2024-04-16 Phelps 4953

Ali Barghani
Iran was a well-off country during much of the 2000s. Back then, Iranian citizens lived very comfortably, had lots of subsidies in housing, fuel, food, and enjoyed luxury goods, electronics, travelling, etc.

在 2000 年代的大部分时间里,伊朗都是一个富裕的国家。当时,伊朗公民生活非常舒适,享受着住房、燃料、食物等方面的巨额补贴,还可以享受奢侈品、电子产品、旅行等等。

There are three things, however, that caused the economy to deteriorate since around 2012, unemployment to rise and inflation to go up:


Crash of global oil prices in 2014. The Iranian economy was still considerably dependent on oil at the time (though no where near as much as its neighbours), so many jobs were lost in the petroleum industry. Furthermore, reduced oil income meant the government could not allocate as much money for welfare and subsidies, which was confounded by,
Economic sanctions. Since 2012, Iran has been the most sanctioned country on the planet, having even more sanctions than North Korea, Cuba and Venezuela combined. Almost every industry you can think of is embargoed, from oil and gas (which made the above event even more dramatic), banking, insurance, metals, shipping, software, hardware and pretty much any other industry.

2014 年全球石油价格暴跌。当时伊朗经济仍然严重依赖石油(尽管不像邻国那样依赖),石油行业因此失去了许多工作岗位。此外,石油收入减少意味着政府无法为福利和补贴分配那么多资金,而这又因为以下原因而变得更加复杂:
经济制裁。自 2012年以来,伊朗一直是世界上遭受制裁最多的国家,甚至比朝鲜、古巴和委内瑞拉加起来遭受的制裁还要多。你能想到的几乎所有行业都受到禁运,从石油和天然气(这使得上述事件更加戏剧性)、银行、保险、金属、航运、软件、硬件到几乎任何其他行业。

Poor economic mismanagement. The government of President Rouhani since 2013 has been extremely neo-liberal oriented, and has largely seen the lifting of sanctions and economic liberalization has Iran’s key to economic success. Rouhani has gotten rid of many subsidies that helped the lower-income strata, and has largely implemented privatization policies that benefited the top ten percent of the country.


Iran has a lot of poor people, but there are also many Iranians out there living their best lives. Despite sanctions and COVID, Iran has seen a huge increase in the number of millionaires this past few years, mostly due to a booming stock market. Today, most Iranians cannot afford an iPhone with their monthly income, yet Tehran has some of the highest rate of luxury cars in the world. Thus, there is a lot of wealth in Iran, but it is divided extremely unequally.

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Such scenes are not uncommon in Tehran:


Having said that, it should be noted that these type of scenes can be viewed in every country. There are worst images like this in New York, Riyadh, Los Angeles and London.


Iran also looks very much like this:


Start Sameer
About 10-15 years ago, Iran was doing well. People were hopeful and optimistic.
I remember my dad, who was still working then, got a big raise. We were able to buy a bigger apartment for our family of six. A couple of years later, he even bought a new car, which was a big improvement from our old one.


But then things started getting worse. Two main reasons were the crash in oil prices and the sanctions against Iran.
Wages went down, pensions got cut, and prices went up a lot. The money we had saved was worth less because the currency lost value. Thankfully, my dad retired before his industry faced cuts, and he had saved some money.


To put it simply, Iran went through a rough patch in recent years. Things weren't perfect before, but they were better than they are now. This shows that sanctions don't just hurt politicians; they hurt regular people trying to get by in a world where the rich have more power.


Cyrus Razavi
Iran's transformation into a poor country despite its vast oil reserves and many other resources is a complex issue rooted in a combination of factors, including:


Economic Mismanagement: The Iranian government's economic policies often prioritize ideological motives over sound economic principles. Centralized planning, inefficient state-owned enterprises, and a hostile environment for foreign investment have stifled economic development and productivity. This, coupled with heavy subsidies, further drains the economy.

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Rampant Corruption: Iran suffers from systemic corruption at all levels of government and business. This corruption bleeds the country's resources, distorts the market, and discourages legitimate investment. Those with close ties to the regime often benefit disproportionately, enriching themselves while the wider population faces hardship.


Support for Proxy Groups: The Iranian regime allocates significant funds to support proxy groups and militias throughout the Middle East. This expensive foreign policy drains valuable resources that could be used for domestic development, social programs, or economic investment.


International Sanctions: Decades of sanctions targeting Iran's energy sector and banking system have severely hampered its ability to trade and attract investment. While sanctions are a major factor, they have also exacerbated the problems of mismanagement and corruption, providing a convenient excuse for the regime's own failures.


Luxurious Lifestyles of the Elite: While the average Iranian struggles with poverty and economic hardship, the ruling elite, including the Islamic Revolutionary Guard Corps (IRGC), their families, and close associates, often live extravagant and luxurious lives in the West. This stark inequality creates resentment and further discredits the regime's management of the economy.


Consequences for the Iranian People:
These factors have created a situation where Iran's oil wealth fails to translate into prosperity and a better standard of living for its citizens. Iran faces:


High Inflation: Spiraling inflation drastically erodes the purchasing power of Iranians
Widespread Poverty: A large percentage of the population lives below the poverty line, struggling to afford basic necessities.
Unemployment: The economy fails to create enough jobs, especially for young, educated Iranians, leading to frustration and brain drain.
Decaying Infrastructure: Insufficient investment in infrastructure means crumbling roads, unreliable power grids, and outdated public services.


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In conclusion, Iran's decline into a poor country despite its oil wealth is not merely a result of bad luck or outside forces. Internal mismanagement, corruption, costly regional ambitions, and the self-enrichment of the ruling class have significantly contributed to this situation. The Iranian people bear the brunt of these decisions, suffering economic hardship while their country's potential is squandered.


Nathanial Rowe
Economic Mismanagement: Iran has faced challenges in effectively managing its economy and implementing sound economic policies. Factors such as corruption, misallocation of resources, and inefficient governance have hindered economic growth and development.


International Sanctions: Iran has been subject to various international sanctions imposed by the United States and other countries. These sanctions have limited Iran's ability to engage in international trade, access global financial systems, and attract foreign investments. The impact of sanctions on Iran's economy has been significant, including restrictions on oil exports and financial transactions.


Iran's economic situation and the challenges it faces cannot be attributed to a single factor. However, there are several reasons why a country with significant oil reserves like Iran may face economic difficulties:


Economic Mismanagement: Iran has experienced periods of economic mismanagement, including inefficient resource allocation, corruption, and a lack of diversification in the economy. These factors can hinder economic growth and development, regardless of the presence of natural resources.


International Sanctions: Iran has been subject to international sanctions due to concerns over its nuclear program and human ri hts issues. These sanctions have restricted Iran's access to global markets, limited foreign investment, and hindered the development of its oil industry. Such limitations can have a significant impact on a country's economy, despite its oil reserves.


Dependence on Oil: While oil can be a valuable resource, relying heavily on a single commodity for revenue can make an economy vulnerable to fluctuations in global oil prices. Iran's economy has been heavily dependent on oil exports, which exposes it to the volatility of the global oil market.


Political Factors: Political instability and geopolitical tensions can negatively affect a country's economy. Iran has faced political challenges, both domestically and internationally, which have created uncertainties and hindered economic growth.


Demographic Challenges: Iran has a large and growing population, which puts pressure on the job market, social services, and infrastructure. Meeting the needs of a rapidly growing population can be a significant economic challenge.


Economic Sanctions and COVID-19: In recent years, Iran has faced additional economic difficulties due to the reimposition of sanctions by the United States, which has further limited its access to international markets. Moreover, the global COVID-19 pandemic has impacted Iran's economy, causing disruptions in trade, tourism, and various sectors.


Jignesh Parekh
Only Russia and China purchase oil from Iran america had pressurized prime minister Narendra Modi not to purchase oil from Iran at cheap price india had withdraw from chabahar project of Iran so Iran started having friendship with china


Ali Ağan
There are several reasons why Iran, despite having significant oil reserves, has struggled with poverty and economic challenges.


Firstly, Iran has faced economic sanctions from the international community, which have limited its ability to sell oil and access global markets. These sanctions have had a significant impact on Iran's economy, contributing to high inflation, a weakened currency, and a struggling private sector.


Secondly, Iran's economy has long been heavily reliant on oil exports, which can lead to volatility and economic instability. When oil prices drop, as they have done in recent years, it can have a significant impact on the country's economy and government revenues.

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Thirdly, corruption and mismanagement have also contributed to Iran's economic challenges. The country's economy is largely controlled by the government, which has been accused of nepotism and corruption, and there have been reports of large-scale embezzlement and financial fraud.


Finally, political instability and tensions with other countries have also contributed to Iran's economic challenges. The country has faced significant geopolitical challenges in recent years, including ongoing tensions with the United States, which have contributed to uncertainty and instability in the country.

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In summary, a combination of factors, including economic sanctions, overreliance on oil exports, corruption and mismanagement, and political instability, have all contributed to Iran's economic challenges and struggles with poverty.

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Amirreza Taheri
Well it depends on you how you mean the world “poor” or “poverty.
at all Iran has many rich people mostly in Tehran (capital). Isfahan, Shiraz and etc.
but at other hand Iran, has a big social gap, that I think you meant this. That’s because Iran Experienced Alot Sanctions followed by economical depression made cost of living so high, that the middle or lower part of society got so poor.


Luka Dragovic
Because they were unrightfully invaded by US, their regime was toppled, they were destabilized, they were robbed of many natural resources all by the pretext of the US, claiming they have weapons of mass destruction. It's one of the US standard stories for invading other countries, robbing them clean and at the same time justify their absurd military spending.


Iran has a radical Islamic government. This government wants to promote the Shia belief all over the Middle East. They are supporting the Hezbollah militants in Lebanon, the Hamas and Islamic Jihad militants in the Gaza stripes, the Houthi rebels in Yemen, they are involved in the war in Iraq and the Iranian army is participating in the Syrian civil war.
Wars are very expensive, there are no free lunches. The consequences of diverting resources from education, research and infrastructure into wars will be felt for generations


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