Note: The “Popularization of the Economy” was raised in the country’s economic sphere by the Supreme Leader only a few years ago. The novelty of this theory created numerous ambiguities regarding its precise meaning and implications, rendering a precise examination of its dimensions essential. One of the most crucial questions facing the popularization of the economy is articulating its difference from privatization. Hujjat al-Islam wal-Muslimeen Dr. Seyyed Mohsen Sajjadi, faculty member in the Department of Economics at Mofid University, in this exclusive oral note, addresses the nature of popularizing the economy and its difference from privatization. In the belief of this professor and economics researcher, the popularization of the economy is a new theory that neither signifies liberalism and capitalism nor socialism. He also considers popularization a healing prescription for the economy of countries like Iran whose labor force exceeds their capital. The detailed exclusive note of Contemporary Jurisprudence with this professor and economics researcher is presented below:
The relationship between popularizing the economy and privatization lies in the fact that in privatization, all people might not participate in the economy, or the economy might be placed at the disposal of specific individuals among the people; whereas popularization ensures, on one hand, that the economy does not become state-controlled and lean toward socialism and communism; and on the other hand, prevents the dominance of a specific group of people in the economy and subsequently in power and politics. If popularization takes shape, it will also constitute one of the important pillars of the resistance economy, because the result of this popularization is crucial. As a result of popularization, the economy becomes endogenous (darun-za), and the outcome of this economy is that it becomes outward-looking (borun-negar) and advances toward a resistance economy as well.
The point that exists is that the difference between our economy and world economies lies in the fact that in world economies, usually there is no shortage of capital, but rather a shortage of labor. In our country, however, it is the reverse. Perhaps these very matters prompted the Supreme Leader to name one of the years “Knowledge-Based and Job-Creating Economy.” In countries where capital volume is high, they can grow and develop themselves through tools and technologies stemming from capital; however, in a country that lacks abundant capital but instead enjoys an abundant labor force, excessive use of technology is incorrect because it leads to labor unemployment. In countries like ours that possess abundant labor, when the economy is not popular and labor does not consider itself a stakeholder in it, skilled labor is encouraged to emigrate to achieve high income in another country; and since skilled labor is absent, simple labor also remains unemployed in the country. However, if the economy is popular and labor profits from production, it sees no reason to emigrate, stays, and the ground for employing simple labor is also prepared. Therefore, in the economy of a country like ours, we must pursue applied technologies that lead to preserving labor rather than technologies that are so-called capital-accumulating and render labor unemployed. This model has almost little precedent in the world.
Generally speaking, popularizing the economy is a difficult task. This economic system formed on the basis of popularization is neither socialist—granting all authority to the state—nor capitalist—granting authority to a specific class of people—but rather a popular economy. In this economy, the role of the majority of the people will increase, and consequently welfare will become more widespread. The major problem of the socialist system is the bloating of the state, and the major problem of the liberal system is the inequitable distribution of income. However, in an economic system based on the popularization of the economy, the state remains small while income is distributed equitably among the people. This point is among the distinguished features of this economic system.
In this connection, the Supreme Leader on July 29, 2012, in a meeting with a group of researchers and officials of knowledge-based companies, pointing to the country’s progress over recent years, stated:
“Considering the realities we observe before our eyes, this soaring, this reaching the intended excellence and progress, is by no means imaginary but realistic. The experience of these past few years demonstrates this as well. In these statistics presented, you observed that the country’s progress in vital sectors and new, impactful knowledge over a gap of a few years was remarkable progress; this indicates that talent, capacity, and readiness exist.
We must take this issue seriously; meaning we must attach importance to science and reliance on science in the country; meaning we must make this the core of our work. Our statement over these past years is this. If science is taken seriously across various sectors, then these knowledge-based companies working, producing, and creating wealth based on science will be able to gradually bring the country’s economy to true flourishing.”
His statements express the important advantages of popularizing the economy mentioned in the lines above.