{"id":24797,"date":"2018-05-24T15:26:23","date_gmt":"2018-05-24T14:26:23","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/issues\/economy\/24797-iran-s-economy-is-rentiering-oriented-rentiers-linked-to-regime-s-entities"},"modified":"2023-01-18T18:51:54","modified_gmt":"2023-01-18T17:51:54","slug":"iran-s-economy-is-rentiering-oriented-rentiers-linked-to-regime-s-entities","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-s-economy-is-rentiering-oriented-rentiers-linked-to-regime-s-entities\/","title":{"rendered":"Iran\u2019s Economy Is Rentiering-Oriented, Rentiers Linked to Regime\u2019s Entities"},"content":{"rendered":"

\"Iran\u2019s<\/p>\n

By Mahmoud Hakamian<\/strong><\/p>\n

While Hassan Rouhani has named the current Persian year \u2018the year of development, increased domestic product and higher employment\u2019, the regime is faced with numerous challenges like the United States pulling out of the JCPOA and shortage of financial resources, among others.<\/p>\n

But aside from all these, a controversial issue that\u2019s possibly even more important than resolving regime\u2019s super challenges is the government\u2019s economic policy, according to state-run ILNA news agency on May 11, 2018.<\/p>\n

Regime\u2019s economic policies so far have only led to increased inequalities and the gap between the rich and poor.<\/p>\n

Meanwhile, some of regime\u2019s economic experts believe that the country\u2019s economic inequality is the consequence of a \u2018rentiering-oriented market\u2019, which in turn is the result of a \u2018marketism based on non-productive commercialization\u2019.<\/p>\n

\u201cLike many other countries, marketism dominated Iran\u2019s economic policy. In practice, however, this policy was implemented in an incomplete and inaccurate way,\u201d writes state-run ILNA news agency on May 11, 2018.<\/p>\n

\u201c29 years ago during Hashemi Rafsanjani\u2019s presidency, a type of marketism was practically promoted in Iran\u2019s economy: a market economy based on non-productive commercialization. An economic model that, according to many economic experts, led only to increased inequality and social gap, and distribution of a rentiering structure within the country\u2019s economy\u201c, the news agency adds.<\/p>\n

\u201cIt\u2019s now 30 years that this has been the dominating approach in Iran\u2019s economy.<\/p>\n

\u201cThe interesting point, however, is that thanks to its rentiering structure, the supporters of this policy are still in power, insisting on pursuing the economic model.<\/p>\n

\u201cMany experts believe that over the past 30 years the country\u2019s market-based economic model has been implemented in such a way that it has only promoted a rentiering-oriented market, to which some experts refer as imaginary marketism.\u201d<\/p>\n

Comrade economy rather than competitive economy<\/strong><\/p>\n

Farshad Momeni, regime\u2019s economic expert, meanwhile believes that the economic model has driven the country towards \u2018comrade economy and commercialization\u2019. (State-run ILNA news agency, May 11, 2018)<\/p>\n

It\u2019s clear that the so-called \u2018comrade economy\u2019 and \u2018market economy based on non-productive commercialization\u2019 has been built on rentiering, which simply means exploiting society\u2019s capacities and resources.<\/p>\n

A \u2018market economy based on non-productive commercialization\u2019 is basically dependent on excessive imports, importing low quality goods, smuggling and different kinds of economic corruption.<\/p>\n

Rentiering is currently dominating all economic and commercial activities in the country, with a group of state officials and affiliates making huge profits thanks to privileges unfairly provided to them.<\/p>\n

State entities\u2019 non-transparent economic activities<\/strong><\/p>\n

Gholamali Jafarzadeh-Imenabadi, regime\u2019s MP from Rasht, acknowledges that regime\u2019s economic entities and institutions are non-transparent, saying \u201cthe country\u2019s big economic problem, out of which major corruptions arise, is the lack of transparency.\u201d<\/p>\n

\u201cThere are close to 130 state-owned non-transparent economic entities in the country, including the Central Bank, Money and Credit Council, Postbank, and the Privatization Organization, all of which have violated the law and their activities have not been transparent\u201d, he adds. (State-run Khabaronline website, May 16, 2018)<\/p>\n

Economic crimes carried out under the umbrella of a political power<\/strong><\/p>\n

Regime\u2019s Parliament Speaker Ali Larijani acknowledged a few years ago that \u201csuch (financial) crimes are carried out under a political power\u2019s umbrella, making it complicated to investigate them.\u201d<\/p>\n

\u201cIn many cases related to economic crimes, footprints of intelligence and influential figures could be seen\u201d, acknowledges Larijani. (State-run Khabaronline website, January 7, 2013)<\/p>\n

Head of the country\u2019s Tea Organization reveals a \u2018tea importing mafia group\u2019 that is rooted in some of regime\u2019s organs and entities. (Terrorist Quds force\u2019s Tasnim news agency, February 6, 2018)<\/p>\n

Also head of Iran\u2019s Textile Cooperatives Guild has spoken of a total disappearance of Iran\u2019s textile industry due to domination of political issues over economic entities. (State-run ISNA news agency, February 16, 2018)<\/p>\n

Many of regime\u2019s political and cultural entities are currently involved in extensive economic activities, taking advantage of their unfair privileges and political and cultural power to gain exclusive economic rights.<\/p>\n

These include such entities like Execution of Khomeini\u2019s Orders, the Revolutionary Guards, Mostazafan Foundation, Shahid Foundation, Astan Quds, IRGC-linked Basij Organization, law enforcement forces and dozens others that are linked to political bands and organs within the regime.<\/p>\n

Pointing to this same economic and political corruption, state-run Howzeh website writes \u201ceconomic and political corruption and taking advantage of power to gain wealth or more power has mysteriously and worryingly turned into one of the society\u2019s most important problems.\u201d<\/p>\n

The website points to different types of political corruption carried out under the umbrella of \u2018abuse of power\u2019, describing them as \u201crentiering and corruption in government purchases, making deals with domestic and foreign contractors, selling state-owned properties, issuing commercial licenses, issuing judicial orders, and making decisions.\u201d<\/p>\n

It could be seen that all such corruptions the regime\u2019s website acknowledges are dependent on rentiering and actually the shadow of it, as a state-run website puts it. \u201cA phenomenon called rentiering has cast its shadow on different parts of the economy. Sometimes the most basic banking or employment procedures could only be done through rentiering and sometimes there\u2019s the news of million-dollar embezzlements and rentiering cases\u201d, writes state-run Sarpush website on January 25, 2018.<\/p>\n

Regime economist Mehdi Pazouki meanwhile believes that rentiers are mainly responsible for instability in the currency market as well.<\/p>\n

\u201cThere are powerful people in the country that have received 100 billion-toman loans from banks, while putting up collaterals that hardly worth one billion. These are the people who bring money into the market and increase demand. They constitute a new class in Iran\u2019s economy. Many of them are unfortunately linked to power structure. The money that has left the banking system is now in the currency market. These issues are catastrophic. The country\u2019s economy has become rentiering-oriented and rentiers are linked to state-owned entities and the banking system. Yet, we unfortunately lack the necessary intention to counter them,\u201d Pazouki says. (State-run Fararou website, February 16, 2018)<\/p>\n

With such cases of economic corruption and rentiering, it\u2019s no wonder that Transparency International\u2019s latest Corruption Perceptions Index released in February 2018 puts the Iranian regime in place 130 among 180 countries, up one level compared to last year\u2019s.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Mahmoud Hakamian While Hassan Rouhani has named the current Persian year ‘the year of development, increased domestic product and higher employment’, the regime is faced with numerous challenges like […]<\/p>\n","protected":false},"author":8,"featured_media":51281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[178],"class_list":{"0":"post-24797","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-save"},"yoast_head":"\nIran\u2019s Economy Is Rentiering-Oriented, Rentiers Linked to Regime\u2019s Entities - NCRI<\/title>\n<meta name=\"description\" content=\"By Mahmoud Hakamian While Hassan Rouhani has named the current Persian year \u2018the year of development, increased domestic product and higher employment\u2019,\" \/>\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\/iran-s-economy-is-rentiering-oriented-rentiers-linked-to-regime-s-entities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iran\u2019s Economy Is Rentiering-Oriented, Rentiers Linked to Regime\u2019s Entities - 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