Ravand 3rd Annual Conference

Ravand 3rd Annual Conference

Iran in the Context of Shifting Global and Regional Realities

24-25 May 2008
Tehran, Iran

Session Descriptions

Iran’s Gas Sector: Management, Development and Growth

OVERVIEW OF SESSION

Gas shortage and the management of gas resources have became one of the most pressing political and economic debates in Iran. It is naturally expected that a country with the second largest gas reserves in the world would be able to fulfil unable to meet domestic requirements. High domestic consumption raises the question of whether Iran should concentrate on gas export, especially in view of the negotiations for Iranian gas export by pipeline to the Indian subcontinent and to Europe, and gas export in the form of LNG, which is being pursued by the National Iranian Gas Export Company. Should Iran focus on exporting gas or should it dedicate its gas resources for domestic use, injection into the old oil fields and creating value added from its use in petrochemical and gas-based industries. However, the government has a long-term strategy: it envisages in the 20-year economic outlook makes Iran a major player in the global gas market. The share Iran would be able to secure; the pricing policy Iran would pursue; and Iran’s future cooperation with other gas-producing countries are the challenges that lie ahead.

Regional Economic Cooperation for Development

OVERVIEW OF SESSION

Today the global economy is experiencing challenges that have consequences for all nations. On the one hand, western economies are entering a recession that began in the US and which is slowly spreading to Europe and to the OECD countries. On the other hand, the economies of India and China continue to exhibit over-heated growth. These developments are creating a global economic imbalance posing serious challenges to developing and less developed countries. Global concerns such as energy security, concerns over long term development of energy resources, and the development of alternative energy sources are no longer limited to a few countries but have become a shared problem. Climate change and environmental degradation are threatening the wellbeing of future generations; sustainable development is longer an option, but an absolute must. We are in a transitional period where the rules of the game have changed. Now all countries have their own share, weight and role to play proportionately. It is on this basis that national economic development is no longer a national phenomena within national boundaries. It is only possible with regional cooperation in a global setting. Countries in our area, West Asia and the Middle East are endowed with a lot of potential that needs to be developed and worked out collectively in order to benefit all countries. The biggest challenge is how to work out a practical all-inclusive framework for cooperation.

Fighting Climate Change through Multilateral Cooperation

OVERVIEW OF SESSION

Climate change is a major challenge confronting mankind. Its importance at the international level is to the extent that the issue has been placed on the agenda of the UN General Assembly at the level of Heads of State and Government, and the Security Council so that the UN 2007/2008 Human Development Report was devoted to "Fighting Climate Change in a Divided World". In particular, the focus has been on the vulnerability of the developing and the least developed countries to the adverse impacts of climate change. Iran and most countries in the Middle East and North Africa are located in the region of arid and semi-arid climates, which are prone to, but not limited to, drought, desertification, deforestation and flood; while suffering from the lack of sufficient fresh water resources, which affect food security, human health and environmental quality. In addition, most of these countries, as oil and gas producing nations, are economically vulnerable to the adverse effects of response measures taken by developed countries.

Investment Banking in Iran and its contribution to Privatization of the Economy

OVERVIEW OF SESSION

Investment banking continues to play a pivotal role in the global economic development. However, as witnessed by the “subprime” crisis leading to one of the biggest shocks to the global financial markets (mainly due to lack of regulation of mortgage related structured products), excesses and greed associated with this industry may lead to severe economic collapse if left unregulated. Despite a repetition, grappling economies with collapses of financial markets over time, the power investment banking and financial products play in development of the financial industry and the overall economy of the developing world remains undeniable. As a viable alternative to commercial banking, investment banking provides certain tools instrumental in the fund raising exercise desperately sought after and required by both corporations and the governments in these economies. This holds especially true in case of privatization of state-owned assets regardless of the economy in question as evidenced across the world. Lessons from the experiences in Western Europe, Eastern Europe or Latin America initially herald the success and the reliance on investment banking for the implementation of the privatization process. However, failures of different models also signal how certain variables can spell disaster for the initiative. Nevertheless, privatization is key to further economic development in Iran as the Government divests itself from major industries. The global experience provides an ideal set of checklists for the Iranian Privatization Organization to map out its strategy as part of ensuring the success of its initiative especially with respect to timing, methodology, priority and valuation of state-owned assets considered for divestiture. Therefore, this panel shall review and discuss key point in ways investment banking may propel privatization in the Islamic Republic of Iran especially considering that investment banking is currently in its nascent phase.

Iran in the Context of Shifting Global Realities

OVERVIEW OF SESSION

The international backdrop is one of consequential developments indicating transformations in state-to-state relations, the geopolitical system, the dynamics of global governance, and economic power centers. This panel will debate subjects such as the forthcoming presidential elections in the US and in Iran: will their respective outcomes harden antagonisms or augur new possibilities for convergence? At the same time, the inauguration of Medvedev as Russia’s new president leads us to ask whether Russia will continue to be run as it was under its predecessor. The emergence of China as an economic powerhouse suggests a growing strategic reliance on Iran for energy and a possibility for a strengthened strategic-economic alliance. What would be the ramifications of such a partnership in the international political arena? In Europe, we have the new creation of a de-facto Foreign Minister of the European Union under the Treaty of Lisbon suggesting that Europe will talk with one voice. This begs the question whether Europe’s strategy toward Iran will change or whether it will continue to prod along the path paved by the global hegemon. How will the prevailing political and economic conditions alter in view of these shifts, and how will Iran -- given its geo-strategic location, socio-cultural-political influences, and vast energy resources -- feature in the new political and economic backdrop. This panel will explore these questions in an attempt to achieve clarity and structure in Iran’s relations with the world at large, and to explore it strategic significance in the global arena in the context of shifts and transformations.

Iran and the Context of Regional Realities

OVERVIEW OF SESSION

The landscape of Iran’s immediate region is one of upheaval and transformation. In this setting Iran is positioned in a pivotal axis. The political configuration and reconstruction of Iraq are yet to be determined as are its security features. In Pakistan, the ongoing threat and proliferation of extremist elements seriously compromises the security of neighboring countries that are bracing themselves for the emerging bulwark of terrorism. Afghanistan also risks failing as a nation in the face of deteriorating international support, a growing insurgency, and the reconstitution of extremist groups. Lebanon is still striving for its democratic future. Turkey’s role is the in regional political arena is still ambiguous as it deals with potential separatist challenges in Iraq. Sectarian discord and shifting regional alliances place the entire region in a transitional phase in which key players struggle to determine their respective roles and responsibilities. This panel explores the affects of regional instability, and aims to find prospects for local solutions spearheaded and guided by regional actors. At the forefront of this inquiry is Iran’s role in the geopolitical matrix characterized by both challenges, and vast opportunities for a understanding, reconciliation, partnership, and a unified strategy, where interests, concerns and anxieties are unraveled, assessed and given a realistic perspective for resolution.

Capital Markets; How to Develop a Viable Cooperation among the Stock Exchanges

OVERVIEW OF SESSION

Regional and international cooperation amongst exchanges has been extremely beneficial on many fronts especially for the less established exchanges. The capital markets over years have withstood the test of time due to the resilience of the industry and the reliance of the corporate world on these exchanges. The new investor demands a 24-hour exchange on alert to meet the ever-growing requirements of a new class of investors. The requirement for execution of “seamless transactions” helps promote cooperation among exchanges. What holds true for the major international exchanges equally applies to the less-established exchanges. Cooperation can be on many fronts by increasing liquidity and streamline the regulatory environment. These include: (i) cross listings; (ii) implementation of legal and financial disclosure standards; (iii) regulatory cooperation in terms of enforcement strategies; (iv) streamlined clearing and settlement processes; (v) development of similar trading platforms as well as other IT solutions and (vi) training initiatives. The panel will discuss some of the key elements responsible for successful cooperation among exchanges as well as some examples which have proved beneficial equally for investors, the exchanges, and the respective regulators.

Iranian-Arab Dialogue: Time for a New Approach

OVERVIEW OF SESSION

Iran-Arab relations can be best characterized by the pursuit of diverging paths in many realms. But today Iran and the Arab states find themselves in circumstances that require a re-evaluation and indeed an overhaul of their relations. This requires in the first instance a reappraisal of the perceptions Iranians and Arabs have of each other. What are the myths and misconceptions about these perceptions? What are the practical sources of tension between Arabs and Iranians? By addressing root questions such as these, this panel seeks to lay the groundwork for addressing broader issues, including: the need to foster peace and stability in neighboring countries; the importance of determining a collective security arrangement in the Persian Gulf; of sustaining development and well-being and commercial ties; and of promoting energy security. While there are enduring and fundamental divergences in Arab-Iranian policy objectives, increasingly, there is a shared vision shaped by economic and strategic realities in the region. This panel will unravel the features of Iranian-Arab relations, and explore potentials and possibilities for promoting understanding and partnership. The partnership between these strategically critical neighbors is vital considering the importance of their role, activity, and interaction in mitigating geopolitical instability, development, while promoting development, commercial ties and joint security.