Analysis of Justice Shares (Equity Shares) Plan Performance

Supporting vulnerable groups and improving income distribution is one of key priorities of all governments. This is not only an economic subject، but is one of political and social indexes. In I. R. Iran one of social justice and income distribution orienting policy which was implemented in the 9th Government was Equity Shares Plan. The structure of the plan was based on allocating some of governmental companies stocks to low income people. Preparing sustainable income for low income deciles and improving income distribution، privatization expanding and increasing people’s wealth were the main goals of this plan. However، one side effect of this plan is stockholder culture improving among citizens and public knowledge level promoting and directing them to invest in productive markets instead of speculative activities in parallel markets. The main step in performing the plan was to indentify eligible people. Respecting to supporting approach of the plan، at first the two lowest income deciles were covered and fifty percent discount was imposed on stock value for these groups. After that، other groups were jointed to the plan in different phases as targeted groups، so that up to now more than 40 million people are included. Since the beginning year (2006)، some part of stocks of 62 corporations in different areas namely: Petrochemical، Refineries، Power plants، Banks، Cements، Basic Metals are allocated to the plan. According to this plan the value of these stocks would return through dividend profit in10 years and after that stockholders can receive their profit directly. One more useful action is preparing the procedure that stocks owner could transact them through stock Market.