The university professor emphasized in an interview with ANA;

Seyyed Mohsen Tabatabaei Mozdabadi, in an interview with the economic correspondent of ANA News Agency, said: Sustainable and real economic growth is possible only by increasing the quantity and quality of production. Although sometimes there are discussions about reducing the importance of the manufacturing sector in favor of the service sector, such as tourism, the truth is that the distinguishing feature and strategic success factor of rich countries has always been having a strong manufacturing sector and its related activities.

The expert continued: According to the World Trade Organization report, currently 80 percent of global trade is devoted to goods exchanges and only 20 percent is related to services. This indicates that production is still considered a symbol of the power of countries.

Citing statistical data and economic reports of some countries, the Secretary-General of the Islamic Iran Urban Economics Scientific Association examined the importance of investment and stated that investment in the manufacturing sector of Venezuela during 2021 was less than 5 percent of GDP. This, along with a sharp decline in GDP of more than 75 percent from 2013 to 2021 and an unemployment rate of more than 40 percent in 2021, has indicated the critical state of the country's economy this year. The significant decline in oil production, the mainstay of Venezuela's economy, along with a lack of investment and international sanctions, has led to increased poverty and inequality, with more than 90 percent of the country's population living below the poverty line.

The university professor continued by stating that in contrast to Venezuela, China, as the world's largest manufacturing country, invested more than $2.8 trillion in the manufacturing sector in 2022, and that China's economic growth rate this year was about 5.2 percent. A large part of this growth is attributed to the development of advanced industries such as electronics, electric vehicles and renewable energy.

Tabatabaei stated that financing plays a vital and undeniable role in the country's economic progress, and stated that in Iran and other countries, the stock exchange as a representative of the capital market and banks as representatives of the money market can have a significant impact on the national economy.

The affiliated faculty member of Islamic Azad University explained that short-term financing is usually the responsibility of the money market and the banking system, while medium-term and long-term financing is entrusted to the capital market and the stock exchange.

This economic researcher emphasized that the slogan of 1404 is investment for production, and for this reason, the need to review the country's banking network is felt.

He added: "Excessive emphasis on bank profitability, especially in some private banks in recent years, and the use of bank resources in parallel markets to achieve greater income, has caused unhealthy and destructive competition in price increases." This harmful competition has led to an increase in the financial costs of manufacturing firms, pushing many of them to engage in Ponzi schemes.

Emphasizing the impact of bank lending on deepening the economic recession, especially in small and medium-sized enterprises, the Secretary-General of the Iranian Urban Economics Scientific Association stated that this trend has caused small firms, which relied on bank resources to secure their liquidity and working capital, to face difficulties, and this has led to the freezing of the banking system's assets.

He further added that this situation has arisen while Article 9 of the General Policies of the Resistance Economy emphasizes comprehensive reform and strengthening of the country's financial system in order to respond to national needs, create economic stability, and strengthen the production sector.

This university professor stated that unfortunately we have not yet reached an ideal position in the field of production, and emphasized: Now the question is why, despite having adequate initial capital for the development of production, we are still facing many problems and why these resources do not end up in sustainable and continuous production? One of the main challenges in the country's production sector is the unfavorable business conditions and the existence of numerous obstacles in this field.

The affiliated faculty member of the Islamic Azad University continued to add: Many existing laws are cumbersome and even useful and path-breaking laws are not fully implemented. The time gap between the announcement of laws and their implementation is very long. Also, interaction and participation between different agencies sometimes leads to a deadlock instead of facilitating matters. On the other hand, small businesses are in dire need of support from service providers.

According to this university professor; Institutions such as banks as providers of credit, the Tax Affairs Organization, insurance companies, and legal and judicial bodies, if they have greater synergy with each other and with the business environment, can remove a large number of obstacles and as a result, the path to improving the situation of businesses and production will be opened.

Tabatabaei concluded by referring to the intelligent naming of the year 1404 by the Supreme Leader and emphasized that he always addresses vital issues by carefully examining the country's issues and problems. He added that paying special attention to economic affairs and its impact on people's livelihoods is one of his most important concerns. Therefore, investment in the production sector has been selected as one of the main pillars of the country's economic growth and the leadership has wisely emphasized this issue as the slogan of the year.

ANA News Agency