Mutual Co-operation between State and Market, and the Regulatory Approach in Iranian Economy: An Investigation into the Basic Policies Regarding the Article 44 of Iranian Constitution

This paper attempts, by further studies of the underlying basic policies regarding the Article 44 of Iranian Constitution, to examine the mutual co-operation of state and market in economic regulation as one of the policy objectives in that Article. The paper consists of three sections. First, we study the views of the main economic schools of thought regarding the role and scope of Government interventions with an emphasis on its regulatory role. It is concluded that the major dominant schools of thought believe the regulatory role of Government in the economy while the discrepancy of views are focused on the scope of intervention and the nature of the regulatory policies. In the second part of this paper, the historical background of Government interventions in the World Economy as well in the Iranian economy are studied and compared. It is shown that the extreme views on the role of state and market in securing economic efficiency are failed, and the general tendency in recent years is focused on the mutual co-operation of state and market in which state has the role of guidance, supervision and regulation as complementary factors to the market performance. The third part of this paper refers to the study of regulatory instruments (such as competitive rules and regulations, regulatory codes and conducts and public ownership of monopolies). In this regard, the historical background of regulatory behavior and its legal foundations in Iran is also considered.