Between Development, Growth and Survival: Some Current Features of Iran’s Model of Socio-Economic Development

   In recent years, conservative forces in Iran have lambasted their moderate and pragmatic rivals for their inability to solve the country’s economic issues and improve the living standards of its populace. However, since Ebrahim Raisi won the presidential election in 2021, Iranian conservatives have had their own chance to tackle the country’s internal challenges, being the last of the political forces without direct influence on the economic decision-making system for a long time. Nevertheless, their failed attempts to foster economic growth under sanctions pressure may prove critical to the Islamic Republic. Not only the conservative part of the establishment but the entire political system may risk losing what remains of its credibility with the Iranian people, who could perceive it as incapable of eff ectively managing the economy. Furthermore, the government’s success in resolving the current socio-economic development issues is also pivotal to the political future of E. Raisi. His failure would deprive him of any opportunity to claim the post of the next supreme leader of Iran. Meanwhile, the accumulated structural problems of the Iranian economy and the external sanctions pressure can render achieving economic progress a daunting, if not insurmountable, task. This paper seeks to elucidate why there is signifi cant social tension in Iran, resulting in periodic outbursts of protest, and why the economic situation is deemed a crisis, despite the relative resilience of the Iranian economy to external and internal challenges, as well as the macroeconomic performance dynamics, which are not necessarily inferior to those of Iran’s regional neighbors. To answer this question, the paper analyzes the main economic challenges facing the country’s leadership and the extent to which the goals and priorities of the implemented “resistance economy” doctrine provide an adequate response to them. As a theoretical tool, the author employs the ideas of M. Todaro, A. Sen, S. Smith, J. Foster, and C. Handy, justifying the need for any state to transcend the simple parameters of economic growth in formulating its development strategy and think more comprehensively, focusing primarily on creating a social and economic environment that is comfortable for its citizens. As a result, the author concludes that the model of the Iranian economy that has been formed in an aggressive environment prioritizes the survival of the existing political system, approaching the issue of economic growth as secondary and failing to satisfy some popular needs beyond the basic ones. It is incapable of ensuring comprehensive sustainable socio-economic development, which over time leads to the accumulation of internal tension in Iranian society.

1. Arabadzhan, A. Islamic Republic of Iran. Economic Potential. Moscow: 2002 [In Russian].

2. Abdallahi, M. R., and S. M. Banitaba. Payesh-e Bakhsh-e Haqiqi-ye Eqtesad-e Iran dar Tirmah 1401 Baksh-e San’at va Ma’dan. Tehran: Markaz-e Pazhuhesh-e Majles-e Shaura-ye Eslami, 2022.

3. Abdallahi, M. R., Banitaba, S. M. Monitoring the Real Sector of Iran’s Economy in June – July 2022. Industry and Mining. Tehran: Parliament Research Center, 2022 [In Persian].

4. Afrakhte, H. Jografi ya-ye rustai-ye iran. Tehran, 2004.

5. Afrakhte, H. Rural Geography of Iran. Tehran, 2004 [In Persian].

6. Akhbari, M., and S. Qulizadeh “Sebat-e eqtesad-e kulan dar ruykard-e eqtesad-e moqavvemati”. Ravand, no. 71 (2015): 55–78.

7. Akhbari, M., and S. Qulizadeh “Approaches of the Resistance Economy to Macroeconomic Stability”. Ravand, no. 71 (2015): 55–78 [In Persian].

8. Amuzegar, J. Iran’s Economy Under the Islamic Republic. London, New-York, 1993.

9. Amuzegar, J. The Islamic Republic of Iran. Refl ections on an Emerging Economy. New York: Routledge, 2014.

10. Asad, A. “Nezam-e eqtesad-e eslami algu-ye kamel bara-ye eqtesad-e moqavvemati.” Falsafe-ye siyasatha-ye rohbardi va kulan, no. 5 (2015): 25–39.

11. Asad, A. “The Islamic Economic System as an Ideal Model for the Resistance Economy.” Falsafe-ye siyasatha-ye rohbardi va kulan, no. 5 (2015): 25–39 [In Persian].

12. Askari, Hossein, John Forrer, Hildy Teegen, and Jiawen Yang. “U. S. Economic Sanctions: Lessons from the Iranian Experience.” Business Economics 36, no. 3 (2001): 7–19.

13. Banisadr, A. Eqtesad-e touhidi. Tehran, 1979.

14. Banisadr, A. The Economics of Monotheism. Tehran, 1979 [In Persian].

15. Baqeri, A., and M. Musawi. “Mafhumshenasi-ye eatesad-e moqvemmati va tabayyun-e naqsh va jayegah-e an dar dauran-e pasotahrim.” Siyasatha-ye Mali va Eqtesai 24, no. 6 (2019).

16. Baqeri, A., and M. Musawi. “The Concept of the Resistance Economy and the Explanation of its Role in the post-Sanctions Period.” Siyasatha-ye Mali va Eqtesai 24, no. 6 (2019) [In Persian].

17. Beheshti, M. B. Tous’e-ye eqtesadi-ye iran. Tabriz, 2005.

18. Beheshti, M. B. The Economic Development of Iran. Tabriz, 2005 [In Persian].

19. Foster, J., and Ch. Handy “External Capabilities.” In Arguments for a Better World: Essays in Honor of Amartya Sen, edited by K. Basu and R. Kanbur. Oxford: Oxford University Press, 2008.

20. Jahaniyan, M. “Naqsh-e doulat dar tous’e-ye eqtesad-e gardeshgari-ye iran ba mehvariyat-e eqtesad-e moqavvemati”. Gardeshgari va tous’e, no. 9 (2016): 156–177.

21. Jahaniyan, M. “The Role of the State in the Development of the Tourism Economy in Iran with Reliance on the Resistance Economy.” Gardeshgari va tous’e, no. 9 (2016): 156–177 [In Persian].

22. Jalilvand, D. “Iranian Energy between Nuclear Deal, Oil Price Decline and the New US Administration.” In The Political and Economic Challenges of Energy in The Middle East and North Africa, edited by D. Jalilvand and K. Westphal. New York: Routledge, 2018.

23. Katzman, K. Iran Sanctions. Washington DC: Congressional Research Center, 2022.

24. Khajehpour, B. Anatomy of the Iranian Economy. Stockholm: Swedish Institute of International Aff airs, 2020.

25. Khanlu, M. “Pardakht-e 52,4 khezar millyard riyal yaraneh-ye kalaha-ye asasi dar sal-e 1386.” Barnameh, no. 204 (2007): 12–6.

26. Khanlu, M. “The Payment of 52.4 trillion Riyal Subsidies for the Basic Products in 2007/8.” Barnameh, no. 204 (2007): 12–16 [In Persian].

27. Malayiry, F., and G. Yavary. Barrasi-ye siyasat-e emayati az bakhsh-e keshavarzi dar keshvarha-ye muntakheb va iran. Tehran, 2007.

28. Malayiry, F., and G. Yavary. The Analysis of Protectionist Policies in the Agricultural Sector of Selected Countries and Iran. Tehran, 2007 [In Persian].

29. Maloney, S. Iran’s Political Economy Since the Revolution. Cambridge: Cambridge University Press, 2015.

30. Matii-Langrudi, S. H. Jografi ya-ye eqtesadi-ye iran. Mashhad, 2007.

31. Matii-Langrudi, S. H. The Economic Geography of Iran. Mashhad, 2007 [In Persian].

32. Milani, J. “Eqtesad-e meeli va khodbavari-ye melli. Fursatha va chaleshha-ye tahaqqoq-e an.” Majalle-ye eqtesadi, no. 7–8 (2015): 5–22.

33. Milani, J. “National Economy and National Confidence. Opportunities and Challenges of its Implementation.” Majalle-ye eqtesadi, no. 7–8 (2015): 5–22 [In Persian].

34. Mirjalili, H. Eqtesad-e moqavvemati. Tehran, 2020.

35. Mirjalili, H. Resistance Economy. Tehran, 2020 [In Persian].

36. Moret, Erica S. “Humanitarian Impacts of Economic Sanctions on Iran and Syria.” European Security 24, no. 1 (2015): 120–140. doi: 10.1080/09662839.2014.893427.

37. Razzaki, I. Ashnai ba eqtesad-e iran. Tehran, 2003.

38. Razzaki, I. Introduction to the Economy of Iran. Tehran, 2003 [In Persian].

39. Sadjadpour K. Reading Khamenei: The World View of Iran’s Most Powerful Leader. Washington: CEIP, 2009.

40. Sadr, M. Eqtesad-e ma. Tehran, 1969.

41. Sadr, M. Our Economy. Tehran, 1969 [In Persian].

42. Schirazi, A. Islamic Development Policy. The Agrarian Question in Iran. London, 1993.

43. Sen, A. “Development Thinking at the Beginning of the 21sup>st</sup> Century.” In Economic and Social Development in the XXI Century, edited by L. Emmerij. Washington: Johns Hopkins University Press, 1997.

44. Sen, A. Commodities and Capabilities. Amsterdam: Elsevier, 1985.

45. Taleghani, A. Eslam va malekiyyat. Tehran, 1954.

46. Taleghani, A. Islam and Ownership. Tehran, 1954 [In Persian].

47. Tehrani, А. Eqtesad-e eslami. Tehran, 1974.

48. Tehrani, А. Islamic Economy. Tehran, 1974 [In Persian].

49. Todaro, M., and S. Smith. Economic Development. New York: Pearson, 2015.

50. Mamedova, N. “Iran’s Economic Development in the Second Decade of the XXI Century – Main Trends and Prospects.” In Iran in the Second Decade of the XXI Century: Challenges and Prospects, edited by N. Mamedova, M. Kameneva, and I. Fedorova. Moscow: IVRAN, 2016. [In Russian].

51. Mamedova, N., Iran in the XX Century. The Role of the State in the Economic Development. Moscow, 1997. [In Russian].

52. Obukhova, A. “Import-ExportPotentialoftheIslamic RepublicofIran”, In Iran: History and Modernity, edited by L. Kulagina, and N. Mamedova. Moscow: IVRAN, 2014 [In Russian].

53. Timofeev, I., Sokolshchik, Y., Morozov, V. “Sanctions against Iran: Lessons for Russia in the New International Context,” Vestnik of Saint Petersburg University. International Relations, no. 15 (2022): 56–71 [In Russian].