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The Islamic Republic and Iran’s National Economy: The Great Disappointment



 
According to the author, the current political upheaval in Iran is partly caused by the sorry state of Iran’s economy. He suggests that general economic decline, palpable incompetence in planning for economic growth and particularly increasingly pervasive corruption and social disparity have contributed to the current explosion of anger and resentment by an overwhelming number of Iranians. For a great many of Iranians, who are well informed about the outside world, the deepening chasm between Iran and a number of comparable societies in the world, such as South Korea, Turkey, Malasia, Mexico and Singapore, is no less than a tragedy. In the last three decades, the author suggests, a veritable economic revolution has resulted in the entry of a number of underdeveloped countries into the camp of major industrial societies and the debunking of the myth of the superiority of the white race. 
 
Today, the author believes, Iran’s domestic market is inundated by the imported goods of these newly emergent economic power houses and Iran’s traditional and once burgeoning industries have gone under. Iranians are still hugely dependent on the sale of their crude oil for their economic survival. However, even the level of oil production is less than what it was 30 years ago.
 
The government decision to terminate its economic subsidies will simply increase the rate of inflation and lead to further hardships for the Iranian consumers. Termination of subsidies, not unlike other economic reforms, needs a friendly international environment. Such an environment is not yet available for the Islamic republic of Iran since, according to the author, the Iranian government has never morphed into a normal member of the international community for the simple reason that its survival depends on its very “abnormality.”    

Author: 
فریدون خاوند*
Volume: 
۲۵
Current Issue: 
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