Iran - Andrew Burke [23]
The influence of this unelected branch of government extends far beyond the power of veto. The Basij (Volunteers), Sepah and Pasdaran are hardline armed militias with hundreds of thousands of members, and they report not to the president but to the Supreme Leader. They are, in effect, a second police force, though one that is more influential than the formal uniformed police. For example, during the 2000–2004 Reformist-dominated Majlis, they worked tirelessly to undermine both Khatami and the parliament. For months Basijis followed sitting Majlis members around, building dossiers that ‘proved’ they were unworthy of office. Presented with such evidence, the Guardian Council then banned them from standing in the next election.
Economy
Although Iran is traditionally an agrarian society, the world’s second-largest known reserves of both oil and natural gas have made fossil fuels the energy behind the whole economy. Oil accounts for 80% of export earnings and about 45% of gross domestic product. Record high oil prices have been a boon for Iran, with much revenue spent on large infrastructure projects. But Iran is dangerously reliant on this single source of income and, unlike its Persian Gulf neighbours, has done little to address the issue.
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President Ahmadinejad has said he prays to God he will ‘never know about economics’. His populist ideas include privatising state-run industries and giving ‘justice shares’ to ordinary citizens. These people, however, are sceptical.
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At a glance, the numbers don’t sound so bad. The Iranian economy has been growing at a respectable 5% a year, foreign debt is less than US$10 billion, and a relatively small 16% of people live below the poverty line. Look deeper at this state-dominated economy, however, and it’s much less encouraging. More than 25% of GDP is spent on subsidies, the vast majority on making petrol and electricity cheap. Such cheap fuel has led to a 10% annual increase in consumption. And with Iran’s creaking old refineries only able to pump two thirds of what they could 30 years ago, Iran had been forced to import about 45% of its refined oil – mostly as petrol. Local critics ask why some of these subsidies haven’t been used to upgrade existing infrastructure.
That the government controls more than 60% of the economy is another factor stifling growth. Much of this control is in the hands of bonyads, shadowy state-religious foundations that are well-connected and exempt from tax, thus out-competing most private business. The main nongovernment industries are agriculture (especially pistachios), carpet weaving and manufacturing.
Economic sanctions have made doing business significantly more difficult for Iranians and reduced foreign investment to a trickle. But after years of isolation and the experience of surviving eight years of war, Iran’s economy is betterequipped to withstand sanctions than most.
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The Culture Kamin Mohammadi & Andrew Burke
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THE NATIONAL PSYCHE
LIFESTYLE
POPULATION
SPORT
IMMIGRATION & EMIGRATION
MEDIA
RELIGION
WOMEN IN IRAN
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THE NATIONAL PSYCHE
Iranians are the most surprising people. Where you might expect them to be austere, they are charming; rather than dour, they are warm; and instead of being hostile to foreigners, they are welcoming and endlessly curious.
The truth of the Iranian national psyche lies in the gap between reality and Western perception. Before the revolution, the West’s experience