In response to the report, the National Development Fund's public relations department, while reviewing and analyzing the Shargh newspaper's report, addresses the question of whether the National Development Fund is truly neglecting global success patterns. In the following, we will examine the dimensions and aspects of this issue and present the conclusion to you, the discerning reader.

Shargh newspaper's report; Rewriting the emphasized content of the National Development Fund

Part One: The status of global funds

Undoubtedly, what was mentioned in the report of the twentieth of Khordad in the Shargh newspaper is not a new topic and is a compilation of data and a rewriting of content that is available to the audience and enthusiasts on the National Development Fund's website. The first part of this report emphasizes the position and importance of national wealth funds in the world and in the second part, it highlights the damages and challenges that the National Development Fund faces, and finally offers suggestions to improve the performance of the National Development Fund. These are topics that are not directly related to the critical headline of the report. Aside from this key point, it is worth noting that these topics have been emphasized by senior managers of the National Development Fund on multiple occasions, and the aforementioned report is essentially a somewhat unintelligent collection of statements made by the CEO of the National Development Fund.

Shargh's report continues to examine the assets managed by major global wealth funds and their approach to investment, stating: "The Norwegian wealth fund with $1.4 trillion and China with $1.3 trillion in assets are considered the largest sovereign wealth funds in the world. The Norwegian fund, in terms of governance structure, leadership, creativity in portfolio types, and diversity of investments, is now recognized as a successful model in the world and receives a lot of attention."

This topic was also emphasized by the CEO of the National Development Fund in the First Line program on the tenth of Esfand, with some of the CEO's words and phrases being directly repeated in Shargh's report: "The Norwegian wealth fund is recognized as a successful model in the world and has nearly $1.4 trillion in assets. The Norwegian fund, in terms of governance structure, leadership, and being a pioneer in investment and being a model in portfolio types and diversity of investments, has received a lot of attention and is remembered as a successful fund."

Part 2: Challenges of the National Development Fund

In the second part of the report, Shargh newspaper addresses the challenges that the National Development Fund is facing. The report states: "Out of a total of $150 billion resources deposited in the fund, only $10 billion remains with the central bank... The government is not allowed to withdraw from these resources... The use of the fund's resources to finance the current budget has caused a crisis similar to the foreign exchange reserve fund... The non-repayment of loans provided to the government, cooperative, and private sectors is one of the challenges of the National Development Fund... The conversion of the fund's foreign currency resources into rials is equivalent to the depletion of resources..."

Each of the mentioned issues has been emphasized as challenges of the fund by the CEO of the fund multiple times. Even the content of these statements formed the main focus of the National Development Fund conference held on April 24, 2023. The author of the Shargh report presents the speech of the CEO as the major challenges of the fund, and the report does not offer any new insights.

Part 3: Recommendations of the Report's Author

Finally, Shargh newspaper suggests: "It is better for the fund's approach to shift from providing only facilities to a combination of facilities and investments, and a mechanism should be established to monitor the process of granting facilities and collecting claims."

The National Development Fund accepts this suggestion with appreciation, but a look at the statements of Mehdi Ghazanfari, the CEO of the fund at the April 24 conference, indicates that even the summary and recommendation of this report are repetitive. Let's review and compare excerpts of his statements regarding the presentation of the fund's challenges and recommendations. Ghazanfari says: "If the National Development Fund undergoes changes in line with the concept of a national wealth fund in the Sixth Economic Development Plan, more effective measures will certainly be taken compared to the past. We must not mistake capital for wealth. When oil is sold, it is said that the resources from oil sales are actually wealth, and then these resources are spent in the budget. This approach is wrong. Resources are actually capital and should be invested. On the other hand, the loans provided to governments are not meant to assist them and the resources should be returned to the fund."

In another section, the author of the report suggests that "the reports of the fund should also be released from confidentiality and made transparent, so that the people are informed about the details of its decisions and resolutions."

This suggestion aligns exactly with the emphasis of Mehdi Ghazanfari, the CEO of the National Development Fund: "In the National Development Fund, the entire population of the country is considered stakeholders, and such funds worldwide generally engage in communication. Although sometimes I am criticized for disclosing figures and presenting reports on its various operational areas in a fragmented manner, considering the principles upon which the fund is built, complete transparency is necessary in its activities, which prevents any form of rent-seeking."

National Development Fund: Towards Harmonizing with Global Experiences?

After analyzing the report, it is time to scrutinize the chosen headline of Shargh newspaper to determine whether the National Development Fund is truly disregarding successful global models. To find the answer to this question, we present further inquiries in five dimensions and entrust you with providing the response.

Question 1: Is a fund whose CEO repeatedly emphasizes that the National Development Fund of Iran should be transformed into a sovereign wealth fund, similar to global examples, ignoring international experiences?

"The exact name of these funds in the world is sovereign wealth funds, but for some reasons, 12 years ago when this fund was established, it was named the National Development Fund. The concept of a sovereign wealth fund in the world is a fund that captures the surplus national income and seeks to transform these incomes into lasting and productive assets to preserve them for future generations. The resources of the National Development Fund belong to future generations because non-renewable natural resources such as oil and gas will deplete, and since we are currently consuming and using these resources, we should preserve and hand over a portion of them to future generations. This is the function of a sovereign wealth fund. The current option is to transform the National Development Fund into a sovereign wealth fund."

(Mehdi Ghazanfari, in an interview with the TV program "Saf-e Aval," 29 February 2023)

Question 2: Is a fund whose CEO suggests changing the spending of resources from oil and gas sales and focusing on investment, similar to sovereign wealth funds in the world, ignoring international experiences?

"If the National Development Fund undergoes changes in the seventh economic development plan with the concept of a sovereign wealth fund, certainly more effective actions will be taken compared to the past. Capital should not be mistaken for wealth. When oil is sold, it is said that the resources obtained from oil sales are actually wealth, and then those resources are spent in the budget. This approach is wrong. Resources are actually capital and should be invested."

(Mehdi Ghazanfari, National Development Fund Conference, 14 May 2023)

Question 3: Is a fund whose CEO considers the Santiago Principles as the desired framework for governing the National Development Fund, ignoring international experiences?

"The Santiago Principles can be considered as a desirable framework for governance. These principles are actually 24 principles that have been voluntarily established in the International Forum of Sovereign Wealth Funds. Iran is one of the founders and is present in this forum. By relying on such principles, we can have a completely transparent and rational fund. Currently, 41 funds are members of this forum, and many of them voluntarily implement the principles."

(Mehdi Ghazanfari, National Development Fund Conference, 14 May 2023)

Question 4: Is a fund whose new governance framework is based on investment, similar to global sovereign wealth funds, ignoring international experiences?

"The strategies and approaches of the new governance of the National Development Fund indicate a historical turning point that brings the fund closer to its founding objectives more than ever: a wealth-building and value-creating fund. The National Development Fund is on the verge of a clear path that ensures the preservation and durability of national resources, a vision that preserves the share of future generations from natural and national resources like oil and gas, guaranteeing a bright future for the ancient children of Iran. This new governance, like global sovereign wealth funds, is based on the principle of 'investment.'"

(Alireza Kongarloo, Head of Presidency and Public Relations Department of the National Development Fund, 19 March 2023)

Question 5: Is the National Development Fund (Sovereign Wealth Fund) indifferent to global experiences and developments in its communication channels such as its website and specialized publications?

"To achieve new goals and horizons, one must go beyond the limited and confined circle and take steps in new fields, as undoubtedly repeating past experiences will not yield different results and will lead to a monotonous sequence. The National Development Fund, as a wealth fund for future generations and even emulating successful global examples on a global scale, has no other way but to explore new oceans.

Now that the National Development Fund has defined its fundamental mission and strategy as investment and asset generation to create wealth for future generations and has set its course towards it, stepping into new horizons and discovering new perspectives has gained more importance than ever before. It is self-evident that the more we know about these new oceans, the more stable and with a lower margin of error our steps become."

(Alireza Kongarloo, Head of Presidency and Public Relations Department of the National Development Fund, 19 March 2023)

Summary:

Undoubtedly, any thoughtful individual can find an appropriate response to the main question of this article, which is "Is the National Development Fund indifferent to successful global patterns?" by providing either a positive or negative answer to the five questions posed.

Finally, it is necessary and obligatory to acknowledge the efforts of Mr. Amirhosam Es'haghi in compiling and writing the report titled "National Development Fund's Indifference to Successful Global Patterns," which created an opportunity for discussion on the position of the National Development Fund in the widely read and influential newspaper, Vazin-e Shargh. The Fund, with the collaboration and cooperation of the government, the parliament, as well as public opinions and perspectives, can become a clear blueprint for the future of upcoming generations.