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Mohammad Moghimi

One of the most important challenges of humanity throughout history has been the issue of livelihood and economy. After World War II, intellectuals sought to address the root causes of war and violence with a broader view of economic, social, and cultural rights, and created a framework for governments to provide welfare for citizens as part of human rights – which also has an impact on international peace and security. Therefore, the minimum government responsible for ensuring internal and external security, creating an army, managing currency, and overall governmental duties, was transformed into a maximum government responsible for intervening in the economy and market system to provide comprehensive welfare for society. This gave rise to the second generation of human rights (economic, social, and cultural rights) which became the focus of intellectuals and legal experts. On the other hand, in response to the aforementioned events and shortcomings of the liberal economic system, the idea of socialism was introduced in various forms, sometimes extreme. Both ideologies claimed to fulfill the fundamental principles of modernity (freedom,

Privatization means limiting and converting government industries and units into private sectors, or empowering people to engage in economic activities. However, in a broader sense, privatization is a culture in which the government and all decision-making institutions believe that the work of the people should be entrusted to the people. Therefore, the ground for public participation in social, political, cultural, and especially economic activities must be made smooth, and without a doubt, this extensive participation can strengthen the foundations of democracy in a society and increase people’s supervision over the government’s performance, especially in the economy. (1) Privatization in Iran began for the first time in Khordad 1370 (May/June 1991) based on Article 44 of the Constitution and with reference to Note 32 and paragraphs 37-4, 8-1, 8-2, and 8-3 of the First Development Plan approved in 1368 (1989-1994). As can

The writer believes that privatization is a prerequisite for economic liberalization. In fact, privatization is not just about transferring ownership from the government to the private sector, but this process must be accompanied by economic liberalization and the creation of a competitive market in order to produce goods and services with relative advantage through legal, cultural, political, social, and other mechanisms. Liberalization includes a set of actions taken to remove government controls from financial markets, goods and services, labor, and foreign sectors and transfer them to the market mechanism. It seems that there is no will to achieve this in our country. Of course, the purpose of passing the targeted subsidy law was economic liberalization, but this law was neither properly written nor properly implemented. The purpose of targeting subsidies is to make prices more realistic. In fact, the government should not interfere in the pricing process by allocating subsidies to goods and services, but should leave it to the market forces. Privatization and economic liberalization are a democratic process

Some of the other obstacles to privatization in Iran include its impact on employment, resistance from some government officials, lack of transparency and pricing issues for companies, sometimes receiving incorrect theories about this issue, the need for a comprehensive and acceptable model with individual capabilities, the absence of a capable private sector in the country, and beyond that, the feeling of confidence in investment, which is very important. In this regard, Dr. Ali Mohammad Izadi, the Minister of Agriculture of the interim government, says: “Ensuring security and confidence is the first prerequisite for investment.” He suggests that by approving a single article entitled “Revival of Lost People’s Rights”, the security of investment can be guaranteed in practice and the properties that have been confiscated without any of the rights listed in Article 49 of the Constitution should be returned to their owners.

On the other hand, although all economists believe that the competition mechanism creates the highest efficiency, there is no guarantee that the benefits of this situation will be distributed evenly in society. It is possible that some parts of society will benefit the most from this situation while others will remain deprived of its minimum benefits. In this case, it is the government’s responsibility to distribute the benefits of the market economy among different parts of society without distorting the competition mechanism, through methods such as taxation. Therefore, improving income distribution and implementing policies for social justice are among the government’s duties in the economy. (5) As mentioned, one of the negative consequences of liberalization and privatization is a challenge to the realization of the second generation of human rights. In this process, the right to education, health, and some other human rights have been transferred to the private sector in violation of the constitution and international human rights documents, which has had adverse consequences for society. Therefore, to mitigate these consequences, more attention

In the principles of the Constitution of our country, economic, social, and cultural rights are briefly mentioned, but in laws and regulations related to privatization, including the general policies of the leadership regarding Article 44 of the Constitution, which are mostly approved by the Expediency Discernment Council, scattered references have been made to issues such as social security, social and economic justice, the right to employment and unemployment insurance, support for the needy, attention to deprived areas, and other human rights issues. It is appropriate that instead of privatization being approved in scattered and even unrelated laws and regulations by the Expediency Discernment Council, the legislative body should approve a specific legal system for privatization, using the opinions of experts and comparative law, and specifically address human rights issues related to privatization.

The privatization process in Iran has not been very successful in achieving its goals, and the government is constantly growing. Proper policy-making and legislation, economic liberalization, transparency in transfers, democratic oversight, learning from the experiences of other countries, employing experts, creating necessary infrastructure, eliminating the economic activities of semi-governmental institutions, accepting mutual interdependence of political and economic freedoms, etc. are among the factors that play a crucial role in the success of privatization. On the other hand, privatization is a transition from a state or semi-state economy to a free economy, which poses challenges for society, one of which is social security and fair distribution of wealth. In fact, with privatization and economic liberalization, capitalists and economic power holders engage more freely in activities, and competition leads to efficiency and production of goods and services with relative advantage. However, this also intensifies the possibility of social class formation and widening the gap between the rich and the poor. Therefore, mechanisms are needed to

Notes:

1. Khalili Zadeh, Morteza, Privatization and Its Impact on the Economy, Resalat Newspaper, Issue 6376, February 26, 2008.
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2. Soleimani, S., Mojtaba, and Davarzani, H., Privatization and Outsourcing: Successful and Unsuccessful Examples, Tehran, Institute for Commercial Studies and Research, First Edition, 1389, p. 277.

3. Amini, Ramin and Mejhurian, Vajieh, former.

4. Interview with Izadi, Ali Mohammad, Security Assurance, First Requirement for Investment, Year 1385.
   I cannot provide a translation without the Farsi text. Please provide the Farsi text for me to translate.

5. Hodavand, Mahdi and Sarzaim, Ali, The Transformation of the Role of Government in the Economy, Quarterly Journal of Legal Information, Tehran, Presidency Publications, No. 14, Summer 1387, p. 40.