What Iran's economy minister has to say about sanctions
Oil sanctions on Iran have created instability and lack of transparency in the markets
The economy minister has said that the unilateral sanctions on the Iranian oil and gas industries “have seriously challenged the fragile global economy.”
“The unilateral economic sanctions imposed on the Islamic Republic of Iran, especially in oil and gas sectors, have seriously challenged the fragile global economy,” Iranian Economy Minister Ali Taieb Nia told the joint annual meetings of the World Bank Group and the International Monetary Fund on Friday.
The minister also said the oil sanctions on Iran have created “instability and lack of transparency in the markets” and “made equal and universal access to these vital commodities inefficient.”
Taieb Nia’s speech focused on paths of sustainable development and growth of the global economy based on collaboration and mutual practice.
The following is the text of Taieb Nia’s speech:
In the name of God, the compassionate, the merciful
Excellencies, I am very pleased to attend the WBG/IMF joint annual meetings at the outset of my term in the office as the minister of economic affairs and finance of the Islamic Republic of Iran.
Despite some positive signs of growth, global economy is still under the influence of recent financial crisis shocks. Projections indicate that the trend of global economic growth in the current and next year will be lagging previous expectations and follow a sluggish growth.
Reviewing the developments of emerging economies reveals that their actual growth is lagging behind the primary expectations. The new phenomenon of capital outflow from these countries has led to substantial depreciation of their local currencies as well as weakening their trade balance.
Clarification of the current situation requires a joint and committed obligation of the international community. Consideration of fragile economies in low-income countries should become the focal center of attention of this international obligation.
Access to energy and increase of transparency in energy markets, particularly in favor of Least Developed Countries, is an undeniable prerequisite for providing basic infrastructure for growth and economic development. Energy efficiency and quality as well as utilizing clean and renewable energy-based technologies have taken considerable importance for achieving sustainable development.
I avail the opportunity to mention that unilateral economic sanctions imposed on the Islamic Republic of Iran, especially in oil and gas sectors, have seriously challenged the fragile global economy and while creating instability and lack of transparency in the markets, have made equal and universal access to these vital commodities inefficient.
There is no doubt that the consultation of all global stakeholders including governments, independent scholars and civil societies is required to unbrace the global economy from existing fragile conditions. The new strategy should be focused on a new design for the international financial system architecture.
Excellencies, approaches of the new government of the Islamic Republic of Iran, which took the office in August 2013 with a strategy of tact and hope, have set an agenda for collaboration with international community, enhancement of economic transactions in the international arena and constructive interaction with international monetary and financial organizations.
Reducing dependency on oil revenue, transferring the executing role of government in delivering public and infrastructure projects to private sector, are among fundamental economic reforms incorporated in the country’s strategic plans.
To achieve this main goal, the role of government, as a main regulator, should be gradually revised through creation of mutual dialog with non-governmental sectors and civil societies in order to set the ground for monetary and financial reforms minimizing existing systematic risks of the country’s monetary and financial sectors which in turn provides an appropriate outlook for a stable and sustainable growth for the business owners and enterprises.
Excellencies, the new government of the Islamic Republic of Iran will benefit from precious experience of international institutions as well as pioneering countries in the implementation of the process of its reform policies to stabilize economic indices and secure sustainable growth and economic development.
As the minister of economic affairs and finance of the Islamic Republic of Iran and a founder member of these two internationally influential institutions, I expect that joint mutual cooperation in exchanging technical and expertise missions as well as mobilizing and financing infrastructure and development projects in my country be redirected to an appropriate and smooth channel.
Drafting Country Assistance Strategy by the World Bank is a prerequisite for the new approach to structural reform policies which I hope to be materialized and operative shortly.
- How Dubai Expo 2020 can benefit our planet and future generations
- Who will be the biggest losers after Iranian oil floods the market?
- An inside view into Turkey's multibillion dollar deal with Kurdistan that is threatening to break up Iraq
- Do we have more oil refineries than we need?
- The future of the Middle East economy: will energy subsidies' short-term gains outweigh projected inefficiencies?