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Prerequisites for Monetizing State-Owned Assets under the Legal System of Iran
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Seyedahmad Habibnezhad   , Hamed Karami , Seyedalireza Mirbod * |
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Abstract: (34 Views) |
The monetization of assets held by the State under any title aims at maximizing the value of those assets and, ultimately, enabling the more effective and efficient provision of public services as a core governmental function. In this field, performance criteria focus on measurement and oversight directed at optimizing the use of assets. It should be borne in mind that the contexts, prerequisites, purposes, and objectives of monetization may differ among jurisdictions depending on the structure of the ownership regime and the prevailing economic system, and such structural differences affect the monetization process itself. In the Iranian legal system the term “monetization” has, for several years, been invoked as an objective or instrument in the management of State-owned assets. In theory monetization may take various forms; however, in practice, within Iran’s current legal framework it is most commonly understood as the sale of assets belonging to the State in its proprietary capacity. Although the subject of monetization has been raised repeatedly in annual budget laws, the fragmentation of initiatives in this area and the need to organize an implementing entity led the Economic Coordination Council of the Heads of the Branches of Government to establish an extralegal body vested with extraordinary powers and enforcement guarantees, called the High Council for Monetization of State Assets.
This study, after setting out the Iranian legal system’s encounter with the phenomenon of monetization, asks whether the mechanism provided in Iran under the label “monetization” can—while respecting the limits and contours of the Iranian legal order—offer an effective and efficient model. To answer this question, the paper first presents theoretical points and technical evaluation criteria, then describes the current state of State asset monetization in Iran and, given the meaningful gap from an ideal system, analyzes and evaluates that practice against the identified legal and technical benchmarks.
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| Keywords: state proprietary assets, public assets, monetization, State, High Council for Monetization |
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Type of Study: Research |
Subject:
Special
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