{"id":307652,"date":"2023-05-22T14:32:36","date_gmt":"2023-05-22T13:32:36","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=307652"},"modified":"2023-05-22T14:32:36","modified_gmt":"2023-05-22T13:32:36","slug":"irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty\/","title":{"rendered":"Iran&#8217;s Economic Crisis: Nearly 20 Million Citizens in Absolute Poverty\u00a0"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignnone wp-image-250040 size-full\" title=\"Iran-poverty-child-streets\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725.jpg\" alt=\"Iran-poverty\" width=\"1000\" height=\"555\" srcset=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725.jpg 1000w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725-300x167.jpg 300w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725-768x426.jpg 768w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725-150x83.jpg 150w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725-696x386.jpg 696w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Iran&#8217;s economic crises, rooted in rampant state corruption, inflict profound suffering on its people, plunging them into the depths of absolute poverty. The current situation has forced officials and state media to acknowledge the country\u2019s financial calamity.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">\u201c19.7 million people across Iran are deprived of basic life facilities such as housing, employment, education up to 12 years, health, food, and clothing,\u201d said Ali Agha-Mohammadi, a member of the regime\u2019s Expediency Council, according to the <a target=\"_blank\" href=\"https:\/\/www.setaresobh.ir\/fa\/main\/detail\/99647\" rel=\"noopener\">state-run Setar-e Sobh newspaper<\/a> on May 21.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">This fact was confirmed by Behrouz Mohebi, a member of parliament. \u201cUnfortunately, nearly 20 million people in the country are not in favorable conditions, and there are about 3 million households that are in absolute poverty. This statistic is also known in the welfare system, and these people should be given serious and basic help,\u201d Setar-e Sobh quoted Mohebi as saying.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">\u201cThe poverty and sufferings of the people are deeper than anyone can understand. The situation is worse than the figures presented. The number of people who are below the absolute poverty line is more today,\u201d Setar-e Sobh quoted Hossein Raghfar, a state-affiliated economist, who responded to the announced engineered figures. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">For years, the Iranian regime and its apologists have attempted to blame sanctions as the sole culprit for Iran&#8217;s economic turmoil. While sanctions <a target=\"_blank\" href=\"https:\/\/english.mojahedin.org\/article\/why-sanctions-relief-wont-fix-irans-economic-problems\/\" rel=\"noopener\">have a secondary effect<\/a> and the real problem is the regime\u2019s pervasive corruption, it is worth noting that the sanctions were imposed in response to the regime&#8217;s malicious behavior and could be lifted if they cease their illicit activities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Iran\u2019s economic crisis worsens every day, despite its rich resources. Authorities\u2019 self-boasting rhetoric prevents them from admitting that they are overwhelmed by economic pressures and face an explosive society.<a href=\"https:\/\/twitter.com\/hashtag\/IranRevoIution?src=hash&amp;ref_src=twsrc%5Etfw\">#IranRevoIution<\/a> <a href=\"https:\/\/t.co\/hvqGmZ1RNY\">https:\/\/t.co\/hvqGmZ1RNY<\/a><\/p>\n<p>&mdash; NCRI-FAC (@iran_policy) <a href=\"https:\/\/twitter.com\/iran_policy\/status\/1645468817638711296?ref_src=twsrc%5Etfw\">April 10, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">\u201cThe main issue is that this system is not able to increase the welfare of the people of the country. In other countries of the world, they provide the welfare of the people without oil revenues, and by collecting taxes from the owners of the income, they have created an active and dynamic economy,\u201d Raghfar said in this regard. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Instead of imposing taxes on the state-affiliated rich people and officials, Ebrahim Raisi\u2019s government has increased taxes on ordinary people who can barely make ends meet. The huge financial institutions controlled by the <a target=\"_blank\" href=\"https:\/\/www.ncrius.org\/publications\/books\/rise-irans-revolutionary-guards-financial-empire.html\" rel=\"noopener\">Revolutionary Guards (IRGC)<\/a> and the Supreme Leader, Ali Khamenei, are systematically exempted from taxation. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Raghfar tacitly confirmed this by saying, \u201cThe people who have to stabilize the tax are the same people who have to pay the tax, and as a rule, this will not happen in the country, so with such a device, the current state of the income distribution cannot be organized.\u201d <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Khamenei&#8217;s stranglehold on Iran&#8217;s economy is absolute, with the IRGC&#8217;s foundations and his own institutions serving as the primary conduits for the country&#8217;s financial resources, all of which end up in their pockets. The so-called <a target=\"_blank\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-regime-productive-assets-plan-historic-sell-out-of-public-property\/\" rel=\"noopener\">&#8220;privatization plan&#8221;<\/a> introduced by Khamenei in 2004 has merely legitimized the IRGC&#8217;s economic hegemony, allowing them to tighten their grip on all facets of Iran&#8217;s economy through their network of &#8220;private&#8221; front companies, effectively impeding any potential for economic progress.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">\u201cTo realize economic growth certain institutions should be removed from the economy. As long as they are active in the country&#8217;s economy, we will not see any important changes, and the situation will not improve,\u201d Raghfar said in this regard.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The current state of Iran&#8217;s economy has ignited a spark of dissent, turning the society into a veritable powder keg. The recent nationwide uprising was primarily fueled by the country&#8217;s dire financial predicament, compounded by the regime&#8217;s blatant refusal to tackle the issue head-on. The Iranian people have identified the regime as the root cause of their suffering, with their main protest slogan ringing loud and clear: &#8220;Poverty, corruption, and high prices &#8211; we shall continue until regime change.&#8221;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<div class=\"lyte-wrapper\" title=\"Iran&rsquo;s currency (rial) and economy are on the verge of another crisis\" style=\"width:853px;max-width:100%;margin:5px;\"><div class=\"lyMe\" id=\"WYL_4JmY1IvcCHo\" 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%2F4JmY1IvcCHo%2Fhqdefault.jpg\" \/><meta itemprop=\"embedURL\" content=\"https:\/\/www.youtube.com\/embed\/4JmY1IvcCHo\" \/><meta itemprop=\"duration\" content=\"PT5M51S\" \/><meta itemprop=\"uploadDate\" content=\"2022-03-14T14:00:02Z\" \/><\/div><div id=\"lyte_4JmY1IvcCHo\" data-src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2F4JmY1IvcCHo%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\" itemprop=\"name\">Iran\u2019s currency (rial) and economy are on the verge of another crisis<\/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\/4JmY1IvcCHo\" 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%2F4JmY1IvcCHo%2F0.jpg\" alt=\"Iran&rsquo;s currency (rial) and economy are on the verge of another crisis\" width=\"853\" height=\"460\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><meta itemprop=\"description\" content=\"Read more: https:\/\/english.mojahedin.org\/article\/irans-new-monetary-policy-is-setting-the-stage-for-another-disaster\/ After much haggling between the executive and the legislative branches, the Iranian regime\u2019s Majlis (parliament), approved the government\u2019s plan to remove the \u201c42,000-rial dollar\u201d exchange rate, also referred to as the \u201cpreferential currency,\u201d in the budget of the upcoming Persian calendar year (starting on March 20). The decision was met with alarm from state-run media and the regime\u2019s own officials, who are warning that the new monetary policy will have an immediate negative impact on the economy, and reduce the people\u2019s purchasing power, many of whom are already struggling to make ends meet. The plan to restructure the currency policies is surrounded with ambiguities, loose ends, and plenty of space for embezzlement by entities and individuals that have close ties to regime officials. In early 2018, the rial took a sudden plunge, dropping from 42,000 to 50,000 to the U.S. dollar. At the time, the regime opted for a policy of multi-priced currency rating. The official government rate pegged the rial at 42,000 to the dollar, while the free-market rate, adjusted based on supply-and-demand dynamics, continued to plunge and near the 300,000 mark. The regime\u2019s declared policy was to regulate the currency exchange rate to prevent the fluctuation of the prices of fundamental goods and protect the population against economic upheavals. But in effect, the new policy created a black market run by regime-backed entities, which purchased dollars at the government rate to import vital goods but made huge profits by selling them at the free-market rate. Initially, the 42,000-rial dollar was supposed to be allocated to dozens of items. By mid-2018, the list was culled down to 25 items, and eventually further shrunk to only seven items, including basic food items such as oats, wheat, and corn, as well as medicine and medical equipment. But even the prices of those items were not spared from the major fluctuations in the currency exchange rate, and they all saw enormous rises as the country\u2019s economy continued to stall under the corrupt rule of the mullahs. The new monetary policy As Ebrahim Raisi prepared to assume presidency, he declared that his government would drop the 42,000-rial policy, ostensibly to fight corruption. But the regime\u2019s own experts warned that at the current point, the new policy will only cause more economic shocks and create other channels of corruption. The government bundled the new monetary policy in the budget bill for the upcoming year. After much back and forth between the Majlis and the government, lawmakers eventually approved the plan on March 6, with the caveat that the government presents a plan to manage the price of goods that will be affected by the new monetary policy. According to some reports, the removal of the 42,000-rial dollar will save the government &#36;9 billion that was previously spent on subsidizing the import of basic goods. But how will the regime address the economic shock that will entail the new monetary policy? So far, the regime\u2019s plan is to subsidize the price of goods by distributing electronic coupons for affected goods. But given the mafia-run structure of Iran\u2019s economy, with most levers being in the control of the Revolutionary Guards, experts are warning that coupons will eventually create a new black market not much different from that caused by the preferential currency. Regime-backed entities will continue to make profits while the needy will be deprived of the subsidies they need. Another plan being deliberated is the readjustment of government cash handouts. The regime will reportedly remove the higher deciles of the society from the cash handout policy while increasing the handouts to the lower deciles. But this plan faces two major hurdles: First, the plan is missing details on how recipients are qualified, and second, it is not clear how it will be funded, given the major budget deficit that the regime is already facing. The main factor that has delayed the regime\u2019s decision to implement the new monetary policy is the social impact and the implications it can have for the regime. In 2019, the sudden increase of gasoline prices triggered the largest nationwide uprising since the 1979 revolution and pushed the regime to the verge of total collapse. Since then, economic conditions have worsened, and the regime is faced with regular protests that start with economic motives but quickly turn into political protests calling for regime change. At present, regime officials fear that another nationwide economic shock will cause a wave of protests that will be just as intense as the 2019 uprising. *** Content on the PMOI\/MEK&#039;s official YouTube channel is not subject to copyright if the source is mentioned ***\"><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:853px;margin:5px;\"><\/div><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Since the increasing economic problems can exacerbate society\u2019s restiveness, Raghfar warns his peers to not \u201cignore people\u2019s wishes.\u201d <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">\u201cPeople&#8217;s wishes should not be ignored. We need fundamental changes in the political structure of the country. The possibility of real participation of people in the economic field should be provided,\u201d he said.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Iran&rsquo;s economic crises, rooted in rampant state corruption, inflict profound suffering on its people, plunging them into the depths of absolute poverty. The current situation has forced officials and state [&#8230;]<\/p>\n","protected":false},"author":22,"featured_media":250040,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,10],"tags":[229],"class_list":{"0":"post-307652","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-iran-protests","8":"category-economy","9":"tag-irans-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Iran&#039;s Economic Crisis: Nearly 20 Million Citizens in Absolute Poverty\u00a0 - NCRI<\/title>\n<meta name=\"description\" content=\"Iran&#039;s economic crises, rooted in rampant state corruption, inflict profound suffering on its people, plunging them into the depths of absolute poverty.\" \/>\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-crisis-nearly-20-million-citizens-in-absolute-poverty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iran&#039;s Economic Crisis: Nearly 20 Million Citizens in Absolute Poverty\u00a0 - NCRI\" \/>\n<meta property=\"og:description\" content=\"Iran&#039;s economic crises, rooted in rampant state corruption, inflict profound suffering on its people, plunging them into the depths of absolute poverty.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty\/\" \/>\n<meta property=\"og:site_name\" content=\"NCRI\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-22T13:32:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2021\/10\/Iran-poverty-3-1-e1684761937725.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"555\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mansoureh Galestan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@iran_policy\" \/>\n<meta name=\"twitter:site\" content=\"@iran_policy\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mansoureh Galestan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/news\\\/economy\\\/irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/news\\\/economy\\\/irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty\\\/\"},\"author\":{\"name\":\"Mansoureh Galestan\",\"@id\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/#\\\/schema\\\/person\\\/4039d83ce2c628eef0e1a1f461381ab9\"},\"headline\":\"Iran&#8217;s Economic Crisis: Nearly 20 Million Citizens in Absolute Poverty\u00a0\",\"datePublished\":\"2023-05-22T13:32:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/news\\\/economy\\\/irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty\\\/\"},\"wordCount\":691,\"publisher\":{\"@id\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/news\\\/economy\\\/irans-economic-crisis-nearly-20-million-citizens-in-absolute-poverty\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ncr-iran.org\\\/en\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/Iran-poverty-3-1-e1684761937725.jpg\",\"keywords\":[\"Iran's Economy\"],\"articleSection\":[\"Iran Protests &amp; 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