LONDON Academics attending a conference on Iran here this week discussed a wide range of political, economic and social issues relating to the future of the Islamic Republic of Iran. Aditor of Iran Focus Newsletter, Bijan Khajehpour, was particularly critical of the failure of many of the economic and structural projects over the past decade, among which 10,000 were unfinished. He welcomed President Khatami putting a halt to 8,000 projects which were less than 10 percent completed, saying that some of the country's new policies and programs indicate that the Iranian authorities have learned from old mistakes.

Khajehpour, who is also managing director of Atieh Bahar Management Consultancy, added that Khatami was more committed to political and social reform than any previous president. It has a positive impact on economic developments, he said. Civil society concepts can facilitate the success and decentralisation of the government apparatus. Chairman of Iran's Bank of Industry and Mines Ahmad Azizi spoke positively of the government introducing the third development plan for reconstruction with special attention given to reforms.

The existence of several centers for decision-making and devising economic policies has been one of the main problems of the past but Khatami is paying more attention to law and the effectiveness of institutions, he said. Regarding the current bleak economic outlook, the former deputy head of Iran's Central Bank warned that if the trend of low oil prices and world recession continues, Iran will face the prospect of unemployment rising from 1.5 to 9 million people by the year 2006. To keep unemployment at present levels, he said, it would mean an investment ratio to GDP of around 30 percent and this, he said, was one of the reasons why the government was trying to encourage foreign investment.

Vahe Petrossian of the Middle East Economic Digest (MEED) believed that next March's local elections would be important on how Iran develops and decentralises power. He suggested the next landmark with major consequences would be the 1999 Majlis elections. The conference, organised by the Royal Institute of International Affairs, also heard views about Iran needing a gradual and balanced development towards a civil society as the transition would be far from smooth.

One Iranian academic said that the biggest changes needed in Iran were for cultural, economic and political reforms to go forward. On foreign policy, it was suggested Iran's pragmatic approach meant that the country was learning to live with the rest of the world. (IRNA)