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Iran's Economy Slides Toward the Bottom

(Asia Times-Hong Kong) Hossein Askari - In 1970, Iran's gross domestic product (GDP) ranked 27th among all countries. In 1980, just after the Islamic Revolution of 1979, Iran's GDP was 19th. In 2005, Iran had sunk to 31st in GDP ranking. Moreover, real per capita income growth in the period 1980-2005 was about zero, although it increased after 2005 because of rapidly rising oil prices. In 1980, Iran's economy was about 50% bigger than South Korea's. Yet in 2005, Korea's GDP was more than four times that of Iran. To say that the Iranian economy has underperformed since the Shah's overthrow in 1979 would be an understatement. According to the International Monetary Fund, Iran ranks first in brain drain among developing countries, with roughly 150,000 Iranians leaving Iran every year, and with about 25% of all Iranians with post-secondary education now living abroad in developed countries. Under the Shah, corruption was more or less limited to members of the royal family, ministers and other senior officials. In today's Iran it is even at the level of the doorman to government buildings. To go anywhere and get anything done requires a payment. In short, the policies of the revolutionary government of Iran have failed the Iranian people miserably. Economic failure and the resulting hardships are more of an issue than political repression for the average Iranian. The writer is professor of international business and international affairs at George Washington University.
2010-09-16 09:38:29
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