{"id":260219,"date":"2022-06-17T21:40:48","date_gmt":"2022-06-17T19:40:48","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=260219"},"modified":"2023-02-09T15:10:46","modified_gmt":"2023-02-09T14:10:46","slug":"irans-economy-blocked-by-the-ruling-system","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economy-blocked-by-the-ruling-system\/","title":{"rendered":"Iran\u2019s Economy Blocked by The Ruling System"},"content":{"rendered":"

\"MjJmZDhm9gJQ\"<\/h2>\n

A glance at a joint letter by 61 state-affiliated economists <\/em><\/strong><\/p>\n

In a joint letter, 61 Iranian economists<\/a> and university lecturers across the country wrote an open letter to the people of Iran. While counting the hollow promises by the regime\u2019s president Ebrahim Raisi about economic reform, they acknowledged some parts of Iran\u2019s economic crisis and warned the regime about its consequences. The signatories of this letter are all linked to the regime and wholeheartedly try to preserve it. Despite portraying only a small portion of reality, they warn officials that society is on the verge of an explosion, and they see \u201cpeople\u2019s confrontation\u201d with the regime on the \u201chorizon.\u201d<\/p>\n

First, they mock the bogus claims of Raisi and his ministers as follows:<\/p>\n

“They (Raisi’s administration) proclaimed they have a 7000-paged reform plan, backed by dozens of research centers and universities, to address critical issues such as inflation, unemployment, and the shut down of businesses. They claimed they would realize 5% economic growth, create one million jobs and housing units<\/a> a year, reduce the unemployment rate, and eradicate absolute poverty. They said the 50% inflation would reduce and become a one-digit figure soon. Iran\u2019s non-oil exports will jump from $35 billion in 2021 to $70 billion in 2025, and the country\u2019s currency needs will be fulfilled using the revenue of non-oil exports.”<\/p>\n

But the grim face of reality showed itself after a year and these scholars addressed the facts as below:<\/p>\n

“The trend of social unrest and public concern about the livelihood and sustainability of their businesses has reached an explosive stage. The reforms eliminated the preferential exchange rate<\/a> of 42,000 rials for a dollar, impacting the prices of dairy products, animal feed, poultry farming, eggs, vegetable oil, and some medical products and medicine. Prior to this, the subsidies and the preferential rate allocated to import flour, the prices of bread, pasta, and cakes skyrocketed. The government and the parliament removed the preferential rate allocated to consumer goods. At the same time, there are billions of dollars of unnecessary expenses in the budget, and their permanent or temporary removal wouldn\u2019t affect the government\u2019s goals as well as people\u2019s livelihood. We warn officials about the country\u2019s fragile situation. Their insistence on removing subsidies in this miserable time would cause people\u2019s patience to run thinner<\/a>, putting them against us.”<\/p>\n

The state-affiliated economists acknowledge some damning facts about Iran\u2019s financial calamity. Although their numbers are engineered and far behind the real catastrophe, they portray Iran\u2019s economic crises and the regime\u2019s role in creating them:<\/p>\n

“The latest survey about corruption ranks Iran 150<\/a> out of 180 countries in terms of corruption and 127 out of about 200 countries in the good cooperation index. The index of social trust, which represented social capital and increased to about 70% in 1981 after the victory of the 1979 Revolution, has dropped to a very worrying level of about 20% in recent years. The marriage-to-divorce ratio has fallen from 14 at the beginning of the 1979 Revolution to about three.<\/p>\n

Since the beginning of the 1979 Revolution, the country has earned more than $ 1.3 trillion from oil exports. But the average GDP growth of Iran from 1980 to 2018 was about 1.6 percent. Meanwhile, the average growth of China, India, Turkey, Malaysia, UAE, and Pakistan in the same period was between 4 and 10. As a result of low economic growth, Iran’s share in the world economy in the same period has halved and has decreased from one percent to about 0.5 percent.<\/p>\n

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How the mullahs destroyed Iran's economy<\/div><\/div>
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