{"id":242137,"date":"2021-06-26T02:44:04","date_gmt":"2021-06-26T07:44:04","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=242137"},"modified":"2023-01-30T14:26:54","modified_gmt":"2023-01-30T13:26:54","slug":"irans-economic-crises-and-regimes-deadlock-after-election","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crises-and-regimes-deadlock-after-election\/","title":{"rendered":"Iran\u2019s Economic Crises and Regime\u2019s Deadlock After Election"},"content":{"rendered":"

\"The<\/p>\n

Iran\u2019s sham presidential election<\/a> ended on June 19. As forecasted, the regime\u2019s supreme leader, Ali Khamenei, pulled Ebrahim Raisi<\/a> out of the ballot to consolidate his regime. The question is, how could Khamenei, Raisi, and the entire regime resolve economic crises, which endanger their \u201csecurity\u201d?<\/span>\u00a0<\/span><\/p>\n

Iran\u2019s economy is on freefall due to the regime\u2019s institutionalized corruption. Therefore, economic resilience is an important economic indicator. Economic resilience is the ability of an economic system to overcome problems and obstacles that have arisen and prepare the necessary preparations for overcoming the crises.\u00a0<\/span>\u00a0<\/span><\/p>\n

According to the regime officials and state media, Iran\u2019s economic resilience under the mullahs\u2019 regime is in a deplorable situation.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cFor the first time, Iran is among the three countries with the worst performance in the resilience index and ranks 128th out of 130 countries surveyed. Haiti and Venezuela are less economically resilient, while Chad, Ethiopia, Lebanon, Mali, Mozambique, Nicaragua, and Honduras have a higher economic resilience than Iran,\u201d wrote the state-run\u00a0Eskenas\u00a0daily on June 19, quoting Tehran Chamber of Commerce.\u00a0<\/span>\u00a0<\/span><\/p>\n

It is worth noting that the regime\u2019s outgoing president had victoriously claimed that \u201cwe prevented the country\u2019s economy from being like Venezuela.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Iran\u2019s economy is suffering from corruption and has the lowest production rate. Many Iranians are unemployed, and factories are closed. Due to the regime\u2019s wrong economic policies, such as banknote printing, Iran\u2019s inflation rate is rising, and people face skyrocketing prices.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cWe have a high rate of underemployment in many areas, and unfortunately, we hear disturbing news. People cannot manage their families with their current employment. As a result, many people have two or three part-time jobs so they could make ends meet,\u201d wrote the state-run Eghtesad-e Pouya on Tuesday, June 15, 2021.\u00a0<\/span>\u00a0<\/span><\/p>\n

The regime\u2019s new president, Raisi, claimed during the presidential debates that he would reopen many factories. However, the regime\u2019s economists debunked this bogus claim underlining that these factories were not closed voluntarily. Instead, they were closed due to economic problems and a lack of support.\u00a0<\/span>\u00a0<\/span><\/p>\n

Many Iranian factories, with decades of experience, have been closed in the last few years. \u201cAccording to a shocking statistic, more than 1,460 factories were closed by banks in 2022 due to debts. This has led to the closure of the production line and the unemployment of many workers,\u201d the\u00a0Eskenas\u00a0daily wrote on June 20.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cMore than 50% of the country\u2019s industrial and production units are closed,\u201d Meysam Zali, former secretary of the production facilitation and removal of barriers, said in 2019.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cOne of the biggest reasons for the collapse of part of the production and closure of more than 40,000 industrial units and factories has been uncontrolled imports,\u201d said Javad Karimi-Ghodousi, one of the regime\u2019s MPs.\u00a0<\/span>\u00a0<\/span><\/p>\n

Another problem of Iran\u2019s economy is the lack of foreign investment. \u201cAccording to the latest UNCTAD report, the value of the foreign direct investment in the world last year reached $ 999 billion, of which only $ 1.342 billion, or 0.13%, was made in Iran,\u201d wrote the state-run Radar-e\u00a0Eghtesadi\u00a0on June 24.\u00a0<\/span>\u00a0<\/span><\/p>\n

With Raisi as the regime\u2019s president, Tehran\u2019s terrorism and human rights violations will increase since Khamenei selected Raisi to consolidate his regime, or in other words, oppressing people inside and exporting terrorism abroad. Thus, the regime would be in further international isolation, decreasing the foreign investment. It is worth noting that the only party profiting from foreign investment in Iran is the Revolutionary Guards (IRGC) that dominates Iran\u2019s economy and operates under the pretext of \u201cprivatization.\u201d In other words, while the regime\u2019s activities have decreased foreign investment in Iran, foreign investment in Iran under the mullahs\u2019 regime would not help the country\u2019s economy.\u00a0<\/span>\u00a0<\/span><\/p>\n

Hossain\u00a0Raghfar, one of the regime\u2019s economists, in April 2020, said: \u201cWhile $20 billion disappeared from the country during a major corruption scandal, today we ask the World Bank to give us $5 billion. Yet, no one is accountable for this.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

The corrupted mullahs\u2019 regime has plundered Iran\u2019s national wealth within the last 40 years. Iranians are right now experiencing high inflation due to the regime\u2019s corruption and wrong policies. One of the main reasons for Iran\u2019s rampant inflation, according to the regime\u2019s economists, is \u201cInefficiency of financing method and budgeting system of the country and pressure of budgetary tasks on the resources of the banking network to compensate for the chronic and structural budget deficit of the\u00a0government<\/a>\u201d<\/span>\u00a0<\/span><\/p>\n

\u201cThe average inflation rate in West Asia and North Africa in 2019 was equal to 1.1 percent, and the average inflation rate in all countries of the world was equal to 3.2 percent. This statistic clearly shows that the problem of inflation in the world is considered a solved problem. In Iran, meanwhile, the 30-year average inflation rate has been more than 21 percent, and the average inflation rate in the last ten years has been more than 25 percent,\u201d wrote the state-run\u00a0Tejarat-e Farda on June 19.\u00a0<\/span>\u00a0<\/span><\/p>\n

While Iran is facing dire economic crises, Khamenei selected Ebrahim Raisi, who has a very low education level and knows nothing of economics but plundering people.\u00a0<\/span>\u00a0<\/span><\/p>\n

Freydoun\u00a0Khavand, one of the regime\u2019s economists on June 23 underlined that Raisi \u201cRaisi does not know the root causes of Iran\u2019s economic decline over the past four decades, his economic discourse does not go beyond the line of unsupported promises, and he offers ways to fulfill those promises that have been repeated for years.\u201d<\/span>\u00a0<\/span><\/p>\n

\u201cNow, before taking office as President, we remind you of the main challenges of the economy, and we announce, without previous warning, it is too late to build the economy today,\u201d\u00a0Eskenas\u00a0daily wrote on June 20.\u00a0<\/span>\u00a0<\/span><\/p>\n

It has been only a few days since Raisi has become the regime\u2019s new president. But state-run media and officials explicitly speak of his lack of knowledge and willingness to resolve the economic crises. These articles and warnings reflect the Iranian people\u2019s historic no to the regime by boycotting its sham presidential election. This nationwide boycott showed Iranian people consider the regime as the root of their\u00a0problems.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Iran’s sham presidential election ended on June 19. As forecasted, the regime’s supreme leader, Ali Khamenei, pulled Ebrahim Raisi out of the ballot to consolidate his regime. The question is, […]<\/p>\n","protected":false},"author":22,"featured_media":242138,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,197,229,507],"class_list":{"0":"post-242137","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-mek-iran","10":"tag-irans-economy","11":"tag-ebrahim-raisi"},"yoast_head":"\nIran\u2019s Economic Crises and Regime\u2019s Deadlock After Election - NCRI<\/title>\n<meta name=\"description\" content=\"After Iran's sham election, The question is, how could Khamenei, Raisi, and the entire regime resolve economic crises?\" \/>\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\/irans-economic-crises-and-regimes-deadlock-after-election\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iran\u2019s Economic Crises and Regime\u2019s Deadlock After Election - 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