Al-Monitor |�Ali Dadpay: The economy�dominated�Iran�s recent presidential election.�Hassan Rouhani, the incumbent, argued that integration into the global economy is the only path to prosperity and job creation, while�his rivals accused his administration of having ignored the poor. Rouhani's opponents�also promised to create�millions of jobs,�double the�size of the economy�and triple monthly�cash payments�to low-income families. In the end, most Iranian voters�preferred�Rouhani's path. Whether President Rouhani can deliver on his promises�remains unclear, as does whether�the head of government is powerful enough to realize any pledge to fundamentally revive the economy.

The distinct division between the public and private sectors of national economies�as generally understood by economists does not apply in Iran. Iranian university professor�Amrollah Ghadiri�wrote in a May 1�editorial for the leading�daily Donya-e Eqtesad, �It is time for us to�separate the government�as the executive branch from the state and organizations affiliated with the state in studying the economy.� In short, study of the impact of government policy must take into account the so-called quasi-state�sector in Iran.

The quasi-state�sector consists of businesses registered as private entities under Iran�s Commerce Code�but in reality are either wholly or partially owned by actors like the military, foundations (bonyads) and pension funds. This sector has continuously�expanded�since the early 2000s, entering such areas of telecommunications and banking. Indeed, when�Irancell�won the right to become Iran�s second wireless provider in 2005, nobody missed that�Iran Electronics Industry, a Defense�Ministry company, held a 51% stake in the venture. Last year, one report estimated that�19,000 companies�comprised�the quasi-state�sector.

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