Iran: One of the Richest Countries in the World

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Recommended: Political changes in Iran after the Islamic revolution

Introduction

Iran is without a doubt, one of the richest countries in the world. With its enormous Oil, Gas and other natural resources combined with its young population and the access to free seas (through Persian gulf), one should think that the country has a significant growth and no poverty and unemployment problems.

After the 1979 revolution, Ayatollah Khomeini, the leader of opposition, became the country’s leader and changed Iran’s Constitution, an Islamic republic government. Under this new hierarchy, which will be explained later, the country was supposed to have independent congress, president and judiciary department, to avoid corruption and bad management of wealth.

Before 2005 with the presidency of Khatami, despite all difficulties, Iranian economy started to grow and reached 5% according to Iranian Central Bank. The most important to notice is that in those years Crude oil price had fallen to 40$ per barrel XXX, and the GDP growth, for the first time in its history, was not depended on oil and gas exportation.

In 2005 with presidency on Ahmadinejad, a close person to supreme leader, everything change for the country. Within the first 4 years of his presidency the oil price reached a historical record and the oil and gas exportation income in those 4 years were higher than Iran’s whole importation till that day XXX.

In the second round of his presidency, Iran was faced with hard western countries sanctions because of its nuclear development plans. On the other hand, the lack of knowledge and bad management in the new governor team day by day, by taking wrong decisions, economy fall down. Many decisions and wrong actions were taken during those 8 years such as, Quick productive small businesses, Economic devel...

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...rd-for-jailed-journalists.php). As a result it is not possible to rely on the reports and numbers reported by his office. Although reports are unreliable the new government reported some numbers that were totally different and shows how bad is economy, but yet after 9 months Rouhani in office, there is no reliable reporting system in place.

Now the country with a negative growth rate and high levels of liquidity (which is absorbed into real estate and currency exchanges and not production), inflation and unemployment is to be fixed by the new president Hassan Rouhani, but the real question remains un answered, even if Rouhani fixes everything and the economy and growth come back to normal, is it guaranteed that the president after him will take rational decisions, or it is time to change how politicians can affect the economy and give some freedom to it ?

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