Iranian experts: New president lacks economic plans, solutions

Two leading economists in Iran say that five weeks after President Masoud Pezeshkian's election, there is still no sign of a clear plan for addressing economic challenges or any strategy for changing the current ineffective system.

In their third letter to Pezeshkian in less than a month, Farshad Momeni and Hossein Raghfar stated that their previous letters to President Pezeshkian have gone unanswered, despite being among the economists he initially consulted for ideas on addressing Iran's economic problems.

They expressed disappointment in the president's actions so far, but still offered criticism and guidance to the new administration. They urged Pezeshkian to distance himself from the economic policies of the past 35 years, which have caused significant hardships for the Iranian people.

Iran has a government-dominated economy, where almost 80 percent of enterprises are either directly or indirectly owned and controlled by state entities. This, coupled with a lack of democratic accountability and transparency has led to increasing corruption in the past three decades.

Meanwhile, the Islamic regime's confrontational foreign policy and its contentious nuclear program have triggered international sanctions, which have severely hindered foreign investment, the import of technology and expertise, and overall economic growth.

The two economists emphasized that only a fundamental "change of course" in economic policy can create opportunities for growth and improvement in Iran. They criticized Pezeshkian’s selection of cabinet ministers and state officials, noting that many informed scholars, including some of his own supporters, have questioned the validity of these choices. They warned that collaborating with individuals responsible for previous policy failures, particularly in agriculture and industry, would undermine public trust in Pezeshkian and his promises.

Momeni and Raghfar also cautioned Pezeshkian that despite his promises and the public’s expectations, he has yet to take steps to involve the people in determining their political and economic future. They argued that the first step to reversing Iran's counterproductive policies is to implement technology-friendly development plans, productive employment policies, and social justice initiatives—areas where no progress has been made so far.

The economists offered several specific suggestions, calling for greater transparency in Pezeshkian’s selection of cabinet ministers and other officials. They advised against making decisions "behind closed doors" and warned Pezeshkian to avoid working with those responsible for the failed policies of the past 35 years.

They further emphasized that revenues from the country's natural resources should be used to invest in infrastructure, human resources, communications, energy, and improving livelihoods, rather than being diverted to benefit a select few. The economists also suggested reforming the tax system to prevent the undue influence of powerful and wealthy individuals, recommending that it be brought under the direct supervision of the President.

Additional recommendations included reforming the monetary system to channel funds toward productive sectors, removing military and security forces from economic activities, encouraging the private sector, promoting social justice, and prioritizing national interests over those of a minority.

Despite these suggestions, the economists noted that Pezeshkian has ignored similar advice in the past. They also warned that it may be too late for some of these recommendations, as rumors suggest that decisions about key government appointments have already been made, even if not yet announced.