Lack of a detailed roadmap is the main weakness of Iran’s industrial sector that still does not have a clear strategy, despite the promises made by government officials. This negligence has led to a lack of appropriate growth, Hossein Pirmoazen, the head of Ardabil Chamber of Commerce, Industries, Mines and Agriculture, prefaced his write-up for the Persian daily Donya-e-Eqtesad with these statements. A translation of the text follows:
The absence of an industrial strategy has prevented the country from moving in the direction of development. Without a plan, we are torn between what region to choose and what type of industry to focus on. Without research, we cannot plan for the future, which flaw has plagued Iran’s industry for years.
In Iran, a certain industry comes into the spotlight at some time and large investments are made in it without expert feasibility studies about national capacities, which eventually result in the bankruptcy of the investor and a heavy loss for the country.
At times, an industry is established at an inappropriate place without taking into account the environmental conditions, due to the absence of an industrial development strategy.
There will be no targeted support without planning. If the needed strategy is approved, the government will be able to support the industries and provide facilities in a dedicated manner and in line with the defined path. As such, investment will be made in places where growth and development are guaranteed.
But today, the government doesn’t know whether its support for an industry would benefit national development as a whole. The government gives support on an ad-hoc basis. In this situation, not only the industry fails to expand, but the country’s capital is also wasted. The lack of a roadmap diverts the country away from the main destination.
At present, the government is giving unwavering support to industries that have no benefit for the country’s development. On the other hand, sectors that have been abandoned could generate income for the country, if the government had financed them.
The country needs scientific facilities and capacity for development and investment in this area would lead to the production of goods and services with higher added value.
Having a written, detailed plan shows the right path of development to investors. It is a guide for them to know which sectors to focus on in order to generate more profits.
Over the years, private sector players have emphasized the necessity of formulating an industrial development strategy. They have signaled their readiness to put together this plan with the cooperation of the public sector.
What is very important in the process of preparing and implementing this strategy is the commitment of the In fact, all relevant state organizations and institutes should be committed to implementing the strategy at all cost, otherwise this document will suffer the same fate development plans.
