Hostname: page-component-745bb68f8f-grxwn Total loading time: 0 Render date: 2025-01-11T01:20:37.132Z Has data issue: false hasContentIssue false
  • English
  • Français

Digital protectionism and national planning in the age of the internet: the case of Iran

Published online by Cambridge University Press:  19 March 2020

Altug Yalcintas Open the ORCID record for Altug Yalcintas [Opens in a new window]  and
Naseraddin Alizadeh Open the ORCID record for Naseraddin Alizadeh [Opens in a new window]
Altug Yalcintas*
Affiliation:
Department of Economics, Faculty of Political Sciences, Ankara University, 06590 Cebeci, Ankara, Turkey
Naseraddin Alizadeh
Affiliation:
Department of International Relations, Faculty of Economic and Administrative Sciences, Karabuk University, 78050 Kilavuzlar Koyu, Karabuk, Turkey
*
*Corresponding author. Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

What do regulations in the developing world tell us about the internet economy? In this paper, we argue that the ways in which developing nation states adjust to and legislate the internet depends upon whether they possess a national planning strategy for international data traffic. Focusing our attention on the global trade of intangible goods in Iran, we aim to demonstrate that digital protectionism causes, to varying degrees, suppression, censorship, and the violation of freedom of speech and other civil rights on the internet. Our results show that digital protectionism generated an emergence of domestic start-ups, with companies, such as Facenema and Soroush, operating in the Iranian market in the absence of global rivals such as Facebook and WhatsApp. Yet, digital protectionism and sanction-induced barriers have triggered social problems, besides the emergence of parastatals, securing the economy to an inefficient social and economic path towards digital development.

Keywords

Censorshipdigitisationimport substitutioninternet economyIransanction
Type
Research Article
Information
Journal of Institutional Economics , Volume 16 , Issue 4 , August 2020 , pp. 519 - 536
Copyright
Copyright © Millennium Economics Ltd 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Pagano, U. (2011), ‘Interlocking Complementarities and Institutional Change’, Journal of Institutional Economics, 7(3): 373–392.CrossRefGoogle Scholar
Fouladi, M. and Banakar, R. (2017), ‘Shiveha va Shegerdhaye Nofuze Ejtemai Farhangi’, Maarefate Farhangi Ejtemai, 8(2):55–80.Google Scholar
Aaranson, A. S. (2018), ‘What are We Talking About When We Talk About Digital Protectionism’, World Trade Review, 18(4): 541–577.CrossRefGoogle Scholar
Aaronson, S. A. (2016a), ‘The Digital Trade Imbalance and Its Implications for Internet Governance’, Centre for International Governance Innovation, No. 25 February, http://www.cigionline.org/sites/default/files/gcig_no25_web_0.pdf (accessed 21 October 2019).Google Scholar
Aaronson, S. A. (2016b), ‘Digital Protectionism? Or Label the US Government Uses to Criticize Policy It Doesn't Like?’, Council on Foreign Relations, March 3, http://www.cfr.org/blog-post/digital-protectionism-or-label-us-government-uses-criticize-policy-it-doesnt (accessed 21 October 2019).Google Scholar
Acemoglu, D., Tarek, A. H. and Tahoun, A. (2018), ‘The Power of the Street: Evidence from Egypt's Arab Spring’, Review of Financial Studies, Society for Financial Studies, 31(1): 1–42.10.1093/rfs/hhx086CrossRefGoogle Scholar
Ahmad, J. (1978), Import Substitution, Trade, and Development, Greenwich, Connecticut: JAI Press.Google Scholar
Al-Rawi, A. K. (2014), ‘Cyber Warriors in the Middle East: The Case of the Syrian Electronic Army’, Public Relations Review, 40(3): 420–428.10.1016/j.pubrev.2014.04.005CrossRefGoogle Scholar
Alamdari, K. (2005), ‘The Power Structure of the Islamic Republic of Iran: Transition from Populism to Clientelism, and Militarization of the Government’, Third World Quarterly, 26(8): 1285–1301.10.1080/01436590500336690CrossRefGoogle Scholar
Alikhah, F. (2018), ‘A Brief History of the Development of Satellite Channels in Iran’, Global Media and Communication, 14(1): 3–29.CrossRefGoogle Scholar
Alimardani, M. and Milan, S. (2018), ‘The Internet as a Global/Local Site of Contestation: The Case of Iran’, in Peeren, E., Celikates, R., Kloet, J. and Poell, T. (eds.), Global Cultures of Contestation, Cham: Palgrave, Macmillan, pp. 171–192.CrossRefGoogle Scholar
Alizadeh, N. (2019), ‘Ekonomik Direnç ve Kırılganlık: İran'da Bankacılık Sistemi’, Bankacılık ve Sigortacılık Araştırmaları Dergisi, 5(13): 33–43.Google Scholar
Ananyev, M., Xefteris, D., Zudenkova, G. and Petrova, M. (2019), ‘Information and Communication Technologies, Protests, and Censorship’. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2978549 (accessed 10 February 2020).Google Scholar
Ansari, A. M. (1998), Shah Mohammad Reza Pahlavi and the Myth of Imperial Authority, Doctoral dissertation, SOAS University of London.Google Scholar
Arnold, A. (2016), ‘The True Costs of Financial Sanctions’, Survival, 58(3): 77–100.10.1080/00396338.2016.1186981CrossRefGoogle Scholar
Aryan, S., Aryan, H. and Halderman, J. A. (2013a), Free and Open Communications on the Internet, Washington, DC: USENIX Association.Google Scholar
Aryan, S., Aryan, H. and Halderman, J. A. (2013b), ‘Internet Censorship in Iran: A First Look’, in Presented as part of the 3rd Workshop on Free and Open Communications on the Internet.Google Scholar
Atwood, B. (2012), ‘Sense and Censorship in the Islamic Republic of Iran’, World Literature Today, 86(3): 38–41.CrossRefGoogle Scholar
Baer, W. (1972), ‘Import Substitution and Industrialization in Latin America: Experience and Interpretation’, Latin American Research Review, 71(1): 95–122.Google Scholar
Baldino, D. and Goold, J. (2014), ‘Iran and the Emergence of Information and Communications Technology: The Evolution of Revolution?’, Australian Journal of International Affairs, 68(1): 17–35.CrossRefGoogle Scholar
Berman, I. (2013), ‘The Iranian Cyber Threat, Revisited’, Statement Before the US House of Representatives Committee on Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies, 2.Google Scholar
Bronk, C. and Tikk-Ringas, E. (2013), ‘The Cyber Attack on Saudi Aramco’, Survival, 55(2): 81–96.10.1080/00396338.2013.784468CrossRefGoogle Scholar
Bulut, E. (2016), ‘Social Media and the Nation State: Of Revolution and Collaboration’, Media, Culture, and Society, 38(4): 606–618.CrossRefGoogle Scholar
Calder, S. (2017), ‘Turkey has Banned Booking.com But the Website isn't Backing Down’, The Independent. https://www.independent.co.uk/travel/news-and-advice/bookingcom-turkey-priceline-hotels-court-istanbul-ankara-ban-competition-authority-a7658251.html (accessed 21 October 2019).Google Scholar
Chang, H. J. (2002), Kicking Away the Ladder: Development Strategy in Historical Perspective, London: Anthem Press.Google Scholar
Cockcroft, J. D., Frank, A. G. and Johnson, D. L. (1972), Dependence and Underdevelopment and Underdevelopment: Latin America's Political Economy, New York: Anchor Books.Google Scholar
Craig, A. and Valeriano, B. (2016), ‘Conceptualising Cyber Arms Races’, In 8th International Conference on Cyber Conflict (CyCon), IEEE, pp. 141–158.CrossRefGoogle Scholar
Davidson, S., De Filippi, P. and Potts, J. (2018), ‘Blockchains and the Economic Institutions of Capitalism’, Journal of Institutional Economics, 14(4): 639–658.10.1017/S1744137417000200CrossRefGoogle Scholar
DeNardis, L. (2014), The Global War for Internet Governance, New Haven and London: Yale University Press.10.12987/yale/9780300181357.001.0001CrossRefGoogle Scholar
Enikolopov, R., Makarin, A. and Petrova, M. (2019a), ‘Social Media and Protest Participation: Evidence from Russia’, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2696236 (accessed 10 February 2020).Google Scholar
Enikolopov, R., Petrova, M. and Sonin, K. (2018), ‘Social Media and Corruption’, American Economic Journal: Applied Economics, 10(1): 150–174.Google Scholar
Enikolopov, R., Petrova, M. and Zhuravskaya, E. (2019b), ‘Political Effects of the Internet and Social Media’, CEPR Discussion Papers 13996, C.E.P.R. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3439957 (accessed 10 February 2020).Google Scholar
Everard, J. (2000), Virtual States: The Internet and the Boundaries of the Nation-State, London and New York: Routledge.Google Scholar
Fallahi, A. (2016), ‘Tahlile Keyfi va Kammiye Taasire Shabakehaye Ejtemaiye Majazi dar Sakhtare Khanevade’, Faslnameye Farhangi-Tarbiyatiye Zanan va Khanevade, 11(35): 151–170.Google Scholar
Farwell, J. P. and Arakelian, D. (2013), ‘What does Iran's Cyber Capability Mean for Future Conflict?’ Journal of Diplomacy and International Relations, 14(1): 49–58.Google Scholar
Farwell, J. P. and Rohozinski, R. (2011), ‘Stuxnet and the Future of Cyber War’, Survival, 53(1): 23–40.10.1080/00396338.2011.555586CrossRefGoogle Scholar
Golkar, S. (2011), ‘Liberation or Suppression Technologies? The Internet, the Green Movement and the Regime in Iran’, International Journal of Emerging Technologies and Society, 9(1): 50–70.Google Scholar
Golkar, S. (2012), ‘Cultural Engineering under Authoritarian Regimes: Islamization of Universities in Post-Revolutionary Iran’, Digest of Middle East Studies, 21(1): 1–23.CrossRefGoogle Scholar
Guerriero, C. (2019), ‘The Political Economy of (De)Regulation: Theory and Evidence from the US Electricity Industry’, Journal of Institutional Economics. https://doi.org/10.1017/S1744137419000535Google Scholar
Guitton, C. and Korzak, E. (2013), ‘The Sophistication Criterion for Attribution: Identifying the Perpetrators of Cyber-Attacks’, The RUSI Journal, 158(4): 62–68.CrossRefGoogle Scholar
Guriev, S., Melnikov, N. and Zhuravskaya, E. (2019), ‘3G Internet and Confidence in Government’, Discussion Papers 2019-13. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3456747 (accessed 10 February 2020).10.2139/ssrn.3456747CrossRefGoogle Scholar
Habibzadeh, A. and Bakhshi, R. (2016), ‘Shabakehaye Ejtemaiye Majazi va Amniyyate Omumi’, Faslnameye Pajhouheshhaye Daneshe Entezami, 18(1): 1–34.Google Scholar
Hamidi, Y., Hamidi, Y. and Mehrbabak, S. (2011), ‘Localization versus Globalization of Social Networks’, Procedia Computer Science, 3: 191–196.CrossRefGoogle Scholar
Harper, D. A. and Endres, A. M. (2018), ‘From Quaker Oats to Virgin Brides: Brand Capital as a Complex Adaptive System’, Journal of Institutional Economics, 14(6): 1071–1096.CrossRefGoogle Scholar
Hosseinpour, J. and Momeni, A. (2017), ‘Taasire Shabakehaye Ejtemaiye Majazi bar Hoviyyate Nahade Khanevade’, Faslnameye Barnameriziye Refah va Tovseye Ejtemai, 8(32):33–60.Google Scholar
Ismail, A., Schøtt, T., Bazargan, A., Salaytah., B., Al Kubaisi, H., Hassen, M., de la Vega, I., Chabrak, N., Annan, A and Herrington, M. (2018), ‘The MENA Region National Entrepreneurial Framework Conditions’, in Faghih, N. and Zali, M. R. (eds), Entrepreneurship Education and Research in the Middle East and North Africa (MENA), Cham: Springer, pp. 73–102.CrossRefGoogle Scholar
Jha, C. and Kodila-Tedika, O. (2019), ‘Does Social Media Promote Democracy? Some Empirical Evidence’, Journal of Policy Modeling, https://doi.org/10.1016/j.jpolmod.2019.05.010Google Scholar
Kanani, M. and Goodarzi, M. (2017), ‘Fostering New Technology-Based Firms in Iran: Inspiration of World Models in Solving Domestic Challenges’, in Soofi, A. and Goodarzi, M., The Development of Science and Technology in Iran, New York: Palgrave Macmillan, pp. 29–43.CrossRefGoogle Scholar
Karagiannopoulos, V. (2012), ‘The Role of the Internet in Political Struggles: Some Conclusions from Iran and Egypt’, New Political Science, 34(2): 151–171.10.1080/07393148.2012.676394CrossRefGoogle Scholar
Karamelikli, H. and Alizadeh, N. (2017), ‘İran İslami Bankacılık Sistemi Üzerine Bir Değerlendirme’, Bankacılık ve Sigortacılık Araştırmaları Dergisi, 2(11): 36–58.Google Scholar
Kazanin, V. E. (2017), ‘Telegram-Channels and Twitch-Broadcast as the Prospective Technologies in Government Transparency’, Contemporary Problems of Social Work, 4(12): 61–68.Google Scholar
Kelly, J. and Etling, B. (2008), ‘Mapping Iran's Online Public: Politics and Culture in the Persian Blogosphere’, Berkman Center for Internet and Society and Internet and Democracy Project, Harvard Law School.Google Scholar
Kenney, M. (2015), ‘Cyber-Terrorism in a Post-Stuxnet World’, Orbis, 59(1): 111–128.CrossRefGoogle Scholar
Khiabany, G. (2018), ‘Citizenship and Cyber Politics in Iran’, in Zayani, M. (ed.), Digital Middle East: State and Society in the Information Age, New York: Oxford University Press, pp. 217–238.10.1093/oso/9780190859329.003.0010CrossRefGoogle Scholar
Kian, M. and Qolipour, Z. (2016), ‘Asare Tarbiyatiye Shabakehaye Ejtemaiye Telfone Hamrah bar Hoviyate Melli va Dini Daneshjuyan’, Resaneh, 27(2): 105– 122.Google Scholar
Kodila-Tedika, O. (2018), ‘Natural Resource Governance: Does Social Media Matter?’, MPRA Paper 84809, University Library of Munich, Germany.Google Scholar
Kohl, U. (2017), The Net and the Nation State: Multidisciplinary Perspectives on Internet Governance, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Kumar, A., Balakrishna, R., Nandish, U.G. and Naveen, L. (2012), ‘A Social Networking (Orkut) on Local Area Network with Client Server Architecture’, International Journal of Advanced Research in Computer Science and Software Engineering, 2(1): 1–6.Google Scholar
Lalmohammadi, N. (2016), ‘Sarava Pars Venture Capital Firm: the Case of the Emerging Start-up Market of Iran’, MA Thesis, Politecnico DI Milano, School of Industrial and Information Engineering.Google Scholar
Lindsay, J. R. (2013), ‘Stuxnet and the Limits of Cyber Warfare’, Security Studies, 22(3): 365–404.CrossRefGoogle Scholar
Lourenço, A. and Turner, S. (2019), ‘The Role of Regulation In Constituting Markets: A Co-Evolutionary Perspective on the UK Television Production Sector’, Journal of Institutional Economics, 15(4): 615–630.CrossRefGoogle Scholar
Lu, J. and Liu, X. (2018), ‘The Nation State in the Digital Age: A Contextual Analysis in 33 Countries’, International Journal of Communication, 12: 110–130.Google Scholar
Marczak, B., Dalek, J., McKune, S., Senft, A., Scott-Railton, J. and Deibert, R. (2018), ‘Bad Traffic: Sandvine's PacketLogic Devices Used to Deploy Government Spyware in Turkey and Redirect Egyptian Users to Affiliate Ads?’ The Citizen Lab, https://citizenlab.ca/2018/03/bad-traffic-sandvines-packetlogic-devices-deploy-government-spyware-turkey-syria/ (accessed 21 October 2019).Google Scholar
Mazzucato, M. (2011), The Entrepreneurial State, London: Demos.CrossRefGoogle Scholar
Memar, S., Adlipour, S. and Khaksar, F. (2012), Shabakehaye Ejtemaiye Majazi va Bohrane Hoviyat, Faslnameye Motaleat va Tahqiqate Ejtemai dar Iran, 1(4): 155–176.Google Scholar
Mirfardi, A., Mokhtari, M. and Valinejhad, A. (2017), ‘Mizane Dindari va Ertebate an ba Estefade az Shabakehaye Ejtemaiye Interneti’, Jamee Shenasiye Karbordi, 28(66): 1–16.Google Scholar
Mohaddes, K. and Pesaran, M. H. (2013), ‘One Hundred Years of Oil Income and the Iranian Economy: A Curse or a Blessing?’ in Alizadeh, P. and Hakimian, H. (eds.), Iran and the Global Economy: Petro Populism, Islam and Economic Sanctions, New York: Routledge, pp. 28–61.Google Scholar
Mohammadi, A., Yavari, A. H. and Javanmard, M. (2017), ‘Naqshe Shabakehaye Ejtemaiye Majazi dar Ijade Bohranhaye Ejtemai’, Faslnameye Pajhouheshhaye Daneshe Entezami, 19(1): 1–24.Google Scholar
Moshiri, S., Parsa, M. M. and Darugar, L. (2018), ‘Barrasiye Asare Fannavariye Ettelaat va Ertebatat bar Zancireye Tovlide Kala va Khadamate Iran ba Estefadeh az Jadvale Dadeh-Setande’, Faslnameye Pajhouheshhaye Eqtesadi, 18(68): 1–44.Google Scholar
Naghibulsadat, S. R., Qasabi, F. and Farhadi, P. (2015), ‘Iranian and Non-Iranian Social Networks’ Structures; A Comparative Study’, Online Journal of Communication and Media Technologies, 5(3): 91–106.10.29333/ojcmt/2518CrossRefGoogle Scholar
Nasab, E. H. and Aghaei, M. (2009), ‘The Effect of ICT on Economic Growth: Further Evidence’, International Bulletin of Business Administration, 5(2), 46–56.Google Scholar
Ostrom, E. (1990), Governing the Commons: The Evolution of Institutions for Collective Action, New York: Cambridge University Press.10.1017/CBO9780511807763CrossRefGoogle Scholar
Pieterse, J. N. (2012), ‘Leaking Superpower: WikiLeaks and the Contradictions of Democracy’, Third World Quarterly, 33(10): 1909–1924.10.1080/01436597.2012.728324CrossRefGoogle Scholar
Polanyi, K. (1944 [2001]), The Great Transformation, Boston: Beacon Press.Google Scholar
Qasemi, V., Adlipour, S. and Kianpour, M. (2013), ‘Taamol dar Fazaye Majaziye Shabakehaye Ejtemaiye Interneti va Tasire an bar Hoviyate Diniye Javanan’, Din va Ertebatat, 19(2): 5–36.Google Scholar
Qin, B., Strömberg, D. and Wu, Y. (2017), ‘Why Does China Allow Freer Social Media? Protests versus Surveillance and Propaganda’, Journal of Economic Perspectives, American Economic Association, 31(1): 117–140.CrossRefGoogle Scholar
Rahimi, B. (2011), ‘The Agonistic Social Media: Cyberspace in the Formation of Dissent and Consolidation of State Power in Postelection Iran’, The Communication Review, 14(3): 158–178.CrossRefGoogle Scholar
Rahimi, B. (2015), ‘Censorship and the Islamic Republic: Two Modes of Regulatory Measures for Media in Iran’, The Middle East Journal, 69(3): 358–378.CrossRefGoogle Scholar
Razavi, S. A. M., Nematifar, N. and Muosavi, S. H. (2018), ‘Barrasiye Rabeteye Savade Resanei va Tahajome Farhangi dar Shabakehaye Ejtemai’, Eslam va Motaleate Ejtemai, 6(2): 152–178Google Scholar
Reinsberg, B. (2019), ‘Blockchain Technology and the Governance of Foreign Aid’, Journal of Institutional Economics, 15(3): 413–429.CrossRefGoogle Scholar
Rid, T. and Buchanan, B. (2015), ‘Attributing Cyberattacks’, Journal of Strategic Studies, 38(1–2): 4–37.CrossRefGoogle Scholar
Rostami, M., Oskoi, R. J., Neshat, E. and Forqani, M. R. (2017), ‘Barrasiye Tasire Shabakehaye Ejtemai bar Farhang va Bavarhaye Dini (Hoviyat) Karbaran’, Olume Ejtemaiye Danshgahe Azade Eslami Shushtar, 11(2): 45–72.Google Scholar
Safshekan, R. (2017), ‘Iran and the Global Politics of Internet Governance’, Journal of Cyber Policy, 2(2): 266–284.CrossRefGoogle Scholar
Salamzadeh, A. and Kesim, K. H. (2017), ‘The Enterprising Communities and Startup Ecosystem in Iran’, Journal of Enterprising Communities: People and Places in the Global Economy, 11(4): 456–479.CrossRefGoogle Scholar
Salavatian, S. and Dovlatkhah, M. (2017), ‘Taasire Estefade az Shabakehaye Ejtemaiye Mobayli bar Hoviyate Farhangiye Daneshjuyan’, Rasaneh va Farhang, 7(1): 49–66.Google Scholar
Saleh, N. (2012), ‘Egypt's Digital Activism and the Dictator's Dilemma: An Evaluation’, Telecommunications Policy, 36(6): 476–483.CrossRefGoogle Scholar
Sammaknejad, B. (2017), ‘The Impact of the Joint Comprehensive Plan of Action on the Startup Ecosystem in Iran’, MA Thesis, SRH University of Applied Sciences Berlin, Germany.Google Scholar
Seyyedalitabar, S. H., Pouravari, M., Asgarovladi, M. H. and Mohammadalipour, Z. (2015), ‘Moqayeseye Negaresh be Ravabete Fara-zanashuyi va Jahatgiriye Mazhabiye Karbaran va Gheyrekarbarane Shabakeye Ejtemaiye Facebook’, Khanevadeh Pajhohi, 11(43): 297–308.Google Scholar
Sharafaddin, H. and Eqbali, M. J. N. (2016), ‘Avamele Sakhtariye Bitaqvayi dar Shabakehaye Ejtemai Sayberi’, Din va Ertebatat, 23(1): 109–136.Google Scholar
Sharifi, M. and Shahrestani, A. (2017), ‘Barrasiye Rabeteye beyne Mizane Estefade az Shabakehaye Ejtemaiye Majaziye Mobayli (Telegram) ba Raftar va Akhlaqe Ejtemaiye Karbarane ba Ruykarde Dini’, Farhang dar Danshgahe Eslami, 7(3): 277–298.Google Scholar
Sunstein, C. R. (2017), Republic: Divided Democracy in the Age of Digital Media, Princeton: Princeton University Press.CrossRefGoogle Scholar
Turow, J. (2011), The Daily You: How the New Advertising Industry is Defining Your Identity and Your Worth, New Haven: Yale University Press.Google Scholar
Ziaieparvar, H. (2009), ‘Jange Narme Sayberi dar Fazaye Shabakehaye Ejtemai’, Resaneh, 20(2): 9–49.Google Scholar
Zuboff, S. (2019), The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power, New York: Public Affairs.Google Scholar