Reconstruction and regional diplomacy in the
24
Reconstruction and regional diplomacy in the Persian Guif Edited by Hooshang Amirahmadi and Nader Entessar London and New York j 1 7 9 Z.
Transcript of Reconstruction and regional diplomacy in the
Reco
nstru
ctio
n an
d re
gion
al d
iplo
mac
y in
the
Pers
ian
Gui
f
Edite
d by
Ho
osha
ng A
mira
hmad
i an
d Na
der E
ntes
sar
Lond
on a
nd N
ew Y
ork j
17 9
Z.
108
Eco
nom
ic d
estr
uctio
n an
d re
cons
truc
tion
17 A
mir
ahm
adi,
Revo
lutio
n an
d Ec
onom
ic T
rans
ition
, p.
201
. 18
See
/ran
Foc
us 3
(1) J
anua
ry 1
990:
10
(quo
ting
Pres
iden
t Raf
sanj
ani
resp
ondi
ng to
the
radi
cal c
ritic
s of
his
pla
n bi
ll in
a
4 D
ecem
ber
unof
ficia
l ses
sion
of th
e Pa
rlia
men
t. H
inde
ring
Iran
's
19 H
. Am
irah
mad
i, 'S
tubb
orn
Eco
nom
ic P
robl
ems
13 (1
9) D
ecem
ber
Reco
nstru
ctio
n Ef
forts
', Mid
dle
East
Exec
utiv
e Re
port
1990
: 11.
20
Eco
nom
ic B
ulle
tin
(Ech
o of
Iran
) 6 (1
8) 1
2 M
ay 1
987:
5.
In C
hapt
er 4
I g
ave
an a
naly
sis
of th
e w
ar d
estr
uctio
n. A
pre
limi-
nary
ass
essm
ent o
f th
e da
mag
e w
reck
ed
on t
he e
cono
my
by
the
eart
hqua
ke w
as a
lso
repo
rted
. The
fina
l par
t foc
used
on
eigh
t set
s of
eco
nom
ic im
bala
nces
from
whi
ch th
e ec
onom
y su
ffer
s th
e m
ost
and
expl
aine
d th
eir c
ompl
ex a
nd in
terr
elat
ed c
ause
s. In
this
cha
p-te
r I s
hall
give
a d
etai
led
acco
unt o
f the
Fir
st F
ive-
Yea
r Eco
nom
ic,
1 S
ocia
l and
Cul
tura
l Dev
elop
men
t Pla
n of
the
Isla
mic
Rep
ubli
c of
Ir
an (
1989
-93)
. The
pla
n in
tend
s to
sta
biliz
e th
e ec
onom
y an
d st
ruct
ural
ly a
djus
t its
imba
lanc
es in
the
hope
of
norm
aliz
ing
the
war
eco
nom
y an
d th
en le
adin
g it
tow
ard
a gr
owth
pat
h. A
n ac
coun
t of
polic
y ch
ange
s in
the
wak
e of
the
Gul
f cr
isis
is a
lso
give
n. T
he c
hapt
er c
oncl
udes
with
an
asse
ssm
ent o
f pr
ospe
cts
for
econ
omic
dev
elop
men
t in
Iran
. Ir
an's
pos
t-w
ar r
econ
stru
ctio
n pl
an s
houl
d in
theo
ry b
e di
s-cu
ssed
und
er fo
ur g
ener
al h
eadi
ngs:
eco
nom
ic re
cove
ry p
lan,
phy
si-
cal r
econ
stru
ctio
n pr
ojec
ts (f
or th
e w
ar-d
estr
oyed
and
ear
thqu
ake-
dam
aged
are
as),
reb
uild
ing
of th
e ar
my,
an
d so
cial
wel
fare
and
ju
stic
e. T
his
last
has
har
dly
been
a to
p go
vern
men
t pri
ority
in th
e po
st-w
ar p
erio
d w
hile
mili
tary
rec
over
y pl
an fa
lls o
utsi
de th
e sc
ope
of th
is c
hapt
er. I
als
o do
not
wis
h to
con
cent
rate
on
phy
sica
l re
cons
truc
tion
in th
is c
hapt
er, w
hich
is c
once
rned
with
eco
nom
ic
issu
es. T
here
fore
, in
wha
t fol
low
s I
shal
l dis
cuss
Ira
n's
econ
omic
re
cove
ry p
lan
incl
udin
g it
s ph
ysic
al r
econ
stru
ctio
n st
rate
gies
. E
cono
mic
reco
very
has
bee
n th
e go
vern
men
t's n
umbe
r one
pri
ority
in
the
post
-war
per
iod.
The
pla
n is
mor
e or
less
bas
ed o
n si
mila
r un
ders
tand
ing
of e
cono
mic
imba
lanc
es a
s di
scus
sed
in C
hapt
er 4
. B
efor
e th
e w
ar w
ith Ir
aq, t
he Is
lam
ic R
epub
lic's
eco
nom
ic d
evel
-
Chap
ter 5
Irani
an ec
onom
ic re
cons
truct
ion
plan
and
pros
pect
s for
its s
ucce
ss
Hoos
hang
Am
irahm
adi
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
11
110
Eco
nom
ic d
estr
uctio
n an
d re
cons
truc
tion
opm
ent s
trat
egy
focu
sed
on b
oth
grow
th a
nd r
edis
trib
utio
n. T
he
new
Con
stitu
tion
mad
e th
e go
vern
men
t res
pons
ible
for
the
pro-
visi
on o
f bas
ic n
eeds
for
all,
emph
asiz
ed 's
yste
mat
ic a
nd s
ound
pl
anni
ng',
and
allo
wed
for
exte
nsiv
e na
tiona
lizat
ion
of m
ajor
soc
io-
econ
omic
act
iviti
es.
lir c
wit
init
y
way
, ho
wev
er,
to c
onsi
st o
f thr
ee
sect
ors:
pub
lic, p
riva
te a
nd c
o-op
erat
ive.
The
pub
lic se
ctor
, whi
ch
had
dom
inat
ed th
e ec
onom
y be
fore
the
Rev
olut
ion,
was
exp
ande
d fu
rthe
r un
der
the
new
reg
ime.
Rev
olut
iona
ries
favo
ured
ext
ensi
ve
stat
e in
terv
entio
n an
d th
e w
ar c
reat
ed n
ew r
espo
nsib
ilitie
s fo
r th
e go
vern
men
t in
Teh
ran.
R
edis
trib
utio
n w
as th
e fi
rst c
asua
lty o
f th
e w
ar. I
n th
e or
igin
al
Fir
st S
ocia
l, E
cono
mic
and
Cul
tura
l Dev
elop
men
t Pla
n of
the
Isla
mic
Rep
ublic
, whi
ch c
over
ed th
e 19
83-7
per
iod,
the
focu
s ha
d al
read
y sh
ifted
to e
cono
mic
gro
wth
. Rad
ical
s in
the
Parl
iam
ent
prot
este
d, a
nd a
fter
mon
ths
of d
ebat
es, t
he p
lan
was
she
lved
. A
revi
sed
vers
ion
(in 1
983)
ack
now
ledg
ed th
at I
ran
wou
ld r
each
the
`des
tined
soc
iety
' dep
icte
d in
the
Con
stitu
tion
in s
tage
s, th
roug
h th
e 'e
lim
inat
ion
of o
bsta
cles
', th
e 'm
axim
um u
tili
zati
on o
f th
e ex
isti
ng c
apac
itie
s' a
nd 'i
nsti
tuti
on b
uild
ing'
. Onl
y th
en, i
t was
ar
gued
, cou
ld 'r
egul
ar d
evel
opm
ent p
lann
ing'
beg
in. T
hus
a pl
an-
ned
appr
oach
to th
e ec
onom
y w
as r
ejec
ted
unde
r th
e w
ar c
on-
ditio
n; a
nnua
l bud
getin
g be
cam
e th
e m
ajor
eco
nom
ic m
anag
emen
t to
ol w
here
sig
nifi
cant
rest
rict
ions
wer
e pl
aced
on
mar
ket f
orce
s.'
Nev
erth
eles
s, I
ran
follo
wed
the
plan
's po
licie
s on
max
imiz
ing
utili
zatio
n of
cap
aciti
es a
nd r
emov
ing
the
bottl
enec
ks u
ntil
1986
. T
he s
harp
dec
line
in o
il pr
ices
in 1
986
crea
ted
a da
nger
ous
fore
ign
exch
ange
sho
rtag
e an
d fo
rced
the
gove
rnm
ent t
o pr
ocla
im a
n A
us-
teri
ty P
lan
for
the
New
Eco
nom
ic C
ondi
tion.
The
Pla
n ga
ve u
p an
y ho
pe o
f ec
onom
ic g
row
th. I
nste
ad, i
t aim
ed a
t mai
ntai
ning
th
e st
atus
quo
and
red
ucin
g th
e ec
onom
y's
depe
nden
cy o
n oi
l re
venu
e th
roug
h st
rict
er m
anag
emen
t and
real
loca
tion
of th
e av
ail-
able
for
eign
exc
hang
e. A
s a
resu
lt, th
e fo
reig
n ex
chan
ge b
udge
t w
as re
duce
d by
two-
thir
ds in
198
6 an
d th
e w
ar a
long
with
def
ence
-re
late
d in
dust
ries
wer
e gi
ven
high
er p
rior
ity f
or r
ecei
ving
for
eign
ex
chan
ge. A
mon
g th
e fa
r-re
achi
ng im
plic
atio
ns f
or I
ran'
s de
pen-
dent
indu
stri
es w
ere
a sh
arp
decl
ine
in v
alue
add
ed, e
mpl
oym
ent
and
prod
uctiv
ity.
The
eco
nom
y co
ntin
ued
to d
eter
iora
te, h
owev
er, a
nd b
y 19
88,
whe
n th
e 'w
ar o
f ci
ties'
was
goi
ng o
n, th
e go
vern
men
t had
aga
in
to c
hang
e its
pol
icy
and
intr
oduc
e a
so-c
alle
d Su
rviv
al S
trat
egy.
T
he n
ew s
trat
egy
gave
up
all a
ttem
pts
to e
ven
mai
ntai
n th
e st
atus
quo.
Ins
tead
, it a
imed
at m
inim
izin
g th
e ra
te o
f eco
nom
ic d
eclin
e an
d pr
ovid
ing
for
the
peop
le's
bare
nec
essi
ties
with
out g
oing
into
fo
reig
n de
bt. T
he g
over
nmen
t em
phas
ized
agr
icul
ture
whi
ch w
as
only
min
imal
ly d
epen
dent
on
fore
ign
exch
ange
. At t
he s
ame
time,
th
e w
ar w
ag
giv
en
tn
n p
rin
rit
y a
lon
g w
ith
ripf
pn.,..
_r^,0,
-1 int
.1,.s
^rie
s an
d pu
blic
ser
vice
s.
AY
AT
OL
LA
H K
HO
ME
INI'
S D
IRE
CT
IVE
The
Sur
viva
l Str
ateg
y w
as m
aint
aine
d un
til t
he c
ease
-fir
e in
A
ugus
t 198
8, w
hen
the
old
deba
te o
n a
suit
able
dev
elop
men
t st
rate
gy r
esur
face
d.' T
he r
adic
als,
con
serv
ativ
es a
nd p
ragm
atis
ts
with
in th
e go
vern
men
t als
o di
sagr
eed
on w
hich
of t
he fo
llow
ing
shou
ld g
et to
p pr
iori
ty:
1 re
build
ing
the
natio
nal e
cono
my
2 re
vita
lizin
g th
e ar
my
3 re
cons
truc
ting
the
war
-dam
aged
are
as
4 pr
omot
ing
the
econ
omic
wel
l-be
ing
of th
e w
ar v
ictim
s.
In a
cla
ssic
com
prom
ise,
the
late
Aya
tolla
h K
hom
eini
inte
rven
ed
by is
suin
g a
'dir
ectiv
e' to
the
gove
rnm
ent i
n w
hich
he
advo
cate
d a
mix
ed d
evel
opm
ent a
ppro
ach
for
the
Isla
mic
Rep
ubli
c (o
ne
betw
een
a pl
anne
d an
d a
mar
ket a
ppro
ach)
. The
Aya
tolla
h's
dire
c-tiv
e al
so p
lace
d ec
onom
ic re
cove
ry a
t the
top
of th
e go
vern
men
t's
list o
f pr
iori
ties
for
the
post
-war
per
iod.
A s
imila
r ap
proa
ch w
as
also
adv
ocat
ed b
y th
e pr
agm
atis
ts, l
ed b
y th
en S
peak
er o
f th
e Pa
rlia
men
t (no
w P
resi
dent
) A
li A
kbar
Has
hem
i Raf
sanj
ani.'
T
he d
irec
tive
also
em
phas
ized
rebu
ildin
g th
e ar
my
and
prom
ot-
ing
the
wel
l-be
ing
of w
ar-v
ictim
s. R
econ
stru
ctio
n of
the
war
-dam
-ag
ed a
reas
was
to p
roce
ed s
low
ly, m
ovin
g al
ong
wit
h na
tion
al
econ
omic
rec
over
y. A
mon
g th
e ec
onom
ic s
ecto
rs, o
il, a
gric
ultu
re
and
indu
stri
es p
rodu
cing
con
stru
ctio
n m
ater
ials
wer
e lis
ted
as to
p pr
iori
ties.
Oth
er p
rior
ity a
reas
incl
uded
hou
sing
, rur
al d
evel
op-
men
t and
loca
l par
ticip
atio
n. T
his
dire
ctiv
e be
cam
e th
e ba
sis
of a
se
cond
pla
n ca
lled
agai
n th
e Fi
rst S
ocia
l, E
cono
mic
and
Cul
tura
l D
evel
opm
ent P
lan
of th
e Is
lam
ic R
epub
lic, f
or th
e 19
89-9
3 pe
riod
(f
orm
ulat
ed o
n th
e ba
sis
of th
e or
igin
al fi
rst p
lan
in 1
983)
. Thi
s ne
w p
lan,
pre
pare
d un
der
Prim
e M
inis
ter
Mir
Hus
sein
Mus
savi
(M
ussa
vi p
lan)
, and
a su
bseq
uent
rev
ised
ver
sion
, pre
pare
d un
der
Pres
iden
t Has
hem
i Raf
sanj
ani (
Raf
sanj
ani p
lan)
, wer
e sp
ecifi
cally
112
Econ
omic
des
truc
tion
and
reco
nstr
uctio
n Ir
ania
n ec
onom
ic r
econ
stru
ctio
n pl
an 1
13
desi
gned
to a
ddre
ss th
e ec
onom
ic im
bala
nces
dis
cuss
ed in
Cha
pter
4.
TH
E M
USS
AV
I P
LA
N
The
Mus
savi
pla
n en
visi
oned
eco
nom
ic r
ecov
ery
pass
ing
thro
ugh
thre
e st
ages
: eco
nom
ic n
orm
aliz
atio
n th
roug
h m
axim
um u
tiliz
atio
n of
pro
duct
ive
capa
citie
s; e
cono
mic
gro
wth
thro
ugh
adde
d ca
paci
t-ie
s; a
nd s
usta
ined
eco
nom
ic g
row
th a
nd m
atur
atio
n. O
il r
even
ue
and
fore
ign
savi
ngs
wer
e co
nsid
ered
cri
tical
for
the
impl
emen
tatio
n of
the
fir
st t
wo
stag
es. C
ompl
etio
n of
unf
inis
hed
proj
ects
and
pr
oduc
tion
or
impo
rts
of in
dust
rial
inpu
ts w
ere
give
n to
p pr
iori
ty.
The
pla
n al
so e
mph
asiz
ed p
rom
otio
n of
non
-oil
exp
orts
, and
cr
eati
on o
f fr
ee-t
rade
zon
es in
a n
umbe
r of
Per
sian
Gul
f is
land
s.
Sig
nifi
cant
ly, t
he p
lan
incl
uded
pro
visi
ons
for
popu
lati
on c
ontr
ol,
indi
cati
ng a
rat
her
sign
ific
ant i
deol
ogic
al s
hift
. The
pop
ulat
ion
grow
th r
ate
was
to d
ecli
ne to
2.9
per
cen
t by
1993
, fro
m 3
.2 p
er
cent
(gr
oss
natu
ral i
ncre
ase)
in 1
988.
Thi
s st
rate
gy w
as p
arti
cu-
larl
y m
eant
to m
itig
ate
the
supp
ly-d
eman
d im
bala
nce
and
help
st
abili
ze p
rice
s an
d m
itiga
te u
nem
ploy
men
t. T
he p
riva
te s
ecto
r w
as to
rec
eive
mat
eria
l inc
enti
ve to
red
irec
t it
s hu
ge li
quid
ity
tow
ards
pro
duct
ive
sect
ors.
Thi
s w
as h
oped
to
assi
st in
red
ucin
g liq
uidi
ty im
bala
nce
and
infl
atio
n, w
hile
incr
eas-
ing
prod
ucti
on. T
he p
lan
also
dir
ecte
d th
e go
vern
men
t to
lim
it
the
publ
ic o
wne
rshi
p of
the
eco
nom
y to
lar
ge-s
cale
and
bas
ic
acti
viti
es. T
he r
est
was
to
be s
old
in a
ren
ewed
Teh
ran
stoc
k m
arke
t to
the
priv
ate
sect
or. T
he p
olic
y w
ould
red
uce
the
disp
ro-
port
iona
te p
ublic
invo
lvem
ent i
n th
e ec
onom
y an
d re
duce
the
stat
e bu
dget
ary
and
man
agem
ent
burd
ens.
Edu
cati
on a
nd i
ncre
ased
re
sear
ch f
or d
evel
opm
ent o
f sc
ienc
e an
d te
chno
logy
rec
eive
d co
n-si
dera
ble
atte
ntio
n. T
hese
mea
sure
s w
ere
hope
d to
mit
igat
e th
e pr
oble
m o
f te
chno
logi
cal o
bsol
esce
nce
and
deca
y. T
he p
lan
also
em
phas
ized
agr
icul
ture
, rur
al a
reas
and
dep
rive
d re
gion
s in
an
atte
mpt
to a
ddre
ss th
e pr
oble
m o
f ri
sing
dis
pari
ties
. O
ver
the
plan
per
iod,
gro
ss d
omes
tic p
rodu
ctio
n, g
ross
dom
estic
fi
xed
capi
tal f
orm
atio
n an
d in
dust
rial
val
ue a
dded
wer
e to
gro
w
at 8
, 10.
8 an
d 14
.2 p
er c
ent p
er y
ear
resp
ecti
vely
as
mea
sure
d by
19
88 f
ixed
pri
ces.
Oth
er im
port
ant q
uant
itat
ive
targ
ets
incl
uded
a
21.8
per
cen
t ann
ual i
ncre
ase
in p
ubli
c in
com
e an
d a
corr
espo
nd-
ing
decr
ease
in th
e bu
dget
def
icit,
fro
m a
bout
51
per
cent
of
publ
ic
inco
me
in 1
988
to o
nly
4.2
per
cent
by
the
end
of th
e pl
an p
erio
d
in 1
993.
The
sha
re o
f pu
blic
dev
elop
men
t exp
endi
ture
s w
as a
lso
to in
crea
se, f
rom
abo
ut 1
9.4
per
cent
in
1988
to 2
6.4
per
cent
in
1993
. The
for
eign
exc
hang
e bu
dget
was
equ
ally
am
bitio
usly
pla
n-ne
d: $
97.0
00 m
illi
on, s
ome
85.7
per
cen
t of
whi
ch w
as to
com
e fr
om n
il ex
port
s. P
roje
ctio
ns f
or s
ocia
l sec
tors
als
o pa
inte
d a
rosy
pi
ctur
e: s
ome
2.5
mill
ion
hous
es w
ould
be
built
, lite
racy
rat
e w
ould
in
crea
se to
97.
2 pe
r ce
nt, a
nd th
e nu
mbe
r of
phy
sici
ans
per
1,00
0 po
pula
tion
wou
ld in
crea
se f
rom
0.1
8 to
0.3
7 by
the
end
of th
e pl
an p
erio
d.'
TH
E R
AF
SAN
JAN
I P
LA
N
Bef
ore
the
Mus
savi
pla
n co
uld
pass
the
Par
liam
ent,
the
Pri
me
Min
iste
r's o
ffic
e w
as a
bolis
hed
and
Pres
iden
t Has
hem
i Raf
sanj
ani
took
con
trol
of
the
gove
rnm
ent i
n Ju
ly 1
989.
The
new
pra
gmat
ist
cabi
net d
ecid
ed o
n a
bold
er, f
lexi
ble,
ope
n, m
ore
mar
ket-o
rien
tate
d st
rate
gy. T
he M
ussa
vi p
lan
was
thus
rev
ised
to r
efle
ct th
e ne
w
prag
mat
ism
. The
Raf
sanj
ani p
lan
(198
9-93
) pa
ssed
the
Parl
iam
ent
on 3
1 Ja
nuar
y 19
90, a
bout
a y
ear
afte
r it
was
to b
e pu
t in
prac
tice,
an
d is
cur
rent
ly b
eing
impl
emen
ted.
' The
gov
ernm
ent h
opes
to p
ut
the
econ
omy
back
on
a m
ore
norm
al f
ootin
g us
ing
a co
mbi
natio
n of
oi
l rev
enue
, for
eign
ass
ista
nce,
dom
estic
res
ourc
es a
nd th
e pr
ivat
e se
ctor
. It i
nten
ds to
bui
ld a
mix
ed e
cono
my
in w
hich
th
e pr
ivat
e se
ctor
's r
ole
wil
l exp
and,
whi
le th
at o
f th
e pu
blic
sec
tor
will
be
conf
ined
to b
asic
and
str
ateg
ic s
ecto
rs. T
he p
lan
inco
rpor
ates
a
supp
ly-s
ide
econ
omic
pol
icy
acco
rdin
g to
whi
ch m
ost g
over
nmen
t re
form
s an
d as
sist
ance
are
des
igne
d to
ben
efit
pro
duce
rs r
athe
r th
an c
onsu
mer
s.
Whi
le r
emai
ning
loya
l to
the
stag
e th
eory
, the
new
pla
n st
ress
ed
econ
omic
gro
wth
and
impo
rt-s
ubst
itut
ion
indu
stri
aliz
atio
n ba
sed
on th
e na
tion'
s re
sour
ce e
ndow
men
t and
thro
ugh
rem
ovin
g bo
ttle-
neck
s, m
axim
um u
tili
zati
on o
f th
e ex
isti
ng p
rodu
ctiv
e ca
paci
ties
, an
d co
mpl
etio
n of
unf
inis
hed
proj
ects
foc
usin
g on
cap
ital
an
d in
term
edia
te g
oods
inv
estm
ents
. In
addi
tion
to
man
ufac
turi
ng
(inc
ludi
ng d
efen
ce in
dust
ries
), th
e pl
an a
lso
emph
asiz
ed m
inin
g,
oil a
nd g
as, i
nfra
stru
ctur
es (
tran
spor
tati
on a
nd e
nerg
y in
par
ticu
-la
r), a
gric
ultu
re, h
ighe
r ed
ucat
ion
and
rese
arch
, he
alth
serv
ices
, an
d to
uris
m. W
hat,
how
ever
, dis
ting
uish
es th
is p
lan
from
its
pre-
dece
ssor
is it
s em
phas
is o
n ec
onom
ic g
row
th, i
ncre
ased
rol
e fo
r th
e pr
ivat
e se
ctor
, and
mor
e op
enne
ss to
for
eign
inve
stm
ent
and
trad
e.
114
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n Ira
nian
eco
nom
ic re
cons
truct
ion
plan
115
Acco
rdin
g to
the
plan
, inc
omes
from
oil
and
othe
r ex
port
able
m
iner
als
wou
ld b
e us
ed to
form
new
indu
stri
al u
nits
, tra
nsfe
r `s
uita
ble'
tech
nolo
gies
and
upg
rade
the
natio
n's t
echn
ical
cap
abili
-tie
s. P
rior
ity is
giv
en to
'str
ateg
ical
ly im
port
ant b
asic
indu
stri
es'
whi
ch w
ould
be
allo
cate
d fo
reig
n ex
chan
ge a
t off
icia
l rat
e w
hile
in
dust
ries
pro
duci
ng o
ther
'nec
essa
ry g
oods
' will
rec
eive
fore
ign
exch
ange
at p
refe
rent
ial r
ate.
The
gov
ernm
ent w
ill a
lso
supp
ort
inve
stm
ent i
n ot
her
type
s of
pro
ject
s, b
ut s
ome
less
-nee
ded
ones
, su
ch a
s un
its p
rodu
cing
luxu
ry g
oods
, wou
ld h
ave
to s
ecur
e th
eir
own
fore
ign
curr
enci
es a
t fre
e m
arke
t rat
es. P
riva
te in
vest
men
ts
in p
rodu
ctiv
e bu
sine
sses
wou
ld r
ecei
ve a
dequ
ate
assi
stan
ce fr
om
the
gove
rnm
ent i
nclu
ding
mon
ey a
nd e
quip
men
ts. S
uch
inve
st-
men
ts w
ill b
e en
cour
aged
in m
inin
g an
d m
anuf
actu
ring
by
tran
sfer
of
mos
t pub
lic m
ines
and
indu
stri
es (w
ith th
e ex
cept
ion
of s
trat
egic
in
dust
ries
) to
the
priv
ate
sect
or. I
n sh
arp
cont
rast
, sub
sidi
es to
lo
ss-r
idde
n pu
blic
ent
erpr
ises
will
be
redu
ced
in a
n at
tem
pt to
m
ake
them
inde
pend
ent o
f the
sta
te.
The
pla
n al
so e
nvis
ions
an
incr
ease
in t
he n
atio
n's
non-
oil
expo
rts
(man
ufac
turi
ng, m
inin
g an
d tr
aditi
onal
goo
ds) t
hrou
gh
max
imum
util
izat
ion
of th
e ex
istin
g ca
paci
ties.
Ind
icat
ing
a ke
y po
licy
shift
, tou
rism
has
em
erge
d as
a p
rior
ity s
ecto
r th
at c
ould
ge
nera
te fo
reig
n ex
chan
ge. A
s par
t of t
he n
ew to
uris
m p
rogr
amm
e an
d to
enc
oura
ge fo
reig
n in
vest
men
t, th
e go
vern
men
t has
dec
lare
d Q
eshm
and
Kee
sh I
slan
ds, a
long
with
a fe
w o
ther
isla
nds
in th
e P
ersi
an G
ulf,
as 'i
ndus
tria
l fre
e zo
nes'
, whe
re in
vest
men
ts a
nd
com
mod
ity tr
ade
will
not
be
subj
ect t
o re
gula
r cu
stom
reg
ulat
ions
an
d go
vern
men
t red
tape
. Oth
er e
xpor
t-pr
omot
ion
mea
sure
s in
clud
e pr
ovis
ion
of in
cent
ives
to th
e pr
ivat
e se
ctor
suc
h as
tax
holid
ays a
nd e
asy
cred
it, e
limin
atio
n of
the
exis
ting
adm
inis
trat
ive
red
tape
, mon
etar
y re
form
s inc
ludi
ng a
gra
dual
elim
inat
ion
of th
e ex
isti
ng m
ulti
-tie
r ex
chan
ge r
ate
syst
em in
favo
ur o
f a fl
oati
ng
rate
, att
ract
ion
of fo
reig
n in
vest
men
ts th
roug
h jo
int v
entu
res
and
buy-
back
mec
hani
sm, a
nd im
prov
emen
t in
the
qual
ity a
nd c
om-
petit
iven
ess
of I
ran'
s ex
port
s. T
he s
hift
in th
e co
untr
y's
fore
ign
polic
y in
the
dire
ctio
n of
goo
d ne
ighb
ourl
y re
latio
ns w
ith th
e st
ates
in
the
regi
on w
ill a
lso
incr
ease
Ira
n's
econ
omic
co-
oper
atio
n w
ith
them
, sup
pose
dly
mak
ing
a la
rger
mar
ket a
vaila
ble
to I
ran'
s ex
port
s. T
he p
lan'
s ot
her
maj
or p
olic
ies
incl
ude
stre
ngth
enin
g th
e ta
x ad
min
istr
atio
n an
d ce
ntra
lizat
ion
of d
ecis
ion-
mak
ing
proc
ess,
and
ratio
naliz
atio
n of
the
natio
n's e
cono
mic
man
agem
ent a
nd o
rgan
iz-
atio
n. T
his w
ill in
clud
e w
ides
prea
d pr
ivat
izat
ion
of p
ublic
ow
ner-
ship
in th
e ec
onom
ic s
pher
e, a
nd e
limin
atio
n an
d re
com
bina
tion
of p
aral
lel o
rgan
izat
ions
and
dec
isio
n ce
ntre
s. T
o th
is e
nd, t
he
gove
rnm
ent h
as r
eact
ivat
ed T
ehra
n's s
tock
exc
hang
e m
arke
t whe
re
It is
off
erin
g sh
ares
of
publ
ic in
dust
ries
at l
ucra
tive
pric
es. T
he
priv
atiz
atio
n po
licy
is e
xpec
ted
to h
elp
cut t
he b
udge
t def
icit
and
draw
pri
vate
liqu
idity
aw
ay fr
om tr
ade
and
brok
erag
e to
war
ds
prod
uctiv
e in
vest
men
ts. A
s pa
rt o
f its
rat
iona
lizat
ion
sche
me
and
to c
hang
e its
pow
er b
ase,
the
prag
mat
ist g
over
nmen
t has
uni
fied
the
com
man
d st
ruct
ure
of th
e R
evol
utio
nary
Gua
rd C
orps
and
the
regu
lar a
rmy,
and
is c
ombi
ning
the
Rev
olut
iona
ry C
omm
ittee
and
th
e po
lice
forc
e. It
has
als
o re
orga
nize
d th
e ba
nkin
g sy
stem
and
the
natio
naliz
ed in
dust
ries
, bro
ught
und
er c
ontr
ol th
e pr
ivat
e fi
nanc
ial
inst
itut
ions
, and
is a
ttem
ptin
g to
bri
ng o
rder
into
the
chao
tic
deci
sion
-mak
ing
stru
ctur
e of
the
gove
rnm
ent b
y ce
ntra
lizin
g so
me
impo
rtan
t fun
ctio
ns a
t the
mac
ro a
nd m
eso
polic
y le
vels
. T
he p
lan
also
giv
es m
ore
auto
nom
y to
min
istr
ies
and
publ
ic
agen
cies
and
ent
erpr
ises
for
man
agin
g th
eir
affa
irs
dom
estic
ally
an
d in
tern
atio
nally
. For
exa
mpl
e, th
ey d
o no
t nee
d to
issu
e te
nder
s fo
r pr
ojec
ts c
ostin
g up
to $
10 m
illio
n. T
hey
are
also
fre
e to
ent
er
into
cer
tain
con
trac
ts w
ith f
orei
gn f
irm
s to
sec
ure
cred
it or
for
m
join
t ven
ture
s. H
owev
er, s
uch
arra
ngem
ents
mus
t ex
pand
pro
-du
ctiv
e ca
paci
ty a
nd th
e pr
ojec
ts w
ould
hav
e to
gen
erat
e th
eir
own
fore
ign
exch
ange
req
uire
men
ts o
r m
eet s
tric
t cri
teri
a fo
r va
lue
adde
d. T
he p
lan
also
pla
ces
a ce
iling
on
the
fore
ign
exch
ange
lia
bilit
ies
that
spe
cifi
c se
ctor
s ca
n in
cur,
for e
xam
ple,
$3.
2 bi
llion
in
the
oil s
ecto
r, $
3 bi
llion
for
dam
s, a
nd $
2.2
billi
on f
or p
etro
-ch
emic
al in
dust
ries
. T
he p
lan
mak
es p
rovi
sion
s fo
r reg
iona
l dev
elop
men
t and
rest
ruc-
turi
ng o
f the
cou
ntry
's sp
atia
l org
aniz
atio
n. T
hese
incl
ude
dece
nt-
raliz
ing
Teh
ran,
bui
ldin
g ne
w to
wns
, str
engt
heni
ng in
term
edia
te
citie
s, a
nd a
ssis
ting
back
war
d re
gion
s an
d ru
ral a
reas
. Fi
nally
, the
pl
an in
clud
es a
set
of m
easu
res
to r
educ
e po
pula
tion
grow
th r
ate
(fro
m 3
.2 p
er c
ent i
n 19
88 to
2.9
per
cen
t in
1993
) by
redu
cing
bi
rth
rate
from
6.4
to 4
by
the
end
of th
e pl
an p
erio
d. A
mon
g fa
mily
con
trol
mea
sure
s inc
lude
elim
inat
ion
of in
cent
ives
that
the
Isla
mic
Rep
ublic
inst
itute
d ea
rly
in th
e po
st-r
evol
utio
nary
per
iod
to e
ncou
rage
pop
ulat
ion
grow
th, a
nd e
xpan
sion
of w
omen
's
edu-
catio
n an
d pa
rtic
ipat
ion
in s
ocio
-eco
nom
ic a
ctiv
ities
. The
gov
ern-
men
t is
also
dis
trib
utin
g co
ntra
cept
ives
and
oth
er p
reve
ntiv
e
7 III lc!
01 Ill
7 u
?
9 a
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om
wm
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ww
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9 9
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ow
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v ri
c‘i
cci
C!
11 1 C
! C
! N
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co
elf
WW
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•Wir
-m-
8
.00-
10,c
ov
..
1,.
..c
ov
nrc
oN
w§
w
(6
,
NI[
).-'
mm
cp
wo
om
trIc
lel 1:7
! 7
co
M
•a
r §
g g
ca12M
-326 -
2Z
CO.
‘27.:
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.t.h
h:0
u- ,
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01 cl
tri
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C‘I
C!
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C§C
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I v-
CO
Table 5.1 GDP breakdown for the five-year plan, 1988-93 (billion rials, 1988 constant prices)
I- CO
U
)
116
Econ
omic
des
truc
tion
and
reco
nstr
uctio
n
devi
ces
to t
he g
ener
al p
ubli
c, a
nd i
s st
reng
then
ing
the
role
of
Rur
al H
ouse
s in
fam
ily p
lann
ing.
° T
he p
lan'
s m
acro
targ
ets
may
be
sum
mar
ized
as
foll
ows:
G
DP
is
to in
crea
se a
t 8.1
per
cen
t a y
ear
(non
-oil
G
DP
at 7
.9 p
er c
ent)
at
198
8 co
nsta
nt p
rice
s ov
er th
e pl
an p
erio
d. T
his
incr
ease
sho
uld
resu
lt, g
iven
the
targ
et p
opul
atio
n gr
owth
rat
e of
2.9
per
cen
t in
1993
, in
a 4.
9 pe
r ce
nt a
nnua
l inc
reas
e (a
gain
in 1
988
cons
tant
pr
ices
) in
the
nat
ion'
s pe
r ca
pita
l in
com
e (s
ee T
able
5.1
). T
he
grow
th w
ould
alm
ost t
otal
ly r
esul
t fro
m m
axim
um u
tili
zati
on o
f id
le c
apac
itie
s an
d co
mpl
etio
n of
the
unfi
nish
ed in
vest
men
t pro
-je
cts.
' Tar
get
annu
al g
row
th r
ates
in
1988
con
stan
t pr
ices
for
m
ajor
eco
nom
ic s
ecto
rs a
re a
s fo
llow
s (s
ee T
able
5.1
): a
gric
ultu
re,
6.1
per
cent
; oi
l, 8
.7 p
er c
ent;
man
ufac
turi
ng, 1
4.2
per
cent
; m
inin
g, 1
9.5
per
cent
; w
ater
, ele
ctri
city
and
gas
, 9.1
per
cen
t;
cons
truc
tion,
14.
5 pe
r ce
nt; a
nd s
ervi
ces,
6.7
per
cen
t. T
he s
igni
fi-
cant
ly h
igh
targ
et g
row
th r
ate
for
min
ing
is d
esig
ned
to in
crea
se
Iran
's n
on-o
il e
xpor
ts a
nd r
educ
e it
s de
pend
ency
on
oil r
even
ue.
Whi
le th
e ov
eral
l tar
get g
row
th r
ate
for
serv
ices
is s
et a
t a r
elat
ivel
y lo
wer
rat
e, e
mph
asis
is p
lace
d on
suc
h su
b-se
ctor
s as
tran
spor
-ta
tion
, edu
cati
on, h
ealt
h, v
ocat
iona
l and
tech
nica
l sch
ooli
ng, a
nd
soci
al s
ecur
ity. T
he c
omm
erci
al s
ub-s
ecto
r is
to g
row
at t
he lo
wes
t po
ssib
le r
ate.
T
o ac
hiev
e th
e m
acro
targ
ets,
the
plan
env
isio
ns a
n es
tim
ated
in
vest
men
t of
som
e R
ls 2
6,45
2,00
0 m
illio
n at
198
8 co
nsta
nt p
rice
s ov
er th
e pl
an p
erio
d. T
he p
roje
cted
ann
ual g
row
th r
ate
of in
vest
-m
ent a
t 198
8 co
nsta
nt p
rice
is 1
1.6
per
cent
. The
ove
rall
inve
st-
men
t rat
io to
GD
P is
pla
nned
to r
ise
from
14.
5 pe
r ce
nt in
198
8 to
17
per
cent
in 1
993.
Of
all t
he in
vest
men
ts, t
he s
hare
of
publ
ic
sect
or d
urin
g th
e pl
an p
erio
d w
ould
ave
rage
52.
8 pe
r ce
nt (
see
Tab
le 5
.2).
The
pla
n gi
ves
the
foll
owin
g se
ctor
al s
hare
s in
inve
st-
men
t: a
gric
ultu
re, 9
.8 p
er c
ent;
oil
, 6.6
per
cen
t; m
anuf
actu
ring
an
d m
inin
g, 9
.2 p
er c
ent;
wat
er, e
lect
rici
ty a
nd g
as, 9
.2 p
er c
ent;
co
nstr
ucti
on, 3
3.2
per
cent
; and
ser
vice
s, 3
2.7
per
cent
. Wit
hin
man
ufac
turi
ng, c
apit
al a
nd in
term
edia
te g
oods
indu
stri
es w
ould
gr
ow a
t 24
per
cent
and
20
per
cent
res
pect
ivel
y (i
n 19
88 c
onst
ant
pric
es)
whi
le th
e co
rres
pond
ing
rate
s fo
r co
nsum
er g
oods
indu
stri
es
is 4
.2 p
er c
ent.
As
a re
sult
, it i
s ho
ped
that
the
shar
es o
f ca
pita
l an
d in
term
edia
te g
oods
indu
stri
es in
tota
l man
ufac
turi
ng v
alue
ad
ded
wou
ld in
crea
se f
rom
5.6
per
cen
t and
49.
4 pe
r ce
nt in
198
9 to
8.5
per
cen
t and
63.
0 pe
r ce
nt in
199
3 re
spec
tivel
y. C
onve
rsel
y,
1988-93 (billion rials, 1988 constant
co ;171 >.
0, ;.=
.c
E E C -r) C 0, 0
C a C
O 7)
U)7
C 0
•a
0 0
-
CNI
(Pi co ti
0 2 O
CO
0) 0
)
N
CO
N
. C
O N
1•1
N
ei
CO
8
118
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n
the
shar
e of
con
sum
er g
oods
indu
stri
es w
ould
dec
line
fro
m 4
5.0
per
cent
in 1
989
to 2
8.5
per
cent
in 1
993.
G
ener
ally
spe
akin
g, t
he R
afsa
njan
i pl
an h
as f
avou
red
larg
er
allo
catio
ns f
or o
il an
d ga
s, m
ines
, pet
roch
emic
als,
cem
ent,
plas
tics,
pa
per
prod
ucts
, agr
icul
ture
, tra
nspo
rt, c
omm
unic
atio
n, e
lect
rici
ty
and
mil
itar
y. I
n pa
rtic
ular
, of
the
tota
l dev
elop
men
t bud
get f
or
the
enti
re p
lan
peri
od, 1
9.2
per
cent
wil
l go
to
agri
cult
ure
and
wat
er r
esou
rces
, 14.
6 pe
r ce
nt to
roa
ds a
nd tr
ansp
orta
tion
, and
11
.8 p
er c
ent t
o m
anuf
actu
ring
and
min
ing.
Am
ong
soci
al s
ervi
ces,
ed
ucat
ion
rece
ives
a h
uge
boos
t as
som
e 15
per
cen
t of
the
stat
e's
deve
lopm
ent b
udge
t and
som
e 30
per
cen
t of
its
oper
atin
g bu
dget
fo
r th
e pl
an p
erio
d is
all
ocat
ed f
or th
e pu
rpos
e. H
ealt
h se
rvic
es
foll
ow w
ith
5.7
per
cent
and
9.5
per
cen
t, fo
llow
ed b
y re
sear
ch
with
4.7
per
cen
t and
0.8
per
cen
t. A
noth
er im
porta
nt fe
atur
e of
th
e pl
an
is it
s em
phas
is o
n de
velo
pmen
t exp
endi
ture
s. Th
us, o
f th
e to
tal f
unds
for t
he e
ntire
pla
n pe
riod,
som
e 28
.3 p
er c
ent w
ill
go to
dev
elop
men
t bud
get,
mos
t of i
t to
econ
omic
affa
irs, f
ollo
wed
by
soc
ial a
ffai
rs. A
bre
akdo
wn
of th
e pl
an's
deve
lopm
ent a
nd
curr
ent e
xpen
ditu
res f
or v
ario
us g
over
nmen
t aff
airs
is g
iven
in
Tabl
e 5.
3. N
ote
that
'oth
er e
xpen
ses'
incl
ude
budg
ets f
or d
efen
ce
(10.
7 pe
r cen
t of c
urre
nt fu
nds)
and
reco
nstru
ctio
n of
the
war
-da
mag
ed a
reas
(4.3
per
cen
t of d
evel
opm
ent f
unds
). A
s for
con
sum
ptio
n, th
e pl
an e
nvis
ions
an
incr
ease
in re
al p
ri-va
te a
nd p
ublic
exp
endi
ture
s (se
e Ta
ble
5.2)
. How
ever
, the
shar
e of
the
priv
ate
expe
nditu
res i
n G
DP
will
dec
line
whi
le t
hat o
f th
e pu
blic
sec
tor
will
cor
resp
ondi
ngly
incr
ease
. Thu
s, p
riva
te e
xpen
di-
ture
s du
ring
the
plan
per
iod
are
expe
cted
to in
crea
se b
y an
ann
ual
rate
of
5.7
per
cent
(at
198
9 co
nsta
nt p
rice
s). G
iven
the
tar
get
popu
latio
n gr
owth
rat
e, p
er c
apita
pri
vate
exp
endi
ture
s sh
all g
row
on
ly b
y 2.
6 pe
r ce
nt p
er y
ear,
red
ucin
g th
e sh
are
of p
riva
te e
xpen
-di
ture
s in
the
GD
P fr
om 5
9 pe
r ce
nt i
n 19
89 t
o 53
per
cen
t in
19
93. A
nnua
l gro
wth
rat
e of
pub
lic e
xpen
ditu
res
at c
onst
ant p
rice
s is
exp
ecte
d to
am
ount
to 3
.8 p
er c
ent o
n av
erag
e. T
his
poli
cy o
f li
mit
ing
the
grow
th o
f co
nsum
ptio
n is
hop
ed to
hel
p re
duce
the
supp
ly-d
eman
d im
bala
nce
by s
hift
ing
mor
e re
sour
ces
to in
vest
men
t an
d by
red
ucin
g im
port
s w
hich
are
a s
ourc
e of
infl
atio
n be
caus
e of
the
fore
ign
exch
ange
sca
rcity
. Acc
ordi
ng to
the
plan
, dep
ende
nt
econ
omie
s ca
nnot
hop
e to
ach
ieve
gro
wth
by
follo
win
g a
dem
and-
driv
en p
olic
y as
that
wou
ld o
nly
incr
ease
impo
rts
and
infl
atio
n.
Rat
her,
they
sho
uld
follo
w a
sup
ply-
driv
en p
olic
y w
hich
dis
crim
i-na
tes
agai
nst c
onsu
mpt
ion
but
favo
urs
prod
uctiv
e in
vest
men
t. T
he
rs cc!
cc! c`!
If
) r).
--1
11
0
In
CO
Cr}
0)
"It
CS 8 V
) r-z
ei tr
.; ei
N
1.0
0) C
O I
s 0)
N
/0
cip
co
Mtn
NN
i
1••■•
co
I's 0
0)
.—
0
Nt
1"• C
O C
O I'
. ei
tp c
.i CM 0
) N
0
0
•C
l V
; Ili oi
8 N
N
r- c
o co
1
0 P
s
Ps.
ei
a 4
. —
t. E
c
th 0 C >
c g..
Jr.
0 c
0 0
a
>
a) a )
th •-
ctL
3 c
E >
13 0
V 0
7
o c
c
C 0
C
Ba
ca
u).
75
.0:;
ex eco
zo
a. a_
cc E 0
t O E
c I t "
a
:17
§
2 fe
I-t"" 3
u co
a) 0)
0)
C- -4
1 >
co .0
0
t
A E
o t
. 0
I e3
j
11: g z
a.
A2
UD
C t
ea)
cc!
U)
00
01 N
- c?
"?
CO
N N
0)
0 1
41
8 4
cn
•
r '
4 0
8 P
A
co co1,-
11) N
N
CV
r--
—N
N.
cx.i
NO
4 c
.i
C')
e: c‘
cd
ci or
U)
C')
NU
) (0
,t 00 (D
O
•cr C
V
NQ
(N
I N
: 10U
) O
N C
l) t
0 d 4
CD
...—
CD
CO
OD (J
D u
l OD
Cv)
Co)
0
,- to
u) U
) OD
"tt
(AD
N u
l CI
). I's
CV
,--
4-
1.0 C
D 0 0
) If
) tt)
0 0
ct
0
•ct
cr,
ai
oi
h:
ai
§ i
g
0
r■ 4
4
.-
c) C
D I-
- 00
OD
UD C
)
•
'I
U) C
V
UD
N t
ok
W
C4
.— 4
U) 0
? '7
cv
rs-
q e
l 7
cn
4 C
Oo (ci
oa
co cc
i
CV C
V ct
) C
V C
I •
th 0
0)
If)
c0
N
to
C13.
CV.
•N
-'
N7
Oh
N
N
NU
) UD
N
OD
r c
n CD
a) Nt
OD
C7
1 10
0)(\i
coo C.
)
?2N
12 E
E
-a
c :
12 E
rn E
E
„c
2 CI)
0)
co..,,,,"E
aiE
=E
'6E
E
co c
i.....
. ..,
ci.._
. , a
.....
al 0
......
a a
.... a_
oc=
oc. oc o
cxoc
o c
T
orn!
`a-b-)
TE
116,
428c
nEo7
n,cp
To
0
•-
o >
a—
c >
....
" > ._
>
:- ,...(1)
cvn
glc
on
cei.
3(D
rnD
om
m
7.-r, a
• m
me 0
80
0 0
00
•-a
o.c
oo
w
0 0
0
:oo
0 0
CI
) W
0
I-
ce)
Of
Table 5.3 Breakdown of development and current funds during the first five-year plan, 1989-93 (billion rials)
rn 0)
co
r-- cD
of
cr2
co cu
0
.
0 t■
C)
) 0).
cD
N
10 .—
10
Cr)
N
8
;--
1.0 N
CI)
CID ro O z a. .9 0 0 0- 0 a O 0 15. U '0 co .0 8 9 0 8 Zos z 0
(21
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
21
plan
ac
know
ledg
es th
e lo
w le
vel o
f con
sum
ptio
n in
the
coun
try
and
argu
es th
at I
ran
mus
t go
thro
ugh
this
'tra
nsiti
onal
per
iod'
(t
he p
erio
d of
low
con
sum
ptio
n) in
ord
er to
ach
ieve
gro
wth
in
prod
uctio
n an
d pr
even
t inf
latio
n'
The
pla
n. e
nvic
inhc
to r
educ
e th
e ca
n ke
t wee
n in
c,sm
es
and
expe
ndit
ures
and
ch
ange
the
stru
ctur
e of
the
gove
rnm
ent
budg
et. T
his
will
be
achi
eved
by
a co
mbi
natio
n of
mea
sure
s in
clud
-in
g in
crea
sing
oil
and
tax
reve
nues
, shi
ftin
g so
me
of th
e co
sts
of
publ
ic s
ervi
ces
to th
e pe
ople
, and
red
ucin
g ex
pend
iture
s by
mea
ns
of r
atio
nali
zing
the
stat
e bu
reau
crac
y an
d tr
ansf
erri
ng p
art o
f th
e go
vern
men
t fun
ctio
ns to
the
priv
ate
sect
or. I
n pa
rtic
ular
, edu
catio
n w
ill b
e pr
ivat
ized
, sub
sidi
es f
or p
ublic
ent
erpr
ises
elim
inat
ed, a
nd
num
ber
of p
ublic
em
ploy
ees r
educ
ed. G
over
nmen
t rev
enue
dur
ing
the
plan
is p
redi
cted
to in
crea
se b
y an
ave
rage
rat
e of
25.
1 pe
r ce
nt a
yea
r fr
om R
ls 2
,098
,700
mil
lion
in 1
988
to
Rls
6,4
42,1
00
mill
ion
in 1
993
(see
Tab
le 5
.4).
Ave
rage
yea
rly
grow
th
rate
s are
es
tim
ated
at 2
6.4
per
cent
for
tax
reve
nues
, 15
per
cent
for
oil
reve
nues
and
34
per
cent
for
othe
r re
venu
es. T
ax r
even
ue, w
hich
re
pres
ente
d 47
per
cen
t of t
otal
rev
enue
s in
198
8, is
pre
dict
ed to
in
crea
se to
49.
4 pe
r ce
nt in
199
3. I
n th
e 19
91 b
udge
t, ho
wev
er,
the
shar
e fig
ure
for
taxe
s de
clin
ed to
31.
7 pe
r ce
nt. T
his
decl
ine
refl
ects
the
sud
den
incr
ease
in I
ran'
s oi
l rev
enue
dur
ing
the
Kuw
aiti
cris
is (s
ome
$3 b
illio
n to
$4
billi
on in
add
ition
al r
even
ues)
. M
oreo
ver,
from
4.3
per
cen
t in
1988
, it i
s ho
ped
that
tax
reve
nue
will
incr
ease
to r
epre
sent
8.4
per
cen
t of t
he G
DP
in 1
993.
The
ra
tio o
f tax
rev
enue
s to
cur
rent
exp
endi
ture
s sh
all i
ncre
ase
from
28
.8 p
er c
ent i
n 19
88 to
67.
6 pe
r ce
nt in
199
3.
The
bud
get d
efic
it is
hop
ed to
dec
line
from
app
roxi
mat
ely
Rls
2,1
46,0
00 m
illio
n in
19
88 to
Rls
234
,600
mill
ion
in 1
993.
The
rat
io o
f bud
get d
efic
it
to th
e G
DP
sha
ll de
crea
se fr
om 9
.6 p
er c
ent i
n 19
88 to
0.2
per
ce
nt in
199
3. S
imila
rly,
its
shar
e of
the
tota
l bud
get i
s pl
anne
d to
de
clin
e fr
om 5
1 pe
r ce
nt to
1.4
per
cen
t. D
evel
opm
ent e
xpen
di-
ture
s, w
hich
rep
rese
nted
19.
4 pe
r ce
nt o
f tot
al e
xpen
ditu
res
in
1988
, is
plan
ned
to in
crea
se to
28
per
cent
in th
e fin
al y
ear
of th
e pl
an. T
he r
atio
of d
evel
opm
ent e
xpen
ditu
res
to c
urre
nt e
xpen
di-
ture
s is
hop
ed to
incr
ease
fro
m 2
4.1
per
cent
in 1
988
to
38.9
per
ce
nt in
199
3. T
he d
eclin
e of
dev
elop
men
t exp
endi
ture
s at
con
stan
t pr
ices
wou
ld h
ave
to b
e ch
ecke
d an
d in
199
3 th
ese
expe
nses
w
ill
be u
p by
86
per
cent
in c
ompa
riso
n to
wha
t the
y w
ere
in 1
988.
O
il a
nd g
as e
xpor
ts a
re e
stim
ated
at $
19,2
00 m
illi
on f
or 1
993
and
at $
83,0
96 m
illi
on f
or th
e en
tire
pla
n pe
riod
(se
e T
able
5.5
).
co ci
) cc)
Cn Ira
0)
•00
rn of rn cx, rn Cr
) 0) 0) co
rn co co rn
Table 5.4 A summary of the public budget during the first five-year plan, 1988-93 (billion
C7
4a
N-
(15
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01
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01 0
.
. (1
) (D
CO
CO
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CO
CV 4
CO
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CV
CO
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(6
°'
Iran
ian
econ
omic
rec
onst
ruct
ion
plan
123
--c
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CC
CO
0 •
m'
6 6
03 L
L
Dai
ly o
il ex
port
s ar
e pl
anne
d to
incr
ease
from
1,4
82,0
00 b
arre
ls
in 1
988
to 2
,293
,000
bar
rels
in 1
993.
Bas
ed o
n ce
rtai
n as
sum
ptio
ns,
oil p
rice
s ar
e ex
pect
ed to
ris
e fr
om $
14.2
in 1
988
to $
21.4
per
ba
rrel
in 1
993.
Thu
s oi
l-ear
ned
fore
ign
exch
ange
is e
xpec
ted
to
incr
ease
from
$7.
326
mill
ion
in 1
988
to $
17.9
07 m
illio
n in
19
93.
Tot
al fo
reig
n ex
chan
ge r
even
ue fr
om o
il ex
port
s ov
er th
e pl
an
perio
d is
exp
ecte
d to
am
ount
to $
81,4
56, i
nclu
ding
$72
,615
mill
ion
from
cru
de o
il ex
port
s, $
6,37
6 m
illio
n w
orth
of c
rude
oil
expo
rts
allo
cate
d fo
r the
impo
rt o
f pet
role
um (r
efin
ed) p
rodu
cts
and
$2,4
65
mil
lion
fr
om ex
port
s of
liqu
id g
as, n
apht
ha, g
as c
onde
nsat
es a
nd
fuel
oil
. Rev
enue
fro
m g
as e
xpor
ts d
urin
g th
e pl
an p
erio
d (8
.2
mill
ion
cubi
c m
in 1
990-
1 an
d 16
.4 m
illio
n cu
bic
m in
199
2-3)
is
proj
ecte
d at
$1.
640
mill
ion.
Non
-oil
expo
rts
wou
ld in
crea
se d
urin
g th
e pl
an, m
akin
g it
poss
ible
for
the
gove
rnm
ent t
o di
vers
ify
its
fore
ign
exch
ange
sou
rces
and
redu
ce d
epen
denc
y on
oil
earn
ings
. N
on-o
il ex
port
s (f
rom
agr
icul
ture
, car
pet w
eavi
ng, m
inin
g an
d m
anuf
actu
ring
) is p
redi
cted
to r
each
$17
,836
mill
ion
over
the
plan
pe
riod
and
this
is to
be
achi
eved
by
form
ulat
ing
appr
opri
ate
poli-
cies
par
ticul
arly
with
reg
ard
to e
xcha
nge
rate
, for
eign
inve
stm
ent,
tech
nolo
gy tr
ansf
er a
nd q
ualit
y co
ntro
l. A
noth
er $
19,8
00 m
illio
n w
ill b
e ea
rned
fro
m s
ervi
ces,
cap
ital a
ccou
nts
and
othe
r so
urce
s as
indi
cate
d in
Tab
le 5
.5. T
hus,
the
natio
n's
tota
l for
eign
exc
hang
e ea
rnin
g ov
er th
e pl
an p
erio
d is
exp
ecte
d to
am
ount
to $
120,
732
mill
ion.
The
gov
ernm
ent a
lso
inte
nds
to ra
ise
$27,
000
mill
ion
from
fo
reig
n so
urce
s ($
17,0
00 in
loan
fro
m f
orei
gn b
anks
and
the
bal-
ance
in
join
t ven
ture
s fr
om f
orei
gn c
ompa
nies
).9 If
the
Per
sian
Gul
f cr
isis
had
not
occ
urre
d, th
e st
ate
wou
ld h
ave
had
a se
riou
s pr
oble
m to
rea
lize
its fo
reig
n ex
chan
ge b
udge
t in
1991
. T
he n
atio
n's
impo
rts
of g
oods
, whi
ch w
ere
estim
ated
at r
ough
ly
$12,
000
mill
ion
in 1
988,
sha
ll fo
llow
an
upw
ard
tren
d, r
each
ing
the
leve
l of $
114,
332
mill
ion
for t
he p
lan
perio
d, o
r $22
,866
mill
ion
per
year
on
aver
age.
Ano
ther
$4,
500
mil
lion
wil
l be
spen
t on
impo
rts
of s
ervi
ces.
Som
e $9
,490
mill
ion
of to
tal i
mpo
rts
will
go
on s
tren
gthe
ning
the
coun
try'
s de
fenc
e, p
olic
e an
d in
telli
genc
e sy
stem
s. T
he g
over
nmen
t exp
ects
to in
crea
se th
e sh
are
of c
apita
l an
d in
term
edia
te g
oods
impo
rts
and
redu
ce th
at o
f con
sum
er g
oods
im
port
s w
hich
has
gro
wn
disp
ropo
rtio
nate
ly
high
in r
ecen
t yea
rs
give
n fo
reig
n ex
chan
ge s
hort
ages
alo
ng w
ith th
e ne
ed to
sup
ply
basi
c ne
cess
ities
of t
he p
opul
atio
n. E
xpec
ted
incr
ease
in a
gric
ul-
tura
l out
put a
nd im
prov
emen
t in
the
natio
n's
fore
ign
exch
ange
ea
rnin
gs w
ill m
ake
the
shift
pos
sibl
e. T
he g
over
nmen
t als
o pl
ans
cr)
(,) rn co 0 z Q E 0 C
111 la
a)
to •E
•E
8 co
TS
cf)6
- g od
o c
o 8
5 '3
WE
0- o
^
E —
>- CO
E at_
•18
g
z•-•
Ii E
o) =
12 0
cm
12
3
co
0
...
...
2; 8
°I °)
a. c a
) c
m o
a) o
CO
9. 0
Z 0
C
CO
0 op
t—
L
. CO
-
EE
.-E
rn2
'-,t; a
y 2
2 °
2 -'
-. 4
x —
— a
) — —
§
15 al
12) p
« 0
" 2
3 y
1, -
— ,
— —
-
$ .18
g 8
. 2 §
al §
0 2
:.0
w 'az
Inc
cr 7
! cc
gl 6
i ll"
Cr) •-:
co 8 co CNi
U)
6
cv
io
1989-93 (million dollars)
Current Development co) .2 E ss
124
Eco
nom
ic d
estr
uctio
n an
d re
cons
truc
tion
to m
aint
ain
a 'ra
tion
al b
alan
ce' b
etw
een
the
fore
ign
exch
ange
al
loca
tions
for
def
ence
and
civ
ilian
pro
duct
ive
sect
ors
so th
at a
gr
owin
g ec
onom
y w
ill re
sult
whi
ch w
ill th
en h
elp
furt
her i
mpr
ove
the
nati
on's
def
ensi
ve c
apab
ilit
ies.
A b
reak
dow
n of
for
eign
ex
chan
ge o
utla
ys is
pro
vide
d in
Tah
le 5
.5, w
here
the
tota
l out
lays
is
giv
en a
t $12
0,73
2 m
illio
n fo
r the
pla
n pe
riod
, or $
24,1
46 m
illio
n pe
r ye
ar o
n av
erag
e. H
owev
er, i
n 19
91, t
he C
entr
al B
ank
was
au
thor
ized
to m
ake
com
mitm
ent a
nd p
ay fo
r onl
y up
to $
20 b
illio
n.
Thi
s do
es n
ot in
clud
e pl
anne
d bo
rrow
ing
or fo
reig
n in
vest
men
ts.
The
nat
ion'
s liq
uidi
ty, w
hich
incr
ease
d ov
er th
e 19
84-8
per
iod
by a
n an
nual
ave
rage
rat
e of
15.
3 pe
r ce
nt (
mai
nly
beca
use
of a
n in
crea
se in
pub
lic d
ebt t
o th
e C
entr
al B
ank)
sha
ll de
crea
se b
y an
an
nual
ave
rage
rat
e of
8.2
per
cen
t ove
r th
e pl
an p
erio
d, d
ropp
ing
from
23.
8 pe
r ce
nt in
198
8 to
3.5
per
cen
t in
1993
. In
term
s of
vo
lum
e, it
will
incr
ease
from
Rls
15,
329,
000
mill
ion
in 1
988
to R
ls
22,7
07,0
00 m
illio
n in
199
3 (s
ee T
able
5.6
). T
his
mas
s w
ill in
clud
e R
ls 7
24,0
00 m
illio
n in
net
fore
ign
asse
ts, R
ls 1
7,48
9,00
0 m
illio
n in
ne
t pub
lic d
ebt t
o th
e ba
nkin
g sy
stem
, and
Rls
10,
898,
000
mill
ion
in lo
ans
and
cred
it fa
cilit
ies
to th
e no
n-pu
blic
sec
tor
(cal
cula
ted
on t
he b
asis
of
the
assu
mpt
ion
that
47.
8 pe
r ce
nt o
f th
e pr
ivat
e se
ctor
's in
vest
men
t dur
ing
the
plan
per
iod
will
be
fina
nced
by
the
bank
ing
syst
em).
Not
e th
at a
maj
or in
flue
nce
on t
he a
ssum
ed
dow
nwar
d tr
end
in th
e gr
owth
rat
e of
liqu
idity
is a
n as
sum
ed d
rop
in th
e na
tion
's b
udge
t def
icit
. Thi
s sa
me
fact
or is
als
o co
nsid
ered
im
port
ant f
or r
educ
ing
the
high
infl
atio
n ra
te. I
nfla
tion
in
1988
w
as r
unni
ng a
t abo
ut 3
2.4
per
cent
. Thi
s is
sup
pose
d to
dro
p to
ab
out 8
.9 p
er c
ent i
n 19
93. D
ecli
ne in
liqu
idit
y as
a r
esul
t of
decr
ease
in b
udge
t def
icit
and
incr
ease
in G
DP
are
con
side
red
amon
g th
e m
ajor
infl
uenc
ing
fact
ors
in b
ring
ing
infl
atio
n to
its
knee
s. D
urin
g th
e pl
an p
erio
d, p
opul
atio
n w
ill in
crea
se b
y ab
out 1
7 pe
r ce
nt a
nd th
e si
ze o
f th
e ac
tive
popu
latio
n is
exp
ecte
d to
rea
ch
15.5
mill
ion
in th
e la
st y
ear
of th
e pl
an. T
he g
over
nmen
t int
ends
to
redu
ce th
e ra
tio o
f act
ive
popu
latio
n to
tota
l pop
ulat
ion
to 2
5.3
per
cent
in 1
993,
fro
m 2
5.8
per
cent
in 1
988.
Sim
ilarl
y, th
e ra
tio
of a
ctiv
e po
pula
tion
to th
e po
pula
tion
of 1
0 ye
ars
of a
ge a
nd o
ver
wil
l dec
line
fro
m 3
8.8
per
cent
to 3
7.4
per
cent
ove
r th
e sa
me
peri
od. M
odes
t goa
ls a
re a
lso
set f
or re
duct
ion
of u
nem
ploy
men
t. So
me
1.2
mill
ion
new
job-
seek
ers
will
ent
er th
e la
bour
mar
ket
(240
,000
per
yea
r) d
urin
g th
e 19
89-9
3 pe
riod
. To
this
we
mus
t ad
d ap
prox
imat
ely
2.2
mill
ion
unem
ploy
ed in
198
8. H
owev
er, t
he
O
c`i
co c
oco
co
0 N
N R
CD
0)
4 0
) C
o
co
CO
NO
Q1
•-•
0
N 4
00
r N
c:
5 oi
A
NN
0
CS)
N ..
- C
D
4N
C
Ci c
ri N
CT
) CD
CNI
C'')
N
N N
..-
0)
. N
r C
D N
05 ..--
.-- C
V
0
N
4 N
ci
cth
N
4 0
N N
N
tf
) N
cr
i co
ci
Si
4
Cri
CY
) co
4 c
o
N C
O N
0)
0
N O
NO
O
4 cc
i 4 C
O
N
0 N
N 4
0) 1
0
4
ri
c\i cr
i r-..:
a
N N
el
N C
O N
N
.--
0)n
a)
ci
r-: ..
- co-
o
4 a
) a)
In
co
co co
co
cci
NN
CO
CO
N
N
- (0
(1
) (f
) a)
o
lt)
4 0
) N
CD
h:
Iri
ca
co ca
CO
o
N-
N 0
c19 N
N
•-•
'4
Ce)
CO
0)
c6
c6 cs
i
Source: First Five-Year Economic, Social and Cultural Development Plan of the Islamic Republic of Iran (1989-1993), 1990
> 0 0)
C
-c)
C 0 0.
0
U) -o C co
to CA
-0
RS rn
112
"6
- a) .c
a) •0
C
— co
2 I
' —
as co
473
O•
0 0
"ca
to co as
0 Q.
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
27
expe
cted
num
ber
of n
ew jo
bs d
urin
g th
is p
lan
in a
ll s
ecto
rs o
f th
e ec
onom
y is
est
imat
ed a
t abo
ut 2
mill
ion
(400
,000
per
yea
r), r
educ
-in
g un
empl
oym
ent r
ate
to a
bout
14
per
cent
in 1
993.
Eve
n th
is
targ
et w
ill b
e ha
rd to
ach
ieve
as
over
the
1979
-88
peri
od, e
ach
year
on
aver
age
only
190
,000
job
s co
uld
he c
rea
ted
. T
he
cert
ora
l
brea
kdow
n fo
r th
e ne
w jo
bs is
giv
en in
Tab
le 5
.7. S
ome
56 p
er
cent
of
the
new
jobs
are
exp
ecte
d to
be
crea
ted
in in
dust
ries
and
m
inin
g, w
hile
ser
vice
s ar
e ex
pect
ed to
con
trib
ute
abou
t 36
per
cent
. N
ote
that
the
shar
e of
agr
icul
ture
in th
e cr
eatio
n of
new
jobs
ov
er t
he p
lan
peri
od i
s an
tici
pate
d to
be
only
mar
gina
l. I
n th
e po
st-r
evol
utio
nary
per
iod
mos
t job
s w
ere
gene
rate
d by
the
serv
ice
and
publ
ic s
ecto
rs. W
ith
plan
ned
redu
ctio
n in
the
grow
th o
f th
ese
sect
ors,
it is
not
cer
tain
if th
e pl
anne
d in
crea
se in
em
ploy
men
t w
ould
mat
eria
lize.
T
he h
ousi
ng s
ecto
r, a
long
with
indu
stri
es a
nd s
ervi
ces
affi
liate
d w
ith
it, i
s ex
pect
ed to
pla
y th
e m
ost i
mpo
rtan
t rol
e in
the
crea
tion
of
new
jobs
as
the
nati
on w
ill r
ebui
ld it
s w
ar-
and
eart
hqua
ke-
dam
aged
are
as. T
he g
over
nmen
t exp
ects
to b
uild
abo
ut 2
.3 m
illio
n ho
usin
g un
its
over
the
plan
per
iod
(460
,000
per
yea
r), o
f w
hich
1.
6 m
illi
on u
nits
wil
l be
in
urba
n ce
ntre
s an
d th
e re
st i
n ru
ral
area
s. G
iven
the
past
rec
ord
of 1
20,0
00 u
nits
a y
ear
on a
vera
ge,
this
targ
et s
eem
s un
real
isti
c. T
he p
lan
also
em
phas
izes
the
job-
crea
ting
rol
e of
sm
all i
ndus
trie
s an
d w
orks
hops
and
all
ows
the
gove
rnm
ent t
o de
sign
ince
ntiv
e pa
ckag
es a
imed
at s
uch
esta
blis
h-m
ents
. To
incr
ease
rur
al e
mpl
oym
ent,
pri
orit
y is
giv
en t
o jo
b-cr
eatin
g pr
ogra
mm
es a
nd p
roje
cts
in d
epri
ved
regi
ons
and
in w
ater
an
d ag
ricu
ltur
al s
ecto
rs p
arti
cula
rly
thos
e pe
rtai
ning
to ir
riga
tion
an
d dr
aina
ge n
etw
orks
. By
rest
rict
ing
impo
rts
of g
oods
whi
ch
coul
d be
pro
duce
d do
mes
tica
lly,
wit
hout
cre
atin
g cr
itic
al s
hort
-ag
es, t
he g
over
nmen
t als
o ho
pes
to e
nsur
e a
sign
ific
ant r
ise
in
prod
uctiv
e em
ploy
men
t. O
ther
pol
icie
s to
hel
p in
crea
se p
rodu
ctiv
e em
ploy
men
t inc
lude
spe
cifi
c fi
scal
and
mon
etar
y po
licie
s to
enc
our-
age
the
priv
ate
sect
or to
put
its
fina
ncia
l res
ourc
es in
pro
duct
ion,
ch
anne
l rem
itta
nces
and
inve
stm
ents
of
the
Iran
ians
livi
ng o
ver-
seas
to p
rodu
ctiv
e ac
tiviti
es, a
nd r
eadj
ust o
r ab
olis
h al
l nor
ms
and
regu
lati
ons
whi
ch h
ave
led
to th
e co
ntra
ctio
n of
labo
ur m
arke
t an
d of
em
ploy
men
t. P
er c
apit
a la
bour
pro
duct
ivit
y is
pla
nned
to
incr
ease
by
an
annu
al r
ate
of 5
.2 p
er c
ent d
urin
g th
e pl
an p
erio
d. T
he s
ecto
ral
shar
e of
the
lab
our
prod
ucti
vity
gro
wth
is
give
n in
Tab
le 5
.7.
Agr
icul
tura
l pro
duct
ivity
is e
xpec
ted
to g
row
fas
ter,
at 4
.9 p
er c
ent,
03 I
s. O
P 0
01
Ch
..a). tn
O
A 1,
- d
• .o:
ri"
c.i. t
ri
C)
al •
- 0.
! •0
* 01
F2 Tt
C I
CV
2
03
el
r- 0.
1 01
Iran as as whole
Table 5.7 Changes in employment and labour productivity during the first five-year plan, 1988-93
Employment ('000 jobs)
ae
2 oo
(%)
I-
CT)
c.) tr
) rn
o
71.
co
03
Iran
ian ec
onom
ic re
cons
tructi
on p
lan 12
9
foll
owed
by
indu
stri
es a
nd m
inin
g, a
t 4.8
per
cen
t and
ser
vice
s at
4.
1 pe
r ce
nt. T
he g
row
th in
labo
ur p
rodu
ctiv
ity
wil
l be
achi
eved
as
the
gove
rnm
ent g
radu
ally
tran
sfor
ms
low
-ret
urn
occu
pati
ons
into
pro
duct
ive
ones
and
red
uces
ove
rem
ploy
men
t in
serv
ices
. In
1988
som
e 47
.2 p
er c
ent o
f •th
e. w
orkf
orce
was
eng
aged
in s
erA
ce.s
. T
he
pla
n a
ims
to r
educe
this
to 4
5.5
per
cen
t by 1
993. T
he
plan
's o
ther
mea
sure
s to
incr
ease
pro
duct
ivit
y in
clud
e im
prov
ing
man
ager
ial t
echn
ique
s, a
pply
ing
bett
er s
elec
tion
and
nom
inat
ion
met
hods
for
app
oint
ing
qual
ifie
d an
d ex
peri
ence
d pe
ople
to e
xecu
-ti
ve a
nd k
ey p
osts
, and
inst
itut
ing
trai
ning
pro
gram
mes
for
man
-ag
ers.
The
gov
ernm
ent a
lso
inte
nds
to u
se m
oder
n (c
apit
al-i
nten
-si
ve)
tec
hnolo
gy
in
bas
ic,
exp
ort
an
d s
trat
egic
in
du
stri
es,
mec
hani
ze a
gric
ultu
re, i
ncre
ase
the
size
of
skil
led
wor
kfor
ce,
impr
ove
rese
arch
and
edu
cati
on, a
nd p
rovi
de d
epri
ved
regi
ons
wit
h sp
ecia
lize
d pe
rson
nel.
The
rat
io o
f sc
ient
ific
, tec
hnic
al a
nd
spec
iali
zed
empl
oyed
pop
ulat
ion
to to
tal w
orkf
orce
was
9.6
per
ce
nt in
198
8. T
his
wou
ld h
ave
to in
crea
se to
10.
7 pe
r ce
nt in
199
3.
The
opt
imal
uti
liza
tion
of
the
labo
ur f
orce
is a
lso
of p
arti
cula
r in
tere
st. I
n ad
ditio
n, th
e go
vern
men
t pla
ns to
ext
end
tech
nica
l co-
oper
atio
n an
d w
orke
rs e
xcha
nge
prog
ram
mes
with
fri
endl
y co
un-
trie
s, m
ake
sala
ries
and
wag
es p
ropo
rtio
nate
to
labo
ur p
ro-
duct
ivit
y, a
nd e
qual
ize
inco
mes
in
vari
ous
econ
omic
sec
tors
. A
mon
g ot
her
mea
sure
s to
incr
ease
labo
ur p
rodu
ctiv
ity
incl
ude
conduct
ing s
tudie
s on t
echniq
ues
of
enhan
cing p
roduct
ive
effi
cien
cy a
nd e
xpan
ding
spe
cial
ized
tech
nica
l and
voc
atio
nal o
n-th
e-jo
b tr
aini
ng p
rogr
amm
es in
bot
h pr
ivat
e an
d pu
blic
sec
tors
. T
he R
afsa
njan
i pla
n al
so e
mph
asiz
es th
e im
port
ance
of
edu-
cati
on, r
esea
rch
and
heal
th s
ervi
ces
for
the
nati
on's
eco
nom
ic
deve
lopm
ent.
Lit
erac
y ra
te a
mon
g ci
tize
ns o
f 6-
35 y
ears
of
age
wil
l inc
reas
e fr
om 7
8.8
per
cent
in 1
988
to 9
9.4
per
cent
in 1
993.
D
urin
g th
e sa
me
peri
od, t
he n
umbe
r of
pri
mar
y an
d se
cond
ary
stud
ents
is p
roje
cted
to in
crea
se b
y an
ave
rage
ann
ual r
ate
of 6
.9
per
cent
fro
m 1
2.8
mil
lion
in 1
988
to 1
7.8
mil
lion
in 1
993.
Tot
al
num
ber
of s
tude
nts
in tw
o-ye
ar c
olle
ges
wil
l als
o in
crea
se a
s w
ill
the
num
ber
of tr
aine
es p
ursu
ing
vari
ous
spec
iali
zati
on. S
igni
fi-
cant
ly, t
he n
umbe
r of
und
ergr
adua
te a
nd p
ost-
grad
uate
stu
dent
s w
ill in
crea
se fr
om 2
94,0
00 in
198
8 to
480
,000
in 1
993.
The
nat
ion'
s re
sear
ch o
utla
ys w
ill i
ncre
ase
to
0.6
per
cent
of
the
GD
P an
d sp
endi
ng f
or R
&D
from
pub
lic re
venu
e sou
rces
will
incr
ease
from
R
ls 4
7,80
0 m
illi
on in
198
8 to
Rls
131
,200
mil
lion
in 1
993.
The
go
vern
men
t hop
es to
incr
ease
the
num
ber
of r
esea
rche
rs
per 1
130
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n
Iran
ian
econ
omic
rec
onst
ruct
ion
plan
131
mill
ion
of th
e po
pula
tion
from
82
in 1
988
to 2
50 in
199
3. A
s pe
r he
alth
ser
vice
s, d
urin
g th
e pl
an p
erio
d, th
e go
vern
men
t int
ends
to
redu
ce in
fant
mor
tali
ty r
ate
from
44.
8 pe
r th
ousa
nd to
35
per
thou
sand
of
live
birt
hs a
nd d
eath
rat
e am
ong
child
ren
of u
nder
5
year
s of
age
fro
m 5
6 pe
r th
ousa
nd to
45
per
thou
sand
. By
:993
, 95
per
cen
t of
the
popu
latio
n w
ill h
ave
acce
ss to
med
ical
car
e, u
p fr
om 7
0 pe
r ce
nt in
198
8. T
his
will
hap
pen
as h
ospi
tal b
eds
will
in
crea
se f
rom
1.4
6 pe
r 1,
000
peop
le to
1.5
2; th
e co
rres
pond
ing
figu
res
for g
ener
al p
ract
ition
ers
are
give
n at
0.1
8 an
d 0.
37 a
nd fo
r sp
ecia
lists
at 0
.16
and
0.20
per
1,0
00. I
nsur
ance
cov
erag
e is
als
o pl
anne
d to
incr
ease
for
bot
h ur
ban
and
rura
l pop
ulat
ion
(fro
m
17.4
mill
ion
in 1
988
to 2
8.2
mill
ion
in 1
993:
at p
rese
nt o
nly
2.2
per
cent
of
rura
l pop
ulat
ion
is c
over
ed b
y m
edic
al in
sura
nce)
. T
erri
tori
al re
orga
niza
tion
and
deve
lopm
ent o
f the
cou
ntry
is a
lso
a m
ajor
goa
l of
the
plan
. Reg
ions
with
cap
acity
to a
bsor
b gr
eate
r in
vest
men
ts w
ill re
ceiv
e co
mpl
emen
tary
pro
ject
s an
d 'd
evel
opm
ent
pole
s' w
ill b
e eq
uipp
ed w
ith a
dditi
onal
pro
duct
ive
and
infr
astr
uc-
tura
l cap
abili
ties.
The
ir p
opul
atio
n re
cept
ion
pote
ntia
l will
als
o be
en
hanc
ed in
ord
er to
lay
the
foun
datio
ns fo
r the
cre
atio
n of
regi
onal
eq
uilib
rium
. Pri
oriti
es w
ill b
e gi
ven
to r
esou
rce-
rich
reg
ions
, par
-tic
ular
ly th
ose
com
man
ding
unt
appe
d de
velo
pmen
t cap
aciti
es in
pr
oduc
tive
sect
ors,
'spe
cial
reg
ions
' as
defi
ned
by p
oliti
cal a
nd
mili
tary
req
uire
men
ts, '
key
regi
ons'
with
a v
iew
to c
urbi
ng a
nd
dire
ctin
g m
igra
tion,
and
cer
tain
regi
ons
on e
colo
gica
l gro
unds
(for
ex
ampl
e, p
reve
ntio
n of
des
ertif
icat
ion)
. To
effe
ct a
rat
iona
l geo
-gr
aphi
cal d
istr
ibut
ion
of p
opul
atio
n an
d ac
tiviti
es, s
ever
al s
patia
l pl
anni
ng p
olic
ies
will
be
impl
emen
ted.
Gro
wth
of s
atur
ated
pol
es
wil
l be
curb
ed a
nd th
is p
olic
y w
ill p
arti
cula
rly
appl
y to
pla
ces
whe
re p
opul
atio
n si
ze a
nd a
ctiv
ities
hav
e ou
tgro
wn
thei
r inf
rast
ruc-
tura
l and
pro
duct
ive
capa
citie
s an
d w
here
ext
erna
l dis
econ
omie
s ha
ve d
evel
oped
. A c
ase
in p
oint
is T
ehra
n w
here
the
gove
rnm
ent
will
allo
w o
nly
loca
tion
of r
esea
rch
activ
ities
and
som
e m
oder
n st
rate
gic
indu
stri
es o
f hig
h te
chno
logy
pro
duct
ion.
The
gov
ernm
ent
also
pla
ns to
rel
ocat
e pa
rt o
f th
e go
vern
men
t bur
eauc
racy
fro
m
Teh
ran
to p
rovi
ncia
l cen
tres
. A s
elec
ted
num
ber
of b
ig c
ities
will
be
equ
ippe
d to
ser
ve a
s re
gion
al c
entr
es in
ord
er to
fac
ilit
ate
dece
ntra
lizat
ion
and
entr
ust p
art o
f m
yria
d fu
nctio
ns c
entr
ed in
T
ehra
n. I
nter
med
iate
citi
es w
ill b
e st
reng
then
ed to
acc
omm
odat
e th
e su
rplu
s po
pula
tion
of
larg
er c
itie
s an
d li
nk th
em w
ith
the
smal
ler
tow
ns. F
inal
ly, c
ondi
tions
in s
mal
l tow
ns a
nd v
illag
es,
thei
r ser
vice
pot
entia
l in
part
icul
ar. w
ill a
lso
be im
prov
ed to
ser
ve
as li
nks
betw
een
urba
n an
d ru
ral s
ocie
ties.
w
'War
-des
troy
ed a
nd e
arth
quak
e-da
mag
ed a
reas
will
be
rebu
ilt
acco
rdin
g to
pre
-for
mul
ated
str
ateg
ies
and
desi
gns.
The
Jun
e 19
90
eart
hc i m
ak
e w
as
both
a d
isast
er f
or a
n
ailin
g econ
om
y
and
an
op
port
unity
for
a p
ragm
atic
gov
ernm
ent,
who
use
d it
to im
prov
e re
lati
ons
wit
h m
any
part
s of
the
wor
ld, t
he w
est i
n pa
rtic
ular
. T
hus
a w
ide
rang
e of
inte
rnat
iona
l age
ncie
s as
sist
ed d
omes
tic
orga
niza
tions
in th
e re
lief e
ffor
ts fo
r the
ear
thqu
ake-
stri
cken
are
as.
The
mai
n or
gani
zatio
n in
cha
rge
of th
e re
cons
truc
tion
is, h
owev
er,
the
Hou
sing
Fou
ndat
ion
of I
slam
ic R
evol
utio
n (H
FIR
), w
hich
fo
cuse
s on
hou
sing
rec
onst
ruct
ion;
its
plan
, pro
gram
me
and
pro-
pose
d bu
dget
are
det
aile
d in
a d
ocum
ent p
ublis
hed
in J
uly
1990
."
HFI
R is
ass
iste
d by
fin
anci
al a
nd te
chni
cal a
ssis
tanc
e fr
om th
e U
nite
d N
atio
ns D
evel
opm
ent P
rogr
amm
e (U
ND
P). T
he H
ousi
ng
Fou
ndat
ion
and
UN
DP
are
co-
oper
atin
g on
a jo
int p
roje
ct f
or
reha
bili
tati
on o
f th
e da
mag
ed a
reas
. UN
DP
is
cont
ribu
ting
$500
,000
tow
ard
s th
e p
roje
ct a
nd
th
e Ir
ania
n g
over
nm
ent
$310
,000
. The
join
t pro
ject
is d
esig
ned
to
(1)
prov
ide
imm
edia
te te
chni
cal a
ssis
tanc
e to
the
post
-ear
th-
quak
e re
cons
truc
tion
and
reh
abili
tati
on p
hase
, and
ass
ist w
ith
the
coor
dina
tion
of t
he m
obili
zati
on a
nd c
hann
ellin
g of
inte
r-na
tion
al c
ontr
ibut
ions
and
ass
ista
nce
from
oth
er s
ourc
es to
the
long
-ter
m r
ehab
ilita
tion
pro
gram
me
in th
e ea
rthq
uake
reg
ion;
an
d (2
) en
hanc
e th
e go
vern
men
t's lo
ng-t
erm
dis
aste
r miti
gatio
n pr
ogra
mm
e.12
The
Wor
ld B
ank
also
app
rove
d a
15-y
ear
$250
mill
ion
loan
to
Iran
for
the
reco
nstr
uctio
n of
ear
thqu
ake-
dam
aged
are
as in
mid
-M
arch
199
1. (
See
the
Wor
ld B
ank,
Th
e Is
lam
ic R
epub
lic o
f Ira
n Ea
rthqu
ake
Reco
very
Pro
ject
, R
epor
t No.
P-5
4 82
—IR
N, F
ebru
ary
12,
1991
.) A
ccor
ding
to th
e H
FIR
's do
cum
ent,
the
gove
rnm
ent i
nten
ds
to
reco
nstr
uct t
he e
arth
quak
e-da
mag
ed to
wns
and
vill
ages
as
fast
as
poss
ible
and
ret
urn
the
popu
latio
n to
a n
orm
al li
fe b
y pr
ovid
ing
them
with
em
ploy
men
t in
prod
uctiv
e ac
tiviti
es. T
he d
estr
oyed
se
ttlem
ents
will
be
rebu
ilt in
thei
r ori
gina
l loc
atio
ns u
nles
s di
sast
er
vuln
erab
ility
stu
dies
reco
mm
end
othe
rwis
e. R
econ
stru
ctio
n sh
ould
be
pla
nned
with
utm
ost f
lexi
bilit
y an
d al
low
for m
axim
um p
artic
i-pa
tion
of
loca
l peo
ple.
The
act
ual r
econ
stru
ctio
n ta
sk, t
hat i
s im
plem
enta
tion,
beg
ins
whe
n th
e M
inis
try
of H
ealth
and
the
Red
132
Eco
nom
ic d
estr
uctio
n an
d re
cons
truc
tion
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
33
Cre
scen
t Soc
iety
com
plet
e th
e ta
sk o
f dis
infe
ctin
g th
e ar
ea. A
t tha
t st
age
an a
rea
man
ager
is a
ppoi
nted
for
reb
uild
ing
the
area
. The
m
anag
er is
the
sole
rep
rese
ntat
ive
of th
e H
ousi
ng F
ound
atio
n in
th
e lo
calit
y an
d hi
s (t
he m
anag
er is
inva
riab
ly a
man
!) d
ecis
ion
nay
not b
e ov
erru
n by
oth
er p
ublic
^ff
iciA
s in
the
area
. 1-in
wev
er,
the
area
man
ager
mus
t wor
k w
ithin
the
fram
ewor
k of
the
resp
ectiv
e pr
ovin
cial
dev
elop
men
t pla
n an
d co
-ord
inat
e hi
s ac
tiviti
es w
ith
prov
inci
al o
ffic
ials
and
act
iviti
es. I
n ad
ditio
n to
are
a m
anag
ers,
ot
her a
gent
s in
volv
ed in
the
task
of r
econ
stru
ctio
n in
clud
e th
e lo
cal
peop
le (o
wne
rs o
f hou
ses)
, Isl
amic
Cou
ncils
, aux
iliar
y w
ork
grou
ps
and
prov
inci
al r
epre
sent
ativ
es o
f th
e H
ousi
ng F
ound
atio
n.
The
gov
ernm
ent w
ill in
vest
onl
y m
inim
ally
in th
e re
cons
truc
tion
of d
amag
ed h
ouse
s: in
stea
d, it
will
put
mos
t of
its in
vest
men
ts in
pu
blic
ser
vice
s, s
ite
prep
arat
ion,
em
ploy
men
t-ge
nera
ting
pro
-du
ctiv
e ac
tiviti
es, p
rovi
sion
of c
onst
ruct
ion
mat
eria
ls, a
rchi
tect
ural
de
sign
, te
chni
cal s
uper
visi
on a
nd b
uild
er tr
aini
ng. T
he H
ousi
ng
Fou
ndat
ion
is r
espo
nsib
le f
or t
he q
ualit
y of
the
con
stru
ctio
n m
ater
ials
and
bui
ldin
gs a
nd m
ust e
nsur
e th
at th
e bu
ilt s
truc
ture
s ar
e ea
rthq
uake
-res
ista
nt. T
he g
over
nmen
t will
als
o gi
ve f
inan
cial
as
sist
ance
to th
e af
fect
ed p
eopl
e to
reb
uild
and
rep
air
thei
r da
m-
aged
bui
ldin
gs (
from
50
sq m
to 9
0 sq
m o
f ro
of c
over
age
for
a ru
ral h
ouse
and
fro
m 7
0 sq
m to
110
sq
m in
cas
e of
an
urba
n un
it). S
uch
assi
stan
ce c
an ta
ke th
e fo
rm o
f a
gran
t and
cre
dit (
in
case
of
hous
ing
cons
truc
tion)
, or
a ba
nk lo
an in
cas
e of
hou
sing
re
pair
and
com
plet
ion.
Thi
s la
rgel
y se
lf-h
elp
appr
oach
mak
es th
e ho
me-
owne
r res
pons
ible
for t
he d
esig
n an
d im
plem
enta
tion
of th
e ho
usin
g un
it an
d he
avily
relie
s on
loca
l tec
hnol
ogy
and
reso
urce
s.
The
est
imat
ed b
udge
t for
reb
uild
ing
83,9
35 r
ural
uni
ts is
giv
en a
t R
ls 2
81,1
80 m
illio
n; th
e bu
dget
fig
ure
for
16,2
00 u
rban
uni
ts is
pr
ojec
ted
at R
ls 8
1,65
0 m
illio
n. A
fur
ther
Rls
50,
800
mill
ion
is
budg
eted
for
mai
nten
ance
and
ser
vice
s by
the
HFI
R, b
ring
ing
the
tota
l to
Rls
413
,600
mill
ion.
The
se f
igur
es e
xclu
de v
ario
us c
osts
as
soci
ated
with
the
prov
isio
n of
infr
astr
uctu
res,
man
agem
ent s
er-
vice
s, p
ublic
fin
anci
al a
ssis
tanc
e an
d la
bour
con
trib
uted
by
the
owne
rs.
Rec
onst
ruct
ion
of th
e w
ar-d
amag
ed a
reas
has
bee
n de
taile
d in
ot
her
publ
icat
ions
." H
ere
I sh
all u
se a
rec
ent g
over
nmen
t rep
ort
to g
ive
an u
p-to
-dat
e ac
coun
t of
the
gene
ral t
asks
invo
lved
and
pe
rfor
med
thus
far
by
the
gove
rnm
ent."
Con
trar
y to
the
eart
h-qu
ake
relie
f and
reco
nstr
uctio
n ef
fort
s, re
build
ing
the
war
-dam
aged
ar
eas
has
been
a la
rgel
y do
mes
tic
task
in w
hich
var
ious
pub
lic
and
priv
ate
agen
cies
hav
e be
en in
volv
ed.
The
hig
hest
aut
hori
ty
resp
onsi
ble
for
the
job
is th
e Su
prem
e C
ounc
il fo
r th
e R
econ
stru
c-tio
n an
d R
enov
atio
n of
War
-Dam
aged
Are
as. T
he C
ounc
il m
akes
st
rate
gic
deci
sion
s and
ove
rsee
s eff
orts
to p
rom
ote
publ
ic fi
nanc
ial
cont
ribu
tions
. The
Cen
tral
Hea
dqua
rter
s fo
r R
econ
stru
ctio
n, o
n th
e ot
her
han
d,
sets
pri
orit
ies,
mak
es
polic
ies,
sup
ervi
ses
impl
emen
tatio
n of
pro
ject
s an
d co
-ord
inat
es th
e w
ork
of v
ario
us
orga
niza
tions
invo
lved
. The
Sec
tora
l Rec
onst
ruct
ion
Hea
dqua
rter
s co
-ord
inat
e re
cons
truc
tion
wor
ks w
ith th
e Se
ctor
al P
lann
ing
Com
-m
ittee
s and
supe
rvis
e pr
ojec
ts b
eing
impl
emen
ted
by c
ontr
acto
rs.
Fina
lly, t
he P
rovi
ncia
l and
Cou
nty
Rec
onst
ruct
ion
Hea
dqua
rter
s ar
e re
spon
sibl
e fo
r a
vari
ety
of ta
sks
incl
udin
g pr
iori
tizi
ng th
e re
cons
truc
tion
pro
ject
s fo
r im
plem
enta
tion
and
on
the
basi
s of
pr
edet
erm
ined
pol
icie
s. T
hese
inst
itutio
ns a
re a
ssis
ted
by n
umer
-ou
s ot
her
publ
ic a
nd p
riva
te o
rgan
izat
ions
incl
udin
g th
e H
ousi
ng
Foun
datio
n, th
e E
ndow
men
t for
the
Eig
hth
Imam
, pat
ron
orga
niz-
atio
ns a
nd r
evol
utio
nary
foun
datio
ns.
The
gov
ernm
ent p
lans
to r
econ
stru
ct a
nd r
enov
ate
the
dam
aged
ru
ral a
nd u
rban
sett
lem
ents
in th
e fa
stes
t pos
sibl
e tim
e an
d w
ithin
th
e fr
amew
ork
of th
e na
tion'
s cap
abili
ties.
Plan
ning
, cul
tura
l mat
-te
rs a
nd h
uman
dim
ensi
ons
of r
econ
stru
ctio
n ha
ve r
ecei
ved
par-
ticu
lar
atte
ntio
n. I
t is
hope
d th
at a
s th
ese
area
s ar
e re
vita
lized
an
d co
nditi
ons
for
prod
uctio
n, e
mpl
oym
ent a
nd s
ocio
-eco
nom
ic
deve
lopm
ent a
re p
rovi
ded,
the
war
-mig
rant
s w
ill r
etur
n an
d he
lp
rebu
ild th
eir
dam
aged
str
uctu
res.
Hou
sing
rec
onst
ruct
ion
has
rem
aine
d a
maj
or p
aram
eter
in th
e ov
eral
l pla
n fo
r no
rmal
izat
ion
of c
ondi
tions
(la
bi'i
sazi
) in
the
dam
aged
are
as. I
n w
artim
e, r
econ
-st
ruct
ion
was
a la
rgel
y em
erge
ncy
or r
epla
cem
ent a
ctiv
ity fo
cuse
d la
rgel
y on
hou
sing
, but
it is
cu
rren
tly fo
cuse
d on
qua
lity
and
deve
lopm
enta
l asp
ect o
f the
pro
ject
s be
ing
impl
emen
ted
and
dire
cted
tow
ard
prod
uctiv
e un
its a
nd in
fras
truc
ture
s. W
here
pos
sibl
e, th
e go
vern
men
t will
not
rel
ocat
e or
att
empt
to
com
bine
dam
aged
set
tlem
ents
. Rat
her,
the
polic
y is
to r
ebui
ld
them
on
thei
r or
igin
al s
ites
(dar
ja sa
zi).
Thi
s w
ill m
inim
ize
cost
s,
save
tim
e an
d pr
even
t unn
eces
sary
con
flict
bet
wee
n th
e pe
ople
an
d th
e go
vern
men
t. T
he g
over
nmen
t als
o av
oids
rec
onst
ruct
ing
apar
tmen
t com
plex
es, b
uild
ing
hous
es b
efor
e th
e ow
ners
hav
e re
turn
ed to
thei
r se
ttle
men
ts, a
nd u
sing
pre
fabr
icat
ed te
chni
ques
. E
xper
ienc
e in
Ira
n in
dica
tes
that
thes
e m
etho
ds h
ave
not b
een
popu
lar
with
the
peop
le. R
athe
r, e
ndog
enou
s tec
hniq
ues a
nd o
nes
that
use
mor
e lo
cal o
r na
tiona
l res
ourc
es a
re p
refe
rred
. The
y ar
e
134
Eco
nom
ic d
estr
ucti
on a
nd r
econ
stru
ctio
n Ir
ania
n ec
onom
ic r
econ
stru
ctio
n pl
an 1
35
said
to r
educe
the
nat
ion's
tec
hnolo
gic
al d
epen
den
cy.
A f
lex
ible
p
lannin
g a
ppro
ach i
s ad
opte
d s
o t
hat
fee
db
ack
s an
d i
np
uts
fro
m
peop
le a
re e
asil
y in
corp
orat
ed t
o im
prov
e th
e qu
alit
y of
ope
rati
ons.
In
rec
onst
ruct
ing p
opula
tion c
entr
es, pri
ori
ties
are
giv
en t
o r
esi-
dent
ial
an
d c
om
merc
ial
unit
s an
d fa
ctor
ies
pro
duci
ng c
onst
ruct
ion
mat
eria
ls,
foll
ow
ed b
y p
rov
isio
n o
f co
nd
itio
ns
for
pro
duct
ive
emplo
ym
ent
par
ticu
larl
y i
n a
gri
cult
ure
and
sm
all
indust
ries
. P
ro-
visi
on o
f he
at, w
ater
, ele
ctri
city
, roa
d, i
nfra
stru
ctur
es, e
duca
tion
al
and h
ealt
h s
ervic
es, co
mm
unic
atio
n l
inks
and u
rban
am
enit
ies
is
also
con
side
red
a cr
itic
al f
irst
ste
p. A
t na
tion
al l
evel
, rec
onst
ruct
ion
of
larg
e in
du
stri
al u
nit
s su
ch a
s p
etro
chem
ical
com
ple
xes
, oil
re
finer
ies
and p
ow
er p
lants
hav
e had
spec
ial
pri
ori
ties
. R
econ
stru
ctio
n pl
ans
are
dist
ingu
ishe
d in
to t
hree
cat
egor
ies.
The
`n
atio
nal
sect
or'
(bak
hsh-
e m
elli)
inc
lude
s la
rge
indu
stri
al a
nd i
nfra
s-tr
uctu
ral
proj
ects
, im
plem
ente
d by
min
istr
ies.
The
'pop
ular
sec
tor'
(b
akhs
h-e
mar
dom
i) de
als
wit
h re
cons
truc
tion
of
resi
dent
ial
and
com
-m
erci
al u
nit
s, i
mp
lem
ente
d b
y t
he
ow
ner
s th
emse
lves
. T
he
`reg
iona
l sec
tor'
(bak
hsh-
e m
anta
gehe
i) en
com
pass
es r
egio
nal
deve
lop-
men
t pro
gra
mm
es a
nd
urb
an/r
ura
l se
rvic
e pro
ject
s, i
mple
men
ted
by r
econ
stru
ctio
n of
fice
s in
the
dam
aged
are
as. A
s fo
r m
anag
emen
t an
d p
ubli
c par
tici
pat
ion,
just
as
in t
he
case
of
eart
hq
uak
e re
con
-st
ruct
ion p
roje
cts,
ow
ner
s ar
e re
sponsi
ble
fo
r d
esig
n a
nd
rec
on
-st
ruct
ion o
f th
eir
ow
n u
nit
s. T
he
role
of
gover
nm
ent
is l
imit
ed t
o
inve
stin
g in
job
-gen
erat
ing
prod
ucti
ve u
nits
, sup
ervi
sion
of
reco
n-st
ruct
ion p
roce
ss, pro
vis
ion o
f te
chnic
al s
ervic
es a
nd f
inan
cial
as
sist
ance
. In
all
cas
es, si
te p
repar
atio
n i
s a
publi
c jo
b. T
he
gover
nm
ent
is a
lso r
esponsi
ble
for
equip
pin
g p
ubli
c off
ices
wit
h
adeq
uate
equ
ipm
ents
and
ski
lled
lab
our
forc
e an
d de
live
ring
bas
ic
const
ruct
ion m
ater
ials
to
th
e p
roje
cts
at t
he
site
. F
inan
cial
ly, t
he p
ubli
c se
ctor
ass
ists
rec
onst
ruct
ion
by i
nves
ting
in
infr
astr
uct
ure
s, p
rov
idin
g t
ech
nic
al a
nd m
anag
eria
l per
sonnel
, re
imburs
ing t
he
publi
c fo
r par
t of
the
war
-rel
ated
loss
es, an
d
gra
nti
ng c
redit
s, l
oan
s an
d o
ther
ban
kin
g s
ervic
es. F
or
rebuil
din
g
urba
n re
side
ntia
l un
its
(fro
m 6
0 sq
m t
o 12
0 sq
m),
the
gov
ernm
ent
pay
s up t
o R
ls 6
mil
lion p
lus
const
ruct
ion
mat
eria
ls.
The
Dir
ecto
r of
Pro
vinc
ial
Rec
onst
ruct
ion
Off
ice
may
at
his
disc
reti
on a
ssis
t th
e ow
ner
for
up t
o 1
80 s
q m
of
roof
cover
age;
the
ow
ner
may
als
o
be
assi
sted
by b
ank l
oan
s. F
or
urb
an c
om
mer
cial
est
abli
shm
ents
, th
e gover
nm
ent
pay
s up t
o R
ls 1
.5 m
illi
on
an
d a
ssis
ts t
he
ow
ner
w
ith b
ank l
oan
s. F
or
reb
uil
din
g a
nd
ren
ovat
ing p
roduct
ion u
nit
s,
the
gove
rnm
ent
pays
up
to R
ls 6
mil
lion
and
pro
vide
s co
nstr
ucti
on
mat
eria
ls a
t th
e off
icia
l pri
ce. O
ther
gover
nm
ent
assi
stan
ce
incl
udes
ban
k lo
ans
and
sale
of
fore
ign
exch
ange
at
offi
cial
rat
e to
th
e ow
ner
s, t
o be
use
d fo
r pu
rcha
se o
f m
achi
nery
and
equ
ipm
ents
. T
he g
over
nmen
t al
so r
eim
burs
es t
he i
nfli
cted
pub
lic
for
a lo
ng l
ist
of r
llmagP
d
r.ngin
g f
rom
.gri
cult
nr1
pr"
, luct
s t"
pah
n tr
ees,
an
imal
s an
d pr
ivat
e ve
hicl
es. B
uild
ing
perm
its
and
acce
ss t
o w
ater
an
d el
ectr
icit
y ar
e al
so p
rovi
ded
free
of
char
ge. T
he R
econ
stru
ctio
n O
rgan
izat
ion
is r
espo
nsib
le f
or f
ree
clea
ring
and
rem
oval
of
debr
is.
Fin
ally
, th
e gover
nm
ent
sell
s to
the
war
mig
rants
who r
eturn
to
thei
r vi
llag
es t
he f
ollo
win
g se
ven
'bas
ic' h
ouse
hold
ite
ms
at o
ffic
ial
pri
ce:
mac
hin
e-m
ade
carp
et, re
frig
erat
or,
tel
evis
ion (
bla
ck a
nd
whit
e),
stove,
kit
chen
war
e an
d p
late
s, s
ewin
g m
ach
ine
and
fan
.
POL
ICY
CH
AN
GE
S IN
TH
E W
AK
E O
F T
HE
KU
WA
ITI
CR
ISIS
Eve
r si
nce
its
ince
ptio
n in
Jul
y 19
89, t
he g
over
nmen
t of
Pre
side
nt
Ali
Ak
bar
Has
hem
i R
afsa
nja
ni
has
bee
n s
tead
ily m
ovin
g a
way
fr
om i
deol
ogy
tow
ards
mor
e pr
agm
atis
m. I
n th
e re
alm
of
econ
omic
de
velo
pmen
t th
is h
as m
eant
an
incr
easi
ngly
bol
der,
fle
xibl
e, o
pen
and
mo
re m
ark
et-o
rien
ted s
trat
egy a
s re
flec
ted i
n t
he
five-
yea
r pla
n. In
the
afte
rmat
h o
f th
e P
ersi
an G
ulf
cri
sis,
the
gover
nm
ent
has
sped
up
the
pace
of
chan
ges
in t
his
conv
enti
onal
dir
ecti
on a
nd
is i
ntr
oduci
ng a
few
maj
or
po
licy
ch
ang
es.
Sig
nif
ican
tly
, th
e id
ea
of
bott
lenec
k r
emovin
g a
nd m
axim
um
uti
liza
tion o
f th
e ex
isti
ng
prod
ucti
ve c
apac
itie
s is
giv
ing
way
to
a po
licy
of
incr
easi
ng c
apit
al
form
atio
n; t
he p
riva
te s
ecto
r w
ill
be m
ore
quic
kly
expa
nded
at
the
expe
nse
of t
he p
ubli
c se
ctor
tha
n or
igin
ally
env
isio
ned;
and
a n
ew
expo
rt-p
rom
otio
n in
dust
rial
izat
ion
stra
tegy
wil
l re
plac
e th
e or
igin
al
import
-subst
ituti
on s
trat
egy. T
he
export
ori
enta
tion o
f th
e ec
on-
omy
is h
oped
to
redu
ce d
epen
denc
y on
oil
-ear
ned
fore
ign
curr
enc-
ies
alth
ough t
he
gover
nm
ent
is n
ow
thin
kin
g t
o e
xpan
d t
he
oil
pr
oduc
tion
to
over
5 m
illi
on b
arre
ls p
er d
ay b
y 19
93. T
he e
xpor
t-pro
moti
on s
trat
egy i
s al
so h
oped
to d
iver
sify
the
econom
y a
t th
e sa
me
tim
e th
at i
t w
ill
gen
erat
e a
new
indust
rial
dynam
ism
in
the
countr
y. T
he
new
appro
ach i
s des
igned
to s
pee
d u
p I
ran's
re
inte
gra
tion i
nto
wes
tern
eco
nom
ies
and b
road
en i
ts r
egio
nal
ec
onom
ic r
ole.
T
he
exil
ed I
ran
ian i
ndust
rial
ists
, ban
ker
s an
d m
erch
ants
are
n
ow
bei
ng
ask
ed t
o r
etu
rn t
o t
hei
r co
un
try
, ta
ke
con
tro
l o
f th
eir
expr
opri
ated
pro
pert
ies
and
deve
lop
expo
rt i
ndus
trie
s w
ith
a hi
gh-
136
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n
Iran
ian
econ
omic
rec
onst
ruct
ion
plan
137
tech
con
tent
. The
y m
ay a
lso
purc
hase
oth
er n
atio
naliz
ed in
dust
ries
an
d es
tabl
ish
new
'cre
dit
inst
itut
ions
' to
run
para
llel
to
the
natio
naliz
ed b
anks
. All
lega
l cha
rges
aga
inst
them
are
als
o be
ing
drop
ped
by th
e go
vern
men
t. T
hose
who
ret
urn
will
add
ition
ally
be
nefi
t fro
m th
e go
vern
men
t's e
asy
loan
pro
gr--
-es
give
n fo
r pr
omot
ion
of Ir
an's
expo
rts
and
esta
blis
hmen
t of p
rodu
ctiv
e un
its.
Up
to 8
0 pe
r ce
nt o
f in
itial
inve
stm
ent m
ay b
e bo
rrow
ed f
rom
the
gove
rnm
ent.
The
mos
t fav
oure
d pr
ojec
ts in
clud
e st
eel p
rodu
ctio
n,
auto
mob
ile, c
hem
ical
and
pet
roch
emic
al, a
part
men
t com
plex
es,
hote
ls, n
ew to
wns
, urb
an in
stal
latio
ns a
nd p
acka
ging
indu
stri
es
for e
xpor
ts. A
mor
e lib
eral
app
roac
h is
als
o be
ing
adop
ted
tow
ard
fore
ign
inve
stm
ent.
Now
for
eign
inve
stor
s m
ay o
wn
up to
49
per
cent
of
the
join
t ven
ture
s an
d m
ay f
ace
only
min
or r
estr
ictio
n on
pr
ofit
repa
tria
tion.
The
y ar
e, h
owev
er, e
ncou
rage
d to
est
ablis
h ex
port
indu
stri
es a
nd p
rom
ote
Iran
ian
expo
rts
to g
ener
ate
the
need
ed fo
reig
n ex
chan
ge. J
oint
ven
ture
s an
d bu
y-ba
ck p
roje
cts
are
favo
ured
mec
hani
sms,
but
oth
er f
orm
s of
bor
row
ing
and
fore
ign
inve
stm
ents
are
als
o pu
rsue
d. T
he p
re-r
evol
utio
nary
Law
for P
ro-
mot
ion
and
Prot
ectio
n of
For
eign
Inv
estm
ents
has
bee
n re
inst
i-tu
ted
and
chan
ged
to r
efle
ct th
e ne
w p
olic
y.
The
gov
ernm
ent a
lso
wis
hes
to e
xten
d its
ong
oing
co-
oper
atio
n w
ith
the
Wor
ld B
ank,
Int
erna
tion
al M
onet
ary
Fun
d (I
MF
) an
d th
e A
sian
Dev
elop
men
t Ban
k (A
DB
). T
he I
MF
has
com
plet
ed a
re
port
on
the
Iran
ian
econ
omy
and
the
gove
rnm
ent i
n T
ehra
n is
si
lent
ly im
plem
entin
g th
e IM
F's
reco
mm
enda
tions
for n
orm
aliz
ing
the
econ
omy:
sub
sidi
es a
re b
eing
elim
inat
ed fo
r mos
t com
mod
ities
, pr
ice
cont
rol i
s be
ing
lifte
d, th
e ri
al is
dev
alue
d su
bsta
ntia
lly, a
nd
the
size
of t
he g
over
nmen
t will
be
furt
her r
educ
ed."
In A
pril
1991
Ir
an a
lso
incr
ease
d its
sha
re in
IM
F in
the
hope
of
havi
ng a
cces
s to
a la
rger
loan
in th
e ne
ar f
utur
e. I
n M
arch
199
1 th
e W
orld
B
ank
gave
a $
250
mill
ion
loan
to I
ran
for
the
reco
nstr
uctio
n of
th
e ea
rthq
uake
-dam
aged
are
as. I
ran
part
icip
ated
in th
e A
DB
mee
t-in
g in
late
Apr
il 1
991
as a
n ob
serv
er a
nd h
opes
to b
ecom
e a
mem
ber s
oon.
Iran
will
see
k pr
ojec
t loa
ns fr
om th
ese
inst
itutio
ns,
the
Wor
ld B
ank
in p
artic
ular
(for
dam
con
stru
ctio
n, tr
ansp
orta
tion
syst
ems
and
irri
gatio
n ca
nals
), an
d w
ill b
e w
illin
g to
mak
e ce
rtai
n co
nces
sion
s on
con
ditio
nalit
y an
d tr
ansp
aren
cy o
f da
ta. G
over
n-m
ent o
ffic
ials
wou
ld n
ot a
ckno
wle
dge
if th
ey a
re a
lso
will
ing
to
take
loan
s fo
r st
ruct
ural
adj
ustm
ent;
they
may
wel
l tak
e th
at to
o.
The
se a
nd o
ther
pol
icy
chan
ges
wer
e an
noun
ced
by D
r Moh
sen
Nou
rbak
hsh,
Min
iste
r of E
cono
mic
and
Fin
anci
al A
ffai
rs, a
nd D
r
Moh
amm
ad H
usse
in A
deli,
Gov
erno
r of t
he C
entr
al B
ank,
dur
ing
a tw
o-da
y co
nfer
ence
on
'Eco
nom
ic D
evel
opm
ent i
n Ir
an',
orga
n-iz
ed b
y Ir
an's
Perm
anen
t Mis
sion
to th
e U
nite
d N
atio
ns a
nd h
eld
in N
ew Y
ork
Cit
y on
2-3
May
199
1. C
onfe
renc
e pa
rtic
ipan
ts
incl
uded
Iran
's A
mba
ssad
or to
the
UN
, oth
er g
over
nmen
t off
iria
lq,
exile
d Ir
ania
n in
dust
rial
ists
, ban
kers
and
mer
chan
ts, a
nd e
cono
mic
pr
ofes
sors
and
gra
duat
e st
uden
ts in
US
univ
ersi
ties.
(I w
as a
mon
g th
e pa
rtic
ipan
ts.)'
° A
ccor
ding
to th
ese
offi
cial
s, th
e 'n
ew a
ppro
ach'
w
ill b
ring
Ira
n's
econ
omic
pol
icie
s m
ore
in li
ne w
ith
the
'new
re
gion
al a
nd in
tern
atio
nal r
eali
ties
' as
dem
ande
d by
the
'new
pe
riod
' tha
t has
fol
low
ed th
e K
uwai
ti cr
isis
. In
part
icul
ar, I
ran'
s be
havi
our
duri
ng th
e cr
isis
has
incr
ease
d its
inte
rnat
iona
l sta
ture
an
d im
prov
ed it
s re
latio
ns w
ith th
e w
est.
Mea
nwhi
le, a
ccor
ding
to
thes
e of
fici
als,
initi
al a
ttem
pts
by th
e U
S an
d A
rab
gove
rnm
ents
to
isol
ate
Iran
hav
e fa
iled,
whi
le th
e Ir
aqi d
efea
t has
str
engt
hene
d Ir
an's
regi
onal
sta
ndin
g, m
akin
g it
poss
ible
for
Ir
an to
adv
ocat
e a
new
con
cept
of
secu
rity
arr
ange
men
t ba
sed
on e
cono
mic
co-
oper
atio
n (a
s op
pose
d to
the
old
conc
ept o
f 'ba
lanc
e of
pow
er')
. T
hese
cha
nges
hav
e, in
turn
, nec
essi
tate
d a
mor
e ou
twar
d-lo
okin
g st
rate
gy fo
r Ir
an. B
esid
es, I
ran
as th
e la
rges
t cou
ntry
in th
e re
gion
, w
ith
rich
mat
eria
l and
hum
an r
esou
rces
, is
said
to h
ave
a na
tura
l ad
vant
age
to e
xten
d it
s re
gion
al e
cono
mic
rol
e an
d ta
ke a
larg
er
shar
e of
the
200-
mill
ion
regi
onal
mar
ket.
The
new
app
roac
h w
as a
gain
und
ersc
ored
dur
ing
a su
bseq
uent
m
ajor
inte
rnat
iona
l con
fere
nce
on 'O
il an
d G
as in
the
Dec
ade
of
1990
: Pro
spec
ts fo
r Co-
oper
atio
n', h
eld
in th
e hi
stor
ic c
ity o
f Isf
a-ha
n, I
ran,
on
12 M
ay 1
991.
For
eign
par
ticip
ants
incl
uded
OPE
C's
Dir
ecto
r; O
il M
inis
ters
of
Sau
di A
rabi
a, K
uwai
t, V
enez
uela
, In
done
sia,
Alg
eria
, the
Sov
iet U
nion
, Sou
th K
orea
and
Om
an;
exec
utiv
es o
f ov
er s
ixty
oil
com
pani
es f
rom
the
Uni
ted
Stat
es,
Eur
ope
and
Asi
a; a
nd r
esea
rche
rs a
nd jo
urna
lists
fro
m a
var
iety
of
inst
itutio
ns in
the
wes
t. D
omes
tic p
artic
ipan
ts in
clud
ed s
ever
al
min
iste
rs a
nd m
any
high
-ran
king
gov
ernm
ent o
ffic
ials
. In
a m
essa
ge to
the
conf
eren
ce, P
resi
dent
Raf
sanj
ani e
mph
asiz
ed
that
the
'bip
olar
wor
ld s
yste
m' i
s al
l but
gon
e, a
nd th
e F
orei
gn
Min
iste
r, A
li A
kbar
Vel
ayat
i, sa
id th
at 'a
new
ord
er' i
s em
ergi
ng
in w
hich
'eco
nom
ic c
onsi
dera
tions
ove
rsha
dow
pol
itica
l pri
oriti
es'.
The
Chi
ef o
f Pl
an a
nd B
udge
t Org
aniz
atio
n R
ough
ani Z
anja
ni
indi
cate
d Ir
an's
dete
rmin
atio
n to
cre
ate
a fr
ee m
arke
t sys
tem
and
th
e C
entr
al B
ank
Dir
ecto
r A
deli
outli
ned
Iran
's p
lan
for
fore
ign
borr
owin
g an
d at
trac
tion
of fo
reig
n in
vest
men
ts. S
imila
r mes
sage
s
138
Eco
nom
ic d
estr
ucti
on a
nd r
econ
stru
ctio
n
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
39
wer
e al
so g
iven
by
th
e M
inis
ter
of
Eco
no
my a
nd F
inan
ce, N
our-
bakh
sh.
In a
pre
ss i
nte
rvie
w, th
e O
il M
inis
ter,
Ghola
mre
za A
ghaz
adeh
, sa
id t
hat
the
confe
rence
ref
lect
ed t
he
chan
ges
bro
ught
about
by
the
Per
sian
Gulf
cri
sis,
evolu
tion i
n t
he
worl
d o
il m
arket
s an
d
rest
ruct
uri
ng i
n t
he
worl
d e
conom
y.
He
said
dem
and
fo
r o
il w
ill
incr
ease
in
the
1990
s w
hile
non
-OP
EC
oil
pro
duct
ion
wil
l de
clin
e,
incr
easi
ng d
eman
d f
or
the
Per
sian
Gulf
oil
. L
ogic
ally
, th
eref
ore
, `I
ran
as
a fo
undin
g m
ember
of
OP
EC
has
in
itia
ted
an
un
pre
-ce
dent
ed a
ttem
pt t
o fu
rthe
r m
utua
l un
ders
tand
ing
amon
g th
e m
ain
pla
yer
s in
oil
indust
ry i
ncl
udin
g p
roduce
rs, co
nsu
mer
s an
d o
il
com
pan
ies'
.''
In t
he
mea
n t
ime,
he
said
, in
a p
ost
-con
fere
nce
in
terv
iew
th
at
Iran
is
takin
g s
teps
to c
han
ge
its
oil
pro
duct
ion, pri
cing, an
d
mar
keti
ng p
olic
ies.
18 P
rodu
ctio
n w
ill
be i
ncre
ased
fro
m t
he p
rese
nt
3.5
mil
lion b
arre
ls p
er d
ay (
mb/d
) to
5 m
b/d
by
19
93
. T
he
Iran
-Ir
aq W
ar a
nd c
on
fro
nta
tio
n w
ith
th
e U
nit
ed S
tate
s in
the
Per
sian
G
ulf
des
troyed
a g
ood p
art
of
the
countr
y's
oil
inst
alla
tions.
Ira
n's
cu
rren
t (
June
1991)
OP
EC
quota
is
abou
t 3.5
mb/d
. T
he
org
aniz
-at
ion f
aces
over
pro
duct
ion a
nd S
audis
are
pum
pin
g s
om
e 4 m
b/d
m
ore
than
thei
r quota
. V
enez
uel
a, U
nit
ed A
rab E
mir
ates
and
Nig
eria
are
als
o p
roduci
ng a
bove
thei
r O
PE
C q
uota
s. I
raq a
nd
Kuw
ait
are
exp
ecte
d t
o b
egin
pro
duct
ion s
oon.
To
in
crea
se p
rod
uct
ion
, ac
cord
ing
to t
he
min
iste
r, I
ran w
ill
under
take
new
explo
rati
ons,
rep
air
and m
od
ern
ize
the
dam
aged
oil
pla
tform
s, a
nd g
asif
y t
he
exis
ting w
ells
. Ir
an w
ill
use
fore
ign
borr
ow
ing a
nd a
ssis
tance
for
som
e of
thes
e ac
tivit
ies.
Pre
sentl
y,
oil
exper
ts f
rom
Fra
nce
and J
apan
are
ass
isti
ng
Ira
n i
n r
epai
rin
g
and
mod
erni
zing
the
pla
tfor
ms.
For
exp
lora
tion
of
seve
ntee
n w
ells
, Ir
an h
as 'r
ente
d' s
om
e eq
uip
men
t fr
om
Can
ada,
but
the
job i
s b
eing d
one
by t
he
Iran
ians
them
selv
es. Ir
an a
nd t
he
Sovie
t U
nio
n
are
co-o
per
atin
g i
n e
xp
lora
tio
n o
n t
he
Cas
pia
n S
ea a
nd
at
leas
t o
ne
wel
l is
sai
d t
o h
ave
reac
hed
oil
. G
asif
icat
ion w
ill
soon b
egin
an
d t
he
job w
ill
be
done
by t
he
Iran
ian e
xper
ts, th
e m
inis
ter
said
. T
he
new
pri
cing p
oli
cy i
s bas
ed o
n c
o-o
per
atio
n w
ith S
audi
Ara
bia
and o
ther
OP
EC
mem
ber
s. I
n t
he
1980s
Iran
foll
ow
ed a
po
licy
of
conf
ront
atio
n w
ith
the
Sau
dis.
Thi
s po
licy
wil
l al
so f
ocus
o
n t
he
actu
al o
il m
arket
and s
eek a
sta
ble
pri
ce r
ath
er t
han
pu
sh
for
a hig
her
unsu
stai
nab
le p
rice
as
in t
he
pas
t. T
he
pri
cing p
oli
cy
wil
l al
so a
ccount
for
econom
ic g
row
th i
n t
he
wes
t. F
inal
ly,
Iran
hopes
to i
ncr
ease
its
oil
export
s to
the
wes
t an
d d
irec
t dea
ls a
re
pre
sentl
y s
ought
wit
h s
ever
al U
S c
om
pan
ies.
A f
ew m
onth
s ag
o,
Was
hin
gto
n i
nfo
rmed
US
com
pan
ies
that
they
may
buy o
il f
rom
Ir
an b
ut u
nder
the
con
diti
on t
hat
the
proc
eeds
be
kept
in
a S
peci
al
Acc
ount
in T
he
Hag
ue
from
whic
h A
mer
ican
cla
ims
agai
nst
Ira
n
coul
d he
p=
;(1
Iran
in
ten
ds
to
elim
inate
its
ba
rter
tra
des
w
ith
east
ern E
uro
pe.
Ira
n a
lso
pla
ns
to e
xp
and
co
-op
erat
ion
wit
h s
om
e T
hir
d W
orl
d c
oun
trie
s in
do
wn
stre
am p
roje
cts.
T
o p
rep
are
for
the
new
appro
ach,
on 2
1 J
anuar
y 1
991
the
Isla
mic
Rep
ubli
c of
Iran
had
put
in p
ract
ice
a m
ajor
refo
rm
pac
kag
e dea
ling w
ith f
ore
ign t
rade
and e
xch
ange
rate
s.'
9 Acc
ord-
ing
ly, a
new
flo
atin
g e
xch
ange
rate
for
rial
was
intr
oduce
d a
nd
the
vari
ous
adm
inis
trat
ive
hurd
les
in t
he f
orei
gn t
rade
sec
tor
wer
e el
imin
ated
. The
new
sys
tem
is
expe
cted
to
prom
ote
non-
oil
expo
rts,
fo
reig
n i
nves
tmen
ts a
nd t
ouri
sm. T
he
float
ing r
ate
is a
n a
ddit
ion
to t
he o
ld m
ulti
ple-
tier
exc
hang
e sy
stem
whi
ch w
ill
soon
be
sim
pli-
fied
. T
he
'off
icia
l ra
te' (
about
65 R
ls/$
), m
akes
im
port
ed n
eces
si-
ties
aff
ord
able
and i
s al
so g
iven
for
larg
e-sc
ale
indust
rial
an
d de
velo
pmen
t pro
ject
s. T
he 'f
loat
ing
rate
', on
the
othe
r ha
nd, i
s gi
ven
for
impo
rts
regi
ster
ed th
roug
h th
e M
inis
try
of C
omm
erce
, no
n-oi
l exp
orts
, tou
rism
and
hea
lth s
ervi
ces
whi
ch h
ave
to
be
perf
orm
ed o
utsi
de t
he c
ount
ry b
ut a
re n
ot e
ligib
le fo
r th
e M
edic
al
Cou
ncil'
s sp
ecia
l rat
e. T
he in
itial
floa
ting
rate
s w
ere
set
by th
e C
entr
al B
ank
at 1
,335
Rls
/$ f
or s
ale
and
1,33
8 R
ls/$
for
purc
hase
. Th
is a
mou
nts
to a
95
per
cent
dev
alua
tion
of th
e Ir
ania
n ri
al.
Floa
ting
rate
s ar
e av
aila
ble
thro
ugh
desi
gnat
ed p
ublic
ly o
wne
d b
ank
s. B
oth
Ira
nia
ns
and
fo
reig
n n
atio
nal
s ar
e el
igib
le a
nd
th
ey
may
ope
n a
fore
ign-
curr
ency
dem
and
depo
sit
acco
unt
in a
n au
thor
-iz
ed b
ank. B
efore
the
refo
rm, fo
reig
n v
isit
ors
had
to e
xch
ange
at
offi
cial
rat
e an
d pa
y th
eir
hote
l bi
lls
in f
orei
gn c
urre
ncie
s.
Alth
ough
th
e o
ffic
ial a
nd
flo
atin
g r
ates
mak
e u
p f
or
the
bu
lk o
f fo
reig
n
exch
ange
tran
sact
ions,
the
gover
nm
ent
also
mai
nta
ins
oth
er
spec
ial-
purp
ose
ex
chan
ge
rate
s. T
he
'co
mp
etit
ive
rate
' (ab
ou
t 6
00
R
ls/$
) is
des
igned
for
gen
eral
ass
ista
nce
to i
ndust
rial
unit
s,
impo
rter
s an
d ex
port
ers
of s
elec
t co
mm
odit
ies.
The
'pre
ferr
ed r
ate'
(a
bout
425
Rls
/$),
on
the
othe
r ha
nd, i
s gi
ven
for
prov
isio
n of
raw
m
ater
ials
and
oth
er i
nput
s fo
r fa
ctor
ies
prod
ucin
g in
dust
rial
goo
ds,
med
icin
e an
d f
oo
d. T
he
'ser
vic
e ra
te' (
about
845 R
ls/$
) ac
counts
fo
r th
e le
ast
signif
ican
t fo
reig
n e
xch
ange
tran
sact
ion. It
is
giv
en
to g
over
nmen
t em
ploy
ees
trav
elli
ng a
broa
d an
d to
stu
dent
s st
udy-
ing i
n a
ppro
ved
fie
lds
in a
ccre
dit
ed f
ore
ign u
niv
ersi
ties
. A
much
lo
wer
ser
vic
e ra
te (
300 R
ls/$
) ap
pli
es t
o m
edic
al p
atie
nts
who
140
Eco
nom
ic d
estr
uctio
n an
d re
cons
truc
tion
Iran
ian
econ
omic
rec
onst
ruct
ion
plan
141
need
trea
tmen
t abr
oad
and
are
elig
ible
for
the
Med
ical
Cou
ncil
's
spec
ial r
ate.
Fin
ally
, the
re is
the
blac
k m
arke
t rat
e w
hich
sto
od a
t ab
out 1
,450
Rls
/$ in
Feb
ruar
y 19
91.
The
new
ref
orm
als
o in
trod
uces
maj
or c
hang
es i
n th
e w
ay
fore
ign
trad
e w
ill
be h
andl
ed. U
nder
the
old
sys
tem
, exp
orte
rs
wer
e su
bjec
ted
to c
umbe
rsom
e ad
min
istr
ativ
e pa
perw
ork
and
had
to o
bser
ve a
quo
ta s
yste
m f
or v
ario
us e
xpor
tabl
e co
mm
odit
ies.
T
hey
also
had
to m
ake
a co
mm
itm
ent t
o se
ll to
the
gove
rnm
ent
a gi
ven
port
ion
of th
e fo
reig
n cu
rren
cy e
arne
d in
the
trad
e at
a
fixe
d, s
tate
-det
erm
ined
exc
hang
e ra
te. I
mpo
rter
s w
ere
also
res
tric
-te
d in
the
amou
nt o
f fo
reig
n cu
rren
cies
that
they
cou
ld tr
ansf
er to
ou
tsid
e th
e co
untr
y. U
nder
the
new
sys
tem
, all
thes
e ha
ve g
one:
on
ly a
sim
ple
expo
rt f
orm
, alo
ng w
ith
a co
mm
itm
ent l
ette
r, h
as
to b
e su
bmit
ted,
the
quot
a sy
stem
is e
lim
inat
ed, a
nd th
e ex
port
ers
will
sel
l the
cur
renc
y ea
rned
to th
e go
vern
men
t at t
he g
oing
mar
ket
rate
. The
exp
orte
r m
ay a
lso
choo
se t
o im
port
cer
tain
ess
enti
al
good
s us
ing
the
earn
ed c
urre
ncy.
In
eith
er c
ase,
an
expo
rter
has
up
to
six
mon
ths
to a
ct. F
or a
car
pet
expo
rter
, the
tim
e li
mit
is
twel
ve m
onth
s. B
eyon
d th
ese
dead
line
s, th
ey p
ay a
fin
e. T
here
is
also
no
lim
it o
n th
e am
ount
of
fore
ign
curr
enci
es im
port
ers
can
buy
at t
he f
loat
ing
rate
. Con
trol
ove
r tr
ansf
er o
f cu
rren
cies
so
obta
ined
out
side
the
coun
try
has
also
bee
n re
laxe
d. T
he g
over
n-m
ent
is e
xpec
ted
to e
lim
inat
e it
s ba
rter
tra
de a
gree
men
ts w
ith
east
ern
Eur
opea
n co
untr
ies.
The
new
sys
tem
inc
lude
s ce
rtai
n in
cent
ive
prov
isio
ns f
or e
xpor
ters
. A
s an
imm
edia
te r
eact
ion
to th
e ne
w s
yste
m, f
ree
mar
ket r
ates
d
rop
ped
by
about
8 p
er c
ent
in l
ess
than
a d
ay a
fter
it
was
an
noun
ced.
How
ever
, the
mar
ket r
ecov
ered
the
loss
in le
ss th
an
a w
eek.
Pri
ces
of c
erta
in im
port
ed c
omm
oditi
es in
crea
sed,
but
the
chan
ge w
as n
ot s
igni
fica
nt. T
he P
ersi
an G
ulf
cris
is c
onti
nues
to
infl
uenc
e fr
ee m
arke
t exc
hang
e ra
tes
in th
e co
untr
y. T
he s
yste
m
is e
xpec
ted
to in
crea
se I
ran'
s no
n-oi
l exp
orts
by
low
erin
g th
eir
pric
es a
nd th
us m
akin
g th
em c
ompe
titi
ve in
the
wor
ld m
arke
t. T
he s
yste
m c
ould
als
o el
imin
ate
exte
nsiv
e tr
affi
ckin
g in
Ira
nian
no
n-oi
l exp
orts
, mak
ing
the
trad
e st
atis
tics
mor
e re
liabl
e. I
t is
also
ex
pect
ed t
o lo
wer
the
cou
ntry
's n
on-e
ssen
tial
im
port
s as
the
ir
pric
es w
ill r
ise
in th
e ho
me
mar
ket.
Fin
ally
, the
sys
tem
is h
oped
to
enc
oura
ge f
orei
gn in
vest
men
t and
tour
ism
as
it c
heap
ens
thei
r ri
al e
xpen
ditu
res.
Ind
eed,
the
rial
exp
endi
ture
s of
for
eign
com
pan-
ies
and
thei
r pe
rson
nel,
tou
rist
s an
d ot
her
non-
nati
onal
s ha
ve
drop
ped
by tw
enty
tim
es
sinc
e th
e ri
al w
as f
loat
ed in
Jan
uary
19
91.
PR
OSP
EC
TS
FO
R S
UC
CE
SS
Iran
is a
res
ourc
e-ri
ch c
ount
ry w
ith p
rove
n po
tent
ial f
or e
cono
mic
gr
owth
and
pol
itica
l lea
ders
hip
in th
e M
iddl
e E
ast.
Yet
the
suc
cess
of
the
prag
mat
ist g
over
nmen
t in
norm
aliz
ing
the
econ
omy
and
then
lead
ing
it to
war
d a
sust
aina
ble
grow
th
path
will
dep
end
on
the
follo
win
g ec
onom
ic a
nd e
xtra
-eco
nom
ic c
onst
rain
ing
fact
ors:
I fo
reig
n po
licy
cond
ition
s 2
fore
ign
exch
ange
con
ditio
ns
3 hu
man
cap
ital
con
diti
ons
4 do
mes
tic p
oliti
cal c
ondi
tions
5
stru
ctur
al b
ottle
neck
s.
The
rem
aini
ng s
pace
doe
s no
t allo
w f
or a
com
preh
ensi
ve t
reat
men
t of
thes
e co
ndit
ions
and
thei
r po
ssib
le im
pact
. In
wha
t fo
llow
s, I
sh
all p
rovi
de o
nly
an o
utlin
e to
und
ersc
ore
the
mos
t im
port
ant
fact
ors
part
icul
arly
wit
h re
spec
t to
the
new
ex
port
-ori
ente
d st
rat-
egy.
My
aim
is to
sti
mul
ate
futu
re r
esea
rch
and
disc
ussi
ons.
T
he s
igni
fica
nce
of fo
reig
n po
licy
cond
ition
s be
com
es c
lear
er w
hen
we
reca
ll th
e re
cent
pol
icy
chan
ges
in th
e di
rect
ion
of a
n ex
port
-pr
omot
ion
deve
lopm
ent s
trat
egy.
Acc
ess
to f
orei
gn m
arke
ts, t
rans
-fe
r of
tech
nolo
gy a
nd k
now
ledg
e, a
nd a
ttrac
tion
of f
orei
gn in
vest
-m
ents
are
cri
tical
for
the
succ
ess
of th
is o
utw
ard-
look
ing
stra
tegy
. M
oreo
ver,
in th
e pr
e-re
volu
tion
ary
peri
od,
Iran
was
inte
grat
ed
into
and
dep
ende
d on
the
capi
talis
t wor
ld e
cono
my
in tw
o m
ajor
w
a■s:
exp
ort o
f oil
and
impo
rt o
f ind
ustr
ial i
nput
s an
d fo
od. T
his
inte
grat
ion
and
depe
nden
cy h
as c
onti
nued
in th
e po
st-r
evol
utio
n-ar
y pe
riod
. Ir
an a
lso
depe
nded
on
the
regi
onal
mar
kets
for
the
ex
pans
ion
of it
s co
nsum
er g
oods
indu
stri
es i
n th
e 19
70s.
Thi
s ne
ed
for
mar
kets
in th
e ne
ighb
ouri
ng s
tate
s w
ill
be fe
lt a
gain
as
expo
rt
indu
stri
es e
xpan
d. I
n ot
her
wor
ds, w
hile
siz
eabl
e am
ount
s of
cap
i-ta
l, te
chno
logy
and
oth
er in
puts
wou
ld h
ave
to c
ome
from
th
e w
est,
expo
rt m
arke
ts m
ust b
e fo
und
in th
e re
gion
. Thu
s im
prov
ed
rela
tions
with
the
wes
t and
the
stat
es in
the
regi
on is
an
impo
rtan
t fa
ctor
in I
ran'
s ec
onom
ic d
evel
opm
ent p
lan,
par
ticul
arly
now
th
at
the
gove
rnm
ent i
n T
ehra
n ha
s ch
osen
to f
ollo
w a
cap
ital
ist p
ath
and
an e
xpor
t-le
d gr
owth
. T
he p
ragm
atis
ts h
ave
long
rec
ogni
zed
this
fac
t an
d tr
ied
to
Iran
ian
econ
omic
rec
onst
ruct
ion
plan
143
14
2 Ec
onom
ic d
estr
uctio
n an
d re
cons
truc
tion
impr
ove
rela
tion
s w
ith
the
wes
t and
the
regi
onal
gov
ernm
ents
. H
owev
er, t
he I
slam
ic R
epub
lic's
suc
cess
was
larg
ely
limite
d pr
ior
to th
e P
ersi
an G
ulf
cris
is. A
maj
or o
bsta
cle
was
Ira
n's
frac
ture
d im
age
in th
e w
est.
In p
arti
cula
r. th
e w
est p
ortr
ayed
the
regi
me
in
term
s of
the
wor
st s
tere
otyp
es: i
cilo
rism
, bar
bari
sm a
nd f
anat
i-ci
sm. T
he a
nti-
wes
tern
nat
ure
of th
e R
evol
utio
n an
d th
e Is
lam
ic
Rep
ubli
c's
adve
ntur
ist f
orei
gn p
olic
y w
ere
the
mos
t res
pons
ible
. B
y th
e ti
me
of t
he c
ease
-fir
e w
ith
Iraq
in
Aug
ust
1988
, Ira
n's
frac
ture
d im
age
and
its
cons
eque
nt i
nter
nati
onal
iso
lati
on h
ad
beco
me
caus
es f
or s
igni
fica
nt m
ater
ial
and
soci
al c
osts
to
the
coun
try.
Rec
ogni
zing
the
prob
lem
, the
pra
gmat
ists
beg
an th
eir
ques
t for
fri
ends
hip
with
the
wes
t by
focu
sing
on
a po
licy
to c
hang
e th
e fr
actu
red
imag
e.
To
begi
n w
ith,
the
prag
mat
ists
hav
e ac
cept
ed th
e ar
gum
ent t
hat
the
`bi-
pola
r' w
orld
sys
tem
has
bas
ical
ly d
isap
pear
ed, r
epla
ced
by
`a n
ew o
rder
' in
whi
ch 'e
cono
mic
dev
elop
men
t and
co-
oper
atio
n'
are
impo
rtan
0 B
ut th
ey a
re s
ilen
t on
whi
ch c
ount
ry o
r co
untr
ies
now
dom
inat
e th
e w
orld
pol
itic
al e
cono
my.
In
prac
tice
, how
ever
, th
ey h
ave
tend
ed to
esp
ouse
the
argu
men
t for
a u
nipo
lar
wor
ld
syst
em w
ith
the
Uni
ted
Sta
tes
at i
ts z
enit
h (a
s op
pose
d to
the
ar
gum
ent f
or a
mul
ti-po
lar
wor
ld s
yste
m).
Alli
ance
with
the
decl
in-
ing
Sov
iet U
nion
is c
onsi
dere
d w
itho
ut a
ny s
igni
fica
nt s
trat
egic
va
lue.
Acc
ordi
ngly
, pra
gmat
ists
mod
erat
ed th
eir
beha
viou
r vis
-a-
vis t
he w
est a
nd c
hang
ed I
ran'
s fo
reig
n po
licy
from
one
of
adve
nt-
uris
m a
nd b
elie
f in
use
of
forc
e to
one
bas
ed o
n re
alis
m, c
o-op
erat
ion
and
nego
tiatio
n. A
for
cefu
l exp
ort o
f th
e R
evol
utio
n w
as
also
rej
ecte
d w
hile
res
tora
tion
of r
elat
ions
with
nei
ghbo
urin
g st
ates
on
the
basi
s of
inte
rnat
iona
l law
, mut
ual r
espe
ct a
nd g
ood
neig
h-bo
ur p
olic
ies
beca
me
a m
ajor
obj
ecti
ve. D
espi
te R
ushd
ie a
ffai
rs
and
a m
onet
ary
disp
ute
wit
h F
ranc
e, r
elat
ions
wit
h E
urop
e al
so
impr
oved
as
Fren
ch a
nd B
ritis
h ho
stag
es in
Leb
anon
wer
e se
t fre
e an
d E
urop
ean
busi
ness
men
beg
an a
rriv
ing
in T
ehra
n to
neg
otia
te
impo
rtan
t rec
onst
ruct
ion
proj
ects
. How
ever
, rel
atio
ns w
ith
the
Uni
ted
Sta
tes
rem
aine
d un
frie
ndly
alt
houg
h a
slig
ht c
onve
rgen
ce
of v
iew
was
als
o ob
serv
able
am
ong
the
two
gove
rnm
ents
by
the
sum
mer
of
1990
. The
pra
gmat
ists
hav
e us
ed th
e Ju
ne 1
990
kill
er
eart
hqua
ke a
s an
opp
ortu
nity
to c
lose
the
gap
wit
h so
me
of th
e re
gim
e's
old
enem
ies.
W
hile
thes
e de
velo
pmen
ts w
ere
occu
rrin
g, th
e Pe
rsia
n G
ulf
cris
is
bega
n, p
rovi
ding
the
regi
me
in T
ehra
n w
ith
a go
lden
opp
ortu
nity
to
ins
titu
tion
aliz
e it
s ne
w w
estw
ard-
look
ing
poli
cy. A
s I
have
show
n el
sew
here
, Ira
n's
Pers
ian
Gul
f pol
icy
was
des
igne
d no
t onl
y to
ach
ieve
its
stra
tegi
c na
tiona
l int
eres
ts in
the
regi
on b
ut a
lso
to
corr
ect
Iran
's im
age
in th
e w
est a
nd e
arn
it n
ew s
tatu
re in
the
wor
ld c
omm
unity
, esp
ecia
lly in
the
Ara
b w
orld
!' In
par
ticul
ar,
Iran
con
dem
ned
Iraq
i inv
asio
n an
d an
nexa
tion
of
Kuw
ait,
de
man
ded
its im
med
iate
and
unc
ondi
tiona
l with
draw
al, s
uppo
rted
an
d ob
serv
ed a
ll U
N r
esol
utio
ns,
incl
udin
g th
e on
e au
thor
izin
g th
e 'u
se o
f all
nece
ssar
y m
eans
', op
pose
d lin
king
Kuw
aiti
and
Pa
lest
inia
n is
sues
, and
con
tinu
ed to
rec
ogni
ze th
e le
gitim
acy
of
the
al-S
abah
gov
ernm
ent.
Iran
als
o do
wn
play
ed it
s id
eolo
gica
l in
tere
sts
and
used
its
influ
ence
to m
oder
ate
radi
cal I
slam
ic o
ppo-
siti
on to
the
USA
's in
terv
enti
on. T
he I
rani
an r
elig
ious
lead
ers
mai
ntai
ned
that
the
war
was
bet
wee
n tw
o un
just
pow
ers
rath
er
than
bet
wee
n Is
lam
and
infid
els.
A
s a
resu
lt, r
elat
ions
wit
h th
e U
N, t
he w
est,
regi
onal
gov
ern-
men
ts a
nd th
e an
ti-Ir
aqi c
oalit
ion
and
othe
r st
ates
thro
ugho
ut th
e w
orld
impr
oved
dur
ing
the
cris
is. M
ost n
otab
ly, I
ran
re-e
stab
-lis
hed
rela
tions
with
Bri
tain
in th
e be
ginn
ing
of th
e cr
isis
and
late
r re
leas
ed R
oger
Coo
per,
a B
ritis
h en
gine
er w
ho w
as in
Iran
ian
jails
fo
r ov
er fi
ve y
ears
on
char
ges o
f spy
ing.
Iran
—Fr
ance
rel
atio
ns a
lso
impr
oved
and
the
two
nati
ons
reso
lved
a m
ajor
dis
pute
in th
e m
idst
of t
he c
risi
s ov
er r
epay
men
t of a
loan
mad
e by
the
late
Sha
h to
the
Fre
nch
gove
rnm
ent.
Rel
atio
ns w
ith
Ger
man
y an
d ot
her
Eur
opea
n co
untr
ies h
ave
also
impr
oved
sign
ifica
ntly
. In
the
earl
y 19
90s,
alo
ng w
ith J
apan
ese
firm
s, m
any
Eur
opea
n bu
sine
sses
are
in
volv
ed in
a v
arie
ty o
f pos
t-w
ar p
roje
cts
in I
ran.
The
qui
ck e
nd
to th
e w
ar w
as a
ble
ssin
g fo
r th
e pr
agm
atis
ts w
ho lo
ok to
Eur
ope
and
Japa
n fo
r th
e po
st-w
ar r
econ
stru
ctio
n.
Iran
—U
SA r
elat
ions
con
tinue
to b
e su
spen
ded;
on
bala
nce,
how
- ev
er, r
elat
ions
impr
oved
as t
he tw
o go
vern
men
ts' v
iew
s con
verg
ed
duri
ng th
e cr
isis
. It i
s not
ewor
thy
that
the
pro-
Iran
ian
Shi'a
gro
ups
in L
eban
on d
id n
ot h
arm
US
host
ages
dur
ing
the
war
. The
y al
so
refr
aine
d fr
om a
ny te
rror
ist a
ctio
n ag
ains
t US
inte
rest
s in
the
regi
on. D
urin
g th
e cr
isis
, Ir
an a
lso
rele
ased
an
Am
eric
an, E
rwin
D
avid
Rab
han,
jaile
d in
Ira
n si
nce
Oct
ober
198
4. D
urin
g th
e U
S-
led
war
aga
inst
Iraq
, Pre
side
nt R
afsa
njan
i eve
n su
gges
ted
that
US
forc
es m
ight
be
allo
wed
to u
se I
rani
an te
rrito
ries
in 'e
mer
genc
y'
case
s, a
nd p
ropo
sed
to m
edia
te b
etw
een
the
war
ring
par
ties
and
indi
cate
d hi
s will
ingn
ess t
o ta
lk to
Am
eric
ans,
som
ethi
ng h
e ca
lled
Java
d L
arija
ni, a
seni
or p
resi
dent
ial a
dvis
er, a
lso
spok
e th
e go
vern
men
t min
d w
hen
he sa
id th
at th
ere
coul
d be
a 'm
arri
age
144
Eco
nom
ic d
estr
uctio
n an
d re
cons
truc
tion
Iran
ian
econ
omic
rec
onst
ruct
ion
plan
145
of c
onve
nien
ce' b
etw
een
Iran
and
the
US
A w
here
by th
e U
SA
he
lped
rid
the
regi
on o
f P
resi
dent
Sad
dam
Hus
sein
of
Iraq
by
prom
otin
g a
coup
and
spo
nsor
ed a
'reg
iona
l sec
urity
arr
ange
men
t',
or a
'Uni
ted
Nat
ions
mon
itor
ing
grou
p w
ith
US
par
tici
pati
on'.
Such
a 'm
arri
age
of c
onve
nien
ce' w
ill h
e to
bot
h pa
rtie
s' be
nefi
t, he
sai
d, b
ecau
se th
ey s
hare
an
inte
rest
in a
pea
cefu
l and
sta
ble
Pers
ian
Gul
f re
gion
and
in r
elia
ble
oil m
arke
ts.
In it
s tu
rn, t
he U
nite
d St
ates
indi
rect
ly e
ncou
rage
d th
e W
orld
B
ank
to a
ssis
t Ira
n w
ith a
$25
0 m
illio
n lo
an f
or r
econ
stru
ctio
n of
ea
rthq
uake
-dam
aged
are
as. W
ith th
e ta
cit a
ppro
val o
f th
e U
nite
d St
ates
, the
IM
F is
als
o he
lpin
g Ir
an n
orm
aliz
e its
war
eco
nom
y.
The
US
pla
n fo
r se
curi
ty o
f th
e P
ersi
an G
ulf
as o
utli
ned
by
Secr
etar
y B
aker
als
o in
clud
ed I
ran.
" D
espi
te th
is r
appr
oche
men
t, P
resi
dent
Bus
h ex
tend
ed th
e ec
onom
ic e
mba
rgo
agai
nst I
ran
(Exe
cutiv
e O
rder
No.
121
70) f
or a
noth
er te
rm in
Nov
embe
r 199
0.
The
USA
now
look
s to
Ira
n fo
r fr
eein
g its
hos
tage
s in
Leb
anon
an
d a
chan
ge in
the
Rep
ublic
's e
cono
mic
sys
tem
. Ira
n in
ret
urn
wan
ts th
e U
SA to
rec
ogni
ze it
s le
gitim
ate
inte
rest
s in
the
Pers
ian
Gul
f an
d it
s se
curi
ty s
yste
m. I
ran
also
wan
ts t
he e
cono
mic
em
barg
o lif
ted
and
its
asse
ts r
elea
sed,
incl
udin
g so
me
$10,
000
mill
ion
in fr
ozen
ban
k ac
coun
ts a
nd th
e m
ilita
ry h
ardw
are
pur-
chas
ed b
y th
e la
te S
hah.
Unt
il U
SA—
Iran
rel
atio
ns n
orm
aliz
e,
Iran
's r
eint
egra
tion
in th
e ca
pita
list w
orld
eco
nom
y w
ill r
emai
n m
argi
nal,
caus
ing
seri
ous
diff
icul
ties
for
the
capi
talis
m-r
oade
r pr
agm
atis
ts. R
ealiz
ing
this
, the
US
adm
inis
trat
ion
rem
aine
d co
ol
to m
any
over
ture
s fr
om I
ran
in th
e fir
st h
alf o
f 199
1, h
opin
g to
ex
trac
t max
imum
con
cess
ion
from
Iran
.23
In th
e re
gion
, Ira
n's
rela
tions
hav
e im
prov
ed w
ith a
lmos
t all
of
the
stat
es w
ith
the
exce
ptio
n of
Ira
q an
d A
fgha
nist
an. I
ran
re-
esta
blis
hed
rela
tion
s w
ith
Sau
di A
rabi
a, E
gypt
, Jor
dan
and
Kuw
ait,
and
has
impr
oved
its
ties
with
oth
er P
ersi
an G
ulf
litto
ral
stat
es, A
rab
stat
es a
nd n
on-A
rab
gove
rnm
ents
in th
e M
iddl
e E
ast
incl
udin
g T
urke
y an
d Pa
kist
an. E
cono
mic
and
pol
itica
l tie
s w
ith
the
Sovi
et U
nion
, Ira
n's
neig
hbou
r to
the
nort
h, h
ave
also
bee
n st
reng
then
ed u
nder
the
prag
mat
ists
. As
a co
nseq
uenc
e, I
ran
is
now
bet
ter
posi
tion
ed to
co-
oper
ate
wit
h S
audi
s in
the
OP
EC
, ex
pand
its
secu
rity
rol
e in
the
Pers
ian
Gul
f, a
nd e
xpec
t sig
nifi
-ca
ntly
incr
ease
d ec
onom
ic re
latio
ns w
ith th
e re
gion
al s
tate
s. B
efor
e an
d du
ring
the
Kuw
aiti
cris
is, r
elat
ions
with
Ira
q al
so im
prov
ed;
sinc
e th
e en
d of
the
US-
led
war
aga
inst
Ira
q, h
owev
er, r
elat
ions
be
twee
n th
e tw
o st
ates
hav
e de
teri
orat
ed a
gain
. Ira
n ne
eds
to
impr
ove
rela
tions
with
Ira
q an
d A
fgha
nist
an b
efor
e it
can
real
ize
the
full
pote
ntia
l of
its n
ewly
enh
ance
d tie
s w
ith th
e st
ates
in th
e re
gion
. Ara
b na
tions
in p
artic
ular
. T
hese
dev
elop
men
ts in
Ira
n's
exte
rnal
rel
atio
ns w
ill
no d
oubt
he
lp th
e er
rant
ry in
its q
i ,es
t for
an
tntw
.r,1-
1,-, o
4ing
dev
elop
men
t po
licy.
But
it is
hig
hly
unlik
ely
that
they
will
gua
rant
ee I
ran
a st
able
acc
ess
to o
il an
d no
n-oi
l exp
ort m
arke
ts, i
ndus
tria
l inp
uts
incl
udin
g ad
vanc
ed k
now
ledg
e an
d m
oder
n te
chno
logy
. Thu
s,
fore
ign
exch
ange
con
ditio
ns a
re e
xpec
ted
to r
estr
ict i
mpl
emen
tatio
n of
th
e ne
w p
olic
y. T
he o
il m
arke
t rem
ains
unc
erta
in, t
o sa
y th
e le
ast.
Wes
tern
eco
nom
ies w
ill n
ot r
etur
n to
a g
row
th p
ath
for
som
e tim
e to
com
e an
d re
cess
ion
in th
ese
coun
trie
s w
ill fo
rce
thei
r pe
ople
to
cons
erve
mor
e en
ergy
. The
USA
will
inve
st m
ore
in d
omes
tic o
il pr
oduc
tion
in th
e w
ake
of th
e K
uwai
ti cr
isis
and
pub
lic p
ress
ure.
T
he S
ovie
t Uni
on c
ould
ent
er th
e gl
obal
oil
mar
ket a
s a
new
co
mpe
titor
for
the
OPE
C. T
he S
ovie
ts c
ould
als
o co
mpe
te w
ith
Iran
for
expo
rt o
f gas
to E
urop
e, a
mar
ket I
ran
plan
s to
ent
er
with
hig
h ex
pect
atio
n. T
hird
Wor
ld o
il im
port
ers
will
face
eco
n-om
ic s
low
dow
n fo
r m
ost o
f the
199
0s. I
raq
and
Kuw
ait w
ill s
oon
begi
n pu
mpi
ng a
gain
, whi
le S
audi
Ara
bia
will
hav
e no
ince
ntiv
e to
red
uce
its
prod
ucti
on a
nd lo
se it
s ex
pand
ed m
arke
t sha
re.
Fina
lly, m
ost o
il pr
oduc
ers,
incl
udin
g Ir
an, p
lan
to in
crea
se p
ro-
duct
ion
and
expo
rts.
Thu
s, it
is p
ossi
ble
that
OPE
C in
the
1990
s w
ill b
e fa
ced
with
a
pers
iste
nt o
il gl
ut a
nd p
rice
dec
line
beca
use
of s
lugg
ish
dem
and
and
incr
ease
d su
pply
. Thi
s de
velo
pmen
t cou
ld je
opar
dize
th
e or
gani
zatio
n's
exis
tenc
e or
at l
east
redu
ce it
s ef
fect
iven
ess,
as
hap-
pene
d in
198
6. O
PEC
may
insu
re it
self
from
this
pos
sibl
e ca
lam
ity
if it
coul
d co
-ord
inat
e its
mem
bers
' pro
duct
ion
polic
y an
d pr
even
t a
supp
ly w
ar a
mon
g th
em. A
rea
sona
ble
and
stab
le p
rici
ng p
olic
y w
ill h
elp
cons
umer
eco
nom
ies
and
thus
pre
vent
a d
eclin
e in
de
man
d. W
este
rn g
over
nmen
ts, t
he U
nite
d St
ates
in p
artic
ular
, al
so h
ave
a st
ake
in s
tabl
e oi
l pri
ces
and
supp
ly. A
s su
ch th
ey
may
als
o ta
ke s
teps
to p
reve
nt a
n O
PEC
dis
aste
r if
they
fin
d th
e or
gani
zatio
n he
lpfu
l and
co-
oper
ativ
e. O
PEC
can
als
o co
unt o
n th
e su
ppor
t of t
he w
este
rn o
il co
mpa
nies
and
non
-OPE
C o
il pr
oduc
ers,
part
icul
arly
in th
e N
orth
Sea
, who
wou
ld a
lso
lose
in c
ase
of a
br
eakd
own
in o
il m
arke
ts.
The
Ira
nian
non
-oil
expo
rt m
arke
ts a
lso
face
an
equa
lly u
ncer
-ta
in c
ondi
tion.
Eve
n if
Iran
was
to im
prov
e re
latio
ns w
ith a
ll th
e st
ates
in th
e w
orld
and
get
suc
cess
fully
rein
tegr
ated
in th
e ca
pita
list
146
Econ
omic
des
truc
tion
and
reco
nstr
uctio
n
Irani
an e
cono
mic
reco
nstr
uctio
n pl
an 1
47
wor
ld e
cono
my,
ther
e is
no
guar
ante
e th
at th
ese
wil
l inc
reas
e Ir
an's
acc
ess
to w
orld
exp
ort m
arke
ts, p
artic
ular
ly f
or h
igh-
tech
co
mm
odit
ies.
Man
y T
hird
Wor
ld g
over
nmen
ts h
ave
take
n th
is
rout
e an
d fa
iled
mis
erab
ly; t
hey
have
all
ende
d up
in h
uge
debt
s.
A fe
w s
utt_
csbf
ul
;La
Eas
t A
sia
•co
uld
not b
e ta
ken
go
od
exam
ples
. Whi
le p
rote
ctio
nism
is in
the
rise
, Ira
n's
scie
ntif
ic a
nd
tech
nolo
gica
l bac
kwar
dnes
s w
ill m
ake
it im
poss
ible
for t
he c
ount
ry
to c
ompe
te in
the
high
ly a
dvan
ced
glob
al m
arke
t eve
n if
the
wor
ld
was
to o
pen
its d
oor
wid
e to
a la
teco
mer
. Ira
n w
ould
als
o ha
ve
diff
icul
ty to
exp
and
into
Mid
dle
Eas
tern
mar
kets
for e
ven
med
ium
-te
ch e
xpor
ts. W
hile
Ira
n w
as a
t a s
tand
stil
l sin
ce 1
979,
oth
er
natio
ns in
the
regi
on im
prov
ed th
eir
indu
stri
es a
nd te
chno
logi
cal
capa
bilit
ies.
Sau
di A
rabi
a, f
or e
xam
ple,
has
dev
elop
ed e
noug
h pe
troc
hem
ical
indu
stri
es to
sup
ply
all o
f the
nat
ions
in th
e re
gion
, w
hile
Tur
key'
s m
anuf
actu
ring
pro
duct
s ar
e so
ld in
man
y M
iddl
e E
aste
rn c
ount
ries
. Reg
iona
l mar
kets
are
alr
eady
pen
etra
ted
and
dom
inat
ed b
y th
e Ja
pane
se, E
urop
eans
, Kor
eans
, Tai
wan
ese
and
othe
rs.
Thi
s do
es n
ot m
ean
that
Ira
n sh
ould
not
atte
mpt
to e
xpan
d its
ex
port
s pr
oduc
tion
and
mar
kets
. Wha
t Ira
n sh
ould
not
do
is to
tr
y to
com
pete
in th
e gl
obal
mar
ket u
sing
impo
rted
tech
nolo
gy;
Iran
sho
uld
not a
ttem
pt to
ent
er th
e hi
gh-t
ech
expo
rts
mar
kets
for
th
e tim
e be
ing.
Eve
n if
Ira
n w
as a
ble
to d
evel
op a
nd m
arke
t suc
h co
mm
oditi
es s
ucce
ssfu
lly, t
he n
et e
ffec
t cou
ld w
ell b
e a
loss
of
fore
ign
exch
ange
for
the
coun
try
as m
ost i
nput
s in
clud
ing
tech
-no
logy
will
hav
e to
be
impo
rted
at e
xorb
itant
pri
ces.
Rat
her,
Ira
n sh
ould
beg
in it
s ou
twar
d-lo
okin
g po
licy
by e
xpan
ding
its
expo
rt
prod
uctio
n in
are
as w
here
it a
lrea
dy h
as a
com
para
tive
and
com
-pe
titiv
e ad
vant
age.
Eve
n th
en I
ran
need
s to
targ
et it
s ex
port
pro
-du
ctio
n so
that
it c
an d
evel
op a
nd m
aste
r th
e te
chno
logy
in a
sh
orte
r tim
e. I
n th
e m
ean
time,
Ira
n ha
s to
adv
ance
its
indu
stry
-dr
iven
R
&D
and
sci
enti
fic
basi
s if
it w
ants
to e
xpan
d at
som
e fu
ture
tim
e in
the
dire
ctio
n of
hig
h-te
ch e
xpor
ts. T
his
will
in tu
rn
depe
nd o
n th
e ab
ility
of
the
gove
rnm
ent t
o ex
pand
hig
her
edu-
cati
on, e
ncou
rage
app
lied
res
earc
h, f
ind
its
mar
ket n
iche
s an
d pr
ovid
e th
e ne
cess
ary
cond
ition
s fo
r the
retu
rn o
f the
exi
led
Iran
ian
scie
ntis
ts, r
esea
rche
rs a
nd in
dust
rial
ists
. An
educ
atio
n-fi
rst s
trat
egy
with
in a
dem
ocra
tic e
nvir
onm
ent i
s th
e fi
rst m
ost i
mpo
rtan
t con
-di
tion
for
deve
lopm
ent o
f hi
gh-t
ech
know
ledg
e an
d ex
port
s. I
ran
need
s to
bui
ld s
cien
ce c
ities
, ind
ustr
ial p
arks
. ins
titut
ions
of h
ighe
r
educ
atio
n an
d re
sear
ch la
bora
tori
es b
efor
e it
can
hope
to b
ecom
e a
play
er in
the
high
ly s
peci
aliz
ed a
nd c
ompe
titiv
e gl
obal
mar
ket.
Thi
s le
ads
me
to th
e pr
oble
m w
ith h
uman
cap
ital c
ondi
tions
. Ir
an
lack
s no
t onl
y a
high
-leve
l wor
kfor
ce b
ut a
lso
peop
le w
ith b
asic
sk
ills
suc h
as
tec h
nici
ans.
The
re a
re tw
o ro
utes
!ra
n ca
n ta
ke t
o
rem
edy
the
situ
atio
n: e
xpan
d ed
ucat
ion
and
trai
ning
at h
ome,
an
d en
cour
age
self-
exile
d an
d ex
iled
Iran
ians
to r
etur
n to
thei
r ho
mel
and.
The
gov
ernm
ent h
as b
een
atte
ntiv
e to
bot
h of
thes
e op
port
unit
ies.
Mor
e ne
eds
to b
e do
ne in
thes
e ar
eas,
dom
esti
c ed
ucat
ion
in p
artic
ular
. In
the
shor
t run
, how
ever
, Ira
n's
best
bet
is
to fo
cus
on m
illio
ns o
f edu
cate
d Ir
ania
ns a
broa
d. T
hus
far
the
gove
rnm
ent's
at
tem
pts
in th
is d
irec
tion
has
not
pai
d of
f at a
ny
sign
ific
ant l
evel
. Ira
nian
sci
entis
ts a
nd r
esea
rche
rs h
ave
not s
how
n gr
eat w
illin
gnes
s to
ret
urn
unde
r th
e gi
ven
dom
estic
con
ditio
ns.
Of 2
mill
ion
Iran
ians
who
left
the
coun
try
afte
r th
e R
evol
utio
n,
abou
t 15
per
cent
hav
e re
turn
ed to
Iran
sinc
e th
e de
ath
of A
yato
l-la
h K
hom
eini
in 1
9892
° D
ispa
rity
in li
ving
sta
ndar
d an
d w
ages
be
twee
n Ir
an a
nd th
e w
est a
re a
mon
g m
ajor
obs
tacl
es; s
ocio
-po
litic
al r
efor
ms a
re a
noth
er c
ondi
tion
for
the
retu
rn o
f the
exi
les,
alth
ough
this
dem
and
is n
ot a
lway
s ex
plic
itly
ackn
owle
dged
. It i
s fo
r th
is r
easo
n th
at t
he g
over
nmen
t's
new
pol
icy
does
not
ad
equa
tely
em
phas
ize
the
retu
rn o
f the
se p
eopl
e; in
deed
ther
e is
no
pla
n at
pre
sent
to r
etur
n th
em a
lthou
gh a
n of
fice
with
in th
e Pr
esid
ent O
ffic
e is
look
ing
for
way
s to
bre
ak th
e im
pass
e. In
stea
d,
the
gove
rnm
ent h
as f
ocus
ed o
n Ir
ania
n bu
sine
ssm
en a
broa
d w
ho
seem
to
care
mor
e ab
out t
he s
ecur
ity o
f the
ir c
apita
l and
a h
ighe
r pr
ofit
rat
e th
an s
ay w
omen
's r
ight
s or
dem
ocra
cy.n
B
ut if
the
gove
rnm
ent w
as to
invi
te o
nly
the
busi
ness
men
bac
k ho
me
but
not t
he e
duca
ted
Iran
ians
, the
n th
e Ir
ania
n ec
onom
y in
clud
ing
its
non-
oil e
xpor
t sec
tor w
ill b
ecom
e fu
lly d
epen
dent
on
the
capi
talis
t w
orld
mar
ket f
or a
ll th
at it
con
sum
es, f
rom
kno
wle
dge
and
tech
-no
logy
to
indu
stri
al p
roce
sses
and
low
-ord
er in
puts
su
ch a
s fo
od
and
inte
rmed
iate
goo
ds. S
uch
a re
sult
will
als
o no
t con
form
to
the
prag
mat
ists
' lar
gely
nat
iona
listic
pla
n fo
r Ir
an's
futu
re.
The
pre
vaili
ng d
omes
tic p
oliti
cal c
ondi
tions
will
als
o w
ork
tow
ard
slow
ing
the
pace
of t
he p
lann
ed c
hang
es. F
actio
nalis
m w
ithin
th
e re
gim
e an
d th
e na
tiona
l pol
itica
l dis
cord
con
tinue
to re
mai
n ca
uses
fo
r was
tefu
l exp
endi
ture
of t
he g
over
nmen
t's e
nerg
y an
d re
sour
ces.
T
he r
adic
als
are
still
a n
uisa
nce
alth
ough
thei
r po
wer
is in
crea
-si
ngly
bei
ng re
duce
d. T
hey
have
cri
ticiz
ed th
e R
afsa
njan
i pla
n fo
r its
lack
of
atte
ntio
n to
the
plig
ht o
f th
e po
or a
nd s
ocia
l jus
tice.
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
49
148
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n
The
y al
so c
astig
ated
the
plan
for
its
wes
twar
d di
rect
ion.
To
them
th
is p
olic
y am
ount
s to
a m
ajor
dev
iatio
n fr
om th
e te
achi
ngs
of th
e la
te A
yato
llah
Kho
mei
ni. T
heir
ow
n al
tern
ativ
e ca
lls
for
mor
e st
ate
inte
rven
tion,
equ
itabl
e di
stri
butio
n an
d ba
lanc
ed d
evel
op-
men
t, an
d a
self
-rel
ianc
e st
rate
gy. H
oija
tt 01
-Isl
am A
hrn.
d K
horn
- ei
ni's
denu
ncia
tion
of th
ose
who
met
the
exile
d Ir
ania
n ca
pita
lists
in
New
Yor
k C
ity is
onl
y on
e in
dica
tion
of r
esis
tanc
e to
the
new
po
licy
(he
is th
e la
te A
yato
llah
Kho
mei
ni's
son)
.•'"
Fact
iona
lism
in
the
abse
nce
of p
artis
an p
oliti
cs h
as b
een
part
icul
arly
res
pons
ible
fo
r pe
rcei
ved
polit
ical
inst
abili
ty a
nd in
cons
iste
ncie
s in
eco
nom
ic
polic
ies
and
prog
ram
mes
of t
he g
over
nmen
t. N
atio
nal d
isco
rd o
n th
e ot
her
hand
has
impo
sed
on th
e so
ciet
y a
tena
ciou
s re
pres
sion
, lac
k of
tru
st a
mon
g in
divi
dual
s an
d be
twee
n th
em a
nd th
e st
ate,
and
a g
ener
al s
ense
of s
ocia
l ins
ecur
-ity
. In
such
an
envi
ronm
ent,
mos
t bus
ines
ses
do n
ot ta
ke r
isk
and
tend
to r
emai
n do
rman
t and
trad
itio
nal;
nor
do
mos
t sci
enti
sts,
re
sear
cher
s an
d te
chno
crat
s fi
nd s
pace
to f
ully
blo
ssom
. Inn
o-va
tion,
nov
elty
, ori
gina
lity,
cre
ativ
ity, i
ngen
uity
, cha
nge,
ref
or-
mat
ion
and
mod
erni
zatio
n ar
e th
e m
ain
casu
altie
s in
suc
h ci
rcum
-st
ance
s. A
s I
have
ind
icat
ed e
lsew
here
, the
se p
robl
ems
are
com
poun
ded
by a
n ob
sole
te p
oliti
cal c
ultu
re, a
mon
g ot
her f
acto
rs,
that
har
dly
lend
s its
elf
to c
onst
ruct
ive
beha
viou
r an
d de
moc
ratic
re
latio
ns; r
athe
r its
eff
ect i
s to
pre
vent
Ira
nian
s of
dif
fere
nt id
eo-
logi
cal a
nd p
oliti
cal p
ersu
asio
ns to
reco
ncile
thei
r dif
fere
nces
and
co
llect
thei
r en
ergi
es f
or d
emoc
ratiz
atio
n an
d re
cons
truc
tion
of
thei
r soc
iety
.2°
Cha
ngin
g th
is c
ultu
re ta
kes
no le
ss th
an a
per
estro
ika,
desi
gned
spe
cific
ally
for t
he Ir
ania
n si
tuat
ion
— a
n Ira
nian
per
estro
ika
that
will
invo
lve
all l
evel
s of
the
soci
ety,
fro
m in
divi
dual
to th
e go
vern
men
t, an
d fr
om e
cono
mic
s to
pol
itics
. O
penn
ess
to th
e w
orld
and
invi
ting
Iran
ian
busi
ness
men
hac
k ho
me
are
step
s in
rig
ht d
irec
tion
. How
ever
, unl
ess
thes
e ar
e ac
com
pani
ed w
ith o
ther
des
pera
tely
nee
ded
refo
rms
in s
ocio
-pol
iti-
cal s
pher
es, t
he n
et e
ffec
t cou
ld w
ell b
e m
ore
depe
nden
cy, e
xplo
ita-
tion
and
repr
essi
on th
an a
t pre
sent
. Bus
ines
smen
, for
eign
or d
om-
estic
, will
ask
for t
ight
er s
ecur
ity fo
r the
ir in
vest
men
ts a
nd a
mor
e di
scip
lined
wor
k en
viro
nmen
t tha
n hi
ther
to e
xist
ed. T
hey
will
als
o pl
an to
mak
e m
ore
mon
ey a
nd a
t fas
ter
pace
in a
less
cer
tain
en
viro
nmen
t in
whi
ch th
ey w
ill b
e op
erat
ing
in th
e be
ginn
ing.
T
he g
over
nmen
t's L
aw f
or A
ttrac
tion
and
Prot
ectio
n of
For
eign
In
vest
men
ts a
lso
allo
ws
for
larg
er p
rofi
t rep
atri
atio
n th
an e
ver
befo
re. T
he e
xile
d Ir
ania
n bu
sine
ssm
en w
ould
wan
t a b
igge
r pro
fit
rate
to c
ompe
nsat
e qu
ickl
y fo
r th
eir
actu
al a
nd o
ppor
tuni
ty c
osts
si
nce
the
Rev
olut
ion.
The
y ha
ve a
lso
lear
ned
the
wes
tern
way
of
busi
ness
, a m
ore
repr
essi
ve w
ay th
an th
ey u
sed
to f
ollo
w in
pre
-re
volu
tiona
ry I
ran.
Thi
s hi
gher
-exp
loita
tion
met
hod
wou
ld a
lso
conf
irm
to th
e go
vern
men
t's d
esir
e to
ach
ieve
qui
ck e
cono
mic
gr
owth
. but
it w
ill a
lso
exac
erba
te th
e al
read
y ex
trem
ely
skew
ed
inco
me
and
wea
lth
dist
ribu
tion
in th
e co
untr
y an
d m
ay le
ad to
po
litic
al in
stab
ility
. H
owev
er, p
rovi
sion
of
thes
e co
nditi
ons
is n
ot g
oing
to b
e ea
sy
for t
he g
over
nmen
t in
an a
lrea
dy w
ell-
polit
iciz
ed s
ocie
ty w
here
the
wor
king
peo
ple
have
bec
ome
poor
er, s
till h
ave
the
gun
and
are
cons
ider
ed a
bas
is o
f pow
er in
an
Isla
mic
sta
te. F
or th
e pr
agm
atis
ts
to c
hang
e th
is b
ase
will
take
a lo
ng ti
me.
The
refo
re, t
he a
llian
ce
betw
een
the
prag
mat
ists
and
the
busi
ness
es c
an b
e ex
pect
ed to
pr
oduc
e m
ore
ineq
ualit
y an
d re
pres
sion
in th
e im
med
iate
fut
ure
unle
ss p
aral
lel p
oliti
cal-
econ
omic
refo
rms
are
intr
oduc
ed. B
ut b
usi-
ness
es w
ill n
ot b
e in
tere
sted
in s
uch
refo
rms
as d
emoc
racy
and
so
cial
just
ice
coul
d be
per
ceiv
ed a
s th
reat
enin
g to
the
secu
rity
of
thei
r in
vest
men
ts a
nd p
rofi
t. N
or w
ill th
ey h
ave
a st
ake
in
soci
o-cu
ltura
l re
form
s in
so
far
as th
eir
fam
ilies
will
be
left
beh
ind
in
the
wes
t. T
his
mea
ns th
at th
e ed
ucat
ed m
iddl
e-cl
ass
Iran
ians
w
ould
hav
e to
pre
ss f
or d
emoc
racy
in th
e co
untr
y as
the
gove
rn-
men
t goe
s af
ter b
usin
esse
s to
revi
ve th
e ec
onom
y. B
ut th
e do
mes
tic
grou
ps w
ould
nee
d th
e su
ppor
t of t
he la
rgel
y se
lf-e
xile
d ed
ucat
ed
Iran
ians
in th
e w
est t
o ac
com
plis
h th
e ta
sk. T
hus,
for
an
Iran
ian
pere
stroi
ka t
o oc
cur,
the
poli
cy to
ret
urn
the
exil
ed b
usin
essm
en
mus
t be
acco
mpa
nied
with
an
equa
lly s
erio
us p
olic
y to
ret
urn
the
educ
ated
peo
ple.
F
inal
ly, t
here
are
var
ious
oth
er
struc
tura
l bot
tlene
cks,
incl
udin
g in
fras
truc
tura
l and
sup
erst
ruct
ural
obs
tacl
es. T
rans
port
, com
mun
i-ca
tion
and
ener
gy s
hort
age,
inst
itutio
nal u
nder
deve
lopm
ent,
orga
n-iz
atio
nal p
aral
lelis
m a
nd m
anag
eria
l def
icie
ncie
s ha
ve o
ften
bee
n no
ted.
The
cou
ntry
als
o ne
eds
to im
plem
ent m
eani
ngfu
l ref
orm
s in
its
land
hold
ings
, tax
sys
tem
, wom
en's
rig
hts,
labo
ur la
w a
nd
regi
onal
adm
inis
trat
ion.
The
mai
n di
rect
ion
of th
ese
refo
rms
shou
ld b
e to
war
d cr
eatin
g ba
lanc
e in
the
soci
ety.
No
succ
essf
ul
deve
lopm
ent h
as e
ver
been
bui
lt up
on e
xtre
me
econ
omic
and
lega
l im
bala
nces
. On
the
cont
rary
, eco
nom
ic d
evel
opm
ent e
very
whe
re
has f
ollo
wed
impo
rtan
t bal
anci
ng e
cono
mic
and
lega
l ref
orm
s. T
his
is w
hy th
e go
vern
men
t's 'g
row
th fi
rst,
redi
stri
butio
n la
ter'
stra
tegy
(w
hich
is c
ompl
emen
ted
wit
h an
IM
F-t
ype
stab
iliza
tion
pro
-
150
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n
Irani
an e
cono
mic
reco
nstru
ctio
n pl
an 1
51
gram
me
and
a W
orld
Ban
k-ty
pe s
truc
tura
l adj
ustm
ent p
olic
y) w
ill
have
dif
ficu
lty to
wor
k in
a n
atio
n w
here
som
e 65
per
cen
t liv
e be
low
pov
erty
. If
past
exp
erie
nces
are
of
any
indi
catio
n, th
e pr
e-su
med
tric
kle-
dow
n ef
fect
will
not
occ
ur o
n tim
e to
pre
vent
the
wnr
irin
g pe
nple
fro
m p
rote
stin
g in t
he s
treets
T
he p
riva
te s
ecto
r al
so n
eeds
to d
evel
op a
mor
e na
tiona
listic
an
d re
spon
sibl
e at
titud
e to
war
d th
e ec
onom
y an
d th
e na
tion.
But
th
is m
ay n
ot o
ccur
unl
ess
the
stat
e is
mad
e m
ore
acco
unta
ble
to
the
peop
le. T
his
chan
ge w
ill, i
n tu
rn, r
equi
re th
at th
e st
ate
disc
i-pl
ines
itse
lf, i
ncre
ases
its
depe
nden
cy o
n ta
xes
agai
nst o
il in
com
e,
subs
titut
es c
rite
ria
for
rela
tions
in p
rom
otio
n of
its
offi
cial
s, a
nd
elim
inat
es th
e w
ides
prea
d co
rrup
tion.
In
this
con
nect
ion,
I w
ish
to in
vite
atte
ntio
n to
the
negl
ecte
d pr
oble
m o
f adm
inis
trat
ive
tuyu
l sy
stem
in th
e Is
lam
ic R
epub
lic."
' Pub
lic o
ffic
es, t
he re
volu
tiona
ry
foun
datio
ns in
par
ticul
ar, a
re d
ivid
ed a
mon
g va
riou
s Is
lam
ic f
ac-
tions
, inf
luen
tial r
elig
ious
aut
hori
ties
and
indi
vidu
als
with
clo
se
fam
ily ti
es w
ith th
e po
litic
al le
ader
s. W
hile
an
old
prac
tice,
the
syst
em h
as ta
ken
a m
ore
expl
icit
and
func
tiona
l for
m s
ince
the
Rev
olut
ion
and
has
deve
lope
d in
to a
pol
itica
l-ec
onom
ic v
ehic
le o
f po
wer
and
infl
uenc
e. T
his
corr
upt s
yste
m o
f na
tion
al a
dmin
is-
trat
ion
has
led
to s
igni
fica
nt in
effi
cien
cy, f
avou
ritis
m, n
epot
ism
an
d pa
rtis
ansh
ip w
ithi
n an
d w
itho
ut th
e go
vern
men
t. In
rec
ent
year
s, h
owev
er, t
he p
robl
em h
as b
een
som
ewha
t miti
gate
d be
caus
e of
two
deve
lopm
ents
: pra
gmat
ists
mad
e ef
fici
ent m
anag
emen
t and
in
crea
sed
prod
uctiv
ity c
ondi
tions
for
mai
ntai
ning
tu
yuls
; an
d, in
th
e m
ean
time,
a h
ealth
y in
ter-
tuyu
l com
petit
ion
emer
ged
over
ex
pans
ion
of tu
yul
terr
itori
es. T
hese
cha
nges
not
with
stan
ding
, the
tu
yul
syst
em is
inhe
rent
ly in
effi
cien
t and
cor
rupt
. It m
ust b
e to
tally
er
adic
ated
and
rep
lace
d by
a s
yste
m th
at m
akes
pub
lic
offi
ces
acco
unta
ble
to th
e pe
ople
and
app
oint
s m
anag
ers
on th
e ba
sis
of
know
ledg
e an
d le
ader
ship
cap
abil
itie
s. T
he a
fore
men
tion
ed
refo
rms
may
not
be
easi
ly a
ccom
plis
hed
as o
ld h
abit
s te
nd to
ob
stru
ct n
ovel
thin
king
and
pra
ctic
e w
hile
ref
orm
-res
iste
rs a
nd
spec
ial i
nter
est g
roup
s co
ntin
ue to
occ
upy
sens
itive
pos
ition
s in
th
e po
litic
al e
cono
my.
3 K
arha
n-e
Hav
a7, 2
0 M
ehr
1367
(12
Oct
ober
198
8): 3
. See
als
o A
mir
ah-
mad
i, Re
volu
tion
and
Econ
omic
Tra
nsiti
on,
pp. 2
47-5
0.
4 La
rhe-
e B
arna
meh
-e .4
rval
-e T
owse
'h-e
Eqt
esad
i, E
jtem
al r
a F
arha
ngui
:ye
Joum
hour
i:re
Isla
mi-y
e Ir
an, 1
368-
1372
[T
he B
ill o
f the
Fir
st E
cono
mic
, So
cial
and
Cul
tura
l Dev
elop
men
t Pla
n of
the
Isla
mic
Rep
ublic
of I
ran,
19
89—
'993
] (T
ehra
n: M
inis
try
of P
lan
and
Bud
get,
Aug
ust 1
989)
. See
al
so th
e pl
an it
self,
Ba
rnam
eh-e
.4vv
al-e
Tow
se'h
-e E
qtes
adi,
Ejte
ma'
i Va
Fa
rhan
gui-y
e fo
umho
uri-y
e Is
lam
i-ye
Iran
, 136
8-13
72 [
The
Fir
st E
cono
mic
, So
cial
and
Cul
tura
l Dev
elop
men
t Pla
n of
the
Isla
mic
Rep
ublic
of
Iran
, 198
9-19
93] (
Teh
ran:
Min
istr
y of
Pla
n an
d B
udge
t, 19
89).
5 A
n E
nglis
h su
mm
ary
of th
e R
afsa
njan
i pla
n is
giv
en in
A
Sum
mar
ized
Ver
sion
of t
he F
irst
Fiv
e Ye
ar E
cono
mic
, Soc
ial a
nd C
ultu
ral P
lan
of th
e Is
lam
ic R
epub
lic o
f Ira
n (1
989-
1993
) (T
ehra
n: M
inis
try
of P
lan
and
Bud
get,
Cen
ter
for
Soci
oeco
nom
ic P
ublic
atio
ns a
nd D
ocum
enta
tion,
M
ay 1
990)
. 6
H. A
mir
ahm
adi a
nd F
. Nik
pour
, `R
oshd
-e J
am'e
yat v
a T
owse
'h E
qtes
-ad
i-Ejt
emal
dar
Iran
' [Po
pula
tion
Gro
wth
and
Soc
ioec
onom
ic D
evel
-op
men
t in
Iran
], Et
tela
at-e
Sia
si-E
qtes
adi
40, 1
991:
47-
57.
7 A
Sum
mar
ized
Ver
sion
of t
he F
irst
Fiv
e Ye
ar E
cono
mic
, Soc
ial a
nd C
ultu
ral
Plan
, p.
20.
8
Ibid
., p.
27.
9
You
souf
Ibr
ahim
quo
ting
Moh
sen
Nou
rbak
hsh,
Ira
n's
Min
iste
r of
E
cono
my
and
Fina
nce
at a
n In
tern
atio
nal C
onfe
renc
e on
Oil
in th
e D
ecad
e of
199
0s, i
n Is
faha
n, I
ran.
See
New
Yor
k Ti
mes
, 28
May
199
1:
II
10 .4
Sum
mar
ized
Ver
sion
of t
he F
irst
Fiv
e Ye
ar E
cono
mic
, Soc
ial a
nd C
ultu
ral
Plan
, pp
. 14-
15.
11
Hou
sing
Rec
onst
ruct
ion
of th
e Ar
eas D
evas
tate
d by
the
June
21s
t, 19
90 E
arth
-qu
ake
in Ir
an: P
lan.
Pro
gram
, and
Bud
get (
Teh
ran:
Hou
sing
Fou
ndat
ion,
Ju
ly 1
990)
. 12
Uni
ted
Nat
ions
Dev
elop
men
t Pro
gram
mes
, Pr
ojec
t of t
he G
over
nmen
t of
the
Isla
mic
Rep
ublic
of I
ran:
Ass
ista
nce
in th
e Im
plem
enta
tion
of a
Pos
t Ear
th-
quak
e Re
cons
truct
ion
Prog
ram
me
(New
Yor
k: U
N, 1
990,
Doc
umen
t IR
A/
90/0
04/4
/13/
56).
13 S
ee H
. Am
irah
mad
i, 'E
cono
mic
Rec
onst
ruct
ion
of I
ran:
Cos
ting
the
War
Dam
age'
, Th
ird
Wor
ld Q
uart
erly
12
(1) J
anua
ry 1
990:
26-
47; H
. A
mir
ahm
adi,
'War
Dam
age
and
Rec
onst
ruct
ion
in th
e Is
lam
ic R
epub
-lic
of I
ran'
, in
H. A
mir
ahm
adi a
nd M
. Par
•in (e
ds)
Post-
Revo
lutio
nary
Ir
an (
Bou
lder
, Col
o: W
estv
iew
Pre
ss, 1
988)
, pp.
126
-49;
and
H. A
mir
-ah
mad
i, 'D
estr
uctio
n an
d R
econ
stru
ctio
n: A
Str
ateg
y fo
r th
e W
ar-
Dam
aged
Are
as o
f Ira
n',
Dis
aste
rs: T
he In
tern
atio
nal J
ourn
al o
f Dis
aste
r St
udie
s and
Pra
ctic
e 11
(2)
19
87: 1
34-4
7.
14 H
. Mir
zade
h, `S
iasa
tha,
Ow
lavi
vath
a, A
mal
kard
va
Taj
areb
-e N
oh
Sal B
azsa
zi d
ar J
oum
hour
i-ve
Isla
mi-y
e Ir
an',
[Pol
icie
s, P
rior
ities
, R
esul
t and
Exp
erie
nces
of N
ine
Yea
rs o
f Rec
onst
ruct
ion
in th
e Is
lam
ic
Rep
ublic
of I
ran]
, pap
er p
rese
nted
at t
he S
econ
d In
tern
atio
nal C
onfe
r-en
ce o
n th
e R
econ
stru
ctio
n of
the
War
-Dam
aged
Are
as o
f Ira
n,
Teh
ran
Uni
vers
ity,
5-1
5 Ja
nuar
y 19
91. M
r M
irza
deh
is D
eput
y to
NO
TE
S
1 H
. Am
irah
mad
i, Re
volu
tion
and
Econ
omic
Tra
nsiti
on: T
he Ir
ania
n Ex
peri
ence
(N
ew Y
ork:
Sta
te U
nive
rsity
of N
ew Y
ork
Pres
s, 1
990)
, pp.
127
-30.
2
Ibid
., pp
. 236
-7.
152
Econ
omic
des
truct
ion
and
reco
nstru
ctio
n
the
Pre
sid
ent
of I
ran
an
d t
he
Gov
ern
men
t's
Sp
ecia
l Rep
rese
nta
tive
fo
r th
e R
econ
stru
ctio
n of
the
War
Dam
aged
Are
as.
15
Isla
mic
Rep
ublic
of I
ran
- Rec
ent E
cono
mic
Dev
elop
men
t (W
ashi
ngto
n, D
C:
IMF
, 199
0).
16 F
or a
sho
rt re
port
on
the
conf
eren
ce s
ee K
arha
n-e
Urd
ibeh
esht
25
137
0 (1
5 M
ay 1
991)
: 10
. See
als
o H
. Am
irah
mad
i, 'I
ran
In
vite
s F
orei
gn I
nve
stor
s an
d S
eek
s R
etu
rn o
f E
xile
s,'
Mid
east
Mar
kets
, 20
M
ay 1
991:
6;
and
inte
rvie
w w
ith
Hoo
shan
g A
mir
ahm
adi i
n
Wor
ld
Bank
Wat
ch,
20 M
ay 1
991:
I, 4
. 17
K
arha
n-e
Hav
a'i,
1 K
hor
dad
137
0 (2
2 M
ay 1
991)
: 10
. 18
See
Mid
dle
East
Eco
nom
ic S
urve
y, 2
5 M
ay 1
991.
19
See
H. A
mir
ahm
adi,
'Ira
n F
loat
s E
xch
ange
Rat
e fo
r S
elec
t T
ran
s-ac
tion
'. M
idea
st M
arke
ts 4
Mar
ch 1
991:
3.
20 Y
osou
f Ib
rahi
m q
uoti
ng a
Sta
tem
ent
by P
resi
dent
Raf
sanj
ani r
ead
at
the
Inte
rnat
iona
l Con
fere
nce
on O
il in
the
Dec
ade
of 1
990s
, in
Isfa
han,
Ir
an. S
ee N
ew Y
ork
Tim
es,
28 M
ay 1
991:
11.
See
als
o th
e St
atem
ent b
y H
is E
velle
ncy.
Dr
.41i
-Akb
ar l'
elar
ati,
Min
iste
r fo
r Fo
reig
n A
ffai
rs o
f the
Is
lam
ic R
epub
lic o
f Ira
n B
efor
e th
e Fo
rty
Fifth
Ses
sion
of t
he U
nite
d N
atio
ns
Gen
eral
Ass
embl
y. 2
4 Se
ptem
ber 1
990,
pu
blis
hed
by t
he I
slam
ic R
epub
lic
of I
ran
's P
erm
anen
t M
issi
on t
o th
e U
nit
ed N
atio
ns
(n.d
.).
21 H
. Am
irah
mad
i, 'I
ran
and
the
Per
sian
Gul
f C
risi
s', i
n H
. Am
irah
mad
i an
d N
. Ent
essa
r (e
ds),
Ira
n an
d th
e A
rab
Wor
ld (
New
Yor
k an
d L
ondo
n:
St M
arti
n's
Pre
ss, 1
992)
. 22
See
Kny
han-
e Ha
va'i,
24
Bah
man
136
9 (1
4 F
ebru
ary
1990
): 3
2.
23 S
ec N
ew Y
ork
Tim
es,
26 M
ay 1
991:
12.
24
See
New
Yor
k Ti
mes
, 7
Feb
ruar
y 19
91:
I, 1
7.
25 S
ee E
. Sci
olin
o, 'U
.S. R
esp
ond
s C
ooll
y to
Ove
rtu
re F
rom
Ira
n',
New
Yo
rk T
imes
, 29
May
199
1: 1
0.
26 S
ee I
ran
Tim
es.
3 K
hor
dad
137
0 (2
4 M
ay 1
991)
: 15
. 27
In
th
e N
ew Y
ork
Cit
y co
nfe
ren
ce (
23 M
ay 1
991)
som
e 45
0 Ir
ania
n
bu
sin
essm
en p
arti
cip
ated
. For
tw
o d
ays
man
y as
ked
qu
esti
ons
from
th
e go
vern
men
t of
fici
als
pre
sen
t; in
vari
ably
th
e q
ues
tion
s h
ad t
o d
o w
ith
the
busi
ness
men
's c
once
rn w
ith
the
secu
rity
of
thei
r in
vest
men
t,
prof
it r
epat
riat
ion,
una
ccep
tabl
e si
ze o
f th
e go
vern
men
t, a
nd in
cent
ives
fb
r pr
ivat
e se
ctor
. No
ques
tion
s w
ere
aske
d ab
out
dem
ocra
cy o
r so
cio-
cult
ural
ref
orm
s.
28 S
ee I
ran
Tim
es 3
Kh
ord
ad 1
370
(24
May
199
1):
1. 1
4.
29 H
. Am
irah
mad
i, Re
volu
tion
and
Econ
omic
Tra
nsiti
on,
pp
. 283
-8.
30 I
n pr
e-m
oder
n Ir
an, k
ings
use
d to
tra
nsfe
r th
e us
ufru
ct r
ight
of
cert
ain
stat
e la
nd
s or
pu
bli
c of
fice
s to
th
e m
emb
ers
of t
hei
r h
ouse
hol
d o
r to
th
e m
emb
ers
of t
he
Iran
ian
ari
stoc
racy
in e
xch
ange
for
a p
red
eter
-m
ined
am
ount
or
serv
ice,
like
pro
visi
on o
f so
ldie
rs f
or a
n on
goin
g w
ar.
Such
tra
nsfe
rs w
ere
tax
free
but
the
hol
der
of t
he
turd
cou
ld in
tur
n ta
x-fa
rm t
he p
rope
rty
or o
ffic
e to
any
one
he w
ishe
d. F
or a
n ac
coun
t of
the
lur
id s
yste
m s
ee A
. K. S
. Lam
bto
n,
Land
lord
and
Pea
sant
in P
ersi
a (L
ondo
n: O
xfor
d U
nive
rsit
y P
ress
, 195
3; r
epri
nted
196
9).
Part
IV
Iran
and
the
Arab
wor
ld
