Ministry of Cooperatives Labour and Social Welfare / Cooperatives Laws / General Policies of Article 44 of Constitution

General Policies of Article 44 of Constitution
(Ordained by the Supreme Leader)
- Building up the share of cooperative and private sectors in the national economy and cutting down Government’s financial and management burden on economic activities

Para A-
1. Investment, ownership and management of cooperative sector in all fields of activities are authorized and emphasized in Article 44 of the Constitution, aiming at development of non-governmental sector and impeding the growth of governmental sector.
2.1. Macro and large-scale industries (including major downstream oil and gas industries), and large mines subject to be granted by Government
2.2. Overseas commercial activities within the framework of country’s trade and foreign exchange policies
2.3. Banking services by non-governmental enterprises and institutions, cooperative societies, and public joint stock companies as specified by the law
2.4. Insurance
2.5. Power supply, including production and import of electricity for domestic consumption and export activities
2.6. Mail and telecommunication services, subject to be ceded to private sector
2.7. Roads and railways
2.8. Aviation (air transportation) and shipping (marine transportation).

Para B- Cooperative Sector General Policies:
1. Increasing share of cooperative sector in national economy up to 25% by the end of the 5th Five-Year Development Plan.
2. Government’s operative measures in establishing cooperatives for unemployed to start up a productive job.
3. Government’s support for establishment and development of cooperatives, using trends such as tax cut, credit incentives by all country’s finance institutions, avoiding further financial burden on cooperatives as compared to private sector by Government.
4. Establishment of Cooperative Development Bank by Government’s capital, aiming at boosting share of cooperative sector in the economy.
5. Government’s support for cooperatives to access to market-place, and to comprehensive and fair information system.
6. Government’s authority in policy making, supervising the enforcement of laws and avoiding interference in cooperatives’ administrative and management affairs.
7. Conducting technical and vocational trainings as well as other patronage measures to enhance efficiency and potentials of cooperatives.
8. Using flexible and varied means of capital building and share distribution in cooperatives and adopting required strategies to make establishment of new cooperatives possible, other than conventional coops, based on the model of public joint stock companies so as the ownership of each shareholder shall be limited to the extent specified by law.
9. Government’s support for cooperatives, proportionate to the size of membership.
10. Creating national cooperatives to cover the first three disadvantaged deciles of society for poverty alleviation.

Para C- General Policies for Development of Non-Governmental Sectors by Delegation of Governmental Activities & Enterprises:
1. Transferring a percentage of the shares of enterprises to public joint stock cooperative societies, subject to the law stipulated under Article 44, (35% of the shares is decided to be allocated to cooperative sector.)

Para D- Decentralization General Policies:
1. Empowering cooperative and private sectors to act in large-scale projects and to run sizeable economic enterprises.
2. Allocation of 30% of revenues from transferring to national cooperatives for poverty alleviation.
3. Granting financial resources (managed funds) to reinforce cooperatives, to renovate and reform non-governmental economic enterprises, giving priority to privatized agencies, and to finance non-governmental sectors in less-developed regions.