An assessment of the political will for oil and gas privatisation in Iran.

Abstract

This study explores issues surrounding the potential for the privatisation of some of Iran’s national institutions. In particular, it addresses the issue of what the determinants of the Iranian policy of privatisation are, in order to ascertain whether there is the political will to privatise the Iranian oil and gas industry. In order to answer this question, this study takes a three-pronged approach which relies on multiple methodologies. It begins by providing a theoretical basis for the determination of privatisation policy. Subsequently, it explores a set of international precedents that bind the possibilities of privatisation policy. It then presents an historical outlook on Iran since World War II in order to build a context for the determinants of privatisation policy in Iran. This historical analysis is based on a political economy framework. Finally, the specific background, legal and institutional framework, and policy-maker perspectives are incorporated into the overall analysis. In this final section, particular attention is paid to the views of Iranian policy-makers that have been gained through personal interviews and questionnaires. Together, these three approaches provide a cumulative understanding of the determinants of privatisation policy in Iran. Based on this general assessment, the study makes specific appraisals of the political will of Iranian policy-makers to privatise the oil and gas industry.