Notes

Export-oriented production, investment requirements in post-sanctions era

The economic components of the post-sanctions era have opened a new chapter in the field of exports, which it is necessary to pay attention to them due to their extensive and new dimensions.

It would be useful to utilize the experiences of economic agents to pass the sanctions and to create different tools to resolve issues related to international trade.
Although, in this impassable route, which toke a few years to pass, our exporters faced with many problems, the unwritten consensus and approach of the banks and financial institutions to operate in terms of sanctions while complying with legal requirements, are worth of studying.
It seems the issue of export as an important tool of development and economic growth in the post-sanctions era need to be reviewed in the form, content and nature, which requires the use of legal capacities and redefinition and sometimes the revision of the ruling terms and conditions.
In this paper, suggestions on how to produce goods for export, methods to improve non-oil exports, and paying more attention to the increase of banks' investment will be offered which are important to be considered in the post-sanctions era.
First, cases such as reforming the bureaucracy, reducing the uncertainty in the economy to a minimum, handing over firms to the private sector, and moving towards effective and economic interests are necessary to improve and expand non-oil exports.
The importance of education and culture in the area of ​​removing barriers to investment is one of the significant issues; although funding is important, more important is removing barriers to investment; in the mining sector, for example, the relationship between the government and people must be transparent so it can determine how to define the rights of the government and the private sector. If this relationship is mentioned only in the laws of the annual budget and a long-term relationship is not defined, this would be seen as an obstacle to investment in the mining sector. Stable rules without temporary changes may determine how the private-sector acts in investment. The precision in international marketing requires special attention because durable goods need after-sales services and support and the lack of this section is the missing link in the marketing and export.
Another issue is that production should move in a direction that the export-oriented production becomes a systematic mechanism. This means that in the post-sanctions era, the tendency of production should be export-oriented, competitive goods should be produced, and this feature needs to be related with topics such as exchange rates, the business environment, the cost of production, and tariff policies.
Unfortunately, sometimes the regulations and rules are not necessarily in line with the production of export-oriented economy. Sometimes the need for a commodity in the country limits its export. Marketing should be done correctly in this area so that durable goods will be exported and the related firm does not lose its customers. In many cases, temporary legislation and regulations put the manufacturer in trouble.
Finally, In the current situation, which our economy is still moving to the post-sanctions era, there are ways out of the current recession. Modifying the cash cycle and clearing debt and claim of firms to various government departments; reducing the required reserve ratio of banks to enhance liquidity for providing  more facilities and repayment of government debts to banks and contractors in the form of treasury bills with authenticated documents, are among the strategies to exit recession, to unlock banks' resources and to return loans of financial institutions.

* Dr. Saleh Abadi, Managing Director of the Export Development Bank

 
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