{"id":237198,"date":"2021-04-03T06:38:40","date_gmt":"2021-04-03T11:38:40","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=237198"},"modified":"2023-02-01T05:00:20","modified_gmt":"2023-02-01T04:00:20","slug":"real-cause-and-outlook-of-irans-economic-crisis","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/real-cause-and-outlook-of-irans-economic-crisis\/","title":{"rendered":"Real Cause and Outlook of Iran\u2019s Economic Crisis"},"content":{"rendered":"<p style=\"text-align: justify\">\n<p><img decoding=\"async\" title=\"iran-economy-real-cause-and-outlook-of-irans-economic-crisis\" class=\"alignnone size-full wp-image-237206\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/04\/iran-economy-real-cause-and-outlook-of-irans-economic-crisis.jpg\" alt=\"iran-economy-real-cause-and-outlook-of-irans-economic-crisis\" width=\"800\" height=\"441\" srcset=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/04\/iran-economy-real-cause-and-outlook-of-irans-economic-crisis.jpg 800w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/04\/iran-economy-real-cause-and-outlook-of-irans-economic-crisis-300x165.jpg 300w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/04\/iran-economy-real-cause-and-outlook-of-irans-economic-crisis-768x423.jpg 768w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/04\/iran-economy-real-cause-and-outlook-of-irans-economic-crisis-150x83.jpg 150w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/04\/iran-economy-real-cause-and-outlook-of-irans-economic-crisis-696x384.jpg 696w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p style=\"text-align: justify\">When it comes to Iran\u2019s economic crisis, many of the regime\u2019s apologists, or those unaware of the mullahs\u2019 institutionalized corruption, blame international sanctions. However, the facts and figures, acknowledged by regime officials and state-run media amid factional feuds, show how the regime has devastated Iran\u2019s economy.<\/p>\n<p style=\"text-align: justify\">\u201cThe <a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crisis-rising-prices-and-scarcity-of-poultry\/\" rel=\"noopener\">price of poultry<\/a>, which has become one of the vital needs of Iranian people\u2019s food basket, has increased. The price of poultry flies in the sky of expensiveness, despite promises by government officials. Today, [poultry] price increased by 4500 tomans. This increase of 4,500 Tomans increased the poultry\u2019s price from 20,400 to 24,900 tomans. This skyrocketing price has taken another form in the free market and instead of resolving the poultry-distribution crisis, has worsened the situation,\u201d wrote the state-run Young Journalist Club on Friday.<\/p>\n<p style=\"text-align: justify\">\u201cNow poultry is the most expensive item among food items. The poultry price reached more than 40,000 Tomans in the second half of [the Persian Year of 1399]. After several weeks of denial and negligence of the Ministry of Jihad Agriculture and the Ministry of Industry, Mine, and Trade, the government was finally able to control the price to some extent by widely distributing strategic reserves of animal feed. Thus, the [poultry price] fell below 35,000 tomans, but still, this rate was more expensive than the approved price,\u201d wrote the state-run Mashreq News on Friday.<\/p>\n<p style=\"text-align: justify\">\u201cAccording to the latest report of Iran\u2019s Statistics Center, the inflation rate for the twelve months ending March 2020 for the country\u2019s households reached 36.4%\/. The point-to-point inflation of food items in February reached more than 60%,\u201d Mashreq News added.<br \/>\nBut why people experience skyrocketing prices?<\/p>\n<p style=\"text-align: justify\">\u201cThe Ministry of Agriculture Jihad is illegally changing the approved price of poultry for the fourth time. Meanwhile, neither the price of animal feed and [poultry farmers\u2019] wages nor other expenses have increased,\u201d Mashreq News article adds, quoting Mojtaba Tavangar, head of the market regulation committee at the regime\u2019s parliament.<\/p>\n<p style=\"text-align: justify\">\u201cThe government is behind 95% of the skyrocketing prices, but they blame the guilds and small business owners for avoiding being accountable,\u201d said Gholamreza Hassanpour, head of the trade union <a target=\"_blank\" href=\"https:\/\/english.mojahedin.org\/i\/iran-basij-mobilization-resistance-force-irgc-revolutionary-guards\" rel=\"noopener\">Basij<\/a> on Friday, according to Mashreq News article.<\/p>\n<p style=\"text-align: justify\">\u201cCurrently, in most provinces of the country, we face a shortage of live chicken supply, which has led to an increase in prices. The number of chicks in the last one-and-a-half months was 95 million, which did not reach the quorum, while it should be 110 million,\u201d said Mohammad Ali Kamali, CEO of the National Poultry Farmers Union, on November 20, 2020.<\/p>\n<p style=\"text-align: justify\">Yet, in April 2020, videos from Iran showed over 16 million chickens being culled. The regime\u2019s affiliates, mainly the Revolutionary Guards (<a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/inside-irans-army-of-terror-and-oppression-revolutionary-guards-irgc\/\" rel=\"noopener\">IRGC<\/a>), dominate Iran\u2019s economy and profit from skyrocketing prices.<\/p>\n<p style=\"text-align: justify\">\u201cThe officials\u2019 double standards [in treating people] and their lack of motivation about the [regime\u2019s] ideals have caused misery in the country,\u201d Mojtaba Zoulnouri, Chairman of the Security Commission at the regime\u2019s parliament, said on Thursday, according to the state-run Tasnim Newsagency,<\/p>\n<p>For instance, Javad Modallal is one of the regime\u2019s affiliates who dominates Iran\u2019s poultry industry. Modallal and his two sons, Saman and Peyman, have used their connections with the IRGC to dominate large parts of the country\u2019s economy. They have a significant share in different industrial sectors like vegetable oil, cement, mineral water, tea, molten iron, and steel.<\/p>\n<div class=\"lyte-wrapper\" title=\"How the Islamic Revolutionary Guards Corps IRGC plunders Iran&rsquo;s economy\" style=\"width:853px;max-width:100%;margin:5px;\"><div class=\"lyMe\" id=\"WYL_dHjy6OWnrvo\" 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%2FdHjy6OWnrvo%2Fhqdefault.jpg\" \/><meta itemprop=\"embedURL\" content=\"https:\/\/www.youtube.com\/embed\/dHjy6OWnrvo\" \/><meta itemprop=\"duration\" content=\"PT1M45S\" \/><meta itemprop=\"uploadDate\" content=\"2020-09-10T16:00:16Z\" \/><\/div><div id=\"lyte_dHjy6OWnrvo\" data-src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FdHjy6OWnrvo%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\" itemprop=\"name\">How the Islamic Revolutionary Guards Corps IRGC plunders Iran\u2019s economy<\/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\/dHjy6OWnrvo\" 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%2FdHjy6OWnrvo%2F0.jpg\" alt=\"How the Islamic Revolutionary Guards Corps IRGC plunders Iran&rsquo;s economy\" width=\"853\" height=\"460\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><meta itemprop=\"description\" content=\"September 2020\u2014How the Islamic Revolutionary Guards Corps plunders Iran\u2019s economy The Islamic Revolutionary Guards Corps (IRGC) was established in the early 1980s From day one, the IRGC has been engaged in the suppression of regime dissidents The IRGC was also one of the regime\u2019s main forces in the Iran-Iraq War, as part of the regime\u2019s \u201cQuds through Karbala\u201d campaign Following the war, having no pretext to keep the IRGC active, the regime permitted the Corps\u2019 entry into Iran\u2019s economy The IRGC\u2019s \u201cKhatam-al Anbiya Construction Headquarters\u201d became involved in Iran\u2019s construction industry In six years, Khatam-al Anbiya earned a whopping &#36;2 billion through its holdings Khatam-al Anbiya bought Iran\u2019s &#36;45-billion state communications company at less than &#36;8 billion Khatam-al Anbiya received billions in government loans for its factories. The money, however, was used in other investments. To this day, Khatam-al Anbiya has signed many government contracts without ever participating in the tender process. Khatam-al Anbiya is merely one of the IRGC\u2019s sectors enjoying significant influence in Iran\u2019s economy Iran\u2019s economy is being plundered by the IRGC &amp; other military sectors\"><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:853px;margin:5px;\"><\/div><\/p>\n<p style=\"text-align: justify\">In addition to the regime\u2019s institutionalized corruption, another reason for the skyrocketing prices is the inflation rate. The rising liquidity rate is the reason for the skyrocketing inflation rate. The regime\u2019s wrong economic policies are to blame for this rising liquidity.<br \/>\n\u201cSpeaking to Negar TV about the causes of rising inflation, Abdol-Nasser Hemmati, the Central Bank chief, has said: Let us be frank with people. In 2019 and 2020, parts of the government budget were financed by the National Development Fund\u2019s foreign exchange earnings, or simply banknote printing, which would result in inflation. Yet, due to budget deficits, we could not do anything else,\u201d Mashreq News wrote on March 28, 2021.<\/p>\n<p style=\"text-align: justify\">\u201cWe have said many times the government itself makes the currency more expensive, which will affect people\u2019s livelihood. It should be noted that this increase in the exchange rate is a source of income for the government and has fragile consequences for people. In other words, it creates a dangerous imbalance for families and their livelihoods. The consequences [of this action] will affect the country\u2019s economy for years,\u201d said Hossain Raghfar, one of the Iranian regime\u2019s economists, in an interview with the state-run ILNA news agency on March 1, 2021.<\/p>\n<p style=\"text-align: justify\">The economic and social crises have turned Iranian society into a powder keg. Therefore, the regime\u2019s officials and state-run media express fear of another nationwide uprising.<br \/>\n\u201cThe Iranian society is grappling with crises. The intertwining of social crises has made living conditions difficult for people. In such a society, people are not able to resolve their issues through different social institutions, and [this trend] ultimately causes many social crises in society,\u201d wrote the state-run Mashreq news on March 22, 2021.<\/p>\n<p style=\"text-align: justify\"><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","protected":false},"excerpt":{"rendered":"<p>When it comes to Iran&rsquo;s economic crisis, many of the regime&rsquo;s apologists, or those unaware of the mullahs&rsquo; institutionalized corruption, blame international sanctions. However, the facts and figures, acknowledged by [&#8230;]<\/p>\n","protected":false},"author":18,"featured_media":237206,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,139,205,229],"class_list":{"0":"post-237198","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-economy","10":"tag-irgc","11":"tag-irans-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Real Cause and Outlook of Iran\u2019s Economic Crisis - NCRI<\/title>\n<meta name=\"description\" content=\"When it comes to Iran\u2019s economic crisis, many of the regime\u2019s apologists, or those unaware of the mullahs\u2019 institutionalized corruption, blame\" \/>\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\/real-cause-and-outlook-of-irans-economic-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Real Cause and Outlook of Iran\u2019s Economic Crisis - 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