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The Role of Social Justice in Development of Developing Countries The China + India Factor: Implications for Developing Countries in the Asia and the Pacific.

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Presentation on theme: "The Role of Social Justice in Development of Developing Countries The China + India Factor: Implications for Developing Countries in the Asia and the Pacific."— Presentation transcript:

1 The Role of Social Justice in Development of Developing Countries The China + India Factor: Implications for Developing Countries in the Asia and the Pacific Region UNIDO General Conference12th Session, Vienna; Austria, 3 to 7 December 2007 Dr. Mohsen SHATERZADEH Deputy Minister For Economic & International Affairs Ministry of Industries and Mines ISLAMIC REPUBLIC OF IRAN

2 The potential in South and Developing Countries  Substantial Energy Resources  Countless Mineral Resources and Abundance of Raw Materials  Low cost Labor  High level of Knowledge and Technology available to meet countries' current needs  World Class Educated and Trained Workforce UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

3  Low costs of production  The magnitude of trade between South-South Countries  The Large population of South countries (over three quarter of world population)  To develop Main Value Added margin for global manufacturing in South countries UNIDO General Conference 12th Session, Vienna; Austria The potential in South and Developing Countries Dr. Mohsen SHATERZADEH

4 A glance to Global Brands  While the Global Brands make significant amount of profits by building their products in South Countries, the South has no share in Value Added Margin.  One third of world's wealth belongs to Global Brands which are located in North Countries, but making their products in South.  The aggregate value of 100 Global Brands were USD1,090 billion (as to Business Week) equivalent to gross domestic product GDP of 65 countries UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

5  Another words, revenue of the countries manufacturing products for Global Brands, are even lower than 1/5 of Global Brands' Goodwill.  This is Neo Exploitation  Whereas, economic growth would be sustainable if human relationship excludes exploitation and repression. UNIDO General Conference 12th Session, Vienna; Austria A glance to Global Brands Dr. Mohsen SHATERZADEH

6 The Win-Win Mechanism in South- South Cooperation  To develop Economic Relation based on Peace and Social Justice and respect justly rights in human relations.  Maintaining production cycle from raw material to the final product in South and exporting the surplus to other countries.  Transfer of Science, Technology and Industry available to the developed countries in South, based on their needs and requirements through breaking monopoly of technology and their development in South UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

7  Identifying advantages of countries in terms of natural resources, energy, mines, raw materials, to exchange in between South producing countries with respect to their national interests.  Participation of South in establishment of multinational corporations in various fields such as Energy, Petrochemical, Vehicle, Foodstuff, Textile, Cement, Minerals, Machinery and Equipments, to develop existing and future projects and to perform international projects if the capacity exceed the needs UNIDO General Conference 12th Session, Vienna; Austria The Win-Win Mechanism in South- South Cooperation Dr. Mohsen SHATERZADEH

8  Founding multinational Banks, Financial Funds and Insurance corporations with partnership of South to make financial contributions to large projects implemented in South and investment in production and industrial development.  Allocation of funds earned from industrial development profits and economic growth yields to implement social projects for poverty reduction, contribute to diseases and pest control and prevention plans, and other Social and Cultural development projects.  Forming Joint Air, Marine and Land Transportation Corporation between South for exchange of goods with preferential tariffs UNIDO General Conference 12th Session, Vienna; Austria The Win-Win Mechanism in South- South Cooperation Dr. Mohsen SHATERZADEH

9 Challenges in Cooperation of South- South  Dominance of unfair and unjust relationship between South-South  Formation of Commercial, Scientific, Technologic and Economic Monopolies.  Inaccessibility to Financial Resources, Long Term Investment Funds and Effective Financial Institutions and Insurance industries.  Lack of Infrastructure Development contributing to industrial development UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

10  Dominance of unfair and unjust relationship between South-South  Formation of Commercial, Scientific, Technologic and Economic Monopolies.  Inaccessibility to Financial Resources, Long Term Investment Funds and Effective Financial Institutions and Insurance industries.  Lack of Infrastructure contributing to industrial development UNIDO General Conference 12th Session, Vienna; Austria Challenges in Cooperation of South- South Dr. Mohsen SHATERZADEH

11  Lack of Cultural and Social Development.  Increasing trend of Disparity between rich and poor. UNIDO General Conference 12th Session, Vienna; Austria Challenges in Cooperation of South- South Dr. Mohsen SHATERZADEH

12 The general view of Industry and Mine sector in “20-Year Development Perspective” Document  In line with objectives set in “ 20-Year Development Perspective ” Document, by 2025, the Industry and Mine sector will reach to the premier Economic and Industrial position with following characteristics: UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

13  Visionary, innovative and developed based on advanced technology  Self sufficient in providing Strategic Commodities  Export Oriented, to obtain major part of foreign exchange, through export.  Balanced in different parts of country based on regional capabilities and advantages.  Exploiting available resources to the desirable level.  Synergic in forms of Networks, Clusters and Chains  Compliance with Regional and International Standards UNIDO General Conference 12th Session, Vienna; Austria The general view of Industry and Mine sector in “20-Year Development Perspective” Document Dr. Mohsen SHATERZADEH

14 Industrial Development Strategy Industrial Development Macro-Policies UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

15 Industrial Development Strategy Macro Policies  Industrial development established by private and cooperative sectors, emphasize on public participation, in forms of private and public stock companies, in accordance with decrees issued by Supreme Leader based on Article 44 of Constitution.  Positioning Economic Policies and exploiting comparative advantages in development of competitive advantages and promoting competitive factors in industrial and mine sectors to match world standards.  Positioning industrial development based on value added and competitive advantages and expansion of Export Capacity.  To complete Value Added Chain in Industry, observing competitive factors and practices in global arena. UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

16 Industrial Development Strategy Macro Policies  Developing an effective and enduring inter-industry interaction to develop synergy and competitive edge in entire Industry and Mine sector  Directing industries to use tools used to catch local market opportunities, for international market entry  Investment in developing Iranian Brands for Industries and their promotion in global Market.  Suggesting advanced technology in industry and mine sector and establishing Hi Tech industries associated with technical and scientific enhancement. UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

17 Industrial Development Strategy Macro Policies  Absorb, develop, and enhance the capability of technology based on industrial design abilities in conceptual, basic, descriptive sectors.  Expansion of applied/developing research and engineering design, to transfer and exploit technologies, matching to priorities of sector and global change trend and re-positioning of exports.  Positioning of privatization to increase performance and competitiveness  To establish culture of using domestic products  Emphasize on promotion of technology in enterprises, reform the organizational culture and increase volume of investment in international market research and marketing UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

18 Industrial Development Strategy Macro Policies  Developing mining industry for optimum exploitation of mines and energy resources, and establishing bond in between small, medium and large industries, and setting up industrial clusters  Remove barriers and facilitate the process of growth for art and handicrafts industry for export  Permanent industrial development, while observing environmental consideration.  Encourage foreign investment to reach and transfer technical know-how and technology, improvement of managerial and technical capabilities, and access to international markets through international marketing networks, foreign investment firms, have a reach to complementary financial resources. UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

19 Industrial Development Strategy Macro Policies  To establish contact between local and foreign enterprises, with emphasize on reaching foreign markets and moving towards economy of scale, and shift towards higher value added activities  Educating industries to wisely meet rules and regulations of WTO within an incremental process and move towards goal oriented trade liberalization  Improvement of human resources, basic science, and expertise.  Reform "industrial policy making", to view industry and trade as a whole, while focusing on influence of industrial policy on other economic sectors. UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

20 Industrial Development Strategy Macro Policies  To create a streamlined and effective organizational systems for industrial decision making and assessment of policies' performance  Industrial development based on capacity of territory and fair distribution of resources, opportunities, national wealth according to regional and provincial potentials.  To increase efficiency in production and improve quality and raise organizational eminence  To establish and empower financial and development institutions to support industry and mine sector, continuously.  Expand and improve national standards and compliance of quality assessment systems in accordance with international standards UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

21 VOLUME OF FOREIGN INVESTMENTS UNDER FIPPA by sector (THOUSANDS US$) UNIDO General Conference 12th Session, Vienna; Austria Appreciation of FDI as a result of Comparative and Competitive Advantages of IRAN Dr. Mohsen SHATERZADEH

22 No. of Foreign Investment under FIPA ( ) UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

23 Annual Growth Rate of (Non-Petroleum) Industrial & Mineral Exports UNIDO General Conference 12th Session, Vienna; Austria The Industrial Exports Ratio to Non-Petroleum Exports reached to 78% in 2006 from 32% in 1994 Dr. Mohsen SHATERZADEH

24 Total Contract Value of Technical & Engineering Services Exported under MIM's Supervision (million dollar) UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

25 Annual Growth Rate of Technical & Engineering Services Exported in last 4 years UNIDO General Conference 12th Session, Vienna; Austria The 4 year average for annual growth rate reached to 161% Dr. Mohsen SHATERZADEH

26 Industry Quantitative Goals on 2025 UNIDO General Conference 12th Session, Vienna; Austria Description%MILLION $ HIGH TECH INDUSTRIES MACHINERY and EQUIPMENT VEHICLE ENERGY based INDUSTRIES AGRO INDUSTRIES METAL MINERALS NON-METAL MINERALS TOTAL These investments will cover different industrial sectors, supported by sustainable growth. In this perspective the annual industrial growth rate is projected over 11.5% Dr. Mohsen SHATERZADEH

27 Reasons to Invest in Iran Iran qualifies from many respects to be a good location for investment and doing business. Some of the features are: UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

28 UNIDO General Conference 12th Session, Vienna; Austria 1.Strategic Location: A unique geographical location at the cross- road connecting the Middle East, Asia and Europe, empowered by many inter-and trans-regional trade, customs, tax and investment arrangements; 2.Privatization Plans and Article 44 of the constitution: The result of IRAN' s development plants and article 44 of the constitution; Public companies will be privatized and some state sectors will transfer to the non-state sector. 3.Market Potentials and Proximity: Vast domestic market with a population of 65 million growing steadily as well as quick access to neighboring markets with approximately 300 million inhabitants; 4.Labor Privileges: Large pool of trained and efficient manpower at very competitive costs in a diversified economy with an extensive industrial base and service sector; Dr. Mohsen SHATERZADEH Reasons to Invest in Iran

29 5. Membership of international groups/organizations (some of them are as bellow): Customs Co-operation Council (CCC), Economic Cooperation Organisation (ECO), Economic and Social Commission for Asia and the Pacific (ESCAP), Food and Agriculture Organisation (FAO), International Bank for Reconstruction and Development (IBRD), Islamic Development Bank (IDB), International Finance Corporation (IFC), International Labour Organisation (ILO), International Monetary Fund (IMF), International Organisation for Standardisation (ISO), Organisation of the Islamic Conference (OIC), Organisation for Petroleum Exporting Countries (OPEC), Permanent Court of Arbitration (PCA), United Nations (UN), United Nations Conference on Trade and Development (UNCTAD), United Nations Industrial Development Organisation (UNIDO), World Confederation on Labour (WCL). UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

30 6. Developed Infrastructure: Territory developed networking in the area of telecommunication, roads and railways across the country; 7. Low Utility and Production Cost: Diversified range of energy, telecommunication, transportation, as well as public utilities; 8. Abundant Natural Resources: Varied and plentiful reserves of natural resources ranging from oil and gas to metallic and non-metallic species reflecting the country’s accessibility to readily available raw materials; 9. Climatic Characteristics: A four season climatic endowment as a privilege to agricultural activities throughout the country and throughout all seasons; UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH Reasons to Invest in Iran

31 10. Fiscal Incentives: Reduced tax rates from 65% to a flat fixed 25% rate of tax income despite various tax holidays highlighted as follows: Highlights of Tax Holidays ActivityLevel of ExemptionDuration of Exemption Agriculture100%No Time Limit Industry and Mining80%4 Years Industry and Mining in Less-Developed Areas 100%10 Years Tourism50%No Time Limit Exports100%No Time Limit UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH

32 11.Political Stability: Representative system of government based on friendly relationship with other nations; 12.New Investment Legislation: Enactment of new Foreign Investment Promotion and Protection Act (FIPPA) to substitute the former Law Concerning Attraction and Protection of Foreign Investments in Iran (LAPFI) providing full security and legal protection to foreign investments based on transparency and international standards. UNIDO General Conference 12th Session, Vienna; Austria Dr. Mohsen SHATERZADEH Reasons to Invest in Iran

33 THANK YOU for YOUR ATTENTION Dr. Mohsen SHATERZADEH Deputy Minister For Economic & International Affairs


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