Who Can Put an End to the Sanctions?

15 June 2013 | 15:47 Code : 1917357 Interview General category
An interview with Amirhossein Tavakoli, an expert on economic affairs
Who Can Put an End to the Sanctions?

At the present time, the presidential candidates stress the undesirable economic situation. What issues is this situation exactly caused by? What economic problems will the future president be faced with?

This undesirable economic situation can be studied in several dimensions. The country’s biggest economic problem in the middle-term and the long-term is that we have problems in producing wealth. For the promotion of society and providing material and even spiritual needs, it is necessary for a modern country to use its capacities to produce wealth in the best possible way and to attempt to distribute it in the most just way. Basically, the existence of economic systems is aimed at producing wealth and distributing it. One must use the producing power of the society and the highest possible capacities to produce wealth.

But in my opinion, what the presidential candidates pay more attention to are the short-term issues, which are inflation and employment. If we see that they talk more about these two issues it is because these are the problems of our society today. The increasing prices, at a general level, on one hand, and the shortage of proper jobs with a suitable income for different strata of society, particularly the youth who make up the major part of our society, on the other hand, are today’s problems. Any person who becomes the president will be faced with the problem that, in order to solve the problem of inflation, he must accept unemployment and, in order to solve the unemployment issue, he must accept inflation. This is one of the issues among the dimensions of which a type of balance must be created. It is not possible to solve both of them simultaneously and in the short run. At least at this stage of the economic growth trend that we are placed in, both the issues of inflation and unemployment cannot be solved at the same time. This is a big problem for the next president and his government. The other problem is the issue of the currency rate. In fact, the value of the national currency has significantly dropped during the past few months, the reasons of which are both political and economic. But the continuation of this trend is not acceptable and it cannot continue. Finding a suitable solution for this issue is also among the issues which the future government must take serious measures to remove.

What are, in your opinion, the roots of the present economic problems and do you believe that the upcoming election can impact this matter?

The economic problems of our country are caused by various reasons, among which cultural issues can also be mentioned. We must accept that in our society today, the culture of consumption without considering production has unfortunately grown and is even encouraged by some officials. These cultural issues and other issues like trade and currency policies are the roots of the economic problems of our country. Our view on wealth, our view on investment, and our view on investors are all issues that have caused our present economic problems. Perhaps the biggest problem is that the economic power of the people is given to them not on the basis of their capabilities and talents, but rather on the basis of relations and favoritism. If the people knew that one could only gain wealth or higher economic power through hard work, they would not only personally feel better and double their attempts, but the general social atmosphere of the country would become livelier and the gross domestic production would also show serious growth. We must not be too hopeful or too disappointed about the impact of the upcoming election on the roots of our economic problems.

In fact, in my opinion, if a capable and suitable government is chosen, then it can be hoped that a step, and I reiterate a step, will be taken on the path of solving the rooted economic problems of the country. We must know that a four year-term which can be extended at most for another four years, will not be enough to remove the economic problems. It can only be hoped that a step would be taken on the path of their removal. Sometimes we must hope that the government would not take any measures to intensify or inflame them.

The issue of sanctions is one of the most important issues discussed in the campaigns. Could the next president remove these sanctions?

The sanctions are related to those who imposed them and not our president. Therefore, their removal will not directly be related to the head of our government. But an active foreign policy which would be in line with economic policies can cause the other side to understand that by using our capabilities, we can make their sanctions ineffective or less effective. When this matter is proven to the other party, in practice and not in words, then they will discuss other options. Their options are not many either. Therefore, the next president can prepare the ground for the removal of the imposed sanctions when he is able to have constructive and wise interactions based on national interests with both the domestic and international political and economic forces. On the other hand, if the next government involves itself with slogans and non-expert general slogans, then the removal of sanctions will be faced with more difficulties.

tags: sanctions