Privatization to Serve Economic Development

Abstract

One of the principles of a dynamic economy and an economic development factor in advanced countries is “privatization”. Privatization is a process to assign priorities to market mechanisms and to make them market orientation. It includes a wide continuum that full privatization and restructuring governmental owned firms are in its both extremes. Finding an optimized method to run economic issues is the greatest concern of government. Government oversizing and expansion its intervention in unnecessary issues which increase costs, decrease productivity, establish parallel entities and lead into improper management are, inter alia, difficulties that governments especially in less developed nations are confronting. It caused that governmental officials and economists looked for a solution. Methodology: In this vein, privatization is raised as the most radical guideline to resolve this problem. Privatization experience by different countries indicates that not only there is no single global approach for privatization but also its successful implementation depends on different conditions with certain requirements. In Islam and in contrary to manmade systems, economy is considered as a tool for human growth and excellence rather than an aim. In Iranian Constitutional Law, economy is emphasized in various articles. In article 44, economical infrastructure is built. Results: Contemplation in implementing article 44 indicates that correct and complete implementation of this article means the construction of national economic growth and development expressway which requires growth and development of other social, cultural, political, administrative, managerial and organizational infrastructures of a healthy social system. Conclusion: In present paper, economic development is defined through contemplating on article 44 of Iranian Constitutional Law and then privatization and its definitions are provided and possible guidelines to execute article 44 are explained.