Economics & Global Affairs

20 Items

Tehran Bazaar

Wikicommons

Analysis & Opinions - Brookings Institution

Iran’s economic reforms in retreat

| Dec. 04, 2018

If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has piece by piece put aside his reform agenda. Because of the economic havoc wreaked by the re-imposition of U.S. sanctions, he finds himself in the odd position of overseeing price controls, punishing commodity hoarders, subsidizing imports of a variety of goods, including mobile phones, and has lost the most liberal members of his economic team

Iranian Currency Exchange

Tasnim News

Analysis & Opinions

Iran Sanctions: How Deep Will They Bite?

| Nov. 12, 2018

In Iran, officials blame the sanctions for the economic crisis, while in the United States, officials blame the Iranian government. There is no denying that Iran’s economy has serious problems that have nothing to do with sanctions, but there is no doubt that the current crisis is the result of the sanctions. The same economy was able to expand by 18 percent in the two years that sanctions were partially lifted as a result of the 2015 nuclear deal. However, regime-change advocates in the United States who hope that sanctions will precipitate economic collapse will be disappointed. Economies do not collapse—they shrink. How far Iran’s economy will shrink and how Iran’s leaders and its people respond to the contraction are the real questions. Will the economy bottom out in 2019 or continue to slide for several more years? 

Secretary Pompeo Meets with Saudi Crown Prince Mohammed bin Salman

U.S. Department of State

Analysis & Opinions - Foreign Affairs

Saudi Arabia’s Empty Oil Threats

| Nov. 01, 2018

The brazen murder of Washington Post journalist and U.S. resident Jamal Khashoggi has elicited that rarest of reactions in contemporary U.S. politics: bipartisan consensus. President Trump’s administration, however, has adopted a notably restrained response thus far. US administration officials reportedly worry that by applying too much pressure on the kingdom, they could inadvertently “jeopardize plans to enlist Saudi help to avoid disrupting the oil market.” The Trump administration has been counting on Saudi Arabia, as the world’s swing producer, to increase its oil production to help offset the anticipated loss of Iranian supply come November 5, when sanctions lifted under the Iran nuclear deal are re-imposed. While Saudi Arabia does have the ability to impose costs on the United States if it is displeased by forceful action on the Khashoggi affair, Saudi threats to sabotage President Trump’s Iran policy through manipulating the oil market do not appear credible

Iran Tehran Bazaar

Wikicommons

Analysis & Opinions - Foreign Affairs

Yes, Iran’s Economy Is Suffering—But It’s Not All About the U.S.

| Sep. 25, 2018

Although U.S. President Donald Trump has hurt the Iranian economy, the unexpected depth of the rial’s decline owes less to U.S. policy than to poor decision-making in Tehran and structural weaknesses in Iran’s economy. A proper understanding of the factors that deepened the crisis suggests that the country’s acute hardships may ease or disappear as Iran adjusts to the new situation. Iran’s foreign exchange market needs to be understood on its own terms in order to avoid the common mistake of equating the fall of the rial in the free market with economic collapse, rising poverty, and increasing protests that can weaken the regime.

Iran Currency

AP Photo/Vahid Salemi

Blog Post - Iran Matters

Is Iran's Economy Collapsing?

    Author:
  • Arash Pourebrahimi
| Aug. 07, 2018

Iran’s economy is having difficulties for sure but is far from “collapsing”. While the Iranian rial has lost more than 50 percent of its value against the US dollar in the unofficial market since January 2018, this is nothing new for Iran’s economy. Every president since the end of Iran-Iraq war had to deal with a sort of analogous currency crisis.

Tehran Vali Asr

Tasnim News

Analysis & Opinions - Project Syndicate

How Iran Will Respond to New Sanctions

| May 02, 2018

Even before US President Donald Trump began threatening to re-impose sanctions on Iran, foreign investors looking to do business there were wary. Iranian President Hassan Rouhani failed to get his pro-market agenda off the ground, and now international political developments are playing into Iranian hardliners' hands.

Central Bank of Iran

Tasnim News

Analysis & Opinions

Did Bad Economic Conditions Cause Iran’s protests?

| Mar. 01, 2018

Like other Iranian president before him, President Hassan Rouhani is having a bad second term. Only six months after his decisive re-election, protesters were in streets shouting “Death to Rouhani.” Then came a sharp fall in the value of the rial, by 10% in two weeks, which threatens to undo the principal economic achievement of his first term—lowering inflation—and his plans to lower interest rates. Iran’s Central Bank had to increase interest rates last month to stop the fall of the rial. These are precarious times for Rouhani, who has won two elections promising economic revival.

Iran US America Flag

Wikimedia

Analysis & Opinions - The National Interest

Recognizing the Limitations of American Influence in Iran

| Feb. 14, 2018

It is time for a reality check: despite claims to the contrary by Iran’s supreme leader, the United States is not the central actor in the drama that recently unfolded in Iran, nor was it the central actor in Egypt back in 2011. The mass protests that forced the Egyptian dictator from power were driven by the Egyptian public’s growing disenchantment with decades of political, economic and social mismanagement by a succession of military rulers. Contemporary observers noted with surprise the absence of references to the United States or other foreign-policy considerations during the protests. The demonstrators’ recurrent chant—“bread, freedom, social justice and human dignity”—encapsulated the domestic motivations behind the public’s mobilization.

Rouhani

Tasnim News

Blog Post - Iran Matters

A Wake-up Call to Rouhani

    Author:
  • Masoud Movahed
| Jan. 17, 2018

The recent protests in Iran are surely a wakeup call for President Rouhani. To respond the legitimate grievances of low-income Iranian households, the Rouhani government should do its best to further diversify the Iranian economy and to bolster its manufacturing and industrial sectors. The Rouhani government should also promote the export of non-oil products, following the models of countries such as South Korea, Taiwan, and recently, the Chinese leviathan. Labor-intensive industries as well as service sectors like information technology, ought to be solidified. Rouhani should call upon state-directed industrial committees and agencies to provide Iranian entrepreneurs and manufacturers with fiscal resources, and he should foster financial support and protection for firms that place emphasis on exporting goods abroad.