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Ahmadinejad's Honeymoon Is Over

[Guardian-UK] Ali Ansari - Ahmadinejad's popularity with the Iranian electorate seems to be falling. His casual dismissal of UN sanctions has apparently earned him an unprecedented rebuke from the supreme leader, Ayatollah Khamenei - reflecting growing concerns among the political elite, including many conservatives, who are increasingly anxious at Iran's worsening international situation. His critics argue that not only has he courted the anger of the U.S., but his economic mismanagement and political nepotism have weakened the internal integrity of Iran. Ahmadinejad appeared to follow the dictum of his mentor, Ayatollah Khomeini - "Economics is for donkeys." So the oil reserve fund was spent on cash handouts to the grateful poor, and the central bank was instructed to cut interest rates for small businesses. These had the effect of pushing up inflation, hurting the poor. Richer Iranians, worried about rising international tension, decided to ship their money abroad, which added to inflationary pressure. Ahmadinejad's demise, if it comes, will have less to do with the international environment and more with his own political incompetence. The writer is director of the Iranian Institute at the University of St Andrews.
2007-01-31 01:00:00
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