Iran - Economic, Social, and Civil

Iran has a mixed economy;

• 60% of the economy is planned by the government. Gov. owns all of natural resources (oil), finance, media, aviation, and infrastructure (roads, power, etc.).

• Private business is undermined by corruption and price controls. Private business includes agriculture and the service sector.

• 60% of Iran’s wealth is controlled by ~300 people.

Iran is an energy superpower, why?

• Iran holds 10% of the world’s oil reserves and 15% of its natural gas reserves

• Iran’s oil led to modernization (the White Revolution) and oil has kept the current regime in power.

  • National Iranian Oil Company is a gov. owned national oil and natural gas producer and distributor, under direction of the Ministry of Petroleum of Iran.

  • Iran’s constitution prohibits foreign or private ownership of natural resources.

Iran is part of a resource trap, due to what?

• Religious leaders take a skeptical view of economic reform and liberalization, especially if it improves relations with the US.

• Iran’s economy is an example of a resource trap: paradoxically, a country’s natural resource makes the country poorer, not richer: new funding did not trickle down to society 

  • A resource trap can weaken women’s rights, as there is little addition to jobs.

• 30% of those under 24 are unemployed, as a result many seek jobs in the unregulated economy, especially women. There’s also a “brain drain”.

• Under the Shah Pahlavi, Iran was a Rentier State (substantial portion of national revenue from economic rent paid by companies/individuals, i.e. BP Oil) 

Charity Organizations in Iran

• After the Revolution, charity organizations were nationalized

  • The organizations were intended to redistribute income to poor and families of martyrs (those killed in service of the country)

• Charity organizations (directed by clerics/appointed by the Supreme Leader) control large amounts of money in Iran.

  • Foundation for the Oppressed and Disabled

  • Martyrs Foundation

• Charity organizations monopolize many sectors of the economy (i.e. cement, sugar, etc.) and revenues go to the regime.

• Most of these organizations supervise property and state owned businesses

2015 Iran Nuclear deal

• Iran agreed to end their nuclear program and have regular international inspectors 

• Iran’s sanctions were reduced and export of oil increased

• United States exited the deal in 2018.

• Today, Iran has the ability to make nuclear weapons

• Sanctions on Iran b/c of their nuclear program and support of extremist groups

Religion

• 90% are Shia Muslim

• 10% are Sunni Muslim

• Less that 1% are Jewish, Christian, Zoroastrian, and Baha’i

• Since founding of Islamic Republic in 1979, many religious minorities have fled the country. The constitution recognizes some religious minorities, but not Sunnis and the Baha’i

• Baha’i faith has suffered persecution

  • Seen as an unholy offshoot of Islam

    • Advocates for social equality

  • Leaders imprisoned, tortured, and executed

  • Their schools have been closed and their community property taken by the state

Ethnic Groups

• Ethnicity

  • 51% Persian

  • 24% Azeri

  • 8% Gilaki and Mazandarani

  • 7% Kurds

  • 3% Arabi

• Azeris

  • Live close to Azerbaijan in the NW

  • Iran worries Azeris will want to form larger state by taking territory away from Iran

  • Azeris do not speak Farsi, but are strongly Shiite

• Kurds and Arabs in Iran tend to be Sunni Muslim

Social Classes

• Peasantry and lower middle class are sources of support for the regime, as they’ve benefited from the government’s special programs that have provided them with electricity, paved roads, etc. (note slides on Charity Organizations and ownership of business)

• Middle and upper-middle class are largely secularized

  • Tend to be critical of clerics and their control of society

  • Reinforced by the fact that many middle class have not done well economically since the founding of the Republic

Population

• With the growing number of young people today, there is a large middle class that is disillusioned and attracted to western popular culture.

• In 2021, the Majles passed a law for the government and state entities to encourage marriage and childbearing, and enforce penalties for noncompliance, and  prohibit any activity the promotes birth control.

Reformers

• Want to see more secularization and democracy

• Most reformers do not want to do away with basic principles of Islamic state; but vary on how much and where secularization and democracy should be infused into the system.

Conservatives

• Want to keep the regime under control of clerics/sharia law

  • Pragmatic Conservatives: Clergy that favor liberal economic policies that encourage free market

  • Radical Clerics: Call for measures to enhance social justice, especially providing welfare benefits to the poor

About Protests and demonstrations

are not tolerated and Iranians cannot speak out against the government

1999-2020

• Protests erupted in universities all across the country when the government shut down a reformist newspaper. In addition, Iranians protested against rising prices and poor conditions.

2002

•  Demonstrations by students when courts ruled a death sentence for a reformist academic.

2003

Student mass protests over the privatization of the university system

2007

• Security forces attacked bus drivers that were on strike

• Police beat hundreds of men and women who assembled to commemorate International Women’s Day

The 2009-2010 Iranian Election Protests

• Following the 2009 Iranian presidential election against the disputed victory of Iranian President Mahmoud Ahmadinejad and in support of opposition candidates Mir-Hossein Mousavi and Mehdi Karroubi

• Called the “Green Movement” after Mousavi’s campaign colors

  • Government sent tens of thousands of Revolutionary Guards and Basij to disperse crowds, violence and death as a result: Ayatollah Khamenei declared that society had been vaccination against these germs

2022 Protests against the hijab

• Protests inspired by Mahsa Amini, arrested for not wearing the hijab in accordance with government standards. She was arrested and died in police custody.                                                

• Women took to the streets and removed their head scarfs and burned them or cut their hair in protest.

• Large arrests during these protests and deaths reported.

Freedom of the Press in Iran

• According to Reporters Without Borders, Iran is one of the world’s most repressive counties in terms of freedom of the press. (ranks 177/180 on their Press Freedom Index)

• Media controlled by the regime. Any independent media is criticized of being manipulated by foreign forces.

• Journalists and independent media in Iran constantly persecuted (trails before Revolutionary Courts).

• While constitution guarantees freedom of the press, a 1986 press law allows authorities to ensure that journalists don’t spread false information or endanger the republic.

• Several social media platforms (YouTube, Instagram, Facebook, X, WhatsApp, etc.) are blocked by the government.

Women and the Political System

• First admitted to Iranian Universities in 1937.

• Women granted the right to vote in 1963

• Women can run for seats in Majles (about 3%), but are constitutionally barred for the presidency.

• Women more represented in the professions as doctors or government employees

  • Difficult for women to be hired, represent 33% of the labor force

• Iranian government terms their policy towards women as “equality with difference”

• Means divorce and custody laws follow Islamic Standards that favor males

• Women must wear scarves and long coats in public

• Women cannot leave the country without the consent of male relatives

• Occasional stoning of women for adultery has taken place

• Ban on public discussion of women’s issues in a way that contradicts Islam

  • Note that Islam promotes equality among women (Quran)