Factors affecting government involvement in economic policy in the framework of the Fourth and Fifth Economic Development Plan

Document Type : Original Article

Authors

1 PhD Student in Political Science, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Assistant Professor, Department of Political Science, Central Tehran Branch, Islamic Azad University, Tehran, Iran

3 Professor, Department of Political Science, Research Sciences Branch, Islamic Azad University, Tehran, Iran

Abstract

The strong presence of the government in the economy will lead to the exit of the private sector, which will lead to inefficient and inefficient allocation of resources and thus reduce economic efficiency. The government must intervene in the economy when the market mechanism alone is not able to allocate resources optimally and create efficiency in the economy, although the inability of the market mechanism itself is a necessary and not sufficient condition for government intervention in the economy; A sufficient condition for government intervention is for the government to reduce the existing shortcomings by creating its own plan. In this research, using descriptive-analytical method, we seek to answer the question that what is the pathology of government interventions in economic policy according to the fourth and fifth economic development plan? The lack of a long-term policy system, the belief of political elites in a structured and purposeful policy system and the dependence of Iran's economy on oil, and the lack of a proper model for managing oil revenues have provided the space for government intervention in Iran's economy. In general, the government enters the market when the market alone is not able to create efficiency in the economy and prices alone do not reflect social costs and social benefits. But the inability of the market mechanism alone does not justify government interference in economic affairs. The inability of the market is a necessary condition but not sufficient. Because government intervention may also be accompanied by failure.

Keywords

Political Sociology of Iran
Volume 3, Issue 4 - Serial Number 12
February 2021
Pages 1873-1890

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