Iran’s digital economy: problems and governance features

Digital economy: theory and practice

Current trends in global economic development require the introduction of various technologies, the application of which contributes to the progressive development of the economy. Most countries with a high level of economic development (Singapore, Hong Kong, Germany, etc.) are taking active steps to develop the digital environment and infrastructure necessary for the successful functioning of the digital ecosystem. In this regard, it is established that one of the tools to improve the socio-economic situation in the country is the digital economy. The purpose of this study is to identify the specifics and challenges of the development of Iran’s digital economy. The main elements of the modern digital economy of the Islamic Republic of Iran are identified: smart city, e-health, e-government, e-learning and e-banking. The authors identified the directions of approaches to defining the country’s digital economy and defined the role of the state in the implementation of digital programs. The authors revealed a contradiction in the management system of the development of digitalization of the Iranian economy: on the one hand, state authorities recognize that at present, economic, social and political development is impossible without cyberspace and digital economy; on the other hand, the state is unable to have any significant impact on the digitalization processes due to limited areas of legal regulation and limited state participation in these processes. The trends of Iran’s digital economy are given in case studies. It is found that the state does not take the initiative to create an enabling environment for the development of digital entrepreneurship, and does not actually recognize the digital economy as a priority project and business development incentive. At the same time, the level of digital development in Iran has good prospects for growth. At the same time, a list of challenges to the digitalization of the Islamic Republic’s economy has been established: the delegation of responsibility for developing the digital economy to the private sector; lack of digital technology and human resources; ineffective management of technology projects; lack of certainty in regulating the security and use of personal data; poor infrastructure development; limited state support measures for the use of technology