• OpenAccess
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      • Open Access Article

        1 - Explaining the Political and Governmental Obstacles of Productive Private Sector Investment in Iranian Economy Using the Hodgson Institutional Approach1
         
        Productive investment is one of the main variables of macroeconomics. Creating favorable conditions for formation and growth of productive investment is one of the essential requirements for the achievement of the country's economic goals, to fix issues and economic pro More
        Productive investment is one of the main variables of macroeconomics. Creating favorable conditions for formation and growth of productive investment is one of the essential requirements for the achievement of the country's economic goals, to fix issues and economic problems and increasing the political and economic power of the Islamic Republic of Iran. In this study, using Hodgson's institutional approach, the main problems and obstacles in the political system and governance structure in the process of formation of productive investment by the private sector is identified and analyzed. In Hodgson's theoretical approach, the existence of dichotomies and contradictions is the factor for the formation of social evolution and economic change. The institutional and environmental conditions of community indicates that these dualities lead to the development or rebound of the community. In this study, four institutional contradictions in Iranian economy have been investigated. These are the preference for short-term programs on long-term plans, the existence of contradictions in the structure of bureaucracy and sovereignty, the value-ideological decision-making and the destructive competition of the commercial sector with the industry sector. Then, their role and influence on economic productive investment are investigated. The study of the contradictions formed in political background and governance structure of the Iranian economy shows that the investment climate in the Iranian economy is inadequate and this has led to the continued economic downturn. Manuscript profile
      • Open Access Article

        2 - Political Economy of State Developmentalism in Iran: A Study of Douglas North's Theory of Open and Restricted Access in the Islamic Republic
        Ali  Ranjbarki
        This article explains the developmentalist status of political rule in the period of the Islamic Republic of Iran using the institutional theory of open and limited access "Douglas North". According to North, the elites and political rulers (ruling coalition) in a socie More
        This article explains the developmentalist status of political rule in the period of the Islamic Republic of Iran using the institutional theory of open and limited access "Douglas North". According to North, the elites and political rulers (ruling coalition) in a society have two ways of forming social order and controlling violence. On the one hand, the open access system, which has impersonal rules and regulations, the rule of law and productive rent-seeking, which guarantees public access to society's resources and assets. And, on the other hand, the limited access system, which seeks to establish personal and private relationships and rules, sheikh and disciple (Murid &Morad) networks, unproductive rent-seeking and restricting the access of others to the resources and assets of society. Empirical evidence shows that open access systems guarantee and accelerate the achievement of economic development. Restricted access systems are not inherently developmental because economic development conflicts with the personal and group interests of the ruling coalition. Hence, political rule does not make a serious effort to address the problems and shortcomings in the path of economic development. In Iran, with the formation of the Islamic Revolution, the ground was opened for further opening of the social access system. But over time, with the occurrence of various internal and external events, political rule tended to limit the country's social system. This led to a special group of Islamists (traditional and fundamentalist right) becoming the dominant coalition of the country and using various strategies and policies to try to gain access to the sources of power and assets of the country in a centralized and exclusive way. Under these institutional conditions, the behavior of the country's political rulers is shaped in such a way that their main goal is to maintain the current political system in order to guarantee monopoly and centralized power and maximum access to the country's resources and assets. Therefore, increasing and allocating unproductive rents from oil revenues and government monopolies to groups affiliated with the ruling coalition, establishing personal and private relations and organizations, and restricting the participation and access of other groups to the economic and political resources of the country are the dominant coalition strategies. These strategies hinder the continuation and acceleration of economic development in the country. Thus, the behavior and plans of political rulers are not developmental. Manuscript profile