Khamenei Criticizes Economic Problems; Rouhani Defends His Government's Performance

Ayatollah Ali Khamenei, the leader of the Islamic Republic, criticized the economic and livelihood issues faced by the lower classes in Iran in a message on Monday, March 20, marking the beginning of the new year 1396. He stated that a resilient economy is the only remedy for the current situation. In contrast, Hassan Rouhani, the President of Iran, defended his government's economic performance in his Nowruz message. Khamenei named the new year as 'Resilient Economy: Production – Employment' and emphasized the importance of focusing on key areas of the resilient economy, which include domestic production and employment, especially for the youth. He urged officials to report the results of their planning to the public at the end of the year. Khamenei described the past year as one filled with both bitterness and sweetness for the Iranian nation, noting that while the people experienced 'sustainable security,' the hardships of the previous year were related to economic issues affecting the lower and middle classes. He expressed his awareness of the people's situation, stating that he feels the bitterness of the people, particularly the lower class, due to economic problems such as inflation, unemployment, discrimination, and social harms. Khamenei also pointed out that there is a significant gap between the actions taken and the expectations of the people and leadership, adding that both positive and negative statistics should be viewed collectively. His remarks regarding domestic production and employment are not new; he had previously expressed doubts about the government's statistics on improving the economic situation during a meeting with members of the Assembly of Experts. Two days prior, Ayatollah Ahmad Jannati, the head of the Assembly of Experts and Secretary of the Guardian Council, had asked Rouhani to report on the government's actions regarding the implementation of 'resilient economy' and to apologize to the people if the government had not acted accordingly. In response, Rouhani dismissed questions about the government's success in 'resilient economy' as 'irrelevant' and 'the worst question.' Eshaq Jahangiri, the First Vice President, also rejected criticisms of the government's performance regarding 'resilient economy,' stating that those who should be held accountable for their actions are the ones questioning the government. In recent months, government officials have cited an 11% economic growth and a single-digit inflation rate to argue that the economic conditions of the people have improved compared to the early days of this administration. However, according to reports from media critical of the government, the Iranian economy remains stagnant, and Rouhani's policies aimed at improving industry and employment have largely been unsuccessful. In this context, the Tasnim news agency recently reported, citing the Statistical Center of Iran, that the unemployment rate for the population aged 10 and older in the country was 12.3% for the autumn of 1395. According to the definition of the Statistical Center of Iran, all individuals aged 10 and older who worked at least one hour during the week or temporarily left work are considered employed. This statistic shows a 1.5% increase in the unemployment rate compared to the previous autumn. The highest unemployment rate was among the 20-24 age group at 31.8%. Rouhani defended his government's economic performance in his New Year message, calling the achievements in controlling inflation, economic growth, and employment in 1395 'unprecedented compared to the last 25 years.' He noted that 1395 was both the year of implementing resilient economy policies and the year of the nuclear agreement's implementation, stating that 'these two together played a positive role for us.' Rouhani also highlighted what he termed the 'increase in agricultural production, 8% economic growth, significant growth in industrial production, increased oil and gas production, and the activation of 24,000 incomplete or inactive industrial units,' adding that 'this signifies economic growth in the year of resilient economy.' The Iranian President promised that the new year would be one of further progress for the people and stated, 'The new year will be a year of more employment for our youth.' He interpreted the increase in wages for workers and employees, which he claimed exceeds inflation, as a sign that 'people can be in greater comfort and welfare.' These statements came amid criticism from various labor organizations and activists regarding the determination of a minimum wage of 930,000 tomans for monthly wages in 1396, which was set by the Supreme Labor Council just days after the wage committee announced that the monthly livelihood cost for a working family was 2,480,000 tomans. Rouhani also called for the virtual space to be a 'safe space' for the people, stating that it 'should not be a security space.' He added that 'we seek to eliminate the security atmosphere in all cultural and social arenas' and emphasized that 'we must replace the economic space with a space of brotherhood, friendship, and love.' In this context, he referred to the publication of the Citizen's Rights Charter and stated, 'This year, with your help, we must implement and operationalize this charter. The dignity of the people must be increased. The dignity of the people must be respected by all.' He stated, 'Everyone must know that the country belongs to the nation and the people. Everyone must know that if they violate citizens' rights, they will pay a very heavy price.' Rouhani's remarks came amid reports of the Ministry of Intelligence's crackdown on labor activists and journalists. In another part of his speech, the Iranian President called for a 'more prominent' presence in the 1396 elections, including the presidential and city and village council elections, adding, 'Maximum participation, healthy competition, and legal elections must be considered by all of us.' These remarks were made in the context of ongoing criticism from opponents and human rights organizations regarding the conduct of elections in Iran. Additionally, the announcement of the 2009 election results led to widespread protests and demonstrations. Opponents and critics have also criticized the manner in which elections are conducted in Iran and the role of the Guardian Council in approving or disapproving candidates.