Given the fact that the preceding two editions of "The Islamic Republic of Iran - Your Partner in Trade" have reached publication during landmark developments in Iran's economy, the publication of this Third Edition of "The Islamic Republic of Iran - Your Partner in Trade concurrent with the onset of the final ratification of Iran's forthcoming Third Five-Year Development Plan should be considered as a good omen. The publication of the first edition of this book coincided with the rounding out of the First Five-Year Development Plan and the initial phases of Iran's Second Five-Year Plan. During the period of the First Five-Year Plan, we witnessed Iran's rapid re-construction of its war torn regions and the concurrent development of a world class infrastructure. These steps coincided with the revival of the Tehran Stock Exchange, an increase of 7.3% in GDP, a reverse in the decline of the ratio of fixed gross domestic investments and increases in the rates of growth of key sectors of the economy such as agriculture (5.6%), industry (15%), utilities (18.9%) and transportation (11.9%).

The publication of the second edition came about just as the Second Five-Year Plan had passed the mid-way mark. In that edition, readers were provided with an account of the landmark inauguration of the Mashad - Sarakhs - Tajan railway in May 1996. This inauguration, symbolized the re-emergence of Iran as the pivotal link for inter-community trading between the eastern and western hemispheres. The railway, which in effect links the land locked nations of Central Asia to the warm water ports of the Persian Gulf, has been hailed as the effective re-emergence of the Silk Road, which, for a period of 1,800 years (200BC -16th Century AD) served as the most important and well known trade artery in the world. Concurrent with these observations, the second edition also reflected upon the emergence of the Tehran Stock Exchange as a regional powerhouse and Iran's rapid industrialization as symbolized by the commissioning of hundreds of large and medium sized projects (particularly in the metals, petrochemicals and industrial sectors) that were initiated during the First Plan, contributing to a further 7.5% increase in real GDP in 1995/1996. Additionally, though already present in what has been deemed to effectively be the largest market in the Middle East, Iranian manufacturers, by capitalizing on the comparative advantages provided by Iran's skilled low cost labor, fully developed infrastructure, low utilities costs and a unique geo-economic positioning, providing direct access to a regional market with a population in excess of 200,000,000, began to secure
new markets for their goods, as evidenced by the massive trade surpluses that were registered during this period.

As such, it is with great pleasure that I write the Foreword to the Third Edition of this unique publication. Coinciding with the end of the Second Five Year Plan, this latest edition reflects the rapid changes underway in Iran today. In today's globalized world, Iranian policy makers have re-worked the mechanics of trade and trade policy so as to adapt to the ever-changing landscape of the global economy. While during the days of the Silk Road the economic forces that lured traders across continents were supported by physical infrastructure, today, Iran as the regional pacesetter, has equally supplemented this physical infrastructure with a comprehensive 'infostructure' as evidenced by the overlaying of Iran with fiber optic and wireless networks, widespread Internet accessibility, numbering technology (bar coding), and the growing use of EDI (Electronic Data Interchange) across all sectors of the Iranian economy, prompting the moniker of Iran as the 'Electronic Silk Road of the 21st Century'.

Concurrent with these developments are the changes underway in different sectors of the Iranian economy. In the oil sector, despite the natural diversification away from oil as an income generator due to Iran's rapid industrialization, Iran has been paving the way for what pundits have termed "an oil development revolution" as evidenced by the recognition and investment generated by its unique 'buy-back' formulation for the attraction of foreign investment. In the industrial sector, major gains have been noted across the board, while in the services sector such as banking, we have witnessed the proliferation of non-banking credit institutions, Iran's first post-revolution private bank as well as legislation allowing for offshore banking activities by overseas banks in Iran's Free Trade Zones. It is hoped that these and other programs currently underway, will be further buoyed by the forthcoming privatization of over 4000 state enterprises and companies.

While these and other issues are fully covered in this publication, an issue requiring particular mention is the evolution underway in Iran's institutional framework. A notable highlight in Iran's forthcoming Third Year Plan is it's unique socio-economic structure which draws upon a direct correlation between a predictable and equitable institutional framework and increased possibilities for trade, investment and growth. By way of example, the Third Five Year Plan calls for, inter alia, greater transparency in government and the elimination of red tape via administrative reform; greater efficiency and productivity via the application of trade facilitation tools such as electronic commerce, and the update and revision of basic laws pertaining to the operation of businesses and industrial laws governing such matters as deregulation and privatization. It is within this context that the publication of the third edition of "The Islamic Republic of Iran -Your Partner in Trade" comes at a unique juncture in Iran's economic development. The adoption of trade and investment policies conducive to the
global economy combined with the rapid development of key industries all backed by solid institutional and macro-economic reform point to a new horizon in Iran's economic development. It is our hope, that this latest edition will not only serve to convey these latest developments to its readers, but will also provide a unique insight to Iran's rich history and trading heritage, locational attributes and future economic aspirations.