The President's proposal is a step towards diverting the university and the economy.

Hossein Salahvarzi

The recent statements by the President regarding the transfer of loss-making state companies to universities for profitability are an unrealistic idea that contradicts the principles of the Constitution. This approach not only does not help solve economic problems but also diverts universities from their primary mission, complicating and rendering the Iranian economy less efficient. This proposal, by ignoring the mission of universities and the laws of the country, reflects a non-expert perspective on complex economic issues.

Universities are inherently institutions for the production of knowledge, education, and research, not economic enterprises. Their duty is to train specialized forces, advance the frontiers of knowledge, and assist in the scientific development of the country. Engaging universities in the management of loss-making companies, which are afflicted by structural problems, heavy debts, and mismanagement, means diverting them from their primary objective. How can Iranian universities, which themselves grapple with budget shortages and educational challenges, bear the heavy burden of managing bankrupt enterprises?

This action not only sacrifices the quality of education and research but also puts their scientific credibility into question with the potential failure of universities in this field. The result of this deviation is the weakening of the higher education system and a decrease in public trust in universities.

The President, as the guardian of the Constitution, is obligated to ensure its precise implementation and the country’s macro policies, including Article 44, which emphasizes reducing the role of the government and strengthening the private and cooperative sectors. However, transferring state-owned companies to universities, which are themselves public institutions, is not only not privatization but also adds a new and ambiguous entity to Iran's economy. Alongside the private sector, cooperatives, and quasi-public entities, we are now facing a bizarre 'fifth sector' that lacks any clear legal framework. The experience of incomplete transfers in the past, as seen in recent decades, shows that such plans often lead to rent-seeking, corruption, and greater losses.

This proposal, without considering the roots of companies' losses—from sanctions and wrong macro policies to mismanagement—only shifts the issue. Instead of proposing impractical ideas, the president should focus on structural reforms and proper implementation of laws. Such statements are not only unhelpful but also make the economy less efficient and divert universities from their main path.