DOCUMENT RESUke. ED 070 349 FL 003 680 TITLE Technical Cooperation with Iran: A Case Study of Opportunities and Policy Implications for the United States. Report to the Agency for International Development. INSTITUTION Agency for International Development (Dept. of State), Washington, D.C. PUB DATE 11 Apr 72 NOTE 114p. EDRS PRICE MF-$0.65 HC-$6.58 DESCRIPTORS *Developing Nations; *Economic Development; Economic Factors; Economic Research; Economic Status; *Federal Aid; Federal Government; Federal Programs; Industrialization; *International Programs; *Technical Assistance; Technological Advancement IDENTIFIERS *Iran ABSTRACT This report concerns aspects of the United States' changing policies for providing economic and technical assistance to developing nations. Of primary importance in a review of relationships with those rapidly developing nations no longer eligible for concessional assistance from the Agency for International Development (AID) are the possible mutual benefits from application of U.S. expertise in selected economic sectors. A team of American specialists from AID explores the possibilities for an expanded technical cooperation with Iran in this report. Results of the study indicate Iranian desire for increased American advisory expertise in several areas, particularly in agronomy and in mineral resources development. Identification of these and other opportunities for technical cooperation leads the American advisors to recommend vigorous follow-up by appropriate U.S. agencies. (RL) U.S. DEPARTMENT OF HEALTH, EDUCATION 8 WELFARE OFFICE Of EDUCATION teN THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROM THE PERSON OR ORGANIZATION ORIGINATING IT.POINTS OF VIEW OR OPINIONS STATED DO NOT NECESSARILY REPRESENT OFFICIAL OFFICE OF EDUCATION ,=,Technical POSITION OR POLICY. Cooperation With Iran A Case Study of Opportunities and Policy Implications for the United States Report to the Agency for International Development April 11, 1972 0 AVAILABLECOPY 00 FILMEDFROM BEST .q Agency for International Development 0Washington, D.C. 20523 -.1 IL This Report was photocomposed withinput generated on a time-shared terminaland processed through the Computer-AssistedTypesetting System at the National Bureau of Standards. Members of Study Team LEWIS M. BRANSCOMB (Team Leader) Director, National Bureau of Standards U.S. Department of Commerce EDWARD L BRADY Associate Director for Information Programs National Bureau of Standards WILLIAM S. BUTCHER Technical Assistant for Water Resources to the President's Science Adviser MAURICE D. KILBRIDGE, Dean Graduate School of Design Harvard University ALBERT H. MOSEMAN. Associate Agricultural Development Council JOHN A. REINEMUND, Chief Office of International Geology U.S. Geological Survey U.S. Department of the Interior ERNEST R. SOHNS, Acting Director Office of International Programs National Science Foundation C. TYLER WOOD Consultant Agency for International Development HYDE G. BULLER (Executive Secretary) Chief, Reimbursable Technical Services Technical Assistance Bureau Agency for International Development 3 TABLE OF CONTENTS l'axe Abstract Summary of Recommendations :1 I. Purpose and Methods of the Study 5 A. Charge to the Study Team 5 B. Scope of the Inquiry 6 C. Definitions 7 II.Rationale and Opportunities for Technical Cooperationwith Iran A. U.S. Interest in Economic and Social Developmentin Iran 9 B. Iran's Prospects for Success 11) C. Criteria for U.S. Investme,a in Technical Cooperation with Iran 11 D. Iran's Plans and Priorities: Needs forTechnical Cooperation 12 (I) Agriculture (2) Mineral Exploration and Development (3) Social Services (Education) 15 (4) Other Priority Items and TechnicalCooperation Opportunities 16 (a) Water Resources 10 (b) City and Regional Planning 16 (c) Industrial Development: Management 17 (d) Industrial Standardization and AdaptiveResearch 17 (e) National Housing Policy 17 (f) Basic Research Cooperation 17 E. Government of Iran's Attitudes TowardTechnical Cooperation with the United States 18 F. GOI Vic4vs of Former U.S. Bilateral TechnicalAssistance Program 19 III. Mechanisms for Technical Cooperation 21 A. Acquisition of Industrial Technology by Iran 21 B. Assistance to High Levels of Governmentfor Program Definition. Planning, and Management of Priority NationalDevelopment Plans 21 C. Program Feasibility Studies and Analysis 22 D. Research Cooperation and Program Planning:Other Cooperative Relations Between Technical Institutions 22 E. Institution Building for Education and AcademicResearch 22 IV. Cordusions and Recommendations 25 A. U.S. Government Agencies Must Follow Throughon Team Visit 25 B. A Technical Cooperation Policy for Nationsin All Stages of Develop- ment is Needed 26 C. U.S. Investments in Technical CooperationShould Match U.S. In- terests 27 D. A.I.D. Shares Responsibility with thePrivate Sector in a Moralistic Environment for Cooperation 28 E. A.I.D.. Other Federal Agencies, and PrivateInstitutions Must Develop and Pool Their Resources and Capabilities 29 F. The Proposed International Development Institute tI 1311 Would Embody the Resources and Capabilities Needed for this Technical Cooperation Function 31 G. Bilateral Cooperation Agreement 32 APPENDICES I Members of Study Team 33 2 Persons With Whom Study Team Met 37 3 U.S. Interest in Iran's Development 49 4Bilateral Technical Assistance 51 5 Agriculture 53 6Mineral Exploration and Development 59 7Science and Education 75 8 Water Resources 83 9National Power System Development 89 10City and Regional Planning 95 11 Industrial Development 97 12 Infrastructure for Support of Industrial Technology 101 13 National Housing l'olicy 109 14 A.I.D. in Iran in Retrospect 113 Abstract Policies of the United States for providing economic assistance to the developing nations of the world are under close scrutiny at the present time. The Administration and the Congress have challenged traditional policies and practices, and thePresidenthas proposed a major overhaul of the mechanisms through which the United States has provided economic and technical assistance for the past 25 years. An important aspect of U.S. policy involved in this review concerns n!ronships with those rapidly developing nations which are no longer eligible for concessional assistance from the Agency for International Development (A.1.D.) but where there can be mutual benefits from application of U.S. expertise in selected economic sectors. Guidance is needed at operating levels within A.1.D. and other governmental agencies fcr the establishment of long-range, but flexible, practices for develop- ing the relationships with these countries. One such country is Iran. In 1967 the A.I.D. program of concessional assistance to Iran was terminated. Althoug1u many of the personal and institu- tional associations that were established during the period of concessional assistance have remained active, A.I.D. and Embassy officials have been aware of numerous Iranian activities in which new and closer ties would probably benefit both countries. A.I.D. officials have considered possible in- stitutional roles for their own and other U.S. agencies in helping to establish and strengthen such ties in countries in stages of development similar to Iran's. To carry out a case study from which general guidance could be obtained, the Technical Assistance Bureau of A.I.D. sent a team of American specialists to Iran in January 1972 to explore possibilities for expanded technical coopera- tion. During the course of discussions with representatives of numerous Iranian Ministries, universities, and industrial establishments, many such opportuni- ties were identified. Highest priority in the Iranian Government's Fifth 5-Year Plan beginning in 1973 is to be agriculture, with emphasis on expanded protein production, particularly meat; the Ministry of Agriculture would welcome U.S. knowledge and experience. Next in priority is the development of Iran's mineral wealth which is believed to be very great; the Ministry of Economy would like U.S. cooperation in accelerating the mapping, exploration, andpro- duction of Iran's mineral resources and in strengthening its mineral agencies. Additional exchanges of professors and students between Iranian and Ameri- can universities, although already at a high level, could benefit scholarship in both countries. Identification of these and other opportunities for technical cooperation led the American team to recommend vigorous followup by appropriate U.S. agencies. Recommendations are also made for strengthening the A.I.D.capa- bility to assist Iran and countries in a similar developmentstatus, to identify 1 needs for expertise, and to help locate American individuals and institutions that might respond to such needs. The U.S. team especially emphasizesthe need for adoption of well-formulated policy to guide U.S. technicalcoopera- tion with countries no longer eligible for conccssional assistance. 2 Summary of Recommendations A. A.I.D. and Department of State should give close attention to followup by Federal agencies to team's visit. Highest priority should be given to Iran's desire for help on protein production program. Importance of other opportu- nities for technical cooperation should be brought to attention of appropriate age ivies. (p. 25) B. An increased priority of U.S. Government attention to newly self- sustaining nations such as Iran should replace the present practice of giving them less attention than those receiving concessional aid. (p. 26) C. The growing political and commercial importance