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Privatization of Iranian State-Owned Enterprises: Barriers and Policy Recommendations

In: Reforming State-Owned Enterprises in Asia

Author

Listed:
  • Mohsen Fazelian

    (Bank Maskan)

  • Hooman Peimani

    (Independent Senior Consultant)

  • Farhad Taghizadeh-Hesary

    (Tokai University
    Keio University)

Abstract

The Iranian government faces two significant challenges in the last decades, namely high current budget spending and low export income due to international sanctions. Low productivity of State-Owned Enterprises (SOEs) and low transparency of budget spending are among the major causes of the high budget deficit. Although Iran started privatization of the public companies a few years back, privatization has not achieved the pre-determined goals so far. This chapter has tried to review the possibility of privatizing the SOEs in Iran as the enterprises are vital in managing the country in the mid-term and long-term. Also, we discuss the process of privatization in Iran, its challenges, and possible solutions. In this regard, we have reviewed the experiences of the first wave of privatization in Iran and provided possible approaches to increase the chance of successful privatization of the SOEs and their productivity in the form of policy recommendations.

Suggested Citation

  • Mohsen Fazelian & Hooman Peimani & Farhad Taghizadeh-Hesary, 2021. "Privatization of Iranian State-Owned Enterprises: Barriers and Policy Recommendations," ADB Institute Series on Development Economics, in: Farhad Taghizadeh-Hesary & Naoyuki Yoshino & Chul Ju Kim & Kunmin Kim (ed.), Reforming State-Owned Enterprises in Asia, chapter 0, pages 169-181, Springer.
  • Handle: RePEc:spr:adbchp:978-981-15-8574-6_9
    DOI: 10.1007/978-981-15-8574-6_9
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