Amirhossein Khodaei, Researcher

 

People-Centered Economy (1)

Popular Economic Governance and the Economic–Cultural Threat of Importing Goods with Domestic Equivalents
(Religious Prohibition, Legal Ban, and the Necessity of National Action)

The import of goods that have sufficiently high-quality domestic alternatives leads to the outflow of foreign currency and places pressure on Iranian producers. It directly weakens domestic production and intensifies negative consequences such as rising unemployment, reduced industrial productivity, shrinking domestic markets, and undermining the country’s economic infrastructure. This issue has long been recognized as a serious economic challenge and stands in direct conflict with the principles of popular economic governance, which emphasize intelligent support for national production, sustainable employment, and preventing unnecessary foreign exchange outflow.

1. The Religious and Legal Perspective on Banning Imports of Goods with Domestic Equivalents

Given the need to prevent damage to national production, the Supreme Leader stated in his Nowruz 2017 address:

“The import of goods that are produced adequately inside the country must be regarded as religiously and legally forbidden.”

To clarify the correct interpretation of his remarks, he further explained:

“What is meant is not the prohibition of importing goods that are not sufficiently produced domestically, or goods whose import may help improve domestic production; rather, imports that shut down domestic factories and harm national production must be stopped.”

These statements show that banning the import of goods with domestic equivalents is both a religious obligation and an economic necessity, and implementing it constitutes an essential part of popular economic governance.

2. The Cultural Threat of Clothing Imports

The import of clothing, aside from its economic threat, poses a serious cultural risk. Clothing is one of the easiest goods to import, and many foreign brands operate actively in the country. These brands promote unconventional and culturally inconsistent fashion styles that influence the tastes and identities of youth and teenagers.

Therefore, combating the uncontrolled import of clothing is not merely an economic measure; it is also an action aimed at safeguarding national culture and reinforcing social cohesion.

3. Legal Basis for Limiting Imports

In an open parliamentary session on January 20, 2019, lawmakers approved Article 17 of the bill amending the Law on Maximizing the Utilization of Domestic Production and Services. According to this article:

The Ministry of Industry, Mines, and Trade is obligated to prevent the registration of import orders for foreign consumer and durable consumer goods that have Iranian-made equivalents.

This demonstrates a clear legal mandate for supporting domestic production and preventing destructive imports—one that responsible agencies must act upon.

4. A Call to Action: Turning Threat into Opportunity

If the economic threat posed by the import of goods with domestic equivalents—especially clothing—is not properly understood in time, then at the very least its cultural threat must be taken seriously.

Regulatory and executive institutions can, by calling on the Ministry of Industry to ban foreign clothing imports and restrict the operation of their representatives inside the country, transform this threat into a lasting economic, cultural, and social opportunity.

Such action represents a practical embodiment of popular economic governance, as it strengthens national production, creates jobs for young people, reinforces cultural identity, and enhances public and civil-society participation in steering the economy.

5. Measures and Impact Analysis

Practical and proposed measures to counter the economic and cultural threat of importing foreign clothing:

a. Ban on order registration and import of goods with Iranian equivalents:
The Ministry of Industry, Mines and Trade must strictly enforce Article 17 of the amended law and prevent circumvention of prohibitions through agencies and representatives.

b. Continuous monitoring to restrict the activities of foreign representatives:
Economic actors and regulatory bodies can establish monitoring and surveillance systems to limit and control the operations of foreign brands.

c. Financial support and facilities for domestic manufacturers:
Provide low-interest loans, tax reductions, facilitation of supply and completion of the production cycle, export support, and enhancement of domestic production technologies.

d. Encourage a culture of consuming Iranian goods:
Media, cultural, and educational campaigns to introduce high-quality Iranian products and reduce consumption of foreign goods.

e. Economic impact analysis:

• Prevent outflow of foreign currency and strengthen the trade balance.

• Increase domestic employment and reduce unemployment rates.

• Strengthen small and medium-sized industries.

f. Cultural impact analysis:

• Reduce the spread of unconventional dress styles.

• Reinforce cultural and national identity.

• Enhance social responsibility and solidarity among young generations.

6. Conclusion

Given the religious, legal, cultural, and economic reasons presented, it is clear that the continued importation of goods that have domestic equivalents—especially in clothing—poses serious challenges to the national economy, public culture, and the future of domestic production.

The effective implementation of a ban on imports of goods with domestic counterparts is a vital component of popular economic governance—governance that rests on public participation, intelligent support for production, job creation, preservation of foreign-exchange resources, and protection of national culture.

If the economic threat alone does not prompt action, the cultural threat should certainly provide sufficient motivation. Economy and culture are the two enduring pillars of society; neglect of either undermines the foundations of national independence.

7. List of foreign clothing brands with representation and activity in Iran

1. Diesel

2. Mango

3. Benetton

4. Sisley

5. Adidas

6. Debenhams

7. Puma

8. Adolfo Dominguez

9. Koton

10. Beymen

11. Kiğılı

12. Ds Damat

13. Damat Tween

14. Biesse

15. Abbate

16. IGS

17. İpekyol

18. Colins

19. LC Waikiki

20. Senso Boutique

21. Salomon

22. Nike

23. Skechers

24. Reebok

25. Zara

26. Fress

27. Ecco

28. GEOX

29. Roly Poly

30. Özkan

31. Brack

32. Berland

33. Lolitam

34. U.S. Polo

35. Tommy Hilfiger

36. Lacoste

37. Calvin Klein

38. Hugo Boss

39. Ralph Lauren

40. Guess

41. Levi’s

42. Hollister

43. Zara Man

44. Bershka

45. Pull & Bear

People-Centered Economy (2)
From Small-Scale Capital to Social Justice and National Growth

1. The Vision of a People-Centered Economy

Imagine an economy in which not only the government but all citizens play an active role—an economy where decisions, projects, production processes, and trade are carried out with direct public participation, and where people share in the profits generated. This is the essence of people-centered economic governance.

When people share in project profits:

• The impact of sanctions is reduced, making the economy more resilient.

• The livelihoods of low-income groups improve, and small-scale investments transform household economics.

• Public trust and social cohesion increase, laying the groundwork for sustainable development, economic justice, and collective prosperity.

2. Economic and Cultural Threats of Importing Goods with Domestic Equivalents

Importing goods that are already produced domestically with comparable quality leads to foreign currency outflow, weakens domestic production, and increases unemployment—contradicting the principles of people-centered economic governance.

Religious and legal perspective:
The Supreme Leader has declared the import of goods with domestic equivalents religiously forbidden and legally prohibited, except in cases where domestic production is insufficient.

Cultural threat:
Imports of lifestyle-related goods—such as clothing and other items—can alter the preferences and cultural identity of young people.

Legal foundation:
Article 17 of the amended law on “Maximizing the Use of Domestic Production Capacity” obligates the Ministry of Industry, Mine and Trade to prevent the import of consumer goods that have Iranian equivalents.

Practical solution:
Banning the import of goods with domestic alternatives and encouraging citizens to buy Iranian products channels small-scale capital into productive investment and job creation.

3. Targeted Participation: Low-Income Groups and Young Families

A people-centered economy must prioritize those who need empowerment the most:

• Low-income households

• Newly married couples to support family formation

• Families with newborn children to reinforce demographic policies

These groups should receive special shares in investment funds, employment-creation funds, and productive projects—promoting both social justice and real economic growth.

4. Public Investment and Employment Funds

A. Regional, justice-oriented funds

Small household savings—especially from low-income groups and young families—are pooled into projects in modern agriculture, small industries, rural tourism, and clean energy.

B. Natural resource funds

National resources (oil, gas, mines, forests) are placed into a transparent public fund.
Profits are distributed in cash or credit to low-income groups and young families.

C. People-centered knowledge-based funds

Public liquidity is directed toward startups and technology companies.
Low-income groups and the youth become real partners in project ownership and profit.

D. Participatory project funds

Projects such as solar power plants, pharmaceutical factories, or urban infrastructure are implemented with public participation.
The government or a national fund allocates a base share to low-income households and young families.

5. The Role of Professional Associations

Professional associations serve as intermediaries between producers, investors, and the public. They can:

• Establish investment and employment funds

• Pool members’ small-scale capital to support regional or sectoral projects

• Generate productive and sustainable income and return it to members

• Facilitate access to financial facilities for fund members

Practical Example: Medical Council organizations and the Basij Medical Society

Through establishing investment and job-creation funds, they can:

• Expand healthcare centers in border provinces

• Develop medical tourism

• Attract investment for producing imported medicines domestically

• Export human and veterinary medicines and vaccines

• Produce medical equipment currently imported and export the surplus

This pathway—by engaging members’ own capital—can generate high income while strengthening public health and domestic technology.

6. High-Income and Productive Pathways

• Small-scale investment in equity funds, debt securities, industrial and technological projects

• Ownership and profit-sharing in real projects such as hospitals, pharmacies, pharmaceutical plants, and medical equipment factories

• Skilled and specialized employment; financial and entrepreneurial education for targeted income groups

• Expanding exports of medicine, vaccines, medical devices, and healthcare services

• Channeling idle liquidity toward production, technology, and productive employment

7. Requirements for Success

• Transparency and public reporting by investment funds

• Academic, professional, and media oversight

• Fair and sustainable returns

• Aligning projects with real community needs and regional employment

• Special shares for low-income households, newly married young families, families with newborns, and larger families

Summary

People-centered economy means:

• Transferring ownership, opportunity, and profit to the people

• Empowering low-income groups, young families, and professional associations

• Directing small capital toward production, technology, and employment

• Expanding exports and domestic production in vital sectors (medicine, medical equipment, energy, agriculture, small industries)

• Combating the economic and cultural threat of importing goods with domestic equivalents

People-Centered Economy (3)

People-Centered Economy and People-Oriented Governance: Models and Strategies
A Resistant and Participatory Economy

Iran’s economy has not fully utilized its real income capacity due to raw-material exports, capital concentration, and government-centered decision-making. A people-centered economy involves the direct participation of citizens, associations, cooperatives, universities, investment funds, and employment funds in decision-making and resource utilization. This approach can:

• Increase per capita income and profitability of downstream industries and non-oil exports

• Reduce the impact of sanctions

• Facilitate the attraction of both small and large investments

• Create sustainable employment and enhance social justice

Reducing Raw Material Exports: Examples and Mechanisms

Raw-material export refers to exporting resources without processing or added value. People-centered economic structures—such as cooperatives, investment funds, job-creation funds, and professional organizations—can significantly reduce this pattern.

1. Oil and Petrochemicals
Raw export: crude oil and condensates
People-centered solution: Establishing small and medium refineries through job-creation funds, public investment, and specialized associations to produce petroleum and petrochemical derivatives such as polyethylene, polypropylene, and chemical fertilizers

2. Metals and Mines
Raw export: exporting unprocessed stone and mineral resources such as iron ore, copper, zinc, lead, and building stone
People-centered solution: Establishing smelting and processing plants in mining provinces using small-scale capital, local cooperatives, and employment/investment funds

3. Agricultural Products
Raw Selling: Exporting raw legumes, fruits, and nuts
People-Centered Solution: Establishing packaging, concentrate, canning, and processing factories through farmer cooperatives

4. Marine Industries and Fisheries
Raw Selling: Exporting raw fish and shrimp
People-Centered Solution: Facilitating caviar fish farming, creating processing and canning factories, and producing ready-to-eat products with public investment participation

Reducing the Impact of Sanctions Through a People-Centered Economy

Sanctions mainly target centralized and state-run activities. A people-centered economy—through expanding small ownership, investment funds, cooperative networks and decentralized small exports—reduces the impact of sanctions by:

• Developing small exports and cooperatives: Export of packaged agricultural products, handicrafts, and small petrochemical products

• People-centered financial and investment platforms: Micro-investment funds, interest-free loan funds, and facilitation of small export businesses

• Local processing industries: Producing semi-finished goods, reducing import dependence and increasing value-added

• People-based networking: Production, packaging, sales and export chains independent of direct government reliance

Rural and Urban Plans

1. Rural:
Creating agricultural, livestock, fisheries, and handicraft cooperatives; rural development funds for processing factories, cold storage, packing centers; and legally authorized local and border markets for direct sales.

2. Urban:
Establishing service and commercial cooperatives (technology, air/rail logistics, transit, retail chains, restaurants, hotels); participatory residential, commercial, and office projects; and people-centered digital platforms for online sales and services.

Participation of Different Social Groups

Universities and Students:
Creating job-creation and investment funds with knowledge-based firms, innovation centers, and specialized cooperatives; providing training for production and export of knowledge-based and processing products.

Families, Teachers, and Students:
Family investment funds in rural and urban projects; school-based economic and production programs; student markets for selling local products.

Role of Funds and Cooperative Foundations

• Pooling small capital for large projects

• Professional and transparent management of income and expenses

• Enabling participation from all segments of society, from students to university professors

• Developing shared production and trade infrastructure

Practical Example:
Leveraging the capacity of medical associations, mobilizing the medical community, establishing medical centers in border provinces, developing medical tourism (requiring visa facilitation for neighboring countries), producing imported medicines, and exporting pharmaceuticals, vaccines and medical equipment.

Types of People-Centered Investment

1. Real Estate and Construction: Participating in residential, commercial and administrative projects domestically and internationally through specialized holding companies

2. Production and Trade: Factories, processing and packaging industries

3. Building Materials: Production, distribution and export

4. Supply Chain Completion: From raw material facilitation to final sales

Goal: Increasing Value-Added, Reducing Raw Selling, and Creating Sustainable Jobs

• Supporting and facilitating production chains and processing of export-oriented raw materials

• A people-centered economy—through funds, cooperatives, professional associations and cooperative foundations—can complete production chains and enable processed exports

Operational Solutions

• Creating local production and processing chains; small and medium-sized factories to convert agricultural, mineral and marine products into packaged, canned, semi-finished and industrial goods

• Legal and regulatory government support including cooperative and fund registration, export permits for processed goods, and reductions in tariffs and taxes on domestic production

• Developing decentralized exports and branding products with Iranian and regional identity

• Encouraging people-centered investment through basic share allocation and guaranteed profits for low-income groups and newly married families

Operational Benefits and Impacts

• Increased national income and per capita income through value-added

• Sustainable employment in production and processing sectors

• Reduced sanction impact through decentralized export networks

• Increased public and organizational participation in the real economy

• Greater foreign currency earnings and strengthened national trade balance

Benefits of a People-Centered Economy

• Increased national income without heavy government investment

• Wide job creation in villages and border regions

• Development of high value-added industries

• Reduction of sanction impacts via people-centered export networks

• Attraction of small and large domestic and foreign investments

• Empowering low-income groups, supporting young families and promoting population growth

• Controlling inflation through directing small capital toward production

• Strengthening economic justice, sustainable development, and public welfare

Conclusion

A people-centered economy means:

• Direct participation of people, organizations, cooperatives and funds in decision-making and profit-sharing

• Supporting low-income groups, young families and households with newborns

• Steering small capital into production, technology and real employment

• Combating raw selling and the effects of sanctions

• Expanding exports and domestic production in key sectors such as medicine, medical equipment, energy, agriculture and small industries

Through supporting and facilitating complete production and processing chains, the national economy becomes stronger, more people-oriented, more value-added, and moves directly toward job creation, economic justice and sustainable development.