ECP Edging Over Hardliners in Cabinet?

May 30, 1999 - 0:0
TEHRAN -- As the rivalry between the hardliners and moderates in the Cabinet of President Seyed Mohammad Khatami to strengthen their positions continues, some hardline ministers seem to be losing power in favor of their moderate colleagues. The High Council of Economy -- headed by President Khatami-- decided in one of its recent meetings to reduce the authority of the Minister of Finance and Economic Affairs, Hossein Namazi, delegating them to the Governor of Central Bank, Mohsen Nourbakhsh. Does this move really indicate that the hardliners are losing power? Will the Executives of Construction Party (ECP) edge over their hardline rivals in the Cabinet? Nourbaksh is a member of the Executives of Construction Party (ECP) -- a moderate party backed by former President Akbar Hashemi Rafsanjani who heads the powerful Expediency Council. The party was known as the Group of Six (G-6), formed before the Fifth Majlis elections, because of Rafsanjani's differences with the conservative Jame'eh Rouhaniyat Mobarez (JRM). The JRM accused Rafsanjani of downplaying Islamic values and opening up the Iranian society to undesired influences.

The G-6 was made up of technocrats who considered themselves the architects of Iran's post-war reconstruction. The hardliners in President Khatami's Cabinet accuse the ECP of widening the gap between the rich and poor. They also charge them with laying too much emphasis on economic growth at the cost of social justice. But the weak performance of Namazi, however, convinced President Khatami to take the side of Nourbaksh. Khatami has time and again said that the economy is sick.

Despite his Economic Reformulation Plan, there seems to be no immediate remedy applied to the ailing economy. The economy specially received a set back when oil prices fell to a 20-year low last year. The spiralling rate of inflation and soaring unemployment are two immediate issues President Khatami must address. Some experts believe that he will not be able to perform miracles in the economic scene, specially given the heterogeneous composition of his cabinet.

There are two major trends in Khatami's Cabinet: one advocating crash development programs, supported by the ECP; and another laying more emphasize on social justice side by side with development plans, propounded by the members of Islamic Iran Participation Party (IIPP) and their hardline allies, backed by President Khatami.