The secretary of IUESA discussed about the position of economics and urban management in the process of implementing the anti-recession package in the 21st Press Exhibition. Expressing that the important point and major priority is investigating the reasons of recession about this issue in different countries, he said: a set of economic, political, cultural, and social factors should be considered. Influential factors on recession should be identified before analysing recession and presenting strategies in the economy of Iran.

Saying that economic growth has decreased considerably in the country, he added: inflation rate has been increased and these two factors show stagflation in the economy of Iran.

Highlighting that “stagflation” is a specific type of recession in the economics literature that particular policies different from presented ones for recession should be adapted, he reminded: in fact, policies fuelling inflation cannot be adopted in this type of recession that increases the inflation.

Emphasizing that the important point in presenting strategies for exiting stagflation is that some of these policies have theoretical economic origin (the principles of economics) and some others have institutional, historical, and social origin, he said: another important point is adopting different policies. In fact, it should be noted that when and which policy should be adopted. Also, finding the origin of recession and examining effective factors on it show that policies should be adopted that both change economy supply and motivate demand for exiting from recession.

Adding that the government has offered two packages with supplementary measures, he said: the first package presented for anti-recession in medium and long term in 2014, and the second one is for short-term from JCPOA (nuclear deal) to removing economic sanctions in 2015.

Noting that since the government and other relevant governmental organizations address the issue of anti-recession as the main economic problem in the country and they have applied all the capacities in the country for this matter, he said, it is an opportunity to investigate the different areas of economy and urban management positively and apply the available capacities in the anti-recession packages in order to help the improvement of economy and urban management.

One of the important issues in the economy and urban management is preparing the urban infrastructures such as urban environment, transport, traffic, security, sewage, cleaning, and waste disposal. Providing the infrastructures needs large amounts of funds especially construction budget. According to the world statistics, 6.3 trillion dollars in Africa, Asia, Latin America, and other less developed regions by 2030 is need for solving the problem of infrastructures and urban utilities. However, financing construction projects has been is one of the most concerns of urban management institutions.

Particular facilities have been considered in the first and second anti-recession packages for construction projects and stimulating the demand for exiting from recession. Urban management institutions can take advantage of the capacity in line with bilateral benefit. Since most of the urban projects are construction ones and high amounts of money is spent on them, applying anti-recession packages can be influential in the speed and quality of exiting from recession.

Explaining one of the most important issues in the anti-recession is the improving business environment and supporting development and the boost of economic institutions focusing on small and average businesses, stimulating production, and supporting production investment projects in different financial, legal dimensions and using new instruments of financial provision. Since most urban economic institutions are small and average, anti-recession packages are a suitable capacity for helping this sector of urban economy.

Source : IUESA