{"id":21752,"date":"2016-12-20T14:00:23","date_gmt":"2016-12-20T14:00:23","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/issues\/economy\/21752-despite-the-lifting-of-sanctions-why-iran-s-economy-has-plunged-into-recession-part-4"},"modified":"2023-01-17T02:06:49","modified_gmt":"2023-01-17T01:06:49","slug":"despite-the-lifting-of-sanctions-why-iran-s-economy-has-plunged-into-recession-part-4","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/despite-the-lifting-of-sanctions-why-iran-s-economy-has-plunged-into-recession-part-4\/","title":{"rendered":"Despite the Lifting of Sanctions, Why Iran’s Economy Has Plunged Into Recession? \u2013 Part 4"},"content":{"rendered":"

\"549142_603\"<\/p>\n

NCRI – A year after signing the nuclear deal, while significant problems such as export restrictions and the prohibition of the international bank transfer (swift) have been resolved a transparent atmosphere is created to identify the radical economic problems of Iran.<\/p>\n

In previous parts<\/a>, to answer the main question: \u201cwhy the recession is becoming deeper while the sanctions are lifted and the international transaction with Iran has been opened.\u201d We examined \u2018Internal issues\u2019 like, \u2018the lack of security and stability\u2019 , the \u2018domination of the Guardianship of the Islamic Jurist in the country,\u2019 the power struggle mainly between Iranian regime\u2019s Revolutionary Guards (IRGC) and Rouhani\u2019s government and its disparaging effects on oil contracts, the financial instability and widespread corruption, the following is Part 4.<\/p>\n

Part Four<\/strong><\/p>\n

Lack of competition and cumbersome regulations<\/strong><\/p>\n

Overnight decisions, confusion and instability in banking policies and regulations (money market) as well as instability in management of large state-owned companies, have intensified the instability and distrust in Iran\u2019s economy.<\/p>\n

Mahmoud Lahouti, president of the Exports Confederation, explains that \u201cthere are currently about 1600 cumbersome rules in the country\u2019s trade laws, which shows that we are faced with rules inflation; rules which sometimes are interfering and conflicting with each other. At the moment, there are difficult regulations regarding foreign investment and company registration.\u201d<\/p>\n

In Iran, starting any official economic activity in private sector requires going through the furnace of acquiring numerous permits. Besides, when a business comes into operation, dozens of bodies, in addition to those associated with the tax office and social security, claim their shares. If a business could overcome all these barriers through establishing special relationships with numerous officials, still the government pricing authorities could always make it difficult for the manufacturer under the pretext of fighting against profiteering and inflation. As a matter of fact, Iran\u2019s economic activity at all its levels is dominated by \u201cspecial wills and commands\u201d of government bureaucrats. The crushing domination of the state over the whole economic system and a confusing abundance of too cumbersome regulations, has taken any kind of space away from economic actors, leaving no room for competition in Iran\u2019s economy.<\/p>\n

2. International Barriers<\/strong><\/p>\n

the Vali-e-faqih Khamenei said in his public speech in March this year that \u201dToday, throughout the western countries and those influenced by them, we still have difficulties performing our banking transactions, getting our money back from their banks, and doing business deals which require involvement of their banks; once investigated, it turns out that they\u2019re afraid of the Americans. This is what we see today in front of our eyes; a total loss.\u201d<\/p>\n

To be continued<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

NCRI – A year after signing the nuclear deal, while significant problems such as export restrictions and the prohibition of the international bank transfer (swift) have been resolved a transparent […]<\/p>\n","protected":false},"author":10,"featured_media":47668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[175],"class_list":{"0":"post-21752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-updated"},"yoast_head":"\nDespite the Lifting of Sanctions, Why Iran's Economy Has Plunged Into Recession? \u2013 Part 4 - NCRI<\/title>\n<meta name=\"description\" content=\"NCRI - A year after signing the nuclear deal, while significant problems such as export restrictions and the prohibition of the international bank\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/despite-the-lifting-of-sanctions-why-iran-s-economy-has-plunged-into-recession-part-4\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Despite the Lifting of Sanctions, Why Iran's Economy Has Plunged Into Recession? 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