Jul 5, 2024
Iran’s chronic mismanagement and rampant inefficiencies have led to such severe economic challenges that even lifting sanctions may not ensure
a quick recovery, an economist says.
Tehran economist Morteza Afghah told local media the roots of the problem lie in the regime’s strategy that prioritizes ideological and political agendas over
economic progress.
“The reality is that over the past three decades since the end of the [1980-1988 Iran-Iraq] war, the country’s economy has been mismanaged. Economic problems have multiplied, and economic and social indicators have deteriorated,” he said. “The reason for this is deeper than even economic policies,” Afghah said.
He noted that the problems facing the country are primarily economic challenges, but their roots are non-economic, criticizing the government for wasting
the resources of the country with inefficient decision-making.
Despite having a large number of qualified, young, patriotic, educated and skilled human resources, as well as valuable natural resources, Iran is suffering
from poverty, unemployment and inequality, leading to various social challenges such as addiction, child labor, unsupported women and outright theft, he said.
“The main root of the current situation is philosophical and influenced by the non-developmental value system of the decision-makers,” Afghah argued, explaining that such an approach “prioritizes ideological, jurisprudential and political issues, and does not give due importance to economic well-being and the
people’s livelihood.”
The economist argued that the government has no choice but to negotiate with the US in order to lift sanctions. Additionally, Tehran has to resolve its issues with the Financial Affairs Task Force (FATF), which has kept Iran on its “blacklist” in recent years for not adhering to transparency and international conventions against money laundering and the financing of terrorism.
If the Iranian government is unable to reach an agreement to lift the sanctions and resolve the FATF issues, and regional tensions continue, the economic and
social conditions in Iran will deteriorate significantly, he said.
He argued that even if the sanctions are lifted, the Iranian economy will not improve significantly. “In the best-case scenario, the situation will not get worse, but it will not get much better either.”
Corruption by high officials is the crux of the problem. These corrupt officials who have dual nationalities should not be given any senior position in governmental organizationsb