Economic Policy Considers Both Domestic and Foreign Factors

Radio Farda - On Wednesday, Ayatollah Khamenei, the leader of the revolution, stated in a gathering of workers in the country, "The key to solving the economic problems of the country is not in Lausanne, Geneva, or New York, but within the country itself." Generally, how much of a country's economic problems have domestic roots and how much are foreign in origin? Fereydoun Khavand: We live in an era of economic globalization, characterized by close and increasingly intertwined connections between national economies. The term 'national economy,' as it was used in the past, is gradually losing its meaning, and in economic policymaking, it is impossible to separate domestic from foreign. Today, any decision made by the central banks of the U.S. or Europe affects currency, trade, and economic activity in many countries. A decline in growth rates in China can lead to a drop in stock market indices in the U.S. and Europe. Countries place great value on their international relations to improve the welfare of their people. They strive to maintain non-tensioned relations with the world, present a good image of themselves, and actively participate in international economic organizations. A country like China began to rise in the global economic arena when it set aside Mao's 'Red Book,' attracting large Western multinational companies and successfully capturing global markets. In Iran, which has historically always had connections with the world, good diplomacy is an inseparable part of economic policymaking. Therefore, it can be said that the fate of Iran's economy is also connected to Geneva, Lausanne, and New York. What specific instances demonstrate the impact of international relations on the economic lives of Iranians? The security and welfare level of Iranians are intertwined with their country's international relations. The sanctions of the past two to three years have caused significant disruptions in the country's banking, trade, insurance, and transportation relations, halving the export of Iran's most important commodity, oil; they have severely weakened the national currency and pushed inflation out of control. To escape this plight, Iran has no choice but to go to Geneva, Lausanne, and then New York, the headquarters of the UN Security Council. Ali Rabiei, the Minister of Labor, Cooperatives, and Social Affairs, recently articulated the relationship between domestic economy and international relations as clearly as possible. According to him, the country must create 800,000 jobs each year to combat unemployment, and he added that achieving this goal is impossible without interaction with the outside world. How hopeful can we be about the prospects of Iran's economic diplomacy at present? Transforming the Lausanne agreement into an international treaty regarding the resolution of the Islamic Republic's nuclear file would create a historic opportunity for Iran to return to the international economic community, along with positive consequences for the lives of Iranians.