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The Iranian Scene on the eve of

the 9th Presidential elections

A lecture delivered to the Gulf Cultural Club on June 15th, 2005 by

*Ahmad Hatami Yazd

 

It is a pleasure and an honour for me to have the opportunity to speak to this distinguished gathering of people interested in the subject of the Islamic Revolution and the Iranian situation.

I will first review the practical outcome of the Islamic Revolution in Iran and why it has  become necessary to go for a reform movement. Then I will try to discuss the problems we are facing in the reform movement in Iran.

I am a person who has been involved in the Iranian situation and the Islamic Revolution. Therefore I am expected to defend the revolution and  speak about its achievements. But I think the people who are here know well the achievements of the Islamic Revolution. The achievements are not few: the revolution changed the lives of millions of people in Iran, including  youth and women. Life in Iran is very different today from the  point of view justice, welfare, life expectancy and  education. Two-thirds of the university entrants nowadays are ladies. That says a lot about  what is happening in the country in every respect but I don’t think it is the objective of this meeting to talk about the achievements. I will be taking a critical view of the events. I only mention these few words so that I will not be misunderstood.

The revolution started with the very important slogans and motives:  independence, freedom and  Islamic Republic. Independence and freedom immediately told everybody what is meant. But Islamic revolution in Iran meant everything for everyone from welfare to justice, to morality and the economic and political change that the people wanted. Islamic Republic is really a brand name which means keeping the religious and moral values of society and getting everybody involved in the administration and power sharing of the country.

Independence meant the fight against imperialism, keeping freedom means the fight against dictatorship and Islamic Republic more than anything  else to our people means fighting injustice and corruption.  These three things were crystallized and magnified in the government of the Shah. We were fighting three aspects of the government of the Shah: dependence on foreign power, dictatorial treatment of the people, intellectuals and the masses and corruption and injustice that prevailed in that government. The Islamic Republic was fighting all aspects of the regime that existed before the revolution.

As a result of the revolution we faced a new phenomenon called counter-revolution. The counter-revolution basically manifested itself in terms of terrorist organizations like the MKO, which continued for at least 25 years to carry out terrorist activities in Tehran and other cities and even in the villages in the border areas. The counter revolution also manifested itself in the foreign invasion of Saddam Hussein taking over large tracts of Iranian  land, helped by the United States and other countries economically, militarily and politically. And we have the United States or Western conspiracies all the time over the last 25 years in Iran for instigating a coup d’etat or even coming with helicopters to Iran where they touched down in Qbas. I do not want to go into all these details. But apart from the foreign invasion, US conspiracy and  terrorist organizations we had political  groups - sundry liberals and communists who were continuously  conspiring against the Islamic Republic in the hope that the revolution would be contained and would not spread to other Muslim countries: so counter-revolution as a phenomenon is as significant as the revolution itself. Fortunately it was defeated to some extent.

What happened to the people in the process? We had a prolonged war and  economic sanctions which had a great impact on the social and political  life of the people which still remain. What happened to the economy? Of course there was great economic hardship for the masses. We had to ration everything from food to clothing. There was a lack of investment and even negative growth during the eight-year war, the state had to move in to control the industry, agriculture and many different sectors of the economy. We had greater state control as a result of the sanctions and the Iraqi invasion.

Due to these circumstances there was no economic planning in the first years after the revolution and during war time. The national currency depreciated to the unbelievable extent of 99 percent. Iranian currency today is valued at less than one percent of what it was before the revolution.

In the meantime a new set of economic organizations cropped up. They are called bonyards (foundations). We thought of them as  charitable organizations in the first place – organizations that would take over the  wealth left by the Shah and his associates and the management of the bonyards were expected to administer those on behalf of the poor and the oppressed. But in fact they turned out to be large economic conglomerates who would perpetuate their own life. Like in many other countries where the state has a very important role to play in the economy the main purpose of such large state organizations turned out to be to perpetuate  and enlarge their own set up. They forget all other objectives.

On the social and political scene we noticed a gradual definition of state ideology. When the masses joined the revolution and supported the leadership of the revolution and the ideology they had different concepts of what the Islamic Revolution and Islamic ideology should be.  The first prime minister of the Islamic Republic, Dr Barzegan, had a different view of  Islamic ideology from those who are running the country today. But gradually state ideology is defined and very strictly imposed on all the brands of thinking in the country.

Growth of parallel institutions occurred in every aspect of life. After the revolution we had  two ministries looking after the agriculture of the country. We had two organizations, both public, looking after housing, industries, culture, welfare even the armed forces. There were dual organizations in every respect. One is the government Ministry of Agriculture. The other is a group which is also looking after agricultural affairs but they were involved in a lot of cultural activities as well as looking after agriculture. The first one was more scientifically orientated, the second one is more culturally orientated. The same applied to housing, industry and welfare. There were several welfare organizations, one a government organization which operates according to bureaucratic and scientific methodology and there were other organizations who were more interested in propaganda and preaching of the revolution than the actual work that they carried out. These organizations were not only interested in their specialized sphere of activity. They were always mixing this with some cultural propagation of Islamic values plus other economic  activities which were totally unrelated to their own specialized field.

Just to give you an example we had an organization called the Indad (social security) Committee.  They were doing their job, visiting all the cities and villages but at the same time they used their help to propagate their values. They were also running certain economic organizations: trading, agriculture and they thought they should earn that money through their activities in order to spend it on welfare. But at the same time they received a huge budget from the government. So at the same time they were mixing economic activity, welfare activities with cultural activities. This applied to almost all the high-level organizations that existed. These are only a few examples.

One group considered itself revolutionary and the other considered itself a state organization.  The revolutionary organizations considered themselves superior to those who were not revolutionary. They thought they had the right to do many things outside the law because they are revolutionary. They wanted more privileges, not only for the individuals who were working in the organization but for the institution itself. If there are  certain goods like tobacco which no one is allowed to import these people think that because  they are revolutionaries they should be given the license to import these items which are not available to anybody else. This has a corrupting on the economy and the social system.

Discrimination between the two types of organizations, and two types of citizens, also exists. The citizens are also divided into two groups : pro and anti or pro and indifferent, let us say. The development of these organizations alienated a large number of intellectuals in society. You can imagine what will follow as a result of intellectuals being alienated from the mainstream of society and the revolution.

Human rights were neglected by those who thought that for the cause of the revolution, for the cause of the people  they could do anything. They could cross many borders that morally and politically it would not be expedient to pass. They did things which were wrong but they thought the objectives were right therefore the means justified those objectives.

The system led to a new concentration of wealth and power in the hands of a  new emerging class who were different from the class which was overthrown by the revolution. These were people who worked in the new organizations, the new trusts and they tried to use all the opportunities that existed in society. The state sector became much larger than it was before the revolution. The growth of the state apparatus for control leads to financial corruption.

What happened to morality?  There  was a great stress on the fight against promiscuity. Relations between men and women were very much controlled at least in the appearance of society. But hypocrisy was forgotten and we were facing widespread hypocrisy of the people who pretended to be revolutionaries. It was enough for them to wear a beard, if they were men or to wear a chador if they were women. The men often wore  army overcoats just to appear as if they were revolutionaries. But in fact there was nothing of the moral values of Islam or the revolution in many of these hypocrites whose number was every increasing. And I think that is the danger in any ideology in society, whether Islamic, communist or otherwise. When you have a state ideology many people pretend to be followers  of that ideology because it is easy to just shout slogans.

Under the circumstances we neglected the creeping financial corruption in almost every institution: governmental or revolutionary.  Under these circumstances what will happen to finance and the market economy? We were faced with the growth of bonyard financial institutions outside the control of the central bank. That means we see a bank which was set up during the war and now it has more than a thousand branches.  But it is not controlled by the central bank and it does not follow any of the rules and regulations of the central regulator. The Bonyard Credit Institute is not the only credit institute. There are now more than 100 such institutions in Iran who do not have a license to operate in the money market, they are not regulated by the central bank but they exist and they are supported by those who are prepared to disregard any regulation in the country including the central bank regulations. Almost all of them are somehow connected with the centers of political or military power.

There is a credit  institute with more than 1200 branches throughout the country which has been set up and supported by the official police of the country without any regard to the central bank regulations.  There are other financial institutions which operate in complete darkness. There is an underground economy in Iran and no one can tell what the Iranian GDP is. A good percentage of Iranian  economic activity is not recorded anywhere in any accounting book. Sales, purchases and profits are made but they are not recorded anywhere. So it is not in the official statistics of the country.

There are no statistics about 5,000 card hassan shops where you can get an interest free loan for the poor. But in fact there is no such thing. It is only in name. They charge interest  of up to 36 or 40 percent. Nobody knows and controls them. You only find out what they are charging when you go to them and many of them do not have a sound financial basis and are easily bankrupt and  people who have left their deposits with them have lost money. So there are a lot of social disturbances. In my  opinion this is a major social evil in the name of the interest free loan.

We have a lot of non government public institutions affiliated to bonyards, the intelligence ministry. There are un official jetties where the government has no control and the official duties are not paid on imports. These organizations recruited people only from the circles that were known to them. They did not advertise or go to an employment agency. Merit was not a criteria for employment – it all depended on connections. So these situations which I have described let the intellectuals and political leaders of the country feel that there is a great vacuum . There is something lacking and that is reform.

That is how the necessity of reform was felt by many people who loved their country and who loved the Islamic revolution. I explained the objectives of the revolution: seeking the political independence of the country, freedom for the people  and the Islamic values of justice and good governance.

What are the objectives of the reformists? The objectives of the reformists are attached to the revolutionary ideas but using new techniques and the gradual evolvement and development. So revolution sought a violent change. But reform is targeting the same objectives, the same revolutionary  goals but through peaceful means and through gradual development. We have learned after 20 years that no major improvement in the socio-political  situation of the country can occur suddenly by just wishing.  Nothing will materialize unless we go through a lengthy, torturous  but peaceful process.

Remember please that Iran is a country with 3,000 years of history. Despite its  cultural glory and its achievements it has always been run by dictators. We have never had a government which cared for the political participation of the people. This may have been the same with all the Asian and Middle Eastern countries: Iraq had the same fate. So did Turkey, Afghanistan etc. But we are now concerned with Iran and changing this political tradition of autocracy is not an easy job  to achieve in two or three decades. We have only realized this now. We thought that everything could change suddenly after the revolution – now I think we are more mature. We have to work for a very long time before we can achieve the objectives of political participation of the people and co-operating with the government.

Under the reform government of President Khatemi we achieved the right to criticize the government. The achievement of the reform was freedom of thought. I am saying this was achieved 100 percent but today there is much more freedom of thought in Iran and freedom of expression than existed ten years ago. Freedom of the press. Promoting of the non-governmental organizations. There is an explosion of underground political forces, pressure groups.  Today the credit organizations are exposed. People can speak about them and say they are evil organizations which have to come under the control of the central bank. They have created a lot of problems that made people understand what they had been doing.

There is far less intrusion of the government into the private lives of the citizen. These are achievements of the reform.  As for administrative reform many of the parallel institutions have now been merged together. We have one Ministry of Agriculture and one Ministry of Industry but we still have two housing organizing so we have not achieved administration reform in every field but in many organizations in agriculture, fisheries, social welfare and those looking after the poor have now merged into one. But the job is still not finished. That is why we need the reform movement.

Today there is an open advertisement  for recruiting government staff. The state organizations are based on merit through public announcement and entry examinations. In the context of Iran it is really a great achievement that in  any bank, factory, or ministry you cannot employ your own relatives – you can only employ through public announcement  and on the basis of merit and education. These are achievements of the reform government of President Khatemi.

On the economic side the new government has managed to achieve a single exchange rate for Iran. Before that we had as many as five and that was the cause of a lot of corruption and mismanagement. There is a single tax rate. We used to have many tax rates and many exemptions. Many of those exemptions have been removed from the tax laws but still there are some which Khatemi has not had sufficient political power to remove.

There is also economic stability. The government does not spend all its oil income. It keeps some in the kitty for the hard days and this has stabilized the economy. There is a genuine movement towards privatization but there is still a long way to go. There was time after the Iraqi war when it was very difficult for us to speak about privatization. As soon as we spoke about it we were branded as pro-capitalist, anti-workers, anti-people and all that. But today privatization is taken to be a way to increase economic efficiency and the efficiency of industry.  Goods have to be bought and sold on a tender basis. There has been a removal of tariff barriers on imports. Before you had to have a license for everything you wanted to import and they would not issue a license because they thought this particular good was being produced inside the country. In an effort to protect the local economy imports were only allowed to a limited extent.

There were good intentions behind this but there was corruption because if you allow a certain  amount of imports of sugar, cement, steel etc to the people you know, the bonyards, the rich will get richer. Today all non-tariff barriers have been removed and people can import whatever they want provided they pay the necessary duties and taxes that have been levied on imports. We still have the credit organizations but we also have private banks which have been established and operate under the control of the central bank.

There is also the encouragement of outsourcing of services required by the government. Government has become too big.  One way to slow it down is to go for outsourcing – buying the services that are required from the private sector instead of employing people for providing your services. There has been good success in foreign investment but only in the oil industry. In no other sector has foreign investment been achieved.

In terms of political reform there is a greater recognition of citizens rights regardless of their affiliations to the bonyards, Ministry of Intelligence, this or that ayatollah. Now citizens are considered to be equals even though we still have a number of groups and individuals who do not accept the idea of equality of all Iranians. They like to consider themselves superior to the majority of the people . There is a reformist slogan which says that Iran is for all the Iranians. As soon as  we speak about this those who are against reform would say that means  you want to give opportunities to the Bahais, to homosexuals -  official articles along  these lines are written in the papers. This is how they fight reform, they are not being honest with us.

A major political reform is the election  of local councilors. We have 200,000 people actually elected as members of the local and city councils throughout the country. This has created a history for Iran. We have never had this experience in 3,000 years of history that village and city people elect their own mayors or their own  councilors to run the affairs of their city or their village. Although the law was passed immediately after the revolution the implementation of this law was delayed for more than 20 years. It is only Khatemi who implemented this very important political reform.

In the area of foreign policy our relationship improved with Europe, China, Venezuela  and the Arab neighbours. Greater attention paid to human rights, especially in present conditions. I can say with more than 90 percent certainty  that human rights conditions have improved. We do not have any more torture in Iranian prisons, with a few exceptions. At one stage it prevailed throughout the country. The government has also managed to stop vigilante attacks on students, intellectuals and other political groups. Licences have been issued to more than 1,000 NGO’s and political parties. These are great achievements of the reformist government over the last eight years.

What are the challenges to reform? Are we happy about what has happened and what we have achieved? There is a lot more to be done. At the same time when we talk of freedom of expression and freedom of thought, we have witnessed more than 100 magazines have been banned. The judiciary has been used as a tool for limiting the freedom of political activists. We have many  examples. You have heard of Mr  Abajani who is a history  professor at Tehran University? He was a man who participated in the war against the Iraqi invaders. He   was one of the most prominent intellectuals in the country but he spent two years in jail because the court thought he was an infidel . He was sentenced to death. It took a great deal of political upheaval and opposition from within the country and from outside to lift the sentence against him and he was finally released.

I am very sorry to tell this story but it has happened to many people. There was a young student of 19 years old who just wrote a story. But some of the anti-reform people thought this story was an insult to religion or an insult to the imam and he was put in jail. He was eventually released. The article he wrote was in an internal student magazine, not a publication read by a lot of people.

We have heard of other people who have been imprisoned and sentenced for then  years but after three years in prison they were exonerated as they had done nothing wrong. This is very recently. These are the things that make us unhappy and we really have to strengthen our resolution to strengthen the reform movement. 

Who is fighting the reform movement? One major challenging institution of reform is the Guardian Council. They habitually reject many candidates for the presidency or for the parliament because they do not like them. They have a very narrow interpretation of Islamic principles. They have helped to increase the influence of the Expediency Council. They have two or three law making chambers: one is the parliament which has been directly elected by people, we have the Guardian’s Council which is appointed by the leadership but we also have the Expediency Council which is not elected. Those who are against the reform movement try to increase the power of the Guardians Council and the Expediency Council as compared with the parliament.

There is a greater concentration of power in one individual who plans to remain in power for the rest of his life. There is a gradual reduction of the authority of two directly elected institutions i.e. the presidency and the parliament. There are women’s aspirations to equality e.g. in awarding compensation to the victims or road accidents or crime. When a person is a victim of a traffic accident or an industrial accident he can normally get compensation from his insurance company for what has happened to him. And the present regulations award a woman half of what a man gets. If a man’s finger has been cut in an accident or a man has died in a traffic accident his family gets damages and that is  done in the name of religion.

There are strong ideological arguments between the pro and anti-reform movement about the legitimate source of political power. Throughout the last thousand years in Iran everybody said that the only source of political power is God.  But during the time of the monarchy the king considered himself to be a shadow of God. The reform movement would say there is no shadow of God on earth. God has given his authority to the people. This is an expressed statement in the Qu’ran: the people are the successors of God on earth. The freedom that God has given us would make the masses the legitimate political authority representing God on earth. But  there are those who think that although God is the ultimate authority for any power it is the ayatollahas who can interpret the will of God. This is a big ideological problem and until it is settled the fight in between the right and the left in Iran will not be settled.

Now we have a presidential election. What challenges will the president be facing in practical terms? I am not  trying to talk about what a president or a political leader in Iran should do. I am not talking about ideology. I am talking about practical problems on earth.

The biggest problem that the Iranian people are facing now is unemployment. That is what every Iranian will want to know. Can the president create employment for the people or not. The second important factor is the external pressure from America, Israel, England and many other sources who will interfere in almost every aspect of Iranian politics, whether it is scientific or social development, political reform. There is nothing we can do in these areas without some form of interference from outside. And the greatest achievement of the Iranian revolution, in my opinion, is that it has not  given in to foreign pressure. What we are doing, good or bad, we are doing it ourselves. We are responsible for our own actions. That’s why we can hope that political reform will succeed. But pressure from outside is really creating a lot of problems and is endangering the revolution and the reform movement at the same time.

Reform is an urgent need. There are two main candidates from the eight who are running for presidency: Rafsanjani and Moin. Which one could yield real authority. Both of them have an independent mind but one is more committed to reform than the other. Neither will win the first round of elections and that makes the second round more exciting, more sensitive and it will be one of the few elections  in the whole world that everyone is watching and waiting for the results.

The  reform in Iran is cultural and political – it is bound to be a lengthy, torturous and difficult course for any politician due to the fact that tyrannical rule has left its cultural legacy.  Concentration of all powers in the constitution in the hand of one man : that man commands the armed forces. He also controls the tv and the media. He controls the judiciary, the economic  power of bonyard, he appoints and controls the Expediency Council and he appoints the Guardians Council. In any society when you have one man having all these powers, over the tv, the armed forces, a great sector of the economy facing a reformist government which has only the economy in its hands you can see the competition is not balanced.

We need a reform in the way we run our country and the way in which political power is distributed among the authorities. How do we change this division of authority and political power. You may expect, according to the constitution you need a referendum to change the constitution. But a referendum as per the present constitution requires the consent of almost everybody in the hierarchy. We can’t just ask for  a referendum unless the parliament approves it. But parliament itself is not enough. The Guardians Council and the leadership, almost everyone in the whole system must agree to the  referendum. So it is very difficult to change the constitution. We have to work within the constitution and try to maximize whatever benefit can be achieved for human rights, freedom, and justice within the present framework if you want to avoid violence and have a peaceful and cultural  change.

Should a reformist president act within the law or could he extend his authority a little bit in the face of  violent opposition against the reform? I think that is the difference between Rafsanjani and Khatemi. Rafsanjani has the authority that is he feels something has to be done but there are legal or political limits he will do it with disregard for the law. But Khatemi was bent on carrying out his legal policies very strictly within the legal framework. He would not do anything, however good that may be, outside the law. That’s why he as been so slow in achieving and has failed  in some fields.

This argument will continue between Rafsanjani and Moin. Moin is supposed to be a more strict follower of Khatemi.  Rafsanjani as an independent person may carry out a different course.

*Ahmad Hatami Yazd was Born in Mashad, Iran in 1948, studied in Iran and obtained his professional qualifications as a chartered accountant in UK. Back in Iran, he was arrested in 1974 and sentenced to five years in jail for his political activities. He was released four years later. Since then he has taken up several senior posts in companies and institutions, such as Managing Director of Urban & Rural Cooperative  chain store, Vice president and Commercial Director, Islamic Republic of Iran Shipping Lines, Chairman and Managing Director: Bank Tejarat, Managing Director, Almakaseb general trading company, Dubai, UAE, affiliated to bank Melli Iran, General Manager, NIOC crude Oil Marketing Department, Vice president, economic affairs, IDRO, Industrial Development and Renovation Organization, Chairman and Managing Director of Bank Saderat Iran  and National Iranian Gas Export Company (NIGEC) Persian LNG Project Director.

 

 

 

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