Asian Journal of Development Matters
Year : 2010, Volume : 4, Issue : 1
First page : ( 38) Last page : ( 45)
Print ISSN : 0973-9637.

Administration of Privatization in Iran and Challenges in the Process

Hadizadeh Aliasghar

Department of Accounting and Management, The Islamic Azad University of Iran, Torbat-e-Jaam Branch, Iran.

Address for correspondence: e-mail: aliasghar.hadizadeh@yahoo.com

Abstract

Privatization is the most widely debated issue at global, national and at regional levels. It is the main spring of the open economy under liberalization. Since two decades the focus has been on the economic benefits of privatization. However, the global meltdown has become a big block to privatization and many transient economies are redesigning their development strategy. In the beginning of 1990s, when the idea of privatization was first initiated in Iran, the absence of an organization in charge of the issue had prevented the expansion of privatization within a statistical scope. The Iranian privatization organization has practically commenced its activities with the new objectives and tasks since June 2001. The Privatization Organization is a governmental company affiliated to the Ministry of Economic Affairs and Finance, having legal entity and financial independence and the director of executive board and its managing director is the Deputy Minister of Economic Affairs and Finance.The economic growth, promotion of economic efficiency and productivity of materials and human resources, increment of compatibility and partnership of private sector in economic activities and rationalization of size of the government and reduction of financial and management burden in handling the economic activities are some of long term objectives of the Iranian privatization organization. A very scientific & systematic attempt is made to feel the pulse of cross-sections of people in Iran. The global experience has shown that economic reform will benefit on economy in the long run only if social and macro-economic stability are preserved in the process. Privatization needs social participations and without support from the mass, no reform is likely to succeed.

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