Economy, Business And Markets

Appeal for Equality in Economic Policies

Appeal for Equality  in Economic Policies Appeal for Equality  in Economic Policies

Head of the Central Bank of Iran has urged policymakers across continents to craft and promote economic policies that encourage equal opportunities for all regardless of gender, income levels and living environment. Valiollah Seif also stressed the role of education systems, health care, infrastructure and equal access to public facilities in assisting governments in implementing fair economic policies.

Addressing a meeting of central bankers and finance ministers from the Middle East on the sidelines of International Monetary Fund's annual meeting in Peru, Seif pointed to the critical role of the IMF in promoting economic growth.

"Even if these measures are properly implemented, the results could be undermined by market failures which need to be cushioned through appropriate tax policies, government spending, and effective monetary and equity market policies."

The CBI chief explained social security issues in Iran and said, "Education is free in Iran and much of the government's resources are used for infrastructure development. Moreover, vast networks of charities exist to support low income groups."

Elaborating on Iran's current economic conditions, the governor forecasted 5% growth for 2016 as lifting of the international sanctions would let Iran export two million barrels of oil a day and attract much-needed foreign investment."

Seif pointed to the Rouhani administration's efforts to stabilize the economy by implementing workable monetary policies, and said, "Such efforts resulted in positive economic growth in 2014, decline in the inflation rate from 40% in 2013 to below 15% in 2015, a stable foreign exchange market and subsidy reforms."

He noted that the recent nuclear agreement between Iran and six world powers has created a stronger sense of "confidence in both domestic and international investors" regarding the future of Iran's economy.

"The deal will impact the region and the world; however, it is a bit soon to precisely analyze the impact of the international sanctions on Iran's economy," he said, regarding the crippling economic restrictions that harmed the national economy over the past 12 years.

The agreement also has given the country an opportunity to implement economic reforms rapidly. Comprehensive reforms in the financial sector, foreign exchange market, energy subsidies, and monetary policies were named by Seif as the examples of successfully implemented reforms.

"As all of you are aware, Iran has gone through many difficulties during the (decade plus) years of sanctions. But it made the economy more resilient and gave the country's markets a chance to be more innovative."