Economic Austerity along with Resistive Economy as Two Actuating Forces in Iran's Economy

Abstract

Resistive economy is an attempt to control and counteract effects of international limitations against a zone or any country. In fact, it is necessary to resist counteracting threats and turning them to opportunity and obtaining national strengths. In an ideal situation, resistive economy can remove the crisis resulted from international limitations. Certainly, public belief and cooperation and rational and wise management are prerequisites for such goal. Resistive economy is a decrease of dependencies and emphasis on benefits of domestic production, efficiency of human resources and trying for self-sufficiency. Of course, a real resistive economy is a dynamic one not a stable and closed economy, as resistance is defined to remove obstacles of development and to try for improving level of economy. By studying Iran's economy during recent years, it is found out that international limitations are not the only negative factor influencing the Iranian economy. Rather, other factors such as failure in proper execution of subsidies purposefulness law as a public service of government has caused shortage in budget and also improper consumption of national and natural resources. To counteract the negative effect of such factors, a kind of economic austerity at the same time with the Resistive economy should be executed by the policymakers of economy. The fact that austerity is imposed on the economy and its critical situation does not seem to be tolerable but in long term it can help restore the economy. Consequently, the Iranian economy should turn to austerity in long term.