A Contrast of Two Ideas: Big is Beautiful vs. Small is Beautiful and Lost Wisdom in Iran

Abstract

Policymaking or planning for national development arises from theoretical and conceptual platforms, which need to be put on the agenda of government based on social facts and fundamental issues in the community. General policymaking and economic evolution plans are presented in the form of outlooks, general policies, and development plans. A very significant economic policy debate in the transition process to sustainable development is the selection of a development strategy focused on the size of enterprises and industries. In this respect, there are two development strategies: "small is beautiful", which deals with the development of small and medium-sized enterprises; and "big is beautiful", concerned with the development of big enterprises. In terms of political economy, these two approaches are translated into "small government" and "big government" attitudes. In line with the economic and political analysis of the size of the enterprise, the findings of this study suggest that the strategy of sustainable economic development hinges on the measures and policies adopted by big and developmental states with targeted intervention in planning and policymaking, with a concentration on big and efficient industries and the acceleration of growth in the capacities of the national economy. The efficiency of the economic development strategy is dependent on the capacity of the government institution to raise the production capability of large firms. Finally, this article challenges industrial policy in Iran's fundamentalist system.