Iranian ICT minister addresses WIEF 2017

EghtesadOnline: At the 13th session of World Islamic Economic Forum (WIEF) Sarawak 2017, held in Malaysia, the member states welcomed I.R. of Iran's proposal, presented by the minister of communication and information technology.

News ID: ۷۸۰۶۵۶

28 November 2017

ISNA's public relations department reports that the ICT minister addressed the 2017 forum, in presence of the PM of Malaysia, the President of Indonesia, the PM of Morocco, the President of Tatarstan and many other ministers from Islamic nations.

The main topic of the discussions which shall extend from Nov. 21 to 23 in the city of Kuching, Malaysia, shall include the fourth industrial revolution, and the challenges and opportunities for Islamic countries.

The complete speech made by Iranian ICT minister states that:

In the name of God, Most Compassionate, Most Merciful

Excellency Dato Mustapha, minister of international trade and industry;

Ambassadors; honorable guests; ladies and gentlemen:

It is indeed my pleasure to participate in this important forum and share my views with you on how we, in the Islamic world, can work together in the Islamic spirit of cooperation (Taa'von) and join hands and resources to achieve and maintain sustainable development.

Muslim population is fast approaching 2 billion, with about 20 percent share of the world economy. In general, Muslim states are categorized as developing countries. This implies that by-and-large, we pay for our needs by providing raw material and cheap labor force. This, of course is not sustainable, and has led to a number of social, economic, and cultural problems with serious consequences, which, as we have witnessed in many occasions, have not been confined to specific and limited areas.

On the other hand, although it may seem that creating trade barriers is an easy fix to trade imbalances, in practice such restrictions seldom work in long term. In contrast, market size, competition, and efficiency are the three important notions that should be considered seriously in changing the landscape. Let me emphasize that changing the landscape should not necessarily create hardship for the developed economies. On the contrary, developed economies can also benefit from new products and services that may emerge in developing nations.

Let us now examine each of the three notions that I mentioned earlier. First, market size is a determining factor, because when the market size is small, the overhead costs of providing services or manufacturing products become prohibitive, causing the services and products to become expensive, which sooner or later would lead to business closures and failures. In many instances, when the target is exclusive to the national boundaries of one country, it lacks sufficient the market size, the vigor and the agility, meaning that that venture will not be sustainable even in medium term. Hence, there is need to devise proper schemes, through multilateral trade agreement to enlarge the market size.

Second, competition is another important factor, without which, there would not be any real incentive to innovate, to improve the quality of services, to reduce the costs, and to make better products. This means that we must prepare ourselves to compete on a global scale in order to survive economically.

Third, a mechanism that ensures steady improvements in efficiency is vital. In general, this can be achieved when there is a concentration of expertise; and adequate means, including the financial resources and the required infrastructure are readily available.

One possible approach that would encompass the above requirements and constraints is to establish different hubs in different Islamic countries, each dedicated and focused to one area of activity. As examples, one can mention FinTech Hub, Information Technology Hub, Banking Hub, Health and Medical Services Hub, etc. In this way, each hub would provide its products and services to a much larger population of the entire Islamic countries, rather than to smaller national markets.

I propose that the Organization of Islamic Cooperation in partnership with the Islamic Development Bank undertake a feasibility study with the objective of preparing a roadmap for establishing dedicated hubs in different Islamic countries based on the availability of expertise and other resources. We need to join hands and cooperate in an exemplary manner to benefit from our resources and capabilities in a shared manner.

I considered this important meeting very appropriate to present our proposal, and want to put on record that we are prepared to actively and enthusiastically participate in this study. Let me finish by saying that we look forward to working with all Islamic countries to develop appropriate schemes that would enhance the well-being of our nations in a cooperative and beneficial manner.

I welcome your views, and thank you for your attention.