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    Economist Says Biggest Problem For Iranian Economy is State Controls

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Islamic Rep. rated as a ‘failed state’

The Number One failed state is, unsurprisingly, Somalia, a country that exists as a geographic location but does not function as a state. Iran was ranked 35th this year, down from 49th in 2008.

The Fund for Peace ranking is essentially a measure of stability. The index ranks 177 of the UN’s 192 members, leaving out ministates like the bulk of the islands in the Caribbean and Pacific.

It rates countries by 12 indicators. The Islamic Republic ranked worst in the category of “factionalized elites,” followed closely by “delegitimization of the state” and “human rights.” Iran ranked best in terms of “economic decline” and “public services,” but it still ranked poorly in those categories.

If there is any consolation for Iran, it is the fact that it lives in a tough neighborhood. Of its seven land neighbors, three ranked miserably in the bottom dozen—Pakistan at 12th, Iraq at 9th and Afghanistan at 7th.

Its other four land neighbors, however, all rated much higher than Iran—Azerbaijan at 63rd, Turkmenistan at 75th, Armenia at 101st and Turkey at 103rd.

The most stable country in the world was Finland, ranked 177th. Canada came in 168th and the United States 158th.

While the Islamic Republic holds itself out as a shining example for the Islamic world, the Failed States Index portrays it otherwise.

Seventy-two percent of the members of the Organization for Islamic Cooperation (formerly known as the Organization of the Islamic Conference) ranked better than Iran.

Of all the countries in the Middle East and North Africa, the only ones ranked worse than Iran are the three neighbors mentioned above plus Yemen (13th) and Kyrgyzstan (31st).

Perhaps most embarrassing for the Islamic Republic is the fact that all the countries ranked below it are poorer. Most are miserably poor and lack the funds to function as a country should. The Islamic Republic is the lowest ranked country with measurable wealth.

The full index is available at www.fundforpeace.org.

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