TEHRAN, Feb. 15 (MNA) -- Problems after the end of Iran-Iraq war prompted the country to take stride toward rapid economic recovery needed for development.


Huge costs caused by eight years of imposed war and tough economic sanctions had forced officials to make immediate decisions that bore fruit as soon as possible.

Economic sanctions were still in effect and Iran had no trade link with the world. Hence, the successful pattern used in Southeast Asia came under the spotlight. The establishment of free trade zones (FTZs) was key to the linkage of Iran and the world as it helped remove commercial and political obstacles.

The Communist government of China in the wake of FTZs setup had made great economic progress and established relations with the capitalist system. Those products China failed to sell and buy were traded in these zones.

Appropriate programming, strategic plans, feasible study on capitalism, technology, capital, and exports facilitation were the main reasons behind the firm step China took toward free economy at a short time.

Beijing’s experience was so appealing to Iranian officials that they immediately made up their mind to set up free zones.

Firstly Kish Free Zone (KFZ) emerged in the southernmost part of the country and two years later Qeshm, another island in the south, was named after free zone. Chabahar port came as the third and now six are active in the country.

The right but hasty decision caused the country not only to take no advantage of free zones in the past 16 years, but to turn these areas into threats to domestic economy.

Contrary to the initial plan, Iran’s free zones have turned into import hubs. The zones have neither developed trade nor attracted foreign capitals. Lack of outlined plan and goal is likely to blame for the failure. It is surprising that the goals of the six-strong free zones were for the first time decided in the Fourth Development Plan.

Still, the purposeless zones have been established at the most underdeveloped corners of the country – the areas, where instinct backwardness hinders rapid progress. Cultural obstacles such as a ban on women’s activity in Sunni-populated areas spoil the advantage of inexpensive workforce. The zones are still suffering from lack of infrastructures and basic needs such as fresh water, electricity, and the like. These shortcomings could be removed only if the government allocates enough money because the Free Zones Supreme Council is grappling with problem of receiving the state budget.

Lack of national will for development of these zones has caused such a predicament.

If the government as the investor does not participate in projects for building roads and establishing ports with 100,000-ton capacities, the development plans will surely fail. Investment risk is justifiable only when the government gets involved firstly to encourage other investors. Otherwise, Pakistan’s Gwadar Port will deprive Iran’s Chabahar of development as the UAE’s Dubai surpassed Iranian island of Kish.

Still, Basra has turned into a free zone as well and will soon constitute a big part of transit route.

Southern megaport

The fact is that Iran has free zones and they should be promoted as soon as possible.

Chabahar, if paid serious attention, could be lucrative and make huge money.

It takes five years to activate the eastern region of the country and help it outdo Gwadar. The Fourth Plan outlining the region’s plans has given top priority to development, trade, transit of goods, production, and scientific services.

Appropriate communication infrastructure and railway enable Chabahar to turn into a megaport along southern coasts.

First zone

Kish is the first free zone in Iran, but economic officials and policymakers are still complaining about the island. Kish has turned to an imports hub and its main goals have relegated to oblivion, prompting officials to prepare the island for new activities such as the development of tourism and education.

If the realities of Kish are quite grasped and enough time and money are spent, the island has the capacity to put the outlined plans into practice.

Kish has the potential for the growth of tourism, trade, science and culture, and handicraft.

Tourists from southern neighboring countries will flock to the resort, provided of course more medical centers are built and equipped.

The Cultural Heritage News (CHN) agency argues that foreign banks and a stock exchange promise a brisk trade on the island.

Kish, when compared to other areas, is hosting more foreign tourists.

Menace of smuggling

The Persian Gulf’s biggest island is still wrestling with the menace of smuggling.

A change in the island’s appearance with paying no heed to its local fabric has caused the citizens’ traditional trade to be dismissed as smuggling. The speculation is increasing while nothing has been done to create job opportunities for local people -- the lowest-income class.

Oil and industrial companies rushing to the region act like a two-bladed sword targeting locals. On one hand, their activities may lead to industrial and commercial development while on the other hand, they may pollute and destroy the environment of the nicest island of the Persian Gulf.

Still, Qeshm attractions have the capacity to turn to the country’s main hub for eco-tourists.

Qeshm is to be a region for producing oil products, reexporting goods, and rendering scientific and cultural services. The plan is on agenda while Qeshm lacks skilled and trained workforce, job-seeking women still face cultural obstacles, and the island has yet to link to the mainland.

Therefore, it is still uneconomical to transport goods to the island.

Three new free zones

Last year, parliament approved a bill that was later given the green light by the Guardian Council on establishment of three free zones of Arvand, Anzali, and Aras.

Contrary to the previous three zones, managers of the trio were appointed and their duties were defined.

Many a problems have been already settled for Arvand, Anzali, and Aras because the road ahead is clear and well known.

The limits of Aras Free Zone were ratified in mid-March of 2005, but those of Arvand and Anzali have yet to be decided.

The main challenges the newly established zones faced in 2005 were the inclusion of urban areas of Abadan and Khorramshahr in Arvand boundaries and the drawing of Anzali limits.

According to the plan, Anzali is expected to develop complimentary industries for agricultural, industrial, and cultural products and Aras is duty-bound to boost export-oriented production.

The most strategic region in southern Iran is also obliged to develop trade and commercial services, safeguarding the southern waters after years through trade and transit of goods instead of military options.

Plz pray,
Sardarzada

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God is dead! God remains dead! And we have killed him! How shall we console ourselves, the most murderous of all murderers? The holiest and the mightiest that the world has hitherto possessed, has bled to death under our knife....