Over 50 Iranian economists bluntly told President Mahmoud Ahmadinejad in a face-to-face meeting this week his economic policies were “inexpert” and lacked “any basis in science”, the press reported on Saturday.At Friday’s meeting, arranged so the president could hear their criticism, the economists launched a withering attack on Ahmadinejad’s government which they said was frittering away the benefits of unprecedented oil wealth.
“In your government, economic policies are adopted without any basis in science or the directives of the fourth development plan,” said a statement from the 57 economists read out at the meeting, the Etemad Melli newspaper reported.
They asked for “documented statistics” in official reports that could prove the government’s achievements. Iranian news agencies said Ahmadinejad later told the economy ministry to draw up such a report.
“It would seem that after the Islamic revolution, no government has benefited from such a surge in oil revenues,” the economists told the president, referring to the high crude prices.
“This gives us a unique and historic opportunity to resolve the structural problems of the economy. But we are worried that we will miss this opportunity.”
The economists, who include a former chief of the planning and budget organisation and ex-head of the stock exchange, last month published an open letter which accused the government of failing to create social justice.
Ahmadinejad was elected in 2005 on a platform of helping the poor in OPECÂ’s number two producer feel the benefits of oil wealth but has been repeatedly criticised for harming the worst-off by failing to halt surging inflation.
There has been a conspicuous rise in basic foods and service prices over the past months and the central bank has predicted inflation will rise to 17 percent in the year to March 2008.
Money supply growth is also soaring and is estimated to be running at a colossal 40 percent.
The economists warned against short-termism, saying that Iran’s oil and gas wealth belonged to all generations and Ahmadinejad’s policies risked “leaving heavy financial commitments for subsequent governments.”
Ahmadinejad has also been lambasted by reformists and many conservatives for going on a spending spree to finance infrastructure projects to fulfill promises made in his visits to all 30 provinces over the past two years.
A decision to lower interest rates - taken without the consultation of the central bank chief and economy minister - earlier this year has in particular aroused the ire of economists.
“Such decisions are harmful and inexpert. The most sensitive financial institutions of the country will be weakened and in the not too distant future we will see the negative outcomes of these decisions,” they said.
Etemad Melli said that the president described the meeting as “frank, friendly and scientific.”
Ahmadinejad also asked the assembled economists to present solutions to resolve the countryÂ’s economic problems and ideas on how IranÂ’s oil wealth should be spent.
The president has always vehemently rejected criticism over his handling of the economy, insisting that inflation is under control and Iran is reaching new levels of technological progress.