Dec 7, 2015

TEHRAN, Iran — Some observers in Iran believe that the national economy needs a coordinator rather than a command center to put everything in order. In other words, a group that has good relations with major market players and open ears to domestic and foreign advisers. However, given the chronic maladies the Iranian economy has been suffering from — inflation, reliance on oil sales, bureaucracy and, more significantly, institutionalized corruption — it would be simplistic to assume that the widespread conflicts of interest between rival groups can be addressed in the absence of an influential and authoritative command center.

The complicated nature of the Iranian economy might indeed have been the very motivation behind Supreme Leader Ayatollah Ali Khamenei’s call in August for the formation of a Resistance Economy Command Headquarters for the post-sanctions era. In this vein, the key questions are: Who will lead this headquarters and how will it manage to succeed?

At present, the main economic policymakers include the Supreme Council of Economy; Management and Planning Organization; Ministry of Economic Affairs and Finance; Central Bank of Iran; Coordination Headquarters for Economic Affairs; and Coordination Headquarters for Resistance Economy. However, it is not yet clear which one of these bodies is actually leading the direction of the national economy.

Critics believe many of the economic objectives set by the bodies mentioned above are not coherent. Indeed, the authorities seem to have failed to correctly define the problems the economy faces, recognize the beneficiaries, find the right analytical methodologies and develop a comprehensive statistical system — all of which are prerequisites for an effective economic policymaking process.

Mahdi Barakchian, a prominent academic based at Sharif University of Technology, argues that a top decision-making body, if formed, can ensure the coherence and consistency of policies. So far, no policymaker has been able to play a central role in leading the economy into prosperity, although many believe the Coordination Headquarters for Economic Affairs, whose sessions President Hassan Rouhani has regularly attended in the recent past, has the potential to command the final word. Rouhani set up this body two years ago, upon taking office, to get directly involved in the economic decision-making of the country. The entity has 10 members and is chaired by the president, who regularly heads its meetings, which are held twice a week. The headquarters aims to coordinate the main economic officials who work within the Rouhani administration.