▪️ Selected Excerpt | Kioumars Ashtarian, policy researcher and faculty member at the University of Tehran
The issue of industrial development in Iran is not merely a matter of selecting industries or increasing production capacity; rather, it fundamentally relates to the country’s governance model. Until the system of industrial coordination and governance is reformed, even choosing priority industries cannot lead to sustainable development.
National Capitalism and Industrial Development in Iran
One of the main barriers to development is “mass administration,” a system in which the state distributes permits, licenses, and small-scale rents among numerous low-efficiency units instead of providing strategic leadership. This leads to administrative fragmentation, resource waste, excessive intermediation, and disruptions in production chains.
The Strategic Promotion of “National Capitalism”; a Key Solution
A proposed solution is the strategic promotion of “national capitalism” through strong private consortia and large accountable firms. By integrating fragmented production networks and reducing intermediation, these firms can help advance national development goals more effectively.
In this approach, the state shifts from direct intervention and micro-level resource distribution to a regulatory and coordinating role, implementing public policies through partnerships with capable enterprises and large economic coalitions.
