed to prohibiting people from engaging in economic activities... The allocation of two-thirds of the national budget to government offices shows that we are far from Islamic thinking," he lamented.

Article 44 is aimed at creating economic competition through privatization, which requires investment security.

"It is impossible to make investments in an unstable economic situation; therefore, Article 44 should be implemented in a way that gains people's trust and allows them to predict the future."

People should manage economy

Addressing the conference earlier on Saturday, President Mahmud Ahmadinejad called for making amendments to the law for better implementation of Article 44.

He cited the allocation of 40 percent of shares to the general public as "one of the best executive strategies of Article 44".

Ahmadinejad agreed with Larijani's views that governments should disengage from economic activities, saying, "The economy needs to be managed by the people and opportunities should be provided for development but the government should be given the authority to control the market."

He said, "A state-run economy is against justice because it paves the way for discrimination and abuse. In this kind of economy, the output is low, despite having bountiful resources."

... Payvand News - 06/22/08 ... --

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