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The role of social responsibility in the policies and economic development of Iran

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Authors: Sajad Abedi and Ghazaleh Aghaei*

Today, social responsibility goes beyond its old concepts, such as altruism and humanitarian aid, and covers the range of government activities at the local, national, and international levels. Since the social responsibility of the government exists in different areas; Therefore, economic policy-making should be done in relation to issues such as social rights, health, private sector activity and the role of companies in economic development. Each of these areas is part of the process of social responsibility and economic policy of governments. Therefore, the government can take more responsibility in the social sphere if, first, it has infrastructural capabilities; Second, to be able to use its capabilities in relation to its social responsibility to society and the power structure in the country.

Moreover, economic development, driven by the promise of eradicating poverty and increasing the well-being of societies, not only failed to overcome poverty, according to statistics; Rather, it had trapped many social classes and nations in the trap of institutionalized and structured poverty. The wealth of the world is increasing by year; But this increase in wealth is not something that is felt by all sections of society, and often, certain groups benefit from it. Another problem of economic development related to social issues has been and is the destruction of the environment. In the 1970s, various voices were heard in human societies about another scandal involving economic development. In fact, it has become widely known that this growth, dependent on increased production and consumption, requires more use of “natural resources” and produces a vicious cycle that results in the destruction of natural resources, environmental pollution, population growth, and so on. It will reduce the quality of life and endanger life on earth, which is contrary to the three principles of sustainable development. Levels related to social responsibilities in a developed society, starting from the individual, reach large government departments, and as we move from individual responsibilities to government social responsibilities, these responsibilities go from components and micro-indicators to Towards the components and macro indicators are inclined.

Levels related to social responsibilities in a developed society

The first level of involvement of social responsibilities in a developed society is individual levels: Individual social responsibility includes the participation of each individual in the society in which he lives and can be attributed to the interest in what happens in society and active participation. Defined to solve some local problems. Citizenship is a concept that is associated with the responsibility and accountability of individuals in society. In civil society, every citizen realizes that the irresponsibility of the people around him puts him on a path of fluctuation, and if he is irresponsible about the phenomena of the environment, he damages his own environment and the lives of others. The most beautiful pleasant feeling in the category of citizenship is the effort to cooperate and bear the responsibility of oneself and others.

Being socially responsible; That is, individuals and organizations must be ethical and sensitive to social, cultural, and environmental issues. Striving for social responsibility helps individuals, organizations, and governments make a positive impact on achieving sustainable development. The life-giving school of Islam, as a complete religion, has moral laws and advice for various aspects of human life, including social life, which every Muslim is required to follow in social relations and behaviors. “Purposefulness”, “being responsible”, “authority”, “having eternal life” and “being two-dimensional” are among the most important anthropological foundations in the school of Islam that make a Muslim a responsible and committed citizen to society can be one of the most important elements in improving the quality of life in the urban structure or sustainable urban development. Of course, every society is changing and has its own life, and every human being can determine his / her responsibility in the society according to the beliefs and culture of his / her society, available hardware and software facilities, governing laws and other variables.

The second level of involvement of social responsibilities in a developed society is the corporate and  organizational levels: In many developed countries of the world, companies are more successful that value their corporate social responsibility. These companies are always striving to create shared value by implementing creative and practical ideas. These ideas are implemented with the support of long-term and very accurate plans that these companies have in the past set goals related to their corporate social responsibility. Sometimes these programs are made available to citizens so that they know what happen, for example, a company will create a common value for society in the next five years and what interests will protect society. The role of companies in sustainable development is divided into three categories: social, environmental and economic. In fact, it is a “sustainable” development in which, in addition to the economic dimension, its environmental and social consequences are also positively managed. With such a view, the exploitation of natural resources and human capital today should not jeopardize the earth, life, benefit and happiness of present and future generations. In fact, demanding organizations to “act responsibly” towards society is an issue that, as their influence grows on the pillars of sustainable development; That is, “economy”, “society” and “environment” intensified in the last decades of the twentieth century and led to the emergence of a concept called corporate social responsibility (CSR) in the world of management to understand the impact of organizations and businesses on sustainable development, it is enough to note that among the top 100 economies in the world, there are more than ten companies. Therefore, the issue of “corporate social responsibility” or CSR has become particularly important in guiding the development process towards sustainability. CSR in a nutshell; That is, organizations are accountable to the community in which they operate; Because they use its human, natural and economic resources. Contrary to the traditional view of management and business, organizations are no longer responsible only to shareholders and should not look only at the profitability of shareholders and based on short-term benefits. Thus, organizations that are in contact with other stakeholders are expected to consider their legitimate demands as well. Beneficiaries; Entities are groups and individuals that affect or are influenced by the organization and cover a wide range; From employees, customers, business partners and local communities to the environment, the media, public institutions, citizens and the government. From this perspective, CSR can be called the integration of social and environmental goals with the organization’s operations and the inclusion of those issues in interactions between the organization and related groups. In general, corporate social responsibility, in a simple definition, includes the responsibilities that firms have towards the community in which they operate. Thus, social responsibility is a voluntary activity based on the ethics of an organization or institution that goes beyond the legal requirements and aims to meet the expectations of stakeholders. In addition, one of the most important features considered for this concept is the emphasis that organizations place on the social system of communities. On the other hand, activities should be such that they have the least adverse effect on society.

The third level of involvement of social responsibilities in a developed society is government levels and the involvement of politics in social responsibilities to create a developed society: The attractiveness of government social policy has no boundaries and relates to all aspects of life at the local level. National, regional and global are considered. All issues related to social security, housing, education, health and social care fall into this area. Planning to achieve such goals will not be achieved through social processes alone. The economic components must also be formed in parallel with the social goals of the government. Topics such as health, education, livelihoods, jobs and money are vital issues that, with the help of government, officials, companies, social groups, economic groups, charities, local associations and other non-governmental are research groups.

In general, the government is not only concerned with social welfare; Rather, it is accountable to economic classes, the mechanism of action of multinational corporations, trade unions, financial institutions, importers, exporters, shareholders, owners of economic enterprises, and other social forces. Theorists believe that economic policy-making in the present age is formed by various government authorities and groups. In other words, various sectors are involved in the economic policy-making process. Each of these sections is a symbol of social activities in communities. Therefore, economic policy-making must be done in a way that meets social needs. Any possible scenario in social policies that lead to the welfare, comfort and cooperation of different social strata; It is part of the governance necessity. In other words, for the welfare of the society, the economic growth of the country, the promotion of the income of various industrial and economic complexes, as well as the reconstruction of the national and global economy, there is no choice but to play the role of government in economic policy; Therefore, it is not possible to consider conditions in which social welfare, economic development and technological advancement can be done without considering the role of government in social accountability and economic policy-making.

If the government fails to pay effective attention to goals such as social welfare and the promotion of national incomes in the economic policy-making process, then there will be manifestations of a welfare state as well as a non-developmental government. In such a process, some theorists emphasize that the main function of the state can not be overshadowed by any other issue. If economic development takes shape; In those conditions, a platform will be provided to increase the level of welfare of the society. That is why in the period of economic growth, the income of the government, society and economic groups increases in parallel. Also, the reduced government budget deficit provides a platform for economic prosperity, investment and the of development infrastructure.

*Ghazaleh Aghaei, Master of Accounting and Audit, Islamic Azad University

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Turkey and Iran find soft power more difficult than hard power

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The times they are a changin’. Iranian leaders may not be Bob Dylan fans, but his words are likely to resonate as they contemplate their next steps in Iraq, Iraqi Kurdistan, Lebanon, and Azerbaijan.

The same is true for Turkish President Recep Tayyip Erdogan. The president’s shine as a fierce defender of Muslim causes, except for when there is an economic price tag attached as is the case of China’s brutal crackdown on Turkic Muslims, has been dented by allegations of lax defences against money laundering and economic mismanagement.

The setbacks come at a time that Mr. Erdogan’s popularity is diving in opinion polls.

Turkey this weekend expelled the ambassadors of the US, Canada, France, Finland, Denmark, Germany, Netherlands, New Zealand, Norway, and Sweden for calling for the release of philanthropist and civil rights activist Osman Kavala in line with a European Court of Human Rights decision.

Neither Turkey nor Iran can afford the setbacks that often are the result of hubris. Both have bigger geopolitical, diplomatic, and economic fish to fry and are competing with Saudi Arabia and the UAE as well as Indonesia’s Nahdlatul Ulama for religious soft power, if not leadership of the Muslim world.

That competition takes on added significance in a world in which Middle Eastern rivals seek to manage rather than resolve their differences by focusing on economics and trade and soft, rather than hard power and proxy battles.

In one recent incident Hidayat Nur Wahid, deputy speaker of the Indonesian parliament, opposed naming a street in Jakarta after Mustafa Kemal Ataturk, the general-turned-statemen who carved modern Turkey out of the ruins of the Ottoman empire. Mr. Wahid suggested that it would be more appropriate to commemorate Ottoman sultans Mehmet the Conqueror or Suleiman the Magnificent or 14th-century Islamic scholar, Sufi mystic, and poet Jalaludin Rumi.

Mr. Wahid is a leader of the Muslim Brotherhood-linked Prosperous Justice Party (PKS) and a board member of the Saudi-run Muslim World League, one of the kingdom’s main promoters of religious soft power.

More importantly, Turkey’s integrity as a country that forcefully combats funding of political violence and money laundering has been called into question by the Financial Action Task Force (FATF), an international watchdog, and a potential court case in the United States that could further tarnish Mr. Erdogan’s image.

A US appeals court ruled on Friday that state-owned Turkish lender Halkbank can be prosecuted over accusations it helped Iran evade American sanctions.

Prosecutors have accused Halkbank of converting oil revenue into gold and then cash to benefit Iranian interests and documenting fake food shipments to justify transfers of oil proceeds. They also said Halkbank helped Iran secretly transfer US$20 billion of restricted funds, with at least $1 billion laundered through the US financial system.

Halkbank has pleaded not guilty and argued that it is immune from prosecution under the federal Foreign Sovereign Immunities Act because it was “synonymous” with Turkey, which has immunity under that law. The case has complicated US-Turkish relations, with Mr.  Erdogan backing Halkbank’s innocence in a 2018 memo to then US President Donald Trump.

FATF placed Turkey on its grey list last week. It joins countries like Pakistan, Syria, South Sudan, and Yemen that have failed to comply with the group’s standards. The International Monetary Fund (IMF) warned earlier this year that greylisting would affect a country’s ability to borrow on international markets,  and cost it an equivalent of up to 3 per cent of gross domestic product as well as a drop in foreign direct investment.

Mr. Erdogan’s management of the economy has been troubled by the recent firing of three central bank policymakers, a bigger-than-expected interest rate cut that sent the Turkish lira tumbling, soaring prices, and an annual inflation rate that last month ran just shy of 20 per cent. Mr. Erdogan has regularly blamed high-interest rates for inflation.

A public opinion survey concluded in May that 56.9% of respondents would not vote for Mr. Erdogan and that the president would lose in a run-off against two of his rivals, Ankara Mayor Mansur Yavas and his Istanbul counterpart Ekrem Imamoglu.

In further bad news for the president, polling company Metropoll said its September survey showed that 69 per cent of respondents saw secularism as a necessity while 85.1 per cent objected to religion being used in election campaigning.

In Iran’s case, a combination of factors is changing the dynamics of Iran’s relations with some of its allied Arab militias, calling into question the domestic positioning of some of those militias, fueling concern in Tehran that its detractors are encircling it, and putting a dent in the way Iran would like to project itself.

A just-published report by the Combatting Terrorism Center at the US Military Academy West Point concluded that Iran’s Islamic Revolutionary Guards Corps (IRGC) faced “growing difficulties in controlling local militant cells. Hardline anti-US militias struggle with the contending needs to de-escalate US-Iran tensions, meet the demands of their base for anti-US operations, and simultaneously evolve non-kinetic political and social wings.”

Iranian de-escalation of tensions with the United States is a function of efforts to revive the defunct 2015 international agreement to curb Iran’s nuclear program and talks aimed at improving relations with Saudi Arabia even if they have yet to produce concrete results.

In addition, like in Lebanon, Iranian soft power in Iraq has been challenged by growing Iraqi public opposition to sectarianism and Iranian-backed Shiite militias that are at best only nominally controlled by the state.

Even worse, militias, including Hezbollah, the Arab world’s foremost Iranian-supported armed group, have been identified with corrupt elites in Lebanon and Iraq. Many in Lebanon oppose Hezbollah as part of an elite that has allowed the Lebanese state to collapse to protect its vested interests.

Hezbollah did little to counter those perceptions when the group’s leader, Hassan Nasrallah, threatened Lebanese Christians after fighting erupted this month between the militia and the Lebanese Forces, a Maronite party, along the Green Line that separated Christian East and Muslim West Beirut during the 1975-1990 civil war.

The two groups battled each other for hours as Hezbollah staged a demonstration to pressure the government to stymie an investigation into last year’s devastating explosion in the port of Beirut. Hezbollah fears that the inquiry could lay bare pursuit of the group’s interests at the expense of public safety.

“The biggest threat for the Christian presence in Lebanon is the Lebanese Forces party and its head,” Mr. Nasrallah warned, fuelling fears of a return to sectarian violence.

It’s a warning that puts a blot on Iran’s assertion that its Islam respects minority rights, witness the reserved seats in the country’s parliament for religious minorities. These include Jews, Armenians, Assyrians and Zoroastrians.

Similarly, an alliance of Iranian-backed Shiite militias emerged as the biggest loser in this month’s Iraqi elections. The Fateh (Conquest) Alliance, previously the second-largest bloc in parliament, saw its number of seats drop from 48 to 17.

Prime Minister Mustafa al-Kadhimi brought forward the vote from 2022 to appease a youth-led protest movement that erupted two years ago against corruption, unemployment, crumbling public services, sectarianism, and Iranian influence in politics.

One bright light from Iran’s perspective is the fact that an attempt in September by activists in the United States to engineer support for Iraqi recognition of Israel backfired.

Iran last month targeted facilities in northern Iraq operated by Iranian opposition Kurdish groups. Teheran believes they are part of a tightening US-Israeli noose around the Islamic republic that involves proxies and covert operations on its Iraqi and Azerbaijani borders.

Efforts to reduce tension with Azerbaijan have failed. An end to a war of words that duelling military manoeuvres on both sides of the border proved short-lived. Azerbaijani President Ilham Aliyev, emboldened by Israeli and Turkish support in last year’s war against Armenia, appeared unwilling to dial down the rhetoric.

With a revival of the nuclear program in doubt, Iran fears that Azerbaijan could become a staging pad for US and Israeli covert operations. Those doubts were reinforced by calls for US backing of Azerbaijan by scholars in conservative Washington think tanks, including the Hudson Institute and the Heritage Foundation.

Eldar Mamedov, a political adviser for the social-democrats in the Foreign Affairs Committee of the European Parliament, warned that “the US government should resist calls from hawks to get embroiled in a conflict where it has no vital interest at stake, and much less on behalf of a regime that is so antithetical to US values and interests.”

He noted that Mr. Aliyev has forced major US NGOs to leave Azerbaijan, has trampled on human and political rights, and been anything but tolerant of the country’s Armenian heritage.

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Process to draft Syria constitution begins this week

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The process of drafting a new constitution for Syria will begin this week, the UN Special Envoy for the country, Geir Pedersen, said on Sunday at a press conference in Geneva.

Mr. Pedersen was speaking following a meeting with the government and opposition co-chairs of the Syrian Constitutional Committee, who have agreed to start the process for constitutional reform.

The members of its so-called “small body”, tasked with preparing and drafting the Constitution, are in the Swiss city for their sixth round of talks in two years, which begin on Monday. 

Their last meeting, held in January, ended without progress, and the UN envoy has been negotiating between the parties on a way forward.

“The two Co-Chairs now agree that we will not only prepare for constitutional reform, but we will prepare and start drafting for constitutional reform,” Mr. Pedersen told journalists.

“So, the new thing this week is that we will actually be starting a drafting process for constitutional reform in Syria.”

The UN continues to support efforts towards a Syrian-owned and led political solution to end more than a decade of war that has killed upwards of 350,000 people and left 13 million in need of humanitarian aid.

An important contribution

The Syrian Constitutional Committee was formed in 2019, comprising 150 men and women, with the Government, the opposition and civil society each nominating 50 people.

This larger group established the 45-member small body, which consists of 15 representatives from each of the three sectors.

For the first time ever, committee co-chairs Ahmad Kuzbari, the Syrian government representative, and Hadi al-Bahra, from the opposition side, met together with Mr. Pedersen on Sunday morning. 

He described it as “a substantial and frank discussion on how we are to proceed with the constitutional reform and indeed in detail how we are planning for the week ahead of us.”

Mr. Pedersen told journalists that while the Syrian Constitutional Committee is an important contribution to the political process, “the committee in itself will not be able to solve the Syrian crisis, so we need to come together, with serious work, on the Constitutional Committee, but also address the other aspects of the Syrian crisis.”

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North Africa: Is Algeria Weaponizing Airspace and Natural Gas?

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In a series of shocking and unintelligible decisions, the Algerian Government closed its airspace to Moroccan military and civilian aircraft on September 22, 2021, banned French military planes from using its airspace on October 3rd, and decided not to renew the contract relative to the Maghreb-Europe gas pipeline, which goes through Morocco and has been up and running since 1996–a contract that comes to end on October 31.

In the case of Morocco, Algeria advanced ‘provocations and hostile’ actions as a reason to shut airspace and end the pipeline contract, a claim that has yet to be substantiated with evidence. Whereas in the case of France, Algeria got angry regarding visa restrictions and comments by French President Emmanuel Macron on the Algerian military grip on power and whether the North African country was a nation prior to French colonization in 1830.

Tensions for decades

Algeria has had continued tensions with Morocco for decades, over border issues and over the Western Sahara, a territory claimed by Morocco as part of its historical territorial unity, but contested by Algeria which supports an alleged liberation movement that desperately fights for independence since the 1970s.

With France, the relation is even more complex and plagued with memories of colonial exactions and liberation and post-colonial traumas, passions and injuries. France and Algeria have therefore developed, over the post-independence decades, a love-hate attitude that quite often mars otherwise strong economic and social relations.

Algeria has often reacted to the two countries’ alleged ‘misbehavior’ by closing borders –as is the case with Morocco since 1994—or calling its ambassadors for consultations, or even cutting diplomatic relations, as just happened in August when it cut ties with its western neighbor.

But it is the first-time Algeria resorts to the weaponization of energy and airspace. “Weaponization” is a term used in geostrategy to mean the use of goods and commodities, that are mainly destined for civilian use and are beneficial for international trade and the welfare of nations, for geostrategic, political and even military gains. As such “weaponization” is contrary to the spirit of free trade, open borders, and solidarity among nations, values that are at the core of common international action and positive globalization.

What happened?

Some observers advance continued domestic political and social unrest in Algeria, whereby thousands of Algerians have been taking to the streets for years to demand regime-change and profound political and economic reforms. Instead of positively responding to the demands of Algerians, the government is probably looking for desperate ways to divert attention and cerate foreign enemies as sources of domestic woes. Morocco and France qualify perfectly for the role of national scapegoats.

It may be true also that in the case of Morocco, Algeria is getting nervous at its seeing its Western neighbor become a main trade and investment partner in Africa, a role it can levy to develop diplomatic clout regarding the Western Sahara issue. Algeria has been looking for ways to curb Morocco’s growing influence in Africa for years. A pro-Algerian German expert, by the name of Isabelle Werenfels, a senior fellow in the German Institute for International and Security Affairs, even recommended to the EU to put a halt to Morocco’s pace and economic clout so that Algeria could catch up. Weaponization may be a desperate attempt to hurt the Moroccan economy and curb its dynamism, especially in Africa.

The impact of Algeria’s weaponization of energy and airspace on the Moroccan economy is minimal and on French military presence in Mali is close to insignificant; however, it shows how far a country that has failed to administer the right reforms and to transfer power to democratically elected civilians can go.

In a region, that is beleaguered by threats and challenges of terrorism, organized crime, youth bulge, illegal migration and climate change, you would expect countries like Algeria, with its geographic extension and oil wealth, to be a beacon of peace and cooperation. Weaponization in international relations is inacceptable as it reminds us of an age when bullying and blackmail between nations, was the norm. The people of the two countries, which share the same history, language and ethnic fabric, will need natural gas and unrestricted travel to prosper and grow and overcome adversity; using energy and airspace as weapons is at odds with the dreams of millions of young people in Algeria and Morocco that aspire for a brighter future in an otherwise gloomy economic landscape. Please don’t shatter those dreams!

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