The president of Qom University of Technology and economic analyst stated that despite the problems created by the pandemic, in the long run, it will have a positive effect on Iran's economy.
According to the university's public relations, Dr. Jalal Rezayi Noor, in an interview with IRNA reporter, answered questions regarding how the pandemic is impacting the economy of Iran and the world. The text of this interview, which was published by the IRNA news agency at
https://www.irna.ir/news/83802633/, is as follows.
- What economic changes has the pandemic caused at the provincial level in Qom?
At the provincial level, we naturally faced issues like the recession of private businesses and non-profit organizations, and the restrictions on travel to Qom and its pilgrimage sites caused problems for local businesses.
Another change we faced at the provincial level due to the pandemic, which also had positive points, is the development of the health and medical economy; the medical service sector saw significant growth during this period, leading to the expansion of its economy.
This trend advanced to the extent that Qom's health capabilities were introduced nationally and internationally, establishing the province as an important medical hub, which led medical experts from across the country and even from different parts of the world to connect with professors at Qom University of Medical Sciences to benefit from their experience in combating the pandemic.
In the early days of the virus outbreak, experts used the model employed by China to combat this phenomenon; thereafter, the model implemented in Iran and the city of Qom received attention. China's model was not implementable in many countries due to structural limitations and the rigorous military quarantine that imposed strict controls, making it difficult to enforce such a management system.
In these circumstances, Iran took commendable measures and managed the situation effectively, achieving valuable medical advancements. With significant efforts, we were able to manage the pandemic and share our experiences with other countries.
The impacts of the pandemic on the economy show many similarities at both the provincial and national levels; however, its effects at the provincial level manifested more prominently in areas of pilgrim reception and tourism.
Another limitation caused by the pandemic in Qom was that many industries located in the province faced problems transporting their products to other regions, and drivers, fearing the virus, were reluctant to come to Qom. This issue was particularly severe last Esfand (February/March) but has improved since then.
Qom is quite active in the production and export of strategic products like polymers, and issues in transportation of goods, especially in last Esfand, severely impacted this area.
- What economic changes has the pandemic caused at the national level?
At the national level, the pandemic highlighted the health sector's economy and drew significant attention toward it. Additionally, the digital economy became very prominent, with e-commerce businesses becoming highly active.
The topic of substituting electronic money for cash gained great attention, making it one of the positive changes introduced by the pandemic in the national economy.
The outbreak of the virus led families to focus heavily on health and hygiene, subsequently increasing the investment levels in the national healthcare system.
The knowledge-based economy emerged as another domain put into focus and bolstered by the pandemic. By utilizing online platforms, many opportunities have been created for innovative business activities.
Another economic aspect influenced by the pandemic was the increased focus on the capital market for financing, which was a positive focus for the government and the trend of privatization, likely contributing to an increase in production.
In fact, the best form of investment under current circumstances is to engage in the capital market, and the government has provided the necessary infrastructure; today, many people spend their time in online spaces trading stocks instead of checking social media pages, leading to both individual and social economic benefits.
Government support and oversight in the activities of the capital market will expedite the public's utilization of this economic opportunity, which will undoubtedly steer people away from non-productive markets such as gold and currency, boosting small and large businesses across various manufacturing and services sectors.
- Which of the mentioned changes do you deem sustainable?
The impact of the pandemic on the healthcare economy, knowledge-based economy, digital economy, and the development of electronic government will be sustainable and long-term, as there is no doubt that the pandemic helped us pursue these areas more rigorously. I believe that the pandemic will positively influence Iran’s economic growth, and we must take full advantage of this created opportunity.
The pandemic beautifully illustrated our country's cultural richness concerning solidarity and helping one another, and the effects of this assistance to those in need will remain etched in the minds and spirits of the Iranian community. This will serve as a model for fostering a collaborative economic environment and interactions among individuals in various economic sectors.
The pandemic strengthened the bond between religion and society, and we witnessed religious institutions and seminaries swiftly providing assistance to those adversely affected by the virus, each striving to alleviate the problems and shortages that arose. It appears this spirit of collaboration and solidarity will continue to address the country's economic issues across various sectors.
Collective efforts reduced prices of health-related products such as sanitizers and masks, which had skyrocketed, through public participation and increased production levels, returning these prices to equilibrium. This model will persist in our economic activities.
This scenario demonstrates how fostering social capital and reinforcing trust and solidarity among the populace significantly enhances the economic environment of the country; this has been a profound lesson conveyed to us by the pandemic.
- Is the pandemic regarded as a crisis-inducing phenomenon that has created numerous and substantial problems for the economy?
While the pandemic has harmed Iran's economy in the short term, it will not necessarily lead to vast troubles in the long run for various reasons and may even contribute to Iran’s economic development and the utilization of domestic goods.
The pandemic revealed the country’s economic preparedness for dealing with threats, showcasing its capacity in various fields, such as the ability to manufacture necessary goods, particularly in the healthcare sector.
The outbreak of the virus demonstrated Iran's economic capabilities and its resilience against potential phenomena, and this will likely lead to a more active presence for our economy in international arenas in the long run.
The experience of confronting the pandemic will immunize the country against similar threats and their economic impacts in the future, serving as a benefit to increasing Iran's competitive economic capabilities.
- Assuming the pandemic prolongs, what recommendations do you have for sustaining the economy?
One of the most critical prerequisites for preserving and developing Iran's economy amid the continued pandemic is to strengthen the healthcare system and update its infrastructure across all regions. Necessary measures must be taken to establish equity across all sectors of healthcare for all segments of society, as this plays a vital role in fostering life expectancy and enhancing business environments.
To thrive during the pandemic, electronic services should continue to be utilized within the governmental management system, further reinforced, and swiftly replace traditional methods.
The situation created by the pandemic has fortified electronic government infrastructure and related networks in the country, and this momentum must be sustained. We ought to pursue greater development of our facilities from both hardware and software perspectives.
This will assist in offering many necessary services to the people of the country remotely, which is a significant achievement for our system and the economic sector, preventing substantial expenditure and issues such as waste of time and providing crucial support for digital companies.
- Will Iran be economically different after the pandemic compared to before it?
It appears that Iran will indeed be economically different post-pandemic. Drawing from the experiences gained in managing this disease, we will witness daily achievements in various economic fields, especially in healthcare, that can also be exported to developed countries.
Today, a healthy leap has occurred in the relation between industry and academia to address the fundamental needs of the nation, and we see groups of researchers presenting new products daily, marking a positive trend in domestic production and the strengthening of the economy against sanctions.
After the pandemic, a highly competitive atmosphere has emerged among universities for producing strategic products. The continuation of this trend will not only ensure the domestic market but also increase the volume of exports of Iranian goods to global markets, yielding foreign revenue.
In the education economy sector, we have also witnessed foundational changes following the pandemic. Today, the online environment plays a crucial role in delivering academic education and various other skills to target audiences, creating new economic opportunities in this field.
The use of collective investment methods is another area receiving greater attention in Iran's economic system after the pandemic. This development signifies a major achievement for financing large-scale projects through micro-collection of funds.
Instances of the efficacy of this method emerged during public assistance efforts aimed at helping those in need, demonstrating how micro-collection can fund a considerable volume of social services and support packages.
- Will the world be economically different after the pandemic compared to before it?
Yes, the world will be different post-pandemic; one notable change will be in improving health and hygiene in the international system. Developed countries strongly believed in their healthcare systems, but their incapacity to manage the outbreak of the virus has led to feelings of inadequacy, prompting new investments in this sector.
As someone who has traveled to various countries, I have witnessed firsthand the differences in healthcare systems between third-world nations and developed countries. However, the pandemic will likely minimize this gap, elevating public and private health standards in various communities, particularly in developing nations, and strengthening the health economy globally.
Enhancing health and medical sectors in the international system will raise investment and employment levels in this sector and shift public perception toward individual and social health standards in developing countries. Ultimately, this phenomenon will increase international tourist interest in traveling to developing nations, as a country's healthcare system remains one of the most critical factors for tourists when selecting travel destinations.
- What measures do you suggest for better living in Iran post-pandemic?
In these circumstances, to achieve a better quality of life, we must pay greater attention to knowledge-based economies and the innovative ideas of researchers from the country's academic centers in producing strategic products. Additionally, it is essential to facilitate the establishment and operation of electronic businesses in the country, ensuring necessary permits are issued promptly.
Offering practical solutions from experts to maintain social distancing while ensuring ongoing production and service activities is another vital aspect of this effort. For example, adopting new production methods that enhance product longevity while eliminating intermediaries can ensure that goods are delivered directly to customers immediately after purchase, following hygiene guidelines.
Government support for startups during the post-pandemic period is increasingly crucial, and private sector actors should benefit significantly from protective measures during this time.
Preparing the ground for maximizing the attraction of international tourists is another critical task for the post-pandemic context. We can implement tourist attraction initiatives within the framework of health guidelines to generate substantial income.
Currently, the country's healthcare capabilities have gained international visibility, presenting an opportunity for attracting more tourists across various sectors, especially health. However, care must be taken to avoid discriminatory pricing behaviors between domestic and international tourists, which may undermine the potential of this economic opportunity.
