One of the bitter facts occurred in the recent years in Iran’s economy is the phenomenon of stagflation. Considerable decline in the rate of economic growth especially -6.8 growth rate in 2012 as well as dramatic rise in the annual inflation rate particularly more than 40% in 2012 are the signs of stagflation in the country. Negative dimensions of economic, cultural, social, political, and welfare of stagflation make government offer strategies for exiting from this inevitable economic phenomenon so that Iranian government has offered two stimulus packages for it:

The first package is associated with exiting from recession in medium and long term (offered in 2014) emphasizing on creating economic stability, movement in pioneer economic sectors, and managing public expectations

The second package is associated with exiting from stagnation in short term focusing on stimulating demand particularly durable consumer’s goods, fixing financial straits, monetary easing, and economic funding.

Each of mentioned policies affects management and urban economy, and the performance of responsible organizations in urban management. They influence on current different issues in the area of economy and urban management. Since the government and other governmental relevant organizations have put the issue of anti-recession as a main agenda and applied all the capacities in line with these policies, it is an opportunity that different areas of economy and urban management can be involved positively and all available capacities in anti-recession packages can be applied in order to help improve economy and urban management. Therefore, the most important issues considered by urban managers that can use the capacity of these packages in order to take important steps in urban sustainable development are discussed below:

Providing urban welfare infrastructures

One of the most important issues in economy and urban management is providing urban infrastructures such as urban environment, urban transport, traffic, security, municipal sewage, urban cleaning, waste disposal, etc. Generally, providing infrastructures needs high amount of budget costs particularly construction budgets. Special facilities have been considered for construction projects and stimulating demand for exiting from recession in the first and second packages. Institutions of urban management can take advantage the capacity in line with bilateral benefits with the government. Since most municipal projects are construction ones and high amount of money is spent on them, applying these packages in urban construction can be influential in the pace and quality of exiting from recession.

Avoiding waste of energy

Generally, most of energy is consumed in cities. In fact, cities are main source of consuming fossil and non-fossil energy. According to the statistics, 75% of energy consumption occurs in cities in the world. One of the most important proposed issues in energy consumption is saving energy and optimizing it. One of the problems in the country is high energy consumption namely energy intensity. Iran’s energy intensity is very high compared to other countries. One of the highest per capita of energy consumption happens in Iran. If you consider the energy consumption 100 units in Iran, the figures in China, India and Indonesia will be 33, 19, and 14 respectively. In fact, Iran, with nearly 76 million people, is placed in a rank like China, with more than one billion people, regarding energy consumption. This is one of the most essential issues regarding limited energy resources. Considering that one of the important proposed fields in anti-recession is saving energy projects and creating stimulation in energy saving, reducing waste, and optimizing energy consumption as one of the pioneer sectors of economy with the most relationship with other economic sectors. Thus, capacities in the packages in investment in the field of optimizing energy consumption can be used.

Environmental pollution

Cleanliness of human living environment is one of the most important factors of citizenship optimal living. Therefore, one of the most important proposed issues in urban issues is environmental pollution such as pollution arising from transportation of vehicles, the activity of industries and economic institutions, urban waste, and the issue of greenhouse gasses. Cities are the largest producers of waste in the world, according to urban research centers. Cities are responsible for 80% of producing greenhouse gasses. Special measures are necessary to be adopted in this regard, according to the increasing growth of urbanization in the world and significant impact of environmental pollution on citizenship life. Projects such as development of urban green space, development of applying pollution reduction filters, urban recycling, smartization of urban transport, clean transport, research and development projects in reducing environmental pollution can help to exit from recession and apply economic capacities in the country in the form of anti-recession package beside having positive effects on creating clean environment.

Supporting urban businesses

Urban economy is dependent on active unions and economic enterprises in large scale at city level. They are administered either by private sectors and cooperatives or urban management institutions. They affect strongly urban product, employment, inflation, consumption, and investment. Supporting economic institutions and unions in legal and economic areas, removing administrative and financial cumbersome processes can have positive effects on urban economy boost and consequently national economy. Special measures are necessary to be adopted in this regard, according to the increasing growth of urbanization in the world and significant impact of environmental pollution on citizenship life.

Funding urban projects

One of the most important problems of urban management institutions is lack of adequacy of urban sustainable revenues for financing urban project costs so that sustainable revenues finance only 20 to 25 percent of urban projects Management in developed cities finance than more 60 percent of their revenues through sustainable ones, he added, for example, 78 percent in Tokyo, 73 percent in Taipei, 65 percent in Seoul and Stockholm are financed from the revenues of urban management institutions. On the other hand, private sector participation fulfills high percent of these needs in some countries, he further said: for instance, private sector invested more than 755 billion dollars in more than 2500 urban projects in developing countries during 1990 to 2001.

Urban Technological infrastructure

After considerable development of ICT and using this technology at global dimensions, this attitude was developed that it can be used in order to improve urban quality of life and urban management, in other words, creating smart city and smart urban management. It can help a lot because of its accuracy, low expense, and cleanliness. Currently, it has changed into one of the necessities in the field of management and urban life. According to the statistics of 2013, 143 smart projects in the world were accomplished. 35 cases of them were in the North America, 11 in the South America, 10 in the Africa and the Middle East, 47 in the Europe, and 40 of them in the Asia. Other measures have been done in smartization of cities in the world. For example, Seoul urban management distributed smart devices to low-income families in 2012 aiming to familiarize old, immigrants, and low income people with training courses of using ICT. Boston in America, with eight active research universities, (including 70 universities and colleges) can be mentioned in the research and development with more than 1.5 billion dollars annual budget.

Efficiency in urban economy

Another important issue in Iran’s urban economy is the efficiency of active production agents in urban economy. Efficiency growth in the economy is accompanied by empowering workforce and applying different capacities and abilities in the geography of the resistance economy (article3). According to the statistics the GDP in different countries in 2011 are: 93.85 in the U.S, 92% in Singapore, 90.2% in Hong Kong, 76.6% in Australia, 63.3 in Japan, and 44.8% in Iran while it was 26.7 in Iran, 25.4 in Japan, 24.3 in Singapore, and 19.8 in Hong Kong in 1970. Institutions of urban management can take advantage the capacity in line with bilateral benefits with the government. Since most municipal projects are construction ones and high amount of money is spent on them, applying these packages in urban construction can be influential in the pace and quality of exiting from recession.

Providing urban welfare infrastructures, efficiency in urban economy, urban technological infrastructure, funding urban projects, supporting urban businesses, and environmental pollution are the most important issues considered by urban managers that anti-recession package can prepare the ground to improve urban sustainable development.

Source: ILNA

news code: 322947