The history of privatization in Iran has been reviewed in the last article, this article wants to draw a vast perspective of privatization in Iran.
By considering privatization situation, this action by Iranian government has not been done accurately. According to the statistics published by the government about privatization, 117 government owned companies has been offered 180 times during last year (Persian calendar March 2015 to March 2016). The success percentage of total offered companies were only 30 percent which means only 24 out of 117 offering has been accomplished. Total value of offered companies were about 3 billion Dollars while total value of purchased companies were about 884 Million Dollars. The aforementioned statistics shows that the government wasn’t successful in executing article 44 of constitutional law.
Due to the removal of the economic sanctions last year and reconstructing the government privatization plans, an economic prosperity is estimated for this year unlike previous year. Regarding the performance of the government last year about privatization, the attitude of privatization totally changed and the government plans to run new strategies for entrusting companies owned by government. Using different types of entrusting companies like commitment to purchaser for reducing the price of transaction in case of increasing efficiency in the company, decentralizing on earning benefit from privatization and changing the valuation methods of companies; are some reasons that prove the results of privatization might improve in near future.
According to research on privatization history in other countries, accuracy of privatization methods depends on trust of investors on assignor institution therefore these methods could be executed for privatization in Iran’s economy. For implant better methods for privatization the government needs to trust real private sector, because former procedure which had been chosen for privatization, entrusted most of government owned companies to quasi-governmental organizations. This means that government should decrease not only its tenure but also its interference. This occurrence causes introducing government as a governor and it would be change government’s role as an entrepreneurial.
The other important issue which leads to better execution of privatization is trust on privatization organization by government as an independent sector for entrusting companies. Because executing better privatization requires independency of mentioned organization and collaboration of governmental and non-governmental organization at the same time.
To conclude, according to assessment and investigation about privatization, it seems alongside foreign investment and impetus of the government, the economic growth would be increase to 4 or 5 percent which could help Iran’s economy to exit from depression. This evidence shows that this year would be a good year in order to privatize the companies owned by government.