Saeed Shirkavand, the former Vice Minister at the Ministry Economics Affairs and Finance, believes that the problems facing Iran’s private sector will persist until officials change their view of that sector.
Rooz (R): There are many obstacles to privatization in Iran. What do you view as the most important obstacle facing the private sector in Iran?
Saeed Shirkavand (SS): In my opinion, the most important and fundamental problem for the private sector in Iran is its anonymity, meaning that there is no defined, coherent discourse on the private sector, neither among the officials, nor the public, nor the experts. For this reason, in our country, the concept of private sector – unlike its usual definition as an important and essential aspect of economic growth – is understood as a group of economic exploiters who gather around one another to solely make profit. The government, for instance, does not even use the phrase ‘private sector’ in its official memos. Instead, whenever it wants to mention privatization, it says that it wants to put things in the hands of the people, despite the fact that we do not have anything called ‘people’ in economic theory. In economic thought, people are part and parcel of the private sector. If we change society’s view on the basic and necessary functions of the private sector, we can then spend more time discussing things like the roles and responsibilities of the sector.
R Some privatization took place in the past few years, at least in the banking system. In light of the recent problems that arouse for one private bank [Parsian Bank], what do you view as the main problems facing private banks?
SS: Look, private banks face the same uncertain future. Our private banks have become entangled in the web of public sector, and are not recognized as legitimate parts of the Iranian economy. Fortunately, some private banks began operating with the measures that were taken during Khatami’s tenure, and they are continuing to operate under the radar. But we saw that, with its illegal and unprofessional actions, the current administration completely destabilized the private banking system. The government’s treatment of private banks shows that Iran’s central economy does not recognize the private sector as a necessary part of the economy. The government lives on by selling a national resource and is not bound to support private banking.
R: Don’t you think that, setting aside political issues, the shutting down of Shargh daily was because of the paper’s role as the private sector’s tribune?
SS: When the whole private sector lacks a backbone in the economy, then such problems definitely occur for private publications and media. I don’t think that, in the current unstable situation, where everyone tries to create a hurdle for the private sector, this sector can become successful.
