News ID: 126034
Published: 0315 GMT September 02, 2015

On importance of harmony among private agencies

On importance of harmony among private agencies

By Hossein Noqrehkar-Shirazi





Given the changes in Iran's diplomacy and political relations, the country is experiencing a new period in the history of its domestic economy.

A new hatch is opening in foreign trade cooperation and interactions. After years of state domination, the helm of the economy is being passed on to the private sector which has faced great deal of hardship in recent years.

At present, strengthening the economy is almost impossible without shoring up the private sector.

Since the three main pillars of the private sector in Iran's economy are chambers of commerce, industries, mines and agriculture, cooperatives and associations, enhancing greater cooperation and interaction among them will substantially improve the functioning of the sector.

To achieve this, a joint secretariat incorporating all the three chambers has been established. It seeks to foster greater unity among the three organizations, giving them more capacities, executive power, confidence [through collective wisdom] to claim their rights and a more significant role in economic activities and macroeconomic policies.

Throughout history, the domestic economy's main body has always been hindered by poor teamwork, overlapping duties and parallel tasks as well as individualism. Now that the private sector is being given more importance and elbow room, everyone expects it to promote teamwork and reduce instances of parallel tasks.

At present, the private sector is taking on more responsibilities in addition to its earlier role as a consultant. It is studying bottlenecks and striving to work out effective strategies to remove them. No longer a passive sector, it even contributes to the GDP, identifies cumbersome regulations and puts forward proposals to overcome them. In its new capacity, the sector can exert more profound impact on the economy and successfully defend its rights by fostering unity among its subsectors. Currently, the government also earnestly demands the sector to broaden its participation in macroeconomic affairs.

This is while, contrary to earlier claims, the government has not yet undertaken sufficient efforts to organize small, medium-sized and large economic agencies and, in addition, has not yet registered parallel enterprises. The main requisite to this is greater interaction and unity among the main pillars of the private sector. In the past, lack of such cooperation and a collective will were the main reasons for the government's failure to achieve this.

As Iran gradually enters the post-sanctions era, the country will definitely open up trade gateways to foreign companies. Despite its positive aspects, great caution is required to avert the damages which the increased presence of foreign firms may inflict on small and medium-sized agencies and companies. A solution to this is to increase the number of associations taking charge of domestic agencies to further protect them. Merging medium and small-sized domestic companies with bigger ones is another way to shield them from harm. Nevertheless, it is absolutely necessary to regularly update them of the current affairs and events and brief them well about their activities. This can be done by the joint secretariat.

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