Modern Economy and Iran's Position Journal Article

Abstract:

With the introduction of the modern economy in the 1990s, many definitions emerged, all of which share a common emphasis on Information and Communication Technology (ICT) and its extensive impacts. The modern economy has not formed on its own; rather, it is built upon the foundations of the traditional economy. The formation of the modern economy requires contexts and prerequisites, some of which are key requirements for the benefits of the modern economy to manifest: quality of regulations, availability of infrastructure, open trade, development of financial markets, research and development, human capital, labor and product flexibility, entrepreneurship, and macroeconomic stability. Once these prerequisites are met, 'information density' and 'information usability' must be achieved. 'Information density' emphasizes the availability of capital and specialized human resources in the ICT sector, while 'information usability' emphasizes the flow of ICT use in daily activities, economy, and commerce. These two indicators depict the information status of a country. Under these conditions, one can witness the emergence of ICT consequences in the country's economy. Today, despite efforts regarding the development of ICT, most of its expenditures (ICT) are carried out in the government sector and have not yet penetrated other sectors (except for services). Furthermore, the largest investment belongs to the telecommunications subsector, and the hardware, software, and computer services subsectors still require more investment. Additionally, in terms of information density—including the penetration rate of fixed lines, mobile phones, internet hosts, investment, electronic platforms, and human resources—Iran has a large gap compared to leading countries. In the field of information usability, changes have occurred in sectors such as services, which have had subsequent consequences; however, they have not yet become widespread and require doubled efforts. Modern economy is not a phenomenon separate from the traditional economy, as it is influenced if its initial conditions (the traditional economy) are met. Factors such as physical capital and human capital, which are of great importance in the traditional economy, still play a decisive role in the modern economy. Therefore, despite the difference in responses to the country's traditional and modern economic issues, many common questions still exist.