HomeARTICLESIran’s economic bankruptcy and the prospect of a social explosion

Iran’s economic bankruptcy and the prospect of a social explosion

According to many governmental and non-governmental experts in Iran, the country’s “80-year inflation record” under the government of Ebrahim Raisi has political implications.

On July 28, the state-run Etemad newspaper quoted Hossein Roghfar, a regime-linked economist, describing government corruption as such: “The production project is a clear example of classic corruption in the economic and public spheres. In economic sciences, an equation is revealed regarding corruption, of which the productivity project is a clear example. They say corruption equals monopoly plus discretion, minus accountability. This is an equation within which corruption takes place and robs public resources.”

Regime supreme leader Ali Khamenei selected Raisi as president with the promise of building 4 million housing units, lowering the dollar exchange rate and curbing inflation. But his true goal was to consolidate the foundations of his regime against the uprising, not to fight against poverty, corruption and high prices.

If Khamenei’s confidants admit to the bankruptcy of the government today, it is due to the fear of the explosive conditions of the society and the consequences of the failure of their policy in dealing with an army of impoverished and starved people.

On August 3, the state-run Arman newspaper wrote: “A minimum wage worker must work for more than 170 years and save part of his income every month in order to be able to buy an 80-meter apartment, while in reality is impossible because workers who don’t have homes and are tenants cannot afford to save monthly. In fact, he is lucky if he can even pay for rent.”

The official ILNA news agency reported on August 2, 2023, that the average price per square meter of residential property in Tehran has increased from 47 million rials in the winter of last year to 65 million rials in the spring and early summer of this year. The forecasts of economic experts indicate that “the growth of housing prices in 2023 will be around 40-50%,” according to ILNA.

On July 23, many members of the Majlis (parliament) who were strong defenders of the Khamenei-Raisi project questioned the government in fear of the explosive conditions of the society.

Referring to the fact that time is not in favor of the regime, MP Jalal Rashidi said to the government, “Are you aware that a kilo of chicken costs 120,000 tomans? Mr. President, I told you two years ago… be careful, time passes much faster than you think.”

On the same day, MP Javad Hosseinikia also said: “Mr. President! High prices are rampant, save to the disastrous market, the people are raising their voices.”

MP Mohammad Safari pointed to the policy of destroying agriculture and farmers in Iran and said: “Mr. Raisi, we do not understand what is going on in your government and who is making decisions. The most important issue that challenges everyone in Gilan province today is the issue of excessive import of rice.”

The import of rice and tea and the destruction of farms, as well as the export of dairy products and the unprecedented increase in the price of food, housing and medicine, etc., is a clear sign of the failure of a policy and the spread of explosive conditions in society, a condition that can turn a spark into the eruption of a volcano.

On August 3, 2023, Mehdi Nasiri, the former managing editor of Kayhan newspaper, described the failure of Khamenei and Raisi’s policies as such: “In my opinion, this could be a combination of division at the top of the state, then the element of the street may add to it. Given the state of public opinion, one incident, one hazardous event, a wrong decision can create such a spark.”

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