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Historical Process for Establishment of Iran Small Industries and Industrial Parks Organization (ISIPO)

A review of the industrial development process shows that more than five decades has passed from development planning system in Iran. By examining the first economic, social and cultural development plan which was formulated in 1948 (a 7-year plan), it can be found that the major axes of the plan included addressing the infrastructures required for development in the country. In this plan which continued from 1948 to 1954, there is no definite and clear program for industry. At that time, necessary grounds for the priority of industry had not been provided. In that plan, execution and construction of several governmental projects with foreign contribution had been emphasized as well. The economic feature of community included agricultural economy and a major part of population lived in the villages. In the second 7-year plan that lasted from 1955 to 1961, the strategy for industrial development had been neglected because the subjects provided by the first 7-year plan had faced executive problems due to lack of any experiences, shortage of facilities, lack any planning system or even any system for organization, direction and supervision. Therefore, there were basic contradictions between the performance and the plan. After the second plan, national planning system changed to a five-year planning system that continued from 1962 to 1966. At that time, the strategies and policies of industrial development were specified. Having established some of the developmental infrastructures, the government came to the conclusion that the industry sector should be strengthened. The main measure taken by planners was that governmental investments highly increased due to oil incomes. It was in this plan that "Industrial Zones Organization" was established in August 1964 in order to plan and execute the projects related to industrial zones. A relatively suitable jump was made in investment and establishment of industrial units in the fourth and fifth plans. In 1968 (fourth plan), Iran Small Industries and Industrial Parks Organization (ISIPO) was established aiming at development of small industries and improvement of their condition as well as assisting the associated investors. Much effort was made in 1960s and 1970s to establish industrial parks and zones such as Mashhad (Tous), Esfahan, Hamedan and Ahvaz Industrial Parks; however, four industrial parts, namely Alborz, Bakhtaran, Kaveh and Rasht were put into operation before other zones and parks in 1968, 1971, 1973 and 1974, respectively. After the victory of Islamic revolution, new developments were made in policy making, planning and executive system for development of industry and mine sector. Upon approval of the law on preservation of industrial development, many industries were announced as nationalized industries and management of industry sector were assigned to three ministries, namely Ministry of Heavy Industries, Ministry of Mines and Ministry of Industries. National Industries Organization was formed and some of the industrial units were covered by foundations and institutions. The opportunity of a comprehensive and middle term planning for the country was lost by the outbreak of the Forced War.After making changes to the industrial system of the country in 1983, Iran Small Industries and Industrial Parks Organization (ISIPO) with all its duties and responsibilities was incorporated to the Ministry of Industries. The law on Industrial Parks Company of Iran was approved for the purpose of coordination and optimal use of the facilities of industrial parts, providing more infrastructural facilities and offering necessary services to the applicants for establishment of industrial units. For about two decades the Industrial Parks Company established more than 400 industrial parks. Small Industries Organization was established at the beginning of the third plan after incorporation of the former ministries of industries and mines; however, its executive responsibilities were assigned to the Industrial Parks Company of Iran in 2005 and Iran Small Industries and Industrial Parks Organization (ISIPO) practically began its activity as of September 2005. Finally, based on approval No. 469/877 dated 06.04.2011 of the Islamic Consultative Assembly, Iran Small Industries and Industrial Parks Organization (ISIPO) has been assigned as a Developmental Organization.

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