Analysis by PMOI/MEK
Iran, December 27, 2020—Science and experience show that economic growth and development is predicated on freeing the economy from political tyranny. Unfortunately, in Iran, the people have been deprived from their country’s rich resources and wealth because of the policies of the ruling regime and the repressive Revolutionary Guards (IRGC).
For the past 40 years, the mullahs’ domination over Iran’s economy has resulted in nothing but economic paralysis. The regime’s spending priorities are propping up its repressive forces, developing its nuclear bomb-making program, building ballistic missiles, and funding their terrorist proxies in neighboring countries. All of this, of course, comes at the cost of destroying of Iranian people’s assets.
The economy is caught in the storm of politics
The most important scourge of Iran’s economy is the heavy shadow of mullahs’ regime’s “politics.”
In this regard, the (Iran) Economists Club wrote on May 4, 2015: “This scourge has caused a lot of damage to the country’s development process and created the grounds for waste, diversion, and development opportunities becoming ineffective in the country.
“The national economy hinges on power and politics, not on economic principles and rules. Under these circumstances, the economic structure is practically out of its natural orbit, and rather than providing the country’s macroeconomic and social interests, and lay the groundwork for political development itself, it becomes a field of political invasion.”
It is obvious that when economic structure is based on maintaining political power, macroeconomic and national interest will play an insignificant role in other issues and the interests of political factions will be the main drive behind economic activities.
The economy is a hostage of political rivalries
Describing the conditions of the private sector, Mohsen Jalalpour, the former head of the regime’s chamber of commerce, said: “We are at a time where the country is full of uncertainty. Not only has there been minimum reassurance on the part of politicians, but the problems have been compounded by the growing number of stakeholders.”
“Private sector investment has have declined over the past decade, and an unhealthy economy has emerged because of politicians and policymakers’ activities. Therefore, the country’s capacities are under the control of stakeholders who have even taken control of diplomacy and domestic politics. Now, the economy is a hostage of politics,” he added, according to a December 17 report posted on the Darayan website.
On the other hand, a study of the country’s economic and employment statistics also portrays how politicians’ involvement in the economy leads to an economic crisis.
“Politicians’ interventions in the economy generally result in inflation, currency depreciation, unemployment, and the government’s budget deficit. The current economic crisis in the country is due to the political aspects and the lack of proper management and planning to reduce the budget deficit and impact of sanctions,” he added, according to the Future Banking Monthly published on November 5, 2019.
The zero-sum game of economy and politics
A country whose goal is growth and development for the population employs the science of political economy to avoid reaching a zero-sum solution in which the economy is sacrificed for political interests.
“On the other hand, if the relationship between the two is regulated in such a way that the economy serves politics, under these conditions, the space becomes suitable for rent-seeking and unproductive activities, and firms compete for different types of rents and the benefits of multi-pricing instead of trying to increase productivity. Hence, companies are constantly looking for political brokers to bargain for profits, and the bond between some politicians and rent-seekers becomes stronger every day,” according to a December 19 report by the state run media, Donyay-e-Eghtesad.
In this regime, the fabric of the society is being worn out and torn. The economy, culture, art and, most importantly, the fate of the Iranian people are dominated by the corrupt agents and officials of this inhumane regime. And like all other sectors, Iran’s economy will find its rightful place when the nation is delivered from the evil clutches of the mullahs’ regime.
