Abstract:
This paper reviews the relationship between the rule of law, good governance, and sustainable development as those terms are used by the relevant development organizations; describes the efforts made by various organizations to promote the rule of law and good gov-ernance; and addresses the need to strengthen compliance and enforcement for sustainable development. A recent movement, which has revitalized our national economy and financial markets, is certainly the implementation of general policies of Article 44 of the constitutional law. Every one consents to the necessity of implementing such policies ensuring the process of privatization of state enterprises and providing a legal ground for this movement. The main objective of communicating these policies is to convert the current national economy to a dy-namic, developmental, and competitive economy that will be possible via reducing the gov-ernment outsourcing as well as expanding the activities of private sector. Much of research conducted in developed countries show that privatization laws cause to change the role of the state, create new financial facilities, expand public welfare and increase financial and opera-tional performance in divested companies which leads to an optimal allocation of interests, financial and economic stability, enhancement of the rates of national growth and efficiency and effectiveness. However, given the legal, financial and economic conditions of the coun-try, in order to implement this principle, the ground for privatization should be created in the country through accelerating the formulation and adoption of proper infrastructures.
Machine summary:
Much of research conducted in developed countries show that privatization laws cause to change the role of the state, create new financial facilities, expand public welfare and increase financial and oper a- tional performance in divested companies which leads to an optimal allocation of interests, financial and economic stability, enhancement of the rates of national growth and efficiency and effectiveness.
5. 2 Secondary Objectives of Privatization The secondary objectives of privatization include: increasing people's participation in economic affairs, decision making and ap- propriate distribution of incomes through extending stock among the public, growing the entrepreneurship and creativity for providing grounds for the promotion of na- tional economic productive ability, desir a- ble allocation of the country's resources based on the market performance, improv- ing the commercial conditions and creating a balance between savings and investment (Mahdavi Adeli,2006) But experts at pri- vatization have addressed the issue from a specific aspect and divided the its objec- tives.
Washington Consensus forming the basis of policies of World Bank and IMF for a long time was based on three bases including constraints of the govern- ment’s financial intervention in economy, privatization and market liberalization and the aim of implementing these three princi- ples was to create a free business environ- ment where private sector has a pivotal role in economic growth and development.
But with respect to th e legal, financial, and economic conditions of the country, by accelerating the formulation and adoption of principles, appropriate in- frastructure to provide confidence in capital markets be provided so that by creating competitive environment of the market, private practice have more efficient per- formance than the public sector and so, there is a consensus that the rule of law and good governance are the foundation for achieving sustainable development goals.