The Theory of Separation of Governance and Administration on Privatization (With an Emphasis on the Evolution of the Role of Government and the Private Sector)

The doctrine of separation of state governance action and outsourcing had a significant impact on the Iranian legal system, particularly in the areas of privatization and economic law. This study, by using a descriptive- analytical, method, tries to investigate the relationship between some set of rules and regulations on privatization deals, especially the Article 44 of IRI Constitution, the Implementation Act of Article 44 and Iran’s Fourth and Fifth Economic Development Plans. According to different investigations, structural and functional changes and legal reforms in public and non-governmental sectors for economic reconstruction, and determination of the terms and scope of related activities in these sectors, through privatization, were applied under the influence of these theories. A theoretical overview of various criteria employed in various rules for the purpose of the separation of governmental actions, the definition of these actions in the Iran’s Economic Development Plan, and the legislator’s emphasis on the theory in the process of determining and scoping transferable actions and duties to the private sector, show that this theory, besides its considerable fundamental effect on the roles and functions of government in economy, in practice, has failed to achieve the objectives of the Article 44 of IRI Constitution in order to make functional changes in the private sector and turning it into the main and centered hub of economical activities.