TEHRAN (Iran News) –Chairman of Iran-Switzerland Joint Chamber of Commerce Sharif Nezam-Mafi believes the outflow of the elites from the country reduces the competitiveness of the country which is currently stagflation.
Speaking to ILNA, Nezam-Mafi pointed to the loom of stagflation on Iran’s economy, adding that stagflation reduces the purchasing power of the country, adding that Iran’s inflation is a hitter one and it means it rises some percentage without having any tool for its control while economy and capital need serenity in the market for progress and if there is no stability, one cannot expect the stagflation to be controlled in any part of the world.
He then pointed to some risks that Iran’s industry is struggling with them, adding that purchasing power of the people has reached a point that domestic production is not so important because with the decline in the purchasing power, the people lose possibility for buying goods and today’s inflation in the country is not simple and it has turned into a complicated issue.
He described capital as a coward creature, adding that capital goes to a safe place and unfortunately Iran’s economic security is not as much as of its equal countries. He added for example countries like Mexico, South Africa and Malaysia have much more stability in their economies and therefore capital tends to go to those countries and currently Iran’s economy has been directed towards a destination that even we cannot compare it with Turkey and South Korea and they are in much better condition than us.
Pointing to the ways of providing basic goods in the sanctions era, he said that basic goods are two types: one is that the society can live their lives without them and the second one is that their shortage creates problems in the society, adding that he thinks in the near future the country will see problem in importing basic goods especially grain because the country has not faced such a condition even during the Iraqi-imposed war when it was able to provide its needs but today the main issue is not only provision of basic goods but the society needs to grow and has production and exports and make progresses in terms of innovation in the industry.
Nezamm Mafi noted that it seems in the near future the country to face sanctions from EU and especially from Germany and France and the issue of sanctions will affect type of Iran’s economic relation with Europe.
Emphasizing the decline in the number of patenting inventions, he said that this is a reality that elites are leaving the country and the number of graduates from the top universities of the country do not like to stay in the country and this will affect the economy in future and some may think this is not an important issue that elites are leaving the country but in the long term it will have its own impacts on the society and economy and will reduce the competitiveness of the country in the international scene.
He admitted that the Central Bank statistics show that the country is struggling with the stagflation and to get out of this condition is not so much difficult because the private and the state sectors know how to pass these crises.
Nezam Mafi went on to say that the volume of produced goods in Iran can be offered in the neighboring states but Iran cannot declare itself as an exporting country while Turkey can claim it. He stated that Turkey’s government supports exporters and gives subsidies to exporter enterprises but this is not possible in Iran, adding that export is not main economic issue in the country although the country has seen progresses in recent years.