Island approach to production does not work/ the realization of sustainable economic growth based on improving productivity

Feed: 2711 - Date: 5/24/2017 - Views: 637

Stating that island approach cannot be effective, Roghani said, "Paying attention merely to production cannot be considered an important factor of economic growth."

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According to the industry, trade, and agriculture reporter of economic group of the Young Journalists' Club, on the National Day of Productivity, Abolfazl Roghani, the chairman of the Industry and Mine Commission of Iran Chamber of Commerce stated that island approach could not be effective and said, "Paying attention merely to production cannot be considered an important factor of economic growth. The problems and the reasons of failure to develop industry and to implement overall policies of resistance economy should be considered as the two effective issues in the field of productivity."  
He continued, "Around 2.7% of 8% economic growth targeted by the government is related to the issue of productivity which shows the potential importance of the issue."
Stating that the country rank in terms of productivity has already had a decreasing trend, Roghani added, "Our rank in Asia was the 7th which shows the lack of progress in this respect, and its main reason is that 80% of the domestic economy is governmental."
The vice president of Iran Chamber of Commerce reiterated, "The highest progress of the country has been related to large enterprises while considering the productivity of small and medium size enterprises, paying attention to them should be on the agenda."
According to him, inefficient laws, labor law, the related issues to Social Security Organization, and the inefficiency of tax system were the effective factors in economic growth. In addition, cruel sanctions in recent years prevented the new technology from entering the country and the educated young people from being trained.
Referring to the two paragraphs of overall policies of resistance economy, Roghani said, "As per paragraph 4 of these policies, we were supposed to witness a boom in the industrial sector through targeted subsidies, but it has caused the most damage to the body of domestic industry. Moreover, as per paragraph 20, it should have strengthened the jihad culture in creating surplus value and the entrepreneurs should have been granted the resistance economy medal and be supported, but we now witness the negligence of entrepreneurship in the country." 
The vice president of Iran Chamber of Commerce believed the empowerment and productivity required several important factors and added, "Government efficiency, choosing an appropriate Cabinet, paving the way for investment in the country, using human resources, the transfer of technology, competition and structural transformation, efficient markets and the development of exports, exchange rate management, macroeconomic stability, the development of financial sectors, and paying attention to environment and energy are the effective factors on productivity which need more attention."
It should be reminded that no company was awarded the National Productivity Prize in this ceremony.
The realization of the sustainable economic growth relying on improving productivity
On the National Day of Productivity Ceremony, Hossein Selahvarzi, the vice president of Iran Chamber of Commerce said, "Some issues are oppressed in this respect one of which is productivity because the measures regarding productivity were only talk and were not implemented."
Stating that the sustainable economy in any country is originated from productivity, he added, "Neglecting the issue of productivity in the economy has been one of the reasons of the failure of the sustainable growth in our country." 
Selahvarzi stated, "we will experience the growth in exports, production, and productivity as long as the issues like making exchange rate real is not fulfilled in the domestic economy."
Finally the vice president of Iran Chamber of Commerce said, "We should put governmental and private sectors on the agenda and pay attention to other sectors such as semi-governmental and public sector which are not defined in the laws of the country, otherwise we cannot experience productivity growth."  

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