IAIF Holds 7th Pre-session of its 10th Annual Conference
Saturday, 25 January 2025 12:00 IAIF economy islamic finance 112
The Iranian Association of Islamic Finance held the seventh pre-session of its 10th annual conference on the 25th of January, online.

The speakers of this pre-session were Dr. Fereydoun Rahnamai Roudposhti, Professor of Islamic Azad University, Science and Research Branch and Secretary General of the Financial Engineering Association, Dr. Gholamhasan Taghi Netaj, Associate Professor of Imam Hossein University, Dr. Mohammad Solgi, Assistant Professor (Department of Islamic Financial Management) of Imam Hossein University, and Dr. Hamid Mortezania, Assistant Professor (Department of Islamic Financial Management) of Imam Hossein University.

Rahnama Roudposhti said, I believe production is the key to a healthy economy. Although trade is necessary along with production. Fortunately, one of the main chapters and main strategies of the 7th Development Plan is production with the participation of the people, production for the people and production based on investment.

Hamid Mortezania said the popular governance is the necessity of people's participation in financial and economic activities. He stated that the Islamic Republic of Iran is a people-based country in terms of its political structure. Also, the country is in a state of economic war and we have been facing many economic challenges for several years due to sanctions. The most important weapon in the economic war is to increase production and people's participation in production. In the 7th Development Plan, more attention has been paid to the common mechanisms in this field. It seems that the solution to increase people's participation in production is to hand over production governance to people-oriented mechanisms.

Regarding the definition of the popular governance, Mortezania said it means to pay attention to people's awareness, will and resources in governance and facilitate the flourishing of diverse capacities and abilities of people and popular institutions through their participation in the administration and development of the country. Popular economy is not an economy for people (like socialist models), rather it is an economy whose foundation is people.

He added that various models have been used in the field of popular governance in production, moreover, in participatory governance to economic means (investment, tax, khums and zakat, charity and endowment); economic partnership institutions (cooperatives, knowledge-based companies, stock exchange, Qarz Al-Hasna funds, banks) should be noted.

Gholamhassan Taghi Nataj said the banking system plays a key role in achieving economic goals by providing financial mediation, directing financial resources and creating money, while the lack of financial discipline in them leads to their weak performance. Financial discipline in the banking system means the financial framework and order of the bank in the form of evaluation and control over the management of the provision and consumption of the bank's budgetary resources, in addition identifying the places of corruption and dealing with it, in order to reduce the bank's costs and achieve its goals should be taken into account.

He added financial discipline in the banking system can lead to transparency, control, maintaining the value of the national currency and the level of discretion of the supervisory and policy-making body (Central Bank).

Mohammad Solgi said various fields, including people's capital, people's minds, and people's initiatives, can participate in the economy and realize the desired production growth. One of the indicators of people's participation in the economy is that people's funds are used in the real sector of the economy (production) and either directly (entrepreneurship) or through financial intermediaries, people's micro-capitals are directed towards production and the financing of large projects. He clarified that many financial institutions in the world, such as Amazon and Google, do banking (shadow banking) and direct liquidity to economic enterprises through their platforms.

At the end, Roudposhti stated that if economy is going to move towards people's participation, we must create tools both in the width and depth of the market. Most of the instrumentalization has been done in the capital market, but it has faded in recent years.

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