June 28, 2017

Major Issues Affecting Iran’s Economy Today

Iran has one of the most interesting and complex economic systems in the world. That’s because sanctions placed on the nation after their revolution had meant they had to think outside of the box. Thankfully, Iran has a thriving nationalized oil industry that helps to boost growth. It has helped the government to pay for first-class universities and decrease poverty in the Islamic Republic. Even so, the country still faces many economic issues thanks to outside interference in their affairs. Today, we’re going to highlight some of the biggest challenges halting Iranian progress in modern times. As some readers will expect, their intent on developing nuclear technology takes center stage.

Structural Economic Problems

As Iran couldn’t structure an economy like most other countries, their system is flawed one some levels. The blame for that lies solely at the feet of individuals who sanctioned the country after the 1979 revolution. According to official statistics, only 23 million out of 64 million Iranians of working age have jobs. While there is an excellent welfare system in place, that highlights how the economy has begun to struggle. It is hoped that Western governments will start to relieve the impact of the sanctions during the next few years. It’s all part of the Iranian nuclear deal that we’ll discuss in a moment.

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Economic Stability Issues

The economy of Iran, while being complex, is also incredibly unstable. Government spending varies from year to year because it’s often impossible to know what the next twelve months will bring. Outside influences can impact the country at any time and significantly reduce their capital. That was proven during the 1980s when US President Ronald Reagan increased pressure at the UN. It’s also highlighted when you consider Iran’s approach to internet communications. Ayatollah Ali Khamenei’s government always seeks solutions to the stability issue. That is why they nationalized the oil industry all those years ago. Some journalists claim Iran is on the brink of collapse, but that’s scaremongering. As it happens, the nation’s economic ties have never been stronger. With a little work, the Iranian economy will strive with the relaxation of political constraints.

Economic Issues Associated With The Nuclear Deal

In 2015, Barack Obama and other Western leaders signed a nuclear technology deal with Iran. They did that on the back of advice from strategical gurus like Mark Dubowitz and his team. The Iranian government hopes the deal will allow them to progress their program unhindered. It should mean the country can reduce its reliance on oil, and move towards nuclear power in the future. However, striking the deal with the West has created tensions in the Middle East. Countries like Palestine are now less inclined to trade with Iran as they appear to be working with the enemy.

It’s clear to see that Iran’s economic issues are far reaching and endlessly confusing. Even so, the country is in a much better state than the media would have you believe. Iranian people are committed to ensuring the success of their Islamic Republic, and they are unlikely to falter anytime soon. Will the nuclear deal finally turn the tides on Western attitudes towards this nation? Only time will tell.

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