Journal of Urban Economics and Management- Journal News
A word of Dr. Sadeqi Shahedani

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Real meaning of resistance economy

IUESA: To explain the scientific roots of the resistance economy, resistance issue should be studied first. In the discussion about global competitiveness index for 2014 published by the World Economic Forum, resilience has been discussed in it. A resistant state has been defined as: resistance for a country, capacity to accept change, adapt to change, flexibility to change and maintaining the functions of the subsystems of a country in terms of crisis. The characteristics of a resistant state of the economy are:

1.     Absorption of disturbance and crisis (such as breakwaters on the beach): every country should manage and plan in order not to be damaged.

2.     Having a supporting system: supporting system is well known in computer activities. You should plan so that you can support it from another way in case of problems. It can be internal or external. It is important to handle it.

3.     Ability to adjust with crisis: every system should be flexible in order to survive and minimize the risks.

4.     Using maximum of opportunities and human force: when you rely on public force, you can take advantage of it to solve problems.

5.     Restoring normal circumstances in times of crisis: another feature of a resistant system is restoring normal circumstances in times of crisis since its continuity can be harmful.

There are several noteworthy points about realization of the above components:

1.     Comparative advantage of country should be identified and use its merits. Comparative advantage means that you know all existing capacities in various fields. It means to see what capacities from production to compete with the power out. Two ways to look at this issue: firstly, where the goods could have produced in the country consumed and exported.

For the development of these activities must be clear and transparent economic policies.  Producers should be encouraged and eliminating distrusts.

The second aspect relates to the goods that we should open the way for their entry into the country. Nobody can say that the strength of the economy that services and we all goods we produce. We may have goods and services without advantage. Not only us, but also many countries may not benefit in the production of those goods. We should open the way for making the goods to international markets.

2.     It is necessary to arrange care in the country’s economy. Such care is the issue of productivity. This care is part of the investment management. The management of the investments relates to humans. Therefore, man should engage in the volume of investments required to use them in spite of their concerns.

3.     In terms of resistance economy, economic mechanisms cannot be oil-based. We must rid ourselves of our oil-based economy. Today this sector is such that we have a significant amount of revenues need investment. Investing in joint reserves is one of these cases. Resistance economy helps us to save our economy from a time when the problems go away.

The second aspect relates to the goods that we should open the way for their entry into the country. Nobody can say that the strength of the economy that services and we all goods we produce. We may have goods and services without advantage. Not only us, but also many countries may not benefit in the production of those goods. We should open the way for making the goods to international markets.

4.     What we see in the world economic system cannot function apart from functioning as a resilient economy. For example, Japan or Germany, could not avoid following the strategy of resistance economy. German and the Japanese economy had problems after the war. The laws of resistance economy if not implemented in Germany or in Japan, we would never observe Germany and Japan in such conditions. So it is said resistance economy is an exceptional discussion, I think the science has been distorted. If we want to have a sustainable economy, we must consider the characteristics of resistance economy.

5.     Source: The Office of the Supreme Leader’s website, others section

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