29.06.2007 - Source: Radio Free Europe/Radio Liberty

Iranian Oil Minister Kazem Vaziri-Hamaneh has vowed in the wake of protests and rioting that rationing of gasoline will continue ("Iran To Continue Gasoline Rationing") [ID 21449]

Document(s): Open document

04.2005 - Source: UK Home Office

Economy ("Country Report - April 2005") [#31980], [ID 8241]

"[...]3.3 According to the Europa Yearbook, today, Iran’s economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture and small scale businesses. [1a](pg391) [4j](pg4) [24a] It has been stated by an Iranian official [21bh] that the unemployment rate is 15 per cent nationwide whilst the International Money Fund (IMF) and the CIA Fact Book for 2003 have put it as high as 16 per cent. [5af] [44] However figures quoted in the US State Department country report for 2004 released in February 2005 stated that "The official unemployment rate was approximately 11 percent, although other estimates were higher. Estimated inflation was 15 percent with economic growth at 6.5 percent during the year". [4p(pg1) The Iranian press also reported in September 2002 that some 12 million, from a population of 66 million were living below the poverty line. [5ag] According to an economist quoted in a BBC News report of 29 May 2003, " The brain drain is a problem for the country because we are losing highly educated people and these people... could be our entrepreneurs who create jobs for the next generation". [21bv] According to an International Monetary Fund report referenced in an article in the Tehran Times on 12 July 2004, "Iran stands in first place in emigration among 91 developing and developed countries and 150 to 180 thousand Iranians immigrate (sic) to other countries every year". [71a]
3.4 According to the USSD 2004, "Large parastatal charitable foundations ("bonyads"), with strong connections to the clerical regime controlled as much as a third of the country's economy and exercised considerable influence. The Government heavily subsidized basic foodstuffs and energy costs. Government mismanagement and corruption negatively affected economic performance". [4p](pg1)
3.5 A key factor in Iran’s economic prospects is whether it will be able to gain full re-admittance to the international trading community World Trading Organisation (WTO). Membership will depend in large part upon the outcome of the political contest in Tehran and the success of Iran’s policy of détente towards the outside world. [1a](pg416) [21w] [5ax]
3.6 According to a Reuters report of 28 May 2002, the Secretary General of the United Nations Conference on Trade and Development said that UNCTAD supports Tehran's will to join the WTO but the United States administration was opposed to Iran gaining membership. It was expected that non-members would suffer grave economic losses in future years as a result of the majority of the international community following the same trade policies. [5ac]
3.7 In its annual review of the Iranian economy in September 2002 the IMF, notwithstanding concerns over unemployment rates and fiscal policy concluded that the economy had performed well during the year [5af] and the World Bank planned to lend Iran $755m over two years although opposition from some of the World Bank's shareholders was expected. [21x]
3.8 According to BBC News Reports in March 2003, the Deputy Governor of the Central Bank of Iran for Economic Affairs Akbar Kimanji reported that Iran's foreign debt stood at 23.438bn dollars up to 20 January 2003. [21ag] US sanctions were also renewed by President George Bush for a further year on 13 March 2003. [21ah]
3.9 On 25 August 2003 the IMF reported that the Iranian economy had performed well over the last three years, as evidenced by the rapid growth of the non-oil sector, a decline in unemployment, a reduction in external debt, the accumulation of gross official reserves and an improvement in key social indicators. These achievements were in large part attributable to structural reforms implemented over the last three years, including the opening up of the economy to international trade and foreign direct investment, exchange rate unification, and further progress in enhancing fiscal management and reforming the financial system. [45a] However, the report also noted that domestic demand pressures stemming from a monetary expansion policy had intensified, generating rapid growth of liquidity and putting upward pressure on inflation. [45a] [52a]
3.10 In a press release of June 23, 2004, the IMF said, "The mission noted that in 2003-04 real GDP growth was high and broad based, unemployment declined, gross international reserves increased to the equivalent of more than six months of imports of goods and services, but the external current surplus narrowed compared to the previous year. Inflation remained at about 15 percent. The prospects for 2004-05 also look favorable, aided by higher oil revenue and the continued strong momentum of private sector investment. Growth is expected to remain at about 6 ½ percent, with most sectors showing relatively strong performance". [45b]
3.11 According to Europa 2005, "…the intense international focus on Iran's nuclear programme and US suspicion of Iran's alleged role in sponsoring terrorism have combined to induce several problems, notably when plans to develop the Azadegan oilfield stalled following US pressure on the Japanese consortium to withdraw from the project". further, "The renewed political ascendancy of the 'conservatives' has yet to make an impact on Iran's economic fortunes, but the Fourth Five Year Development Plan, which was being debated at the time of the elections placed great emphasis on two areas of reform - privatisation and foreign investment - which were unlikely to appeal to the 'conservative' mindset distrustful of foreign involvement in Iran and private entrepeneurs". [1c](pg439) [...]"

Document(s): Open document

28.02.2005 - Source: US Department of State

Country Report on Human Rights Practices 2004 ("Country Report on Human Rights Practices 2004") [#29525], [ID 8242]

"[...]The mixed economy depends on oil and gas for 80 percent of its export earnings. The population was more than 69 million. All large-scale industry is publicly owned and state-administered. Large parastatal charitable foundations ("bonyads"), with strong connections to the clerical regime, controlled as much as a third of the country's economy and exercised considerable influence. The Government heavily subsidized basic foodstuffs and energy costs. Government mismanagement and corruption negatively affected economic performance. The official unemployment rate was approximately 11 percent, although other estimates were higher. Estimated inflation was 15 percent with economic growth approximately 6.5 percent during the year. [...]"

Document(s): Open document

25.02.2004 - Source: US Department of State

Large sectors of the conomy closely connected publicly owned or otherwise closeley connected to the clerical regime/80 percent dependency on oil and gas exports/16 percent official unemployment ("Country Reports on Human Rights Practices - 2003") [#19747], [ID 8243]

"The mixed economy depends on oil and gas for 80 percent of its export earnings. The population was approximately 68 million. All large-scale industry is publicly owned and administered by the State. Large para-statal charitable foundations called bonyads, most with strong connections to the clerical regime, controlled as much as a third of the country's economy and exercised considerable influence. The Government heavily subsidized basic foodstuffs and energy costs. Government mismanagement and corruption negatively affected economic performance. The official unemployment rate was approximately 16 percent, although other estimates were higher. Estimated inflation was 17 percent with economic growth at 6 percent during the year."

Document(s): Open document

15.10.2003 - Source: International Crisis Group

15.10.2003 - ICG: Nearly 40 per cent of population lives below poverty line; 900.000 new jobs are needed annually to prevent an increase in - already high - unemployment ("Iran: Discontent and Disarray") [#16759], [ID 8244]

"The average Iranian has yet to experience the benefits of the apparent recent macroeconomic improvements and significant GDP growth. Indeed, although the country possesses vast oil and natural gas reserves, some Iranian economists estimate that nearly 40 per cent of the population lives below the poverty line. [...]

At the root of the Iranian people’s disenchantment is the Islamic Republic’s failure to meet their basic economic needs. According to the government’s own estimates, some 900,000 new jobs are needed annually to accommodate the burgeoning young labour force and prevent an increase in unemployment — officially around sixteen per cent, unofficially over twenty per cent. Yet government officials acknowledge that they will be hard pressed to create more than 500,000 new jobs per year."

Document(s): Open document

15.10.2003 - Source: International Crisis Group

15.10.2003 - ICG: Conservative Establishment appears to be considering gradual economic reform and openness ("Iran: Discontent and Disarray") [#16759], [ID 8245]

"At this point, the only further liberalisation that the Islamic Republic is likely to embrace is economic. Aware that economic discontent poses the greatest threat to regime stability, the conservative establishment appears to be considering gradual economic reform and openness. But the long-term prospects of such a strategy are uncertain at best. There is no simple cure for the country’s endemic economic mismanagement, as Iran’s own economists readily concede."

Document(s): Open document

2003 - Source:

CIA World Factbook 2002: Economy ("CIA World Factbook 2002: Economy") [ID 8247]

"Economy - overview:

Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. President KHATAMI has continued to follow the market reform plans of former President RAFSANJANI and has indicated that he will pursue diversification of Iran's oil-reliant economy although he has made little progress toward that goal. The strong oil market in 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iran's financial situation tightened in 1997 and deteriorated further in 1998 because of lower oil prices. The subsequent rise in oil prices in 1999-2000 afforded Iran fiscal breathing room but does not solve Iran's structural economic problems, including the encouragement of foreign investment.

GDP: purchasing power parity - $426 billion (2001 est.)
GDP - real growth rate: 5% (2001 est.)
GDP - per capita: purchasing power parity - $6,400 (2001 est.)
GDP - composition by sector: agriculture: 20%, industry: 24%, services: 56%(2001 est.)
Population below poverty line: 53% (1996 est.)
Household income or consumption by percentage share: lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices): 13% (2001 est.)
Labor force: 18 million
note: shortage of skilled labor (1998)
Labor force - by occupation: agriculture 30%, industry 25%, services 45% (2001 est.)
Unemployment rate: 14% (1999 est.)
Budget: revenues: $24 billion
expenditures: $22 billion, including capital expenditures of $NA (2001 est.)
Industries: petroleum, petrochemicals, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), metal fabricating, armaments [...]

Debt - external: $7.3 billion (2001 est.)
Economic aid - recipient: $116.5 million (1995)
Currency: Iranian rial (IRR)
Currency code: IRR
Exchange rates: from 1997 to 2001, Iran had a multi-exchange-rate system; one of these rates, the official floating exchange rate, by which most essential goods were imported, averaged 1,750 rials per US dollar; in March 2002, the multi-exchange-rate system was converged into one rate at about 7,900 rials per US dollar
Fiscal year: 21 March - 20 March"

Document(s): CIA World Factbook 2002: Economy

10.2002 - Source: UK Home Office

UK Home Office: Economy ("Country Assessment - October 2002") [#9556], [ID 8246]

"2.3. Pre - Revolutionary Iran 's economic development was rapid. Traditionally an agricultural society, in 1961 Iran initiated a series of economic, social and administrative reforms that became known as the Shahs White Revolution. The core of this program was land reform. By the 1970's, Iran had achieved significant industrialisation and economic modernisation however the pace of growth had started to slow by the late 70's. Since the Revolution in 1979 increased central control, the disruption caused by the Iran/Iraq war and a general decline in oil prices in late 1985 had a detrimental effect on the economy.

2.4. In March 1989, Khomeini approved President Rafsanjani's 5-year plan for economic development. Since then Iran's five-year economic plans have emphasised a gradual move towards a market orientated economy and the development of the private sector. The third five-year plan, which came into force in March 2000, commits the government to an ambitious programme of liberalisation, diversification and privatisation. However a lack of consensus on the privatisation drive has resulted in delay.

2.5. Today, Iran' economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture and small scale businesses. It has been stated by an Iranian official that the unemployment rate is 14 per cent nationwide whilst the International Money Fund (IMF)has put it as high as 16 per cent.

2.6. The Iranian press also reported in September 2002 that some 12 million out of a population of 66 million live below the poverty line.

2.7. A key factor in Iran's economic prospects is whether it will be able to gain full re-admittance to the international trading community (World Trading Organisation (WTO) membership etc), which will depend in large part upon the outcome of the political contest in Tehran and the success of Iran's policy of détente towards the outside world.

2.8. Whilst the Secretary General of the United Nations Conference on Trade and Development has said that UNCTAD supports Tehran's will to join the WTO currently the United States administration is opposed to Iran gaining membership of the WTO. It is to be expected that non-members will suffer grave economic losses in future years as a result of the majority of the International Community following the same trade policies.

2.9. In its annual review (September 2002) of the Iranian economy the IMF, notwithstanding concerns over unemployment rates and fiscal policy concluded that the economy had performed well during the year and the World Bank is planning to lend Iran $755m over the next two years although opposition from some of the World Bank's shareholders is to be expected."

Document(s): Open document

06.2002 - Source: Middle East Review of International Affairs

Middle East Review of International Affairs (MERIA): ("What are Iran's Domestic Priorities? (MERIA, Vol. 6/No. 2, June 2002, p. 25-39)") [#7612], [ID 8249]

Document(s): Open document
Open document

04.03.2002 - Source: US Department of State

US State Department: Economy heavily dependent on export earnings from the country's extensive petroleum reserves ("Annual report 2001") [#5823], [ID 8248]

"Iran has a mixed economy that is Iran has a mixed economy that is heavily dependent on export earnings from the country's extensive petroleum reserves. The country has a population of approximately 65,620,000. The Constitution mandates that all large-scale industry, including petroleum, minerals, banking, foreign exchange, insurance, power generation, communications, aviation, and road and rail transport, be publicly owned and administered by the State. Large charitable foundations called bonyads, most with strong connections to the Government, control the extensive properties and businesses expropriated from the Pahlavi family and from other figures associated with the monarchy. The bonyads exercise considerable influence in the economy, but neither account publicly for revenue nor pay taxes. The Government subsidizes basic foodstuffs and energy costs heavily. Oil exports account for nearly 80 percent of foreign exchange earnings. Private property rights largely are respected. Although economic performance had improved somewhat when worldwide oil prices increased, the recent fall in prices has had an adverse effect. Government mismanagement and corruption also negatively affect economic performance. Unemployment is estimated to be between 25 and 30 percent, and inflation approximately 20-25 percent."

Document(s): Open document

02.2002 - Source:

Aftaab (NetIran): Three Gaps in the Iranian Economy ("02/2002 - Aftaab (NetIran): Three Gaps in the Iranian Economy") [ID 8250]

Document(s): 02/2002 - Aftaab (NetIran): Three Gaps in the Iranian Economy

11.2001 - Source: Austrian Centre for Country of Origin and Asylum Research and Documentation

ACCORD: Economic situation ("7th European Country of Origin Information Seminar Berlin, 11 - 12 June 2001: Final Report - Iran") [#7661], [ID 8251]

"The economic situation is very dramatic. One of the greatest failures of President Khatami in his first tenure was his inability to deal with the economic situation. The unemployment among the 25- to 35-year-olds reaches 25 percent and the per capita income is below USD 4,000, which is quite low given rising levels of education among the Iranian youth. A French journalist commented on 7 June 2001: ”The despairing youth of Iran are going to vote with their feet on Khatami’s reforms.” He quotes the construction worker Mohammad with saying: ”Freedom is not about relationships between boys and girls. Anyway, I’m too busy worrying about putting bread on the table.”
Another man, Ali, observed: ”Whatever the result of tomorrow’s poll, many of Iran’s young dream of voting with their feet. 90 percent of my friends, even those who graduated, are unemployed. Who can blame them for wanting to leave the country...”"

Document(s): cois2001-irn.pdf

01.12.1987 - Source: US Library of Congress

Iran: A Country Study ("Iran: A Country Study") [#898], [ID 8252]

Document(s): Open document

01.12.1987 - Source: US Library of Congress

Iran: A Country Study ("Iran: A Country Study") [#898], [ID 8252]

Document(s): Open document