Mr Chengiz Hazin has been involved with exports since a long time ago even before Iran’s Export Promotion
Center (EPC, now Trade Promotion Centre, TPC) was established. He was one of the first employees of EPC and though
he is now engaged in many areas of state activities that are not related to exports, he has never lost his interest
in the field. Presently he is one of the deputies to the General Secretary of Tehran Chamber of Commerce and is also
responsible for holding the annual Iran Plast Exhibition.
Events- How did it all begin? Where are we to find the origins of EPC?
Chengiz Hazin – It all began in 1969 when the then Minister for Economy, Mr Ansari, said in
one of the meetings of the joint chambers of commerce, that they had come to the conclusion that a center was needed
to care for and worry about exports and to increase Iran’s industrial exports to one billion dollars within
10 years. Gradually the EPC emerged and was of great help to exporters but even so by the time the Islamic
Revolution came about, in 1979 (exactly 10 years after), the country’s total non-oil exports, industrial
and non-industrial, amounted to 800 million dollars.
Immediately after the Revolution, because of the war with Iraq that followed soon, and the internal problems with
exchange restrictions and transportationregulations, non-oil exports dropped to a mere 200m.
Following the Revolution many things happened that made economic conditions very difficult. There was the war with
Iraq and at the same time there was a population explosion, economic sanctions and severe mistrust of the Western
nations among Iranians, particularly the USA and the UK. So, we resorted to self-sufficiency and import-substitution
policies, which damaged our exports severely though they may have helped in other ways. And then we had the rapidly
declining value of the Iranian Rial.
Devaluation normally helps exports but our banking system was in such havoc during the early Post-Revolution years
that nothing could help our exports. We rapidly fell behind most of the nations that had hitherto been considered
to be less fortunate than the Iranian nation, such as Turkey, Thailand, and Malaysia. We had always in the past
been stronger than them in the international market. But now we rapidly fell behind.
Many actions were taken that ruined our exports: exporter’s guilds were shut up, the powers of the chambers
of commerce were reduced, exporters were accused of being smugglers of foreign exchange etc…
Then the war ended and the authorities decided to rapidly industrialize the country. But, perhaps they tried too
hard, to do the work too rapidly, because soon our foreign debts approached the 40m-dollar level. However, by now
the importance of exports and industrial exports in particular, had been realized and were being emphasized by the
authorities.
Since then there have been changes for the better: changes in rules and regulations, improvements in the customs
procedures and formalities etc etc.
But we still face serious problems in many areas. In air transportation for example: if we had an effective air
transportation system we could easily develop our export of flowers. Our potentials are such that we could even
soon become a serious rival for Holland, with proper planning of course.
E- But what are our chances today?
CH- If we are to talk about serious production and exports today and look at things realistically,
we must accept that our real potentials lie in industrial exports and export of engineering and technical services.
We have excellent potentials in the latter but have so far failed to make effective use of it. In fact our main
potential in this area, namely qualified and creative people, are being absorbed by foreign countries. Experience
has shown that where we have been serious, and have acted with determination and perseverance, we have made
excellent progress. Just look at our growing petrochemical industry. Trends show that within the next few years
we shall increase our production of petrochemicalsfrom around 10m tons to almost 70m, and we are increasing our
exports at the same rate. Our production of pistachios has grown from 15,000 to 200,000 tons, and so today we
export 100,000 tons of pistachios worth one billion dollars, each year.
E- How can we help the engineering and technical sector?
CH- Two points are very important, in my opinion: first, that we have neglected our private
sector in general; and second, that we have neglected the engineering and technical sector in particular with
all the strength and potentials they have. So, I like to emphasize on both points and plead with our nation,
our authorities, to pay far more serious attention to both; to help our private sector in general, and fully
support our engineering and technical sector, in particular, and as a matter of urgency.
Unfortunately our private sector has gone stale and does not know quite what to ask from the government.
I often see people from the private sector going to a certain ministry to ask for subsides, or the cost of
participation in an international exhibition.
These demands are disgraceful to the private sector. What they really want is what the authorities have actually
been promising them and has not yet materialized: that is to bring down interest rates, down to one digit on
loans given to the private sector entities trying to participate in an international tender. But of course our
banks too face problems. In a country where inflation is a two-digit figure - 14% they say though some experts
believe it to be closer to 20% - how can the banks provide loans at 9%?
E- What is your opinion about the transit opportunities between countries north of Iran and the
Persian Gulf in the south?
CH- I was coming to that because it is a very important point. The transit program through Iran
linking the north to the south is an excellent opportunity we should not lose. We lost our opportunity for trade
in Caucasian and most Central Asian countries and in Afghanistan. So, we should make sure of succeeding in Iraq
with this transit program. Fortunately, we have acted effectively so far and the size of transit goods is
increasing steadily.
We have relatively good roads and railways, excellent ports in the south and our national shipping company, the
Islamic Republic of Iran Shipping Line is one of the best worldwide. This transit transportation will develop
other industries as well. So, for these and many other reasons we should take the matter very seriously.
Fortunately the government has acted correctly and wisely in this respect at least, and the person in charge of
the project now is a powerful man. I think it will be a great success.
