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Iran’s government last week reinstated the Management and Planning Organization (MPO), which was dissolved under the administration of former president Mahmoud Ahmadinejad in June 2007 (MEES, 16 July 2007).
The former president then established a new entity for budgeting directly under his control, a move which was condemned at the time by economists in Tehran. The MPO was set up in 1948 to take charge of economic development planning and was responsible for evaluating the country’s resources and preparing medium and long-term development plans and budget bills.
The formulation of macroeconomic policy has suffered a lot from dismantling the MPO. So Mr Rohani expects its reinstatement to put the process of budgeting and development planning on the right track and thereby cure the economic mismanagement of the previous administration.
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