Last September TCCIM hosted an event in which senior associates of Fraser Institute, an internationally well-known rating agency, introduced various indicators that determine and measure the economic freedom across the world. Introducing Iran’s rather feeble positioning in the economic freedom rankings it was stressed that Iran needs to improve its rating in order to attract foreign investors and enhance its economic landscape. Following that event and in an effort to identify the challenges and
The Fraser institute has introduced 5 indexes that determine economic freedom, which includes: size of government; legal system and property rights; sound money; freedom to trade internationally and regulation. At the moment standing at a grim spot of 150th among 159 countries and therefore being amongst the 10 least economically free countries in the world, portrays a rather off-putting and uninviting image of the economic climate of Iran which not only discourages the foreign investors to come to the country but also forces the resourceful Iranians to leave their country and invest elsewhere.
The Center of Investment and Consultancy Services of Iran Chamber of Commerce has been hosting a series of meetings over the past few months discussing the indexes introduced by Fraser the last of which was on the topic of the regulation index. In these meetings representatives of the government as well as the private sector were present and expressed their views regarding Iran’s ranking and what they perceived to be the solution to improve this ranking. One of the points that was frequently raised in all of these meetings was that the information and data based on which Iran’s ranking has been determined is not accurate and that Iran’s circumstances are not as grim as they have been portrayed in the Fraser report which comes down to the lack of correspondence with the international community and statistical and rating agencies. Therefore, the first step is to become more proactive and form a better relation with statistical companies and agencies in order to provide them with more accurate data and facts and figures regarding Iran, which in return would lead to improvement in country’s rating.
Further, it was discussed that having a more powerful and hands on private sector in the economic field, is equivalent to a reduction in size of government; having better access to sound money; having more freedom to trade internationally; and having a healthier and better functioning regulation system which would ultimately result in much more presentable indexes. All the while, it is important to distinguish between the real private sector and the private sector, which is financed and supported by the government, and sub-sectors of the government and improve the circumstances for the former group.
Upon drafting the reports of these meetings, which is currently in the process, they will be put into consultation with the Fraser Institute to ultimately come up with practical steps to improve Iran’s rating and its position in international rankings.