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:: Dr. Hossein Mohammadpour Zarandi, the president of Iran Urban Economics Scientific Association (IUESA): ::
 | Post date: 2019/03/25 | 

Dr. Hossein Mohammadpour Zarandi, the president of Iran Urban Economics Scientific Association (IUESA):

Production; key to the development and invulnerability of the global economy


Regarding the slogan of this year, Dr. Hossein Mohammadpour Zarandi, the president of Iran Urban Economics Scientific Association (IUESA) said, as in recent years, the Supreme Leader has chosen an economic slogan for this year. Although boosting production maybe a phrase composed of two words, it reveals all the shortcomings and bottlenecks of the country, especially at the present time.
Noting that if we consider economic sanctions as a natural disaster, such as floods or earthquakes, undoubtedly, production plays the role of structural strengths and observance of the technical principles of the building, the president of IUESA said, production is the key to the development and invulnerability of the global economy.
Emphasizing that none of the economic keywords has such a position, he further said, looking at the size of the Iranian economy, we expect that such an economy will be less disturbed by external impulses. The Iranian economy is ranked 27th in terms of size and GDP volume of nearly $ 500 billion, and if we calculate GDP based on purchasing power parity (PPP), Iran is ranked 18th in the world, with nearly $ 1.5 trillion.
Saying that, in terms of Iran’s hydrocarbon reserves, with 158 billion barrels of discovered oil reserves, it accounts for nearly 10% of the world’s total discovered oil reserves, he added, Iran is also the second largest country with proven gas reserves and the world’s fourth largest producer of gas. These advantages do not exist in many countries, even in developed countries, but why, with such economic advantages, our country is still experiencing turbulence in certain economic conditions. The answer is undoubtedly in a proposition, and that is the weakness of production.
In our country, the share of industry in the total GDP is very low. The average annual growth in investment in this sector has been less than 1.5% in recent years, with a share of less than 15% and about 12% of the total GDP of the country, while in the East Asian countries, the share of industrial production from gross domestic product is nearly 25%, he further said. 
Highlighting that sanction is a useless weapon that the United States uses for different countries, such as Russia and China, he said,  in this context, in 2018, tariffs of $ 50 billion in imported goods from China, which is roughly equivalent to ten percent of China’s total imports, can be noted, but why the Chinese and Russian economies are not only disturbed, but also they deal with the parable, e.g. China’s 25 percent tariff on some commodities, including US agricultural products.
Dr. Pourzarandi said evidence suggests that American sanctions are ineffective or with low impact in the mentioned countries, because production is thriving and advanced in these countries. Boosting production, which is reflected in the increase in exports, makes the country the center of the global economy. In our country, especially during the last year, the production sector suffered serious pressures and damage. The damage is immediately reflected in the form of a decline in economic growth, rising inflation, lower productivity, poverty, job losses, and so on.
Another important part of boosting production is the large-scale investment in this sector by the government and the private sector. Today, capital should be sought to move towards production instead of moving towards low-mobility and low-impact sectors. Another part of this process is the responsibility of the centers and scientific and research associations, universities and knowledge-based companies. They have to thoroughly test the path of production prospect and show the way well.
Finding comparative advantages, showing opportunities and bottlenecks and drawing scenarios is part of their missions. People, solidarity, participation and unity in boosting production can ultimately lead to the development and prosperity of the country.
  
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