Analysis by PMOI/MEK
Iran, July 19, 2021—Iran’s economy is grappling with several crises due to structural corruption. Crises rendering negative growth, inflation, and high prices, shrinking people’s purchasing power while pushing at least 60 million Iranians across the country further into poverty and misery.
A part of this critical situation can be seen in farmers and ranchers’ protests over severe water shortages and the high cost and shortage of livestock feed.
“Unfortunately, for many years we have witnessed a bitter experience when protesting farmers pour their milk into the streets or slaughter their livestock, leaving it there in protest. We have witnessed farmers that dump their crops on the ground in front of agricultural offices,” according to the Tejarat daily in an article posted on July 15.
The import mafia benefits the most from these circumstances, and by importing agricultural products, they are literally plundering ordinary people and filling their own pockets.
Renters run the economy
The situation is so dire that experts are constantly warning of a “devastating flood” that will wash away everyone together.
“Iran’s economy is now being held hostage to the interests of the mafias, and people are losing out. We are witnessing greedy parties, brokers and corrupt figures seeking to take full control over the power structure. The main issue is that Iran’s economy is in the hands of the unproductive. Rent-seekers are suffocating the economy while pocketing mass revenues,” according to a July 14 article in the state-run Etemad daily.
Iran’s economy, an isolated island
The same mafia-style circles have done their best to isolate and imprison a country so that they could continue plundering Iran’s remaining reserves and wealth without any disruption.
“In recent decades, Iran’s economy has distanced far from development. Political tensions and the escalation of sanctions, along with officials’ mismanagement and inefficiency of various governments, have all intensified this matter and prevented the Iranian economy from achieving growth and development. This has led to the spread of unbridled poverty. Today, Iran’s economy is like an island in the global economic spectrum,” according to an article posted on July 14 in the state-run Akhbaresanat daily.
“Today we do not have stable exports and imports from neighboring countries and across the globe. Nor do we define a reciprocal flow for any of the countries and international unions in trade agreements,” said an official in charge of the affairs of Iran’s merchants and traders, according to a July 10 article published in by the Donyay-e-Eghtesad daily.
Chaos eruption in 2025
In the regime’s presidential election, each of the candidates made their share of hollow promises. However, let’s assume these promises are genuine and we can see them materialize four years down the road.
For example, a subsidy of 4.5 million rials (about $18) should be paid to 40 million Iranians. A marriage loan of 5 billion rials (about $20,000) has been provided and two million houses are under construction… These conditions can be considered almost like Ahmadinejad’s presidency (Mahmoud Ahmadinejad, former regime president from 2005 to 2013), of course, minus the monumental oil income.
Such money distribution has no benefit other than resulting in further severe inflation and a major mess in the financial and budgetary system. Even now, the devastating budget deficit has shattered the government of current regime President Hassan Rouhani. As a result, higher costs mean higher inflation and more severe economic and social crises.
An economist close to the regime describes the status quo. “If these slogans are implemented in 2025, they will result in nothing more than creating new turmoil in the budget, banking, financial, social and economic systems. The country’s economic problems will not be solved by providing more subsidies and loans,” according to a July 14 article published by the Tejarat news daily.
“If they think that the government can solve the housing problem through construction, it wouldn’t hurt to study the hundred-year history of various governments in attempting to resolve the housing dilemma. Now, look at what has happened to Tehran. All the gardens and green spaces around Tehran have been turned into residential areas and we still have housing problem in this city. See what a disaster has befallen this city and other overgrown cities. The degree of simplicity in the minds of some individuals is astonishing. They imagine that young people do not get married because they are waiting for their marriage loan to be approved so that they can get married. Young people are avoiding marriage because they do not have a job and their future, and the fate of their future children are unclear. These individuals think that money can solve all our dilemmas. For a nation to live a better life, real goods are needed, and money does not work. Money only creates inflation. Regarding the fact that 70 percent of the production capacity is depleted, does it mean that the government were not informed to launch the production capacities and our candidates do? This is not right. This is the performance of our economy, and this is what you see our economic potential in the current situation. As long as there is no investment, there is no potential to use it,” he added.
When everything is sacrificed at all costs to preserve the mullahs’ regime in its entirety, it is perfectly natural that no one hears these remarks. Why? Well the regime’s senior officials, including the incoming president-select Ebrahim Raisi, are focused on other dire matters.
The fact is that the Iranian people have experienced for years the regime’s officials and their hollow promises. They will not be deceived by the regime, including the inner circle of Supreme Leader Ali Khamenei.