Analysis of Macro Factors Affecting the Process of Social Capital Accumulation in Iran

"Targeted Subsidies Reform" plan has been one of the most controversial subjects in economic policy in Iran during the last decade. In this paper we try to answer two important questions through reviewing the reasoning of the law and the results of implementing the reforms. First, to what extent the goals of the "Targeted Subsidies Reform law" was achieved? And seconde, was the Targeted Subsidies Reform law coherent enough in its theoretical foundation to achieve its goals?
It is shown that the law could not attain most of its goals such as: increasing energy efficiency, reducing energy intensity, enegy consumption per capita and production of environment Pollutants. Besides, calculating the amount of implicit subsidy before and after implementing the law shows that it could not reduce the amount of energy subsidy in the economy and also it could not reduce the burden of subsidies on government budget. And also it is shown that implemation of the reform plan had always extensive deviations from the law so that one of the reasons of the failure could be these deviations. Besides it is shown that considering weaknesses in the theoretical foundation of the law, it does not have the necessary capacity to realize the goals.