Economy of Iran under Fourth and Fifth Five-year Development Plans

The Economy of Iran faces many challenges and is predicted to have a negative growth of 1.3 percent, unemployment of above 13 percent, and a wild inflation rate of 27.2 percent in 2013. Various external conditions and bad economic planning have contributed to Iran’s current economic difficulties. To transform the Economy of Iran, the 5th Five-year Development Plan (FYDP) and the 20- year vision should be revised to present clear priorities for private sector development, establish improved environment for business operation, and suggest strategies to attract foreign direct investment and modern technology. Integration of a Medium-term Expenditure Framework (MTEF) within the future plans is indispensable for creating a multi-year budgetary framework that links five-year plans. The government could adopt a more conciliatory international posture to allow implementation of the revised plans in an improved domestic and international environment. For many hardworking and deserving Iranian people, this choice facilitates return to normal life.