Supreme Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei on Monday called on executive bodies to support the private sector, saying that making all affairs governmental in the beginning years of the Islamic Revolution [1979] was a major mistake.
The Leader made the remarks addressing a gathering of domestic manufacturers and entrepreneurs.
“The country will not be managed without the activity of private companies and these companies will not emerge without the support of the government either, or if they do, they won’t succeed.”
Ayatollah Khamenei emphasized the need for fast and persistent economic growth over at least 10 years to make up for the past backwardness.
“This is why we gave priority to economic growth in the seventh development plan … setting the average target of 8%, which if realized, will result in good progress in the next five years,” he said in a meeting with a group of manufacturers, entrepreneurs and knowledge-based businesses on Monday, Leader.ir reported.
Outlining the main reasons for such urgent need, he pointed to the people’s obvious livelihood problems and financial difficulties of Iranian families.
“Alleviating poverty, addressing people’s livelihood problems and ensuring their welfare would not be possible without economic growth,” he said.
This growth is also essential in order to enhance the position of the country in the economy of the region and the world, according to the Leader.
Creating jobs for millions of graduates is another important objective that requires fast and continuous economic growth, he said.
“It is an honor to have educated young experts, but their joblessness is a source of shame.”
Furthermore, the country needs to grow economically given its unclear demographical prospects, according to Ayatollah Khamenei.
He said the size of the young population of the country is favorable now, but with the current trend of childbirth, the demographical future is obscure.
“We need to make the country rich with quick and steady growth, because we won’t be able to when there aren’t enough young people.”
Requirements of Growth
Ayatollah Khamenei later listed the requirements of economic growth, which partly involve the authorities and partly business people and the public.
It is necessary to increase investment for production and boost productivity in all sectors, he said.
Executive and state organizations also need to have long-term strategic plans and avoid routineness, the Leader added.
Scientific and technological development is another important requirement, for which the Leader called the attention of academic and research centers.
“Young scientists must cross the frontlines of global science.”
Ayatollah Khamenei stressed the importance of promoting competitiveness in offering goods and services by increasing their quality and decreasing their prices.
Business environment has to be ameliorated so that people can easily manufacture and trade, according to the Leader.
He emphasized that contradictory decisions and repeated changes in rules and regulations are obstacles to the betterment of business environment, calling for swift correction of this defect.
While legal intervention in cases of violation is essential, personal interference of supervisory and other organizations without legal grounds can frustrate business activity, he added.
Funding for private sector’s activities was another necessity that the Leader pointed out.
He said the National Development Fund was originally established for this purpose, but has always come to the aid of governments whenever they face economic challenges.
“This has problems both in technical terms and in terms of outcome.”
Ayatollah Khamenei later highlighted financial discipline in drawing up the country’s budget as another need for economic growth.
“The budget has structural problems and budget deficit is one of the most problematic issues for the country’s economy,” he said, advising against making financial commitments in the absence of reliable sources of income.
The Leader finally gave some pieces of advice to business people.
He said while positive competition is a driving force, businesses need to cooperate in large-scale projects.
State organizations and large companies should support small and medium-size enterprises which have an important role in creating jobs and added value, he said.
Manufacturing cooperatives are among the main platforms to help job creation and boost economic justice, Ayatollah Khamenei concluded.