Revolution in Knowledge and Necessity of Planning for Development in Iran

For the last few decades, there has been a controversial discussion over the role of planning in economic development. While some regard it as an economic tool. Others see it as a symbol of an ideology against market. In this paper we try to show that Planning is a tool just like market and can be used whenever and wherever it may be needed .However, efficient working of market and planning depends on institutional environment in which it is applied. In this paper we shall point out how arbitrary policies adopted in Iran and negligence of planning has in fact lead to high cost and heavy loss of opportunity for development. We shall also discuss how the country has not been able to overcome historical backwardness because of shortsightedness of policy makers and slow development. Our main emphasize is that planning is a necessary for knowledge based development.