Defining the Growth Path for Iran
Dr. Per Stenius
He is the Chairman and CTO, and Client Director at Reddal. He has a diverse background in science, top management consulting, venture capital, start-ups, and operative management. Per serves as an Adjunct Professor at Seoul School of Integrated Sciences & Technologies, and as a lecturer at Yonsei University in Korea. He has published numerous articles and interviews in leading journals for business and science. As a Partner and Senior Executive at Accenture and McKinsey & Company, he executed several strategy and operational development efforts across multiple industries such as Automotive, aerospace and shipbuilding, Banking, insurance, Construction, maintenance, waste mgmt, Industrial equipment and manufacturing, Telecommunications and media, Transportation, logistics and etc. Per has been involved in founding, leading and exiting multiple startups, including Aplac (co-founder, funded by Nokia, trade-sale to Applied Wave Research), Liekki (CEO, trade-sale to nLight Photonics), Corelase (board member, trade-sale to Rofin Sinar), Wicom (VP Bus. Dev., trade-sale to SAP)
The topics discussed in this lecture.
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Opportunities for opening doors to a new future
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Comparison of Iran with similar economies in 1981 and their current situation
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Similarities between the economies of Iran and Turkey
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Capital market, FPI, and significant events in the Istanbul Stock Exchange
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Foreign direct investment and Turkey’s situation in this regard
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Development of the shipbuilding industry in the world
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A comparison of national growth models
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Case study of South Korea
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The role of private institutions in strengthening economic growth
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Attractions of Middle Eastern countries
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Review of the role of private institutions in Iran
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Key players in the Iranian market
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Iran, Germany, Middle East
Dr. Prostanios considers Iran to be the Germany of the Middle East because it possesses industrial infrastructure that none of the other Middle Eastern countries have. Therefore, Iran holds a strong position in the region in this regard.
Step Towards Success
An interesting point is that when technology in one company declines, other companies can rise and grow; the same applies to nations. The talk is always about productivity costs. If productivity costs decrease, success can be achieved. There are two basic strategies: the substitution strategy and the complementary strategy. The goal of the substitution strategy is to lead an industry globally and eliminate all competitors. Countries like Japan, Germany, South Korea, and China use this strategy. The other strategy is the complementary strategy, which is more sensitive and includes countries like Singapore, Malaysia, Taiwan, and Vietnam. Taiwan allowed the entry of multinational companies and also controlled the banks, thus ensuring its success. South Korea, due to its geopolitical position, did not allow the entry of multinational companies because it did not need FDI and received financial aid from the United States. The important point is that each country adopts one of these two strategies based on its position. Iran also has to make decisions according to its environment and policies, and therefore cannot copy the policies of countries like Turkey and South Korea.
Iran on the Path to Success
Iran is large enough to maintain an international market. It is attractive to foreign investors and should prioritize strengthening and promoting entrepreneurship, as well as providing financial support in sectors such as biotechnology. For Iran, the agenda includes reforming the culture of entrepreneurship—something lacking in the Middle East—access to financial resources, labor laws, corruption control, efficient governance, oversight, and the rule of law. Iran is one of the most attractive countries with the brightest futures. It has high intellectual capacity, excellent geographical location, and a young workforce. It just needs to reform its foundations and kickstart its economy.
Dr. Prostanios considers Iran the Germany of the Middle East due to its industrial infrastructure, which is unparalleled in other Middle Eastern countries. This gives Iran a strong position in the region. An interesting point is that when technology in one company declines, other companies can rise and grow; the same applies to nations. The talk is always about productivity costs—if these decrease, success can be achieved.
There are two basic strategies: substitution and complementary. The goal of the substitution strategy is to lead an industry globally and eliminate all competitors. Countries like Japan, Germany, South Korea, and China use this strategy. The complementary strategy is more sensitive and includes countries like Singapore, Malaysia, Taiwan, and Vietnam. Taiwan allowed the entry of multinational companies and controlled banks, ensuring its success. South Korea, due to its geopolitical position, did not allow multinational companies because it didn’t need FDI, receiving financial aid from the U.S.
Each country adopts one of these strategies based on its position. Iran must decide according to its environment and policies; it cannot simply copy the policies of Turkey and South Korea. Iran is large enough to maintain an international market and is attractive to foreign investors. It should prioritize strengthening and promoting entrepreneurship, particularly in biotechnology, and reform the entrepreneurial culture—something lacking in the Middle East. Access to financial resources, labor laws, corruption control, efficient governance, oversight, and the rule of law are critical. Iran is one of the most attractive countries with a bright future, having high intellectual capacity, an excellent geographical location, and a young workforce. It just needs to reform its foundations and kickstart its economy.