Economy and Production

Economy of Iran

18.jpg (12888 bytes)ImageIn 1993 Iran’s First Five-Year Social and Economic neveloyment plan, which followed the end of the war with Iraq, came to its end. On the whole the plan was a success, in some areas its achievements were even better than expected.

The Second Plan began in 1995 and will continue till 1999, the final year of the 20th century.
The Second Plan has the following social and economic aims:


1- Efforts towards social justice and equity.
    2- Moral advancement on the basis of Islamic ethics, and general cultural and educatianal development of the society.
    3- Guidance of the youth towards God, native culture, purity, knowledge, creativity in arts and technology, physical training, and finally towards familyl amd social VartiCipation in cultural, political anA economic activities.
    4- Greater efficiency.
    5- Training of the necessary work force.
    6- Growth and development of a stable economy with a strong agricultural basis.
    7- Improvement in the supervisory and judicial systems of the country.
    8- Growth in the participation of the people in implementing the Plan.
    9- Expansion of non-oil exports and movement towards economic independence from oil.


10- Environmental protection and better use of natural ressurces.
    11- Greater defensive power.
    12- More effective foreign Folicy.
    13- CompIute rule of the law and prevalence of security in the society.
    14- Research and development towards a more highly – developed nation.
    15- A more balanced economic structure (among public, private and coop sectors).
    16- Better use of financial resources and the state’s potentials, according to the values of the Islamic Revolution.
To achieve these aims, the plan intends to adept the following major executive policies, amongst others:


1- A more balanced social and economic structure that would raise the standards of living, working, education etc, etc, in the less advanced regions of the country to the same level as the more advanced areas.
    2- A better and more equitable quality of life among the nation: ie a more balanced distribution of Wealth and income.
    3- improvements in the fiscal and tax system.
    4- Elimination of false incomes.
    5- Expansion of social security system coveraffe and improvements in the system.
    6- Special attention to deprived regions and rural areas, with priority given to employment, health and education,
    7- Protection of the needy and vulnerable members of the society.
    8- Extension of the educatianal system to cover all children and adolescents for general education
    9- Expansion of the insurance system for the self-em-ployed, to cover all.
    10- Protecting and securing the rights of both the consumers and producers.
    11- Reducing subsidies in some sectors and deviating the amount thus saved, to the more needy, through different channels.
    12- Eradication of goverty and social and economic inequality.
    13- Greater legal and economis security.
    14- More efficient exyenditure of the country’s financial resources in cultural activitiesl education, health and medical treatment, higher education, research and physical training.


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Gross domestic product, at 1982 fixed prices, is assumed by the Second Plan to grow at slightly above 5% during the Plan period (1994-9), from 13766 billion rials to about 18000 billions (1USD=3000 rials).


Considering that the population growth is now under control and the growth rate has been lonrered to 2.5%, at the beginning of the 21st century per capita GDP should reach about 256000 rials.