Investigation of the Influencing Factors on the Success of Development Plans and Creating Sustainable Employment in Rural and Nomadic Areas by Using the Resources of the National Development Fund in Isfahan Province

اقتصاد و توسعه منطقه ای

Article 7, Volume 30, Issue 25, June 2022, Pages 215-249   

Document Type: Original Article

DOI: 10.22067/erd.2023.81023.1169

Authors

leila torki^{* 1}; vala sanizaseh²; mohammad reza ghasemi³

¹Asssociate Professor, Department of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan.

²Ph. D Student in Economics, Department of Economics, Faculty of Management and Economics, Sharif University of Thecnology.

³Ph. D in Economics, Department of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan.

Abstract

 
1- INTRODUCTION
Most of the developing villagers are deprived of access to financial resources and the lack of access of entrepreneurs to financial resources in this country, on the one hand, causes people to remain in poverty, and on the other hand, it causes a reduction and limitation in the formation of income. New businesses are created to increase economic growth. Currently, with consideration the existing challenges in the villages of the country such as unemployment, low productivity rate, excessive immigration, and high level of poverty, it seems that the development and expansion of the payment of financial resources from microcredits. Which can create these areas by increasing the entrepreneurial ability of rural people. At the beginning of the third millennium, microcredit is one of the important resources for poverty alleviation and economic empowerment of villagers. The microcredit system has been one of the solutions proposed in the last few decades to invest and strengthen the financial foundation and savings in rural areas and ultimately rural communities and poverty alleviation through productivity improvement. Microcredits for financing ordinary people can use the services of common official institutions, and its main purpose is to gather capacities and devices for production among poor entrepreneurs and provide sustainable sources of livelihood for rural residents. Microcredits are one of the main topics in economics, after the change in economic theories and perspectives of development as an economic stimulus in developing countries and receiving the problems of inflation and increasing unemployment, and unfair distribution of wealth and income, the key to solving the puzzle is numbered. These useful credits are one of the characteristics of being a group, capability, people and relying on social justice, sustainability, creating security and safety as one of the strategies to strengthen poor local communities in the new paradigm (sustainable rural development).
Based on this, to implement monitoring plans and enumeration locations of rural plans in the high supervision of law enforcement, 4266 plans that were paid in full and in installments until 1400/10/20 were used for enumeration, and research results were carried out. The results obtained from the questionnaires are presented. In the second stage, the introduction of rural law and the research conducted in this field are discussed. In the third stage, based on the results of statistical tests and analysis of the data extracted from the questionnaire, the factors that affected the success of the plan in creating a plan are introduced, as also the cases where the deviation in the implementation of the plan is due to its legal provisions and the causes of it are discussed. In the fourth and final stage of the research, while summarizing the findings of the research, suggestions are presented to correct the flaws in the law and its executive regulations.
 
2- THEORETICAL FRAMEWORK
The law "Supporting the development and creation of sustainable employment in rural and nomadic areas using the resources of the National Development Fund" was approved by the Islamic Council in August 2016 and on September 19 of the same year by the President for implementation to the Program and Budget Organization. The country was notified. The purpose of this law is to fulfill the general policies of the resistance economy by promoting products and creating sustainable employment in rural and nomadic areas.
According to article 1 of this law, the National Development Fund is allowed to deposit up to 1.5 billion dollars of the fund's resources with the approval of the Board of Trustees in the Agricultural Bank, Omid Entrepreneurial Fund, Post Bank, and Cooperative Development Bank in the form of loans. These resources should be used to provide facilities to non-governmental natural and legal entities to create employment in villages and cities with less than ten thousand people, with priority for villages and cities with less than ten thousand people in border and nomadic areas. According to the law, the granted facilities can have a breathing period of up to one year and a repayment period of 6 years. Also, the operating institutions are required to have the equivalent of the deposit of the fund from their sources for granting facilities. The benefit of the facility is calculated at a rate of 6% in non-border areas and at a rate of 4% in border areas. According to Article 4 of this law, working capital facilities are granted only to production units located in rural industrial areas and cities with a population of fewer than 10,000 people, and according to article 9 of the working capital regulation, it is calculated at a rate of 10%. (Law on supporting the development and creation of sustainable employment in rural and nomadic areas using the resources of the National Development Fund, 2016).
The executive regulations of this project were approved by the Council of Ministers in November 2016. According to this regulation, the target sectors for granting this facility include 6 sectors of agriculture and natural resources, industries and small mines, service activities and information technology, tourism and handicrafts, and handwoven carpet activities and providing working capital for production units located in Rural industrial areas and cities with less than ten thousand people. In Article 4 of the regulation, the share of each sector of the facilities at the country level is determined. Based on this, the share of the agricultural sector is 45%, small industries and mines 10%, service activities and information technology 15%, tourism 10%, handicrafts, and handwoven carpet activities 10%, and the supply of working capital for production units 10%. These shares will be revised based on performance up to 30% by the national working group.
In Article 5 of the regulations, according to the combined index of the rural population, unemployment rate, and per capita income, the share of Isfahan province is 3.04% of the total resources.
According to Article 7 of the regulations, the supervision of the implementation of the sustainable employment development program should be carried out using the capacity of provincial organizations and executive bodies.
According to Article 10 of the regulation, operating institutions are required to review and approve the applicant's plans in terms of technical, financial, and economic justification while guaranteeing the reimbursement of fund resources, and in case of rejecting the request, inform the applicant of the reasons in writing.
Article 15 of the regulation states that the executive bodies must introduce qualified applicants to the operating institutions and monitor the realization of the plan's goals.
The Ministry of Cooperation, Labor and Social Welfare, as the main trustee of the implementation of this project, according to the regulations, should, in addition to the operational supervision of the implementation programs of employment, train applicants in specialized fields and provide a comprehensive system for registration and submission of documents. 
3- METHODOLOGY
Considering that the purpose of this realization is to investigate the factors affecting the realization of the goals of the law, the most important of which was the creation of employment, and the deviations from its implementation and the executive regulations. In this stage, by using statistical tests and tables of descriptive statistics with the use of STATA software have been used to analyze the data of the questionnaires and present the results.
 
4-RESULTS
Among the parameters in the questionnaire, the variables that have been logically and empirically possible to have a relationship with the success of the project have been investigated by using t-test and ANOVA. Based on the results of these tests, the following variables have been related to the success of the project:
City implementation plan
Executive body
Target section
Design type
Company closure
The presence of a support system
 
5- CONCLUSION & SUGGESTION
According to the time frame of project implementation, two important external factors can be raised as challenges to the success of projects:
1) The spread of corona disease: with the spread of this virus and its detection in the country since March 2018, economic sectors throughout the country were affected by its consequences. The restrictions applied to control this disease have had the greatest effect on the service and tourism sectors, which can be effective in the performance of these sectors as an external effective factor.
2) Inflationary stagnation: with the intensification of cruel sanctions against Iran since the beginning of 2017 and the shock of the exchange rate jump, the country's economy has experienced high inflation rates and low and even negative economic growth in these 4 years. According to the published statistics, the industry and mining sectors have received the most impact from these conditions and have faced more negative growth.
Among the cases that are considered as deviations based on the goals of the plan or the cases listed in the regulations and law, a low percentage of the plans have deviations.

Keywords

sustainable employment; National Development Fund; rural and nomadic areas

References

References

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