{"id":236969,"date":"2021-03-29T07:56:42","date_gmt":"2021-03-29T12:56:42","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=236969"},"modified":"2023-02-01T05:00:53","modified_gmt":"2023-02-01T04:00:53","slug":"iran-regimes-systematic-corruption-and-irans-economic-crisis","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-regimes-systematic-corruption-and-irans-economic-crisis\/","title":{"rendered":"Iran Regime\u2019s Systematic Corruption and Iran\u2019s Economic Crisis"},"content":{"rendered":"<figure id=\"attachment_236980\" aria-describedby=\"caption-attachment-236980\" style=\"width: 800px\" class=\"wp-caption alignnone\"><img decoding=\"async\" title=\"Iran-Economy-04\" class=\"wp-image-236980 size-full\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/03\/Iran-Economy-04.jpg\" alt=\"standing in long lines to purchase [poultry at a government-set price]\" width=\"800\" height=\"511\" srcset=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/03\/Iran-Economy-04.jpg 800w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/03\/Iran-Economy-04-300x192.jpg 300w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/03\/Iran-Economy-04-768x491.jpg 768w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/03\/Iran-Economy-04-150x96.jpg 150w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/03\/Iran-Economy-04-696x445.jpg 696w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-236980\" class=\"wp-caption-text\">Standing in long lines to purchase [poultry at a government-set price]<\/figcaption><\/figure>\n<p style=\"text-align: justify\">News from Iran indicates how people are grappling with economic hardships, particularly the skyrocketing prices and inflation. Meanwhile, the state-run media acknowledge how the regime&#8217;s economic mismanagement has created Iran&#8217;s economic crisis. People wait in long lines for hours to purchase their basic needs at governmental prices.<\/p>\n<p style=\"text-align: justify\">&#8220;There have been over a month since we face poultry scarcity around the country, and there are difficulties in distributing it. Each kilogram of poultry should be sold at 20,400 tomans. Unfortunately, a limited number of poultry is distributed among people standing in long lines to purchase [poultry at a government-set price],&#8221; <a target=\"_blank\" href=\"https:\/\/www.yjc.ir\/fa\/news\/7709372\/%D9%85%D8%B1%D8%BA-%D8%A7%D8%B2-%D8%A8%D8%A7%D8%B2%D8%A7%D8%B1-%D9%BE%D8%B1-%DA%A9%D8%B4%DB%8C%D8%AF\" rel=\"noopener\">wrote<\/a> the state-run Young Journalist Club (YJC) on Sunday.<\/p>\n<p style=\"text-align: justify\">&#8220;If the government&#8217;s officials go to the market, as ordinary people do, they would see that most shops either do not have poultry or selling it at high prices. The poultry [which is supposed to be sold at] 20,400 tomans is being sold at 40,000 tomans. There are long queues in front of markets and shops that distribute poultry at the [adopted] prices. While 1,000 tons of fresh chicken and 1,000 tons of frozen chicken were to be distributed daily to meet Tehran province&#8217;s 1,700-ton need, Rahmati, the Chamber of Trade inspector Unions, said that a total of 90 tons of poultry has arrived for Tehran. This should be distributed in Tehran and other cities of the province,&#8221; <a target=\"_blank\" href=\"https:\/\/www.tasnimnews.com\/fa\/news\/1400\/01\/05\/2474748\/%D8%B9%D9%84%D8%AA-%D9%85%D8%B1%D8%BA-40-%D9%87%D8%B2%D8%A7%D8%B1-%D8%AA%D9%88%D9%85%D8%A7%D9%86%DB%8C-%D8%A8%DB%8C-%DA%A9%D9%81%D8%A7%DB%8C%D8%AA%DB%8C-%D9%85%D8%B3%D8%A6%D9%88%D9%84%D8%A7%D9%86-%D8%A7%D8%B3%D8%AA\" rel=\"noopener\">wrote<\/a> the state-run Tasnim news agency on Thursday in this regard.<\/p>\n<div class=\"lyte-wrapper\" title=\"A wave of skyrocketing prices of the most basic goods in Iran\" style=\"width:853px;max-width:100%;margin:5px;\"><div class=\"lyMe\" id=\"WYL_7LMb2Zy0HEw\" itemprop=\"video\" itemscope itemtype=\"https:\/\/schema.org\/VideoObject\"><div><meta itemprop=\"thumbnailUrl\" content=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2F7LMb2Zy0HEw%2Fhqdefault.jpg\" \/><meta itemprop=\"embedURL\" content=\"https:\/\/www.youtube.com\/embed\/7LMb2Zy0HEw\" \/><meta itemprop=\"duration\" content=\"PT1M52S\" \/><meta itemprop=\"uploadDate\" content=\"2020-12-03T18:24:45Z\" \/><\/div><div id=\"lyte_7LMb2Zy0HEw\" data-src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2F7LMb2Zy0HEw%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\" itemprop=\"name\">A wave of skyrocketing prices of the most basic goods in Iran<\/div><\/div><div class=\"play\"><\/div><div class=\"ctrl\"><div class=\"Lctrl\"><\/div><div class=\"Rctrl\"><\/div><\/div><\/div><noscript><a href=\"https:\/\/youtu.be\/7LMb2Zy0HEw\" rel=\"nofollow\"><img decoding=\"async\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2F7LMb2Zy0HEw%2F0.jpg\" alt=\"A wave of skyrocketing prices of the most basic goods in Iran\" width=\"853\" height=\"460\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><meta itemprop=\"description\" content=\"Analysis by PMOI\/MEK Iran, November 2020\u2014A broken economy and the intensifying Covid-19 outbreak is putting immense pressure on the impoverished Iranian society. According to the state-run media on November 28, the consumption of chicken has decreased by 70 percent. Many people can only afford to buy the usually disposed parts of chicken, such as the legs, gizzard, and liver. \u201cWith the rising price of chicken in the last twenty days, the consumption of chicken legs, gizzard, and liver has increased threefold,\u201d said Mehdi Youssef Khani, head of the Poultry and Fish Traders Association in an interview with the state-run ILNA news agency. \u201cBuying chicken is beyond the purchasing power of a high percentage of the population,\u201d Khani added. The people are facing a wave of skyrocketing prices of the most basic goods. This is while the cabinet of regime president Hassan Rouhani constantly claims being in control of rising costs. In his recent remarks, regime supreme leader Ali Khamenei acknowledged the intense pressure on the people. \u201cThe people&#039;s livelihoods are really in a dire situation,\u201d Khamenei said. A glimpse at the widespread rising of prices But while Khamenei and Rouhani both mentioned the rise of prices, why are prices of goods still running an ascending course? The state-run Tasnim news agency reported on November 22 the rise of the milk price, ten kinds of dairy products, butter, four oil products, and four meat products. \u201cWhile we expected the government to take measures to decrease the price of goods, it is issuing permissions to raise prices of basic goods and is setting a competition between vendors. Especially in this economic situation to decrease the pressure on the poor, the officials seek competitoin in the market with prices hike,\u201d Tasnim wrote. On November 22, the state-run Channel 2 television network quoted Mohammad Reza Bani Taba, spokesperson of the Dairy Industry Association, as announcing a 50-percent increase in the price of milk. In addition to official announcements, the regime also unofficially increases prices. On one hand, the regime needs to increase the price of goods to cover its budget deficit at the expense of the people. But on the other hand, it is extremely worried about the resurgence of nationwide protest such as the uprising that took place when it raised the price of gasoline in November 2019. Therefore, the regime increases prices secretly and without any official announcement. This has been the regime\u2019s tactic for many years, using such tactics to raise the price of electricity, water, and gas. And now, it has set its sights on the price of bread. Last month, the regime increased the price of flour and reduced the quota of bakeries to justify increasing the price of bread across the country. Three weeks ago, Khamenei said in remarks that there is no justification for the increase in prices. But he is only shedding crocodile tears and his only concern for the current situation is to prevent the explosion of public outrage. If Khamenei is really concerned about the people\u2019s livelihoods, why isn\u2019t he taking any measures to lift the pressure off the people? It is no secret that Khamenei oversees a vast economic empire that is worth hundreds of billions of dollars and has control over various sectors across Iran. Yet, every government body that is directly or indirectly overseen by Khamenei is involved in raising the prices of goods and services and making life more miserable for the people. One example is the \u201cmarket regulation task force,\u201d which is supposed to control prices but increased the costs of 20 basic goods in one day. The effect of government corruption can be seen in other sectors such as housing and agriculture, where government-owned firms are making huge profits at the expense of the impoverished and hardworking segments of the society. The only valuable argument for these insane skyrocketing prices of basic goods is that the regime has a corrupt and broken economy in hands of looting officials in power. The real problem lays in the mullahs\u2019 establishment. As long as they are in power, people\u2019s misery and suffering will continue. https:\/\/english.mojahedin.org\/i\/iran-price-increase-government-corruption-20201130\"><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:853px;margin:5px;\"><\/div><\/p>\n<p style=\"text-align: justify\">The new Persian Year of 1400 started on Sunday. While Iranian people entered the new year with poverty, the regime&#8217;s Supreme Leader, Ali Khamenei, called this year &#8220;Production: support and the elimination of obstacles.&#8221;<\/p>\n<p style=\"text-align: justify\">&#8220;As we enter Nowruz 1400, not only is there no point of hope, but the expected inflation torments us. In all these years, people have always struggled with difficulties, and the [regime] has only praised them for resisting. Officials now face this question, that when would people have their share of peace and comfort? How long do people have to walk through hundreds of shops to buy oil? Really, how long do people have to stand in long queues for hours so that maybe it will be their turn to get poultry, not at a reasonable price, but at a price several times higher than the price they bought a month ago? How long is the people&#8217;s share of [the so-called] resistance supposed to be skyrocketing prices and empty tables? How long should salaries be below the poverty line?&#8221; <a target=\"_blank\" href=\"https:\/\/www.pishkhan.com\/news\/219003\/\" rel=\"noopener\">wrote<\/a> the state-run Tejarat daily on Thursday in this regard.<\/p>\n<h3 style=\"text-align: justify\">What is the reason for Iran&#8217;s economic crisis?<\/h3>\n<p style=\"text-align: justify\">The mullahs&#8217; regime and its apologists have been trying to blame sanctions as the sole reason for Iran&#8217;s economic crisis, including the skyrocketing prices and the increasing inflation rate.<\/p>\n<p style=\"text-align: justify\">The regime has aggravated Iran&#8217;s economic crisis by catastrophic policies, such as banknote printing. Banknote printing increases the liquidity rate and ultimately results in the rapid growth of point-to-point inflation.<\/p>\n<p style=\"text-align: justify\">&#8220;In 2019 and 2020, parts of the government&#8217;s budget came from the National Development Fund&#8217;s foreign exchange earnings, which simply means banknote printing,&#8221; Abdolnasser Hemmati, head of Iran&#8217;s Central Bank, said on <a target=\"_blank\" href=\"https:\/\/www.entekhab.ir\/fa\/news\/609749\/%D9%87%D9%85%D8%AA%DB%8C-%D8%AF%D9%88%D9%84%D8%AA-%D8%AF%D8%B1-%D8%B3%D8%A7%D9%84%E2%80%8C%D9%87%D8%A7%DB%8C-%DB%B9%DB%B8-%D9%88-%DB%B9%DB%B9-%D8%A8%D8%B1%D8%A7%DB%8C-%D8%AA%D8%A7%D9%85%DB%8C%D9%86-%D8%A8%D9%88%D8%AF%D8%AC%D9%87-%D9%BE%D9%88%D9%84-%DA%86%D8%A7%D9%BE-%DA%A9%D8%B1%D8%AF-%DB%B1%DB%B1-%D8%A8%D8%AF%D9%87%DA%A9%D8%A7%D8%B1-%D8%A8%D8%B2%D8%B1%DA%AF-%D8%A8%D8%A7%D9%86%DA%A9%DB%8C-%DB%B9%DB%B0-%D9%87%D8%B2%D8%A7%D8%B1-%D9%85%DB%8C%D9%84%DB%8C%D8%A7%D8%B1%D8%AF-%D8%AA%D9%88%D9%85%D8%A7%D9%86-%D8%A8%D8%AF%D9%87%DB%8C-%D8%AF%D8%A7%D8%B1%D9%86%D8%AF\" rel=\"noopener\">Sunday<\/a>.<\/p>\n<p style=\"text-align: justify\">&#8220;Inflation is one of the biggest and most fundamental problems that has plagued Iran&#8217;s economy for the past 40 years. The most important structural factor of inflation in the Iranian economy is the government budget deficit. Without the Coronavirus crisis, this year&#8217;s government budget deficit was predicted to be 130,000 billion tomans. Banknote printing is offset, which increases the monetary base and liquidity and ultimately has an inflationary effect,&#8221; <a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/facts-and-figures-show-how-mullahs-have-destroyed-irans-economy\/\" rel=\"noopener\">wrote<\/a> the state-run Arman daily on March 13 in this regard.<\/p>\n<p style=\"text-align: justify\">&#8220;Today, the government has chosen a path that will surely devalue the national currency, which will result in inflation, skyrocketing prices, and reduced purchasing power of the people,&#8221; the state-run Tasnim news agency quoted regime&#8217;s MP Alireza Salimi.<\/p>\n<p><a target=\"_blank\" href=\"https:\/\/stats.sender.net\/forms\/dGYVLa\/view\" rel=\"noopener\"><img decoding=\"async\" title=\"Weekly-Signe-up-logo-1\" class=\"size-full wp-image-219239 aligncenter\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/09\/Weekly-Signe-up-logo-1.png\" alt=\"Weekly-Signe-up-logo-1\" width=\"250\" height=\"83\" \/><\/a><\/p>\n<p style=\"text-align: justify\">&#8220;In the [Hassan] Rouhani administration, the Gini coefficient shows a deplorable situation that has been unprecedented in the last 60 years. Likewise, liquidity and average inflation have been unprecedented in the last 50 years. These are the unbridled liquidity growth results that the government either did not want or could not control. Once they blame the previous government, once people, once Donald Trump, and now they say they would reveal the problems later. Each time they are looking for someone to blame,&#8221; Salimi acknowledged.<\/p>\n<p style=\"text-align: justify\">Despite Khamenei calling the current Persian year the year of &#8220;Production: support and the elimination of obstacles,&#8221; state-run media acknowledged that the real obstacle to Iran&#8217;s domestic production is the regime.<\/p>\n<p style=\"text-align: justify\">For example, vehicle prices are skyrocketing in Iran. According to Maziar Biglou, Secretary of the Parts Manufacturers Association, &#8220;Vehicles become cheaper if the domestic embargo on production is lifted.&#8221;<\/p>\n<p style=\"text-align: justify\">&#8220;In my opinion, [Khamenei&#8217;s slogan for 1400] shows sanction had a little damaging effect on the industry. Unfortunately, [officials&#8217;] recklessness and domestic sanctions have affected the industry,&#8221; Biglou added, <a target=\"_blank\" href=\"https:\/\/www.yjc.ir\/fa\/news\/7704940\/%D8%AE%D9%88%D8%AF%D8%B1%D9%88-%D8%A7%D8%B1%D8%B2%D8%A7%D9%86-%D9%85%DB%8C-%D8%B4%D9%88%D8%AF-%D8%A7%DA%AF%D8%B1-%D8%AA%D8%AD%D8%B1%DB%8C%D9%85-%D8%AF%D8%A7%D8%AE%D9%84%DB%8C-%D8%AA%D9%88%D9%84%DB%8C%D8%AF-%D8%A8%D8%B1%D8%AF%D8%A7%D8%B4%D8%AA%D9%87-%D8%B4%D9%88%D8%AF\" rel=\"noopener\">according<\/a> to the state-run YJC news agency on Sunday.<\/p>\n<p style=\"text-align: justify\">In another admission, Azar Mansouri, a senior member of the Union of Islamic Iran People Party, pointed to the regime&#8217;s systematic corruption, calling Khamenei&#8217;s new year remarks as &#8220;propaganda.&#8221;<\/p>\n<p style=\"text-align: justify\">&#8220;Naming a year without its requirements in consecutive years has caused these names to take on more of a propaganda and slogan role and sometimes become a contradiction, and the year 1400 is no exception to this rule. Systematic corruption is a serious obstacle to increasing national capital. Therefore, we need serious, real, and legal reforms in the [regime] to combat and reduce it, not slogans,&#8221; Mansouri said, according to the state-run ILNA news agency on Sunday.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News from Iran indicates how people are grappling with economic hardships, particularly the skyrocketing prices and inflation. Meanwhile, the state-run media acknowledge how the regime&rsquo;s economic mismanagement has created Iran&rsquo;s [&#8230;]<\/p>\n","protected":false},"author":22,"featured_media":236980,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,130,141,229],"class_list":{"0":"post-236969","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-iran-protests","10":"tag-human-rights","11":"tag-irans-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Iran Regime\u2019s Systematic Corruption and Iran\u2019s Economic Crisis - NCRI<\/title>\n<meta name=\"description\" content=\"News from Iran indicates how people are grappling with economic hardships, particularly the skyrocketing prices and inflation. 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