People-Centered Economy (4)

Successful Legal Framework Models and Approaches to Democratizing the Economy for Reducing Rent-Seeking and Attracting Small Investments

In today’s world, one of the greatest economic challenges for countries is preventing rent-seeking and ensuring a fair distribution of opportunities and resources. At the same time, attracting small-scale investments and involving the public in economic activity can become a driving force for sustainable development, job creation, and innovation. Combining these two approaches—transparency and anti-rent mechanisms alongside broad public participation—forms the foundation of a healthy and dynamic economy. The following sections review global and domestic success stories as well as practical tools to achieve these goals.

Successful Legal Frameworks for Reducing Rent-Seeking

1. Transparency Laws and Public Information Disclosure

Chile – Free Access to Information Law (2008):
Established an independent “Transparency Council”; continuous evaluation of institutions and wide publication of public data.

United Kingdom – Freedom of Information Act (FOIA 2000):
Requires public institutions to disclose information and respond within a set period; one of the world’s most successful disclosure systems.

South Korea – OPEN System:
An online platform that made all citizen applications and permits trackable, significantly reducing administrative corruption.

United States:
The FOIA law ensures public access to government documents and limits rent-seeking.

Scandinavian countries (Sweden and Norway):
Extremely strong transparency laws for government contracts and budgets, enabling extensive public oversight.

Iran – Law on Publication and Free Access to Information (2009):
Though not fully enforced, it provides a legal framework requiring governmental transparency.

2. Anti-Corruption and Conflict-of-Interest Laws

Singapore:
Strict anti-corruption and conflict-of-interest laws supported by independent oversight bodies, drastically reducing rent-seeking.

France – Public Life Transparency Law (2013):
Senior officials must declare their assets, financial interests, and relevant personal ties; violations are criminal offenses.

Canada – Conflict of Interest Act (2006):
Created an independent Conflict of Interest Commissioner with investigatory powers and authority to compel officials to recuse themselves.

South Korea – Public Officials Conflict of Interest Law (2021):
Passed after real-estate scandals; prohibits asset transactions within the official’s jurisdiction and imposes legal penalties.

Iran:
Efforts to pass conflict-of-interest legislation and strengthen asset-disclosure requirements continue, though implementation remains limited.
Ministerial directives and draft laws since 2018 exist, but a comprehensive law has yet to be approved.

3. Electronic Procurement and Transparent, Non-Monopolistic Systems

Singapore – Unified Licensing Portal:
All business licenses issued through one online platform, eliminating in-person visits and reducing monopoly opportunities.

New Zealand – Regulatory Improvement Act:
Requires the government to eliminate unnecessary or rent-creating regulations.

Rwanda – Major Deregulation Effort:
Eliminated dozens of unnecessary permits, simplified remaining ones, and digitized procedures, significantly reducing rent-seeking.

South Korea:
A fully transparent electronic bidding system that limits collusion and manipulation.

Ukraine – National Transparent Contracting Platform:
All tenders, prices, and government contracts are publicly accessible; citizens can view the entire process.

Colombia – Full Publication of Government Contracts:
All contracts, oversight reports, and expenditures published openly in one place.

Iran – “Setad Iran” and the Government Electronic Procurement System:
Important steps toward transparency despite existing gaps.
The National Licensing Portal is also a major move toward reducing excessive and rent-creating permits, though still incomplete.

4. Independent and Community-Based Oversight Bodies

New Zealand:
Independent oversight bodies with full authority to monitor corruption and rent-seeking.

Some provinces and municipalities in Iran:
Community oversight councils have been formed to monitor local projects, but they need more power and independence.

5. Limiting Political and Economic Influence

Canada:
Strict regulations on lobbying and political influence that prevent political–economic rent formation.

Iran:
Laws regarding lobbying and economic influence are emerging but not yet fully implemented.

6. Supporting Cooperative and Participatory Economies

Europe:
Incentive laws for forming cooperatives and participatory companies, promoting fairer distribution of benefits and reducing individual rents.

Iran:
Supportive policies exist for cooperatives but require expansion and modernization.

7. Digitalizing Government and Eliminating Direct Contact Between Citizens and Officials

Successful International Models

Estonia – Fully Digital Government:
Nearly all administrative services are provided online with no physical presence required, reducing discretion and rent-seeking.

India – Digital Identity and Transparent Subsidy Payments:
Through a national ID and direct benefit transfer system, many channels of rent and intermediaries were eliminated.

Domestic Example

Various systems exist for identity, taxation, customs, and subsidies, but lack of integration still creates opportunities for rent-seeking.

8. Transparency of Company Ownership and Preventing Shell Companies

Successful International Examples

European countries – Public Registers of Beneficial Owners:
Real owners of companies must be disclosed publicly to prevent the use of shell companies for rent or corruption.

United Kingdom – Beneficial Ownership Register:
All companies must declare their real beneficial owners, and this information is accessible to the public.

Domestic Example

Iran has established a “real company owners” system, but it is not yet complete, updated, or fully public.

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Final Note

The success of these models depends on strong law enforcement, independent oversight bodies, and active participation of people and media. Without these, even the best laws may unintentionally fuel rent-seeking.

Successful Models for Attracting Small-Scale Investments from the Public

1. Mutual Investment Funds

Collect small individual investments and manage them professionally across various markets—widely successful globally.

2. Crowdfunding Platforms

People fund small businesses and projects with micro-investments; examples include Kickstarter and Indiegogo.

3. Cooperative and Microfinance Funds

Pool small capital to provide loans to small enterprises; successful models include Bangladesh’s Grameen Bank.

4. Micro Capital Markets

Direct investment by ordinary people in shares of startups and small businesses using small amounts.

5. Micro-Bonds

Issuing low-denomination bonds available to the public to finance large projects.

6. Family and Community Savings Funds

Local or family-based funds that collect and invest small savings.

7. Participatory Construction and Infrastructure Programs

Attracting public liquidity through joint participation in construction projects with defined returns.

8. Crypto Platforms and Digital Tokens

Using blockchain technology to attract micro-investments through tokenized shares of projects.

Obstacles and Bank Resistance to Attracting Small-Scale Public Investments

1. Incompatibility with Traditional Banking Models

Banks are used to centralized, large-scale models, while attracting small investments requires new and more complex systems.

2. High Risk of Micro-Investments

Banks perceive small investments as high-risk due to insufficient guarantees.

3. High Costs of Managing Numerous Small Investors

Managing a large number of micro-investors is time-consuming and costly.

4. Weak Technological Infrastructure

Lack of efficient digital systems for transparent and online management of small investments.

5. Legal and Regulatory Constraints

Existing regulations may restrict the development of innovative methods for attracting small investments.

Solutions to Overcome Obstacles and Enhance Bank Collaboration

1. Reforming and Updating Regulations

Establishing flexible and supportive legal frameworks for micro-investment and new financial platforms.

2. Using Modern Technologies

Developing electronic systems based on blockchain and AI to reduce costs and risks.

3. Education and Awareness Programs

Training banks and the public about the benefits of micro-investments to build trust.

4. Collaboration with Specialized Institutions and Startups

Banks can collaborate with fintech companies to improve processes and efficiency.

5. Designing Flexible and Diverse Financial Products

Offering financial products tailored to the capacity and needs of small investors.

6. Government Guarantees and Public Support

Governments can reduce bank risks by guaranteeing part of the capital or profits.

Successful Country Models in Democratizing the Economy

1. Germany

The economy heavily relies on SMEs, which are the main drivers of employment and innovation, supported by cooperative structures.

2. Japan

Cooperatives and micro-businesses—especially in agriculture and handicrafts—play a major role; government policies encourage direct public participation.

3. Sweden

A pioneer in cooperative and participatory economies; consumer and worker cooperatives play a crucial role.

4. India

A significant portion of the economy is based on micro and cooperative businesses, which have expanded production and employment.

5. South Korea

Focus on developing SMEs and supporting local innovation has strengthened economic participation and decentralization.

Academic Research Examples on a People-Centered Economy

1. The Impact of Cooperatives on Sustainable Economic and Social Development

Research shows cooperatives help reduce poverty and increase sustainable employment through shared ownership.

2. The Role of Micro-Economies in Reducing Income Inequality

Studies indicate expanding small and medium-sized businesses contributes to fairer income distribution.

3. Analysis of Successful Microfinance Models

Projects by organizations such as the World Bank confirm the effectiveness of microfinance in empowering low-income populations.

4. Case Studies on People-Oriented Economies in Developing Countries

Field studies examine how public participation in economic activity influences growth and social stability.

5. The Role of Modern Technologies in Democratizing the Economy

Recent academic work highlights how ICT expands access to markets and financial resources for ordinary people.

Final Conclusion

Experiences from successful countries, along with domestic examples, demonstrate that combining legal transparency, strong oversight, and active public participation is the key to building a healthy and sustainable economy. Popularizing the economy through mobilizing small investments, developing cooperatives, and supporting small and medium enterprises not only leads to fairer distribution of opportunities and income, but also serves as a major driver of innovation, job creation, and sustainable growth.

However, small-scale capital cannot effectively enter the economic cycle without legal reforms, technological infrastructure development, public education, and effective cooperation with banks and specialized institutions. Global experiences and academic research consistently emphasize that transparency, rule of law, and public engagement are the fundamental pillars for reducing corruption and monopoly, while strengthening the economic capabilities of society.

Ultimately, the economic future of nations depends on their ability to combine anti-corruption policies with real opportunities for public participation. The more people participate in ownership, decision-making, and investment, the healthier, more sustainable, and more resilient the economy becomes.

Final wisdom: To stand with truth is to stand with reason.

Popularizing the Economy (5)

Popularizing the Economy: A Smart Path for Sustainable Development and Resistance

A resilient and dynamic economy can only emerge when people genuinely participate in production, investment, and economic decision-making. Evidence from leading countries and successful local examples shows that direct public participation not only enhances fairness and transparency, but also drives employment, innovation, and sustainable production. In times of sanctions and international restrictions, popularizing the economy becomes a key tool for self-sufficiency and economic security.

Strategies for Popularizing the Economy and Reducing the Impact of Sanctions

• Strengthening small and medium enterprises: Supporting small producers stimulates domestic economic activity and reduces reliance on imports.

• Achieving self-sufficiency in essential goods: Encouraging agriculture, handicrafts, and local production increases economic independence.

• Expanding people-based cooperatives: Pooling resources and knowledge boosts production and helps create resistance to external pressure.

• Digital economy and online markets: Modern technologies facilitate domestic trade and small-scale exports, reducing the impact of sanctions.

• Using gold, local currencies, and community financial systems: Strengthening internal financial flows and reducing dependence on international banking.

• Supporting innovation and knowledge-based industries: Developing local alternatives to foreign technology and creating new economic opportunities.

• Transparency and public oversight: Monitoring budgets and resources prevents waste and strengthens a resilient economy.

• Local markets and short supply chains: Reducing cost and time while strengthening local production to mitigate sanctions.

Popularizing Small-Scale Commerce

• Easy access to microfinance through community funds and low-interest loans.

• Training programs in management, marketing, production, and sales.

• Simplifying bureaucratic procedures and business licensing.

• Creating local and digital marketplaces for direct product sales.

• Promoting entrepreneurship and showcasing successful role models.

Popularizing Energy Profits

• Enabling small-scale investments in renewable energy with the ability to sell surplus power.

• Establishing community energy cooperatives to produce and distribute energy with direct returns for members.

• Increasing transparency of tariffs and energy-related information.

• Supporting clean, low-cost innovations for affordable and eco-friendly energy.

Popularizing Resources and Preventing Rent-Seeking

• Creating public resource banks and cooperatives for participatory management of financial and natural resources.

• Using digital technology to ensure transparency in resource distribution.

• Attracting public investment into major projects with guaranteed profit shares and managerial involvement.

• Educating the public on resource conservation to prevent waste and misuse.

Major Forms of Rent-Seeking in a State-Controlled Economy

• Allocation and sale of natural resources without transparency.

• Collusion in government tenders and non-transparent sale of goods and services.

• Transfer of state companies and projects to specific individuals at very low prices.

• Misuse of government subsidies and financial support in favor of certain groups.

• Rent-seeking in contracts related to medical equipment, food, pharmaceuticals, and healthcare.

• Granting government bank loans without adequate oversight.

Strategies to Prevent Corruption and Rent-Seeking

• Ensuring transparency and public disclosure of financial data and contracts.

• Using electronic systems and modern technologies to prevent manipulation.

• Strengthening supervisory institutions and encouraging public and media participation.

• Creating fair and competitive mechanisms in tenders and privatization processes.

• Supporting small and medium-sized enterprises through equal opportunities.

• Reviewing and reforming laws and regulations to reduce corruption.

• Promoting public education and awareness to create a transparent and accountable environment.

Obstacles to Democratizing the Economy and Developing Small Trade

• Lack of financial resources and proper loans.

• Lack of training and managerial/technical skills.

• Market challenges and competition with major brands.

• Legal barriers and bureaucratic complexity.

• Insufficient infrastructure, internet access, and workspace.

• Limited government support and inadequate supportive policies.

• Low entrepreneurship culture and fear of failure.

• Economic fluctuations, inflation, and reduced consumer purchasing power.

Conclusion

Democratizing the economy and empowering small businesses—through transparency, public participation, training, and equal opportunities—paves the way for sustainable and resilient development. This approach reduces dependency on external resources, counters sanctions, decreases corruption and rent-seeking, increases employment and innovation, and strengthens economic justice. A people’s economy is not only a driver of growth and development, but also the foundation of trust and active civic participation in building a bright and sustainable future.

People’s Economy (6)

The Path to a People-Centered Economy Through Associations, Funds, and Domestic & Global Experience

Whenever economic reform is discussed, attention automatically turns toward the government—as if people must simply wait for decisions and have no role in shaping outcomes. But in many countries, the backbone of the economy is not the government; it is the people, associations, local funds, professional unions, and small yet capable community networks. Iran also has inspiring examples of such networks, but they have not yet evolved into a comprehensive and formal system.

In this essay—written clearly yet based on scientific analysis—we place the experiences of Iran and the world side by side to show how Iran, too, can build a wide network of popular associations and funds, shifting the economy from a costly state-driven structure to a participatory, agile, and transparent model.
This path is neither symbolic nor unattainable; it only requires proper planning, public participation, and listening to the voices of various sectors.

1. The Role of Professional Associations in Iran’s Economy and Worldwide

Professional and sectoral associations in many countries act as the executive arm of the government in market regulation, specialized oversight, skills training, and defending professional rights. In Iran, organizations such as the Chamber of Commerce, Chamber of Cooperatives, unions, specialized associations, the Medical Council, Engineering Organization, Bar Association, labor unions, retirees’ associations, and scientific societies have been active for years, but their coverage is not yet comprehensive—and lower-income groups benefit less from their services.

In Scandinavian countries, associations perform a major share of market regulation.
In South Korea, associations and transparent tender systems prevent rent-seeking.
In Singapore, conflict-of-interest laws are enforced with the help of associations.
Iran also has valuable experiences, but still lacks a unified framework for professional participation.

2. Private-Sector Associations: Pillars of a People’s Economy

Private associations in Iran include:

 Chambers and Associations

Chamber of Commerce and local chambers:
The main center for economic policymaking, government consultation, trade facilitation, training, and networking.

Iran Chamber of Cooperatives:
A supportive body for cooperatives in production, consumption, housing, services, and agriculture.

Trade Unions and Professional Associations

Unions under the supervision of the Iranian Guilds Chamber for production, service, and distribution sectors.
Examples: Barbers’ Union, Bakers’ Union, Clothing Union, and many others.

 Industrial Specialized Associations

Such as the Steel Association, Automobile Manufacturers Association, Knowledge-Based Companies Association, and Mobile & Communication Equipment Importers Association.
They play important roles in market regulation, standard-setting, innovation, and dialogue with the government.

 Innovation & Entrepreneurship Institutions

Accelerators, industrial clusters, science and technology parks, and innovation hubs that support startups through networking, training, and even micro-investment.

3. Public, Governmental and Semi-Governmental Organizations

Institutions such as the Social Security Organization, the Foundation of the Oppressed, the Executive Headquarters, Astan Quds, the Workers’ House, retirees’ associations, teachers’ associations, the Engineering Organization, the Medical Council, and others—besides their professional role—can also play significant economic and support roles in promoting a people-centered economy.

4. Economic Functions of Organizations

• Negotiation with the government

• Increasing economic transparency

• Developing human resource skills

• Establishing joint financial funds

• Networking and market development

• Reducing production costs through collective purchasing and selling

5. The Need for a Legal Framework to Expand Organizations

To democratize economic governance, it is necessary to:

A) Create councils and professional associations for government employees so expert knowledge is transferred into major decision-making.
B) Require private-sector firms to join official consultative organizations so markets can be regulated through consultation and cooperation.
C) Strengthen urban and rural local funds and community-based cooperatives, especially for low-income groups.
D) Link scientific associations, research institutes, think tanks, and universities with industries through long-term agreements
so that research and production move along a shared, high-value, fast-yielding path using modern technologies.

6. Economic Participation of Groups Without Professional Organizations

A) Collateral-free loans based on skills and work experience.
B) Local guarantee funds
with participation from local councils, municipalities, and donors.
C) Initial credit without capital
for purchasing tools, raw materials or services.
D) Skills marketplace
a platform connecting skilled individuals to public and private projects.
E) Community micro–Qard al-Hasan funds
with small local deposits and official oversight.
F) Creating neighborhood-based organizations
for technical, home-based, service, educational and artistic jobs.

7. Successful Iranian Models of a People-Centered Economy

A) Local cooperatives
In South Khorasan, Kerman, Fars, etc.
Result: Growth of small industries, packaging, tourism and increased employment.

B) Micro Qard al-Hasan funds in over 30,000 villages
Result: Growth of home-based jobs and handicrafts.

C) Urban markets
For female breadwinners and youth
Result: Increased income and removal of intermediaries.

D) Skill-based economy and service platforms
Millions entered the economy without initial capital.

E) Small knowledge-based companies
In science and technology parks
Result: Export of engineering services without initial investment.

F) Industrial clusters
Carpet, food industries, clothing, local products
Result: Lower costs and entry of small units into export markets.

8. Inspiring Global Experiences

• Women’s self-help groups in Indonesia:
  Self-organized networks for saving, production and sales.

• Consignment selling model in Latin America:
  Goods are provided to people without capital; profits are shared between producer and seller.

• Kenya’s Green Belt Movement:
  Combines environmental action with skill training and local income.

• Rural empowerment organizations in Indonesia:
  Microfinance without collateral.

9. Public Participation in Policy-Making: The Missing Principle of Economic Governance

Just as annual workers’ wages are set with the presence of workers’ representatives,
economic policymaking, sectoral strategies and financial fund management must also include representatives of real organizations.

When representatives of unions, associations, cooperatives, funds and local actors are involved in decision-making,
policies become more realistic, more feasible and more just.

10. Low-Risk Scientific Research: The Protective Shield of Policy

To prevent major economic mistakes, it is necessary to:

• Implement small pilot projects

• Conduct regular field studies

• Document results scientifically

• Test each policy in a limited area first

This method is low-cost, low-risk and highly effective.

Conclusion: The Beginning of a New Chapter in a People-Based Economy

If we want to build the future of Iran’s economy, we must bring people from the margins to the center.
An economy whose pillars are professional organizations, community funds, cooperatives, specialized associations and neighborhood networks
will not only be more resilient, but also more just, transparent and vibrant.

When women, youth, workers, craftsmen, small producers and specialists participate in decision-making;
when low-income groups can enter the economy without capital;
when local funds and organizations gain strength;
when transparency replaces rent-seeking;
and when scientific research backs every decision;
then Iran’s economy will free itself from dependency and rise once again on the shoulders of its people.

This path has already begun;
and if taken seriously, it can lead Iran into a new era of flourishing, justice and national participation.

Wisdom is the constant companion of truth.