Reza Fund Abandoned

Rooz Online:

The plans for the creation of the Imam “Reza Charity” fund that was intensely publicized by the government of Ahmadinejad and widely televised by the state television network has been shelved for all practical reasons by the Majlis (Parliament).

The plan aimed at promoting and providing financial assistance to help youth intending to get married and find housing. This was publicized as Ahmadinejad’s “initiative” and a bill for its establishment was sent to the Majlis (Parliament) for passage. But the different committees reviewing its provisions found plenty to block it. The draft today bears no resemblance to what the cabinet had in mind.

The major problem of the fund of course remained the inability of its advocates to find proper funding for the projects. READ MORE

Initially, the government looked at 30 percent of the country current foreign exchange reserves as the source. Majlis deputies and economic specialists immediately objected to the provision. A Majlis faction, Khate Imam (followers of ayatollah Imam’s thoughts) even issued a warning on the government’s inappropriate use of the foreign exchange funds. They estimated the 30 percent to stand at about 7 or 8 billion Dollars, arguing this would generate an inflation rate of some 20 percent in the national economy.

In his first interview since taking the position of director of the Management and Planning Organization of the President’s Office, Farhad Rahbar articulated his support by claiming that the World Bank would provide $100 million to the fund. Experts pointed out that even if they believed those figures and Rahbar’s claims, the amount would only constitute 1.5 percent of the designated budget of the plan.

Majlis deputies involved in the review of the bill concluded that at best, this fund would help rural development, and not facilitate marriage of the youth, which was its initial raison d’etre. The Plan and Budget Committee of the Majlis even altered the name of the plan to reflect “social assistance to the youth” and called it an amendment to the 2005 national budget. They specifically removed Imam Reza’s name from the plan saying it would discredit his revered position among religious people, and even Iranians at large. Imam Reza is recognized as the direct descendent of Imam Ali, the founder of Shiism who is buried in the city of Mashhad, which witnesses millions of pilgrims from the rest of the country and even Shiite communities in neighboring countries.

It is ironic to hear those around the president to continue to call the plan by its original name and even press that the plan has not changed in its direction or content of helping the Iranian youth with their marriage.