Hardcore Producers
Looking at the state of steel production, distribution, and sales in the country over the past couple of years, we conclude that overall, neither production nor distribution has been in a good condition. Steel market experts believe that the lack of a coherent plan, respected by all stakeholders, is one of the very important factors behind this situation. Some market observers say that with the coming and going of a minister, plans remain uncertain and abandoned. As a result, steel market actors do not even have a short-term outlook to base their operations on.
Overall, the production of iron and steel in Iran exceeds consumption in most segments. Therefore, having an export market for steel industries becomes vitally important. In a situation where long-term sanctions have cast their ominous shadow over the country’s economy, and financial transaction difficulties have compounded the issue, paying attention to neighboring countries and supplying their steel needs can serve as a relief for steel industries and also a significant aid to the country’s economy. In this regard, despite the proximity of foreign consumption markets, we have failed to compete effectively with other sellers, and Turkish exporters have outpaced Iranian exporters.
The presence of various financial regulations for exports, fluctuating exchange rates, and dollar instability has tied the hands of economic actors. In fact, from the very first stages of production to delivering the product to the export market, there is a long, winding, and rocky path, which is not easy for everyone to navigate. If we compare the problems of an Iranian steel producer with those of a steel producer elsewhere in the world, we gain faith in the intelligence, creativity, and hard work of the Iranian producer and are amazed at how resiliently they can maintain themselves, their production, and their workforce.
Instabilities, variable regulations, different main and secondary taxes, various duties, and the presence of hidden factors along with the ominous shadow of rent-seeking and favoritism in the distribution sector are even more evident.
Patriots in both the private and public sectors have proposed solutions to overcome this situation over the years. However, it is clear that reaching a desirable condition cannot be achieved by a single manager or a few managers, or by some changes in laws and stabilizing a single sector. Achieving coherence requires long-term cultural development. It requires national and social determination, where rent-seeking and favoritism are not seen as cleverness or advantage but are considered socially reprehensible. If rent-seeking is treated with the same public disdain as theft, it can be more effective in correcting social behavior than any law or regulation.
Moreover, we need to cultivate a culture in which having a plan and executing it precisely is considered a positive action, and lack of planning or ignoring regulations and ongoing programs brings shame and embarrassment. To value sincere and honest work, and ensure that someone working with pure intentions and sufficient ability is not affected by personal or tribal relationships, no law or regulation can suffice. Years of experience in our country have shown that merely strengthening regulations and passing complex rules does not lead to proper outcomes and will not. Work must be done on hearts. Without the presence of people devoted to the country’s progress and the nation’s prosperity, we will not reach our destination.
A brief look at the history of Iran’s industries shows that the country’s valuable institutions were, before becoming products of top-down organizations designed to achieve specific goals, the result of the dedication of passionate individuals who poured their heart and soul into founding and developing an industry or organization. This is not to negate the role of long-term national plans or overemphasize personalities, but even successful national institutions show that without the presence of dedicated specialists and elites, these institutions and plans would not have succeeded. Many projects and programs have remained on paper, left unfinished, or abandoned with losses. Properly valuing a devoted Iranian—whether as a worker or manager—cannot be equated with any measure of material wealth.
The private sector plays a far greater role than the public sector in meeting this cultural need. Governments come and go, but private sector actors remain and must grapple with both small and large problems.
Unfortunately, we have recently witnessed the disappointment and despair of our talented youth, who, despite their inner desire, resort to migration and leave their homeland. The migration of a talented young person is a warning bell that demands keen attention. The country’s industries, particularly the steel industry, urgently need the contribution of elites. One of the main factors driving this painful migration is economic instability. Last month, we witnessed a surge in the exchange rate. This is the worst possible event for an economy. Economic experts have discussed and written enough on this matter. All we can do is express deep regret and concern over this situation.
