Sanctions Are Not the Reason for Iran's Collapsed Position in the Global Economy!

The sanctions imposed by the United States, which began on November 5, 2018, will undoubtedly have severe consequences for the economy of the ruling system. However, these sanctions are not the cause of Iran's economic bankruptcy; rather, they are 'additional causes.' The Iranian economy under the ruling system has been hampered by the principle of 'insider and outsider,' which discriminates between citizens in economic activities and grants special privileges to insiders since the beginning, leading to a continually collapsing economy. Furthermore, the ruling system's ideological focus on self-sufficiency and resistance economy, along with tensions with other countries in an increasingly globalized economy, has deprived Iran of lucrative trade and investment opportunities. Before sanctions, whether international sanctions during Mahmoud Ahmadinejad's presidency or U.S. sanctions during Hassan Rouhani's presidency, the economy had already been crippled by the confiscation of dynamic production companies, rent-seeking, corruption, and tensions with the world, which had brought an economy that grew at a rate of 10 percent in the 1960s to its knees. But which sanctions or international pressures forced the officials of the ruling system into corruption? Which 'arrogant' force compelled the insiders of the system to view the economy not as a production sphere but as a treasury for distributing spoils among themselves until there was no energy left in it? A country's economic capacity is measured by inflation, production, labor, and foreign trade, while its potential is assessed by the possibility of entrepreneurship and business. The first measure reflects the current state of the economy, and the second indicates its potential for growth and development in the future. Unfortunately, the Iranian economy under the ruling system has neither a good present nor a hopeful future. Reliable reports remind us of increasing inflation, decreasing production, insufficient employment, and a predominantly oil-based trade, all pointing to the chaotic state of Iran's economy and indicating a dark future. The International Monetary Fund assesses the state of the ruling economy as poor, worsened after the implementation of U.S. oil sanctions. Economic growth in 2018 and 2019 is projected to be negative 1.5 percent and negative 3.6 percent, with inflation rates of 30 and 34 percent and unemployment rates of 13 and 14.3 percent during the same period. The economic potential under the ruling system does not have a better outlook for future development, as reported by international organizations. The World Bank and the Global Economic Forum publish annual reports on the feasibility of entrepreneurship and business in countries: Doing Business and Competitiveness Index. Unfortunately, both reports evaluate the conditions for economic activity in the ruling system as chaotic and incompatible with growth and development. Poor production and labor conditions today mean recession, unemployment, and inflation tomorrow. The report from the Global Economic Forum, known as the Davos meeting, which was recently published in September 2018, assesses and ranks countries based on the 'Global Competitiveness Index.' 'Competitiveness' refers to the structures that enable entrepreneurship and economic advancement in a country. The more competitive a country's economy, the greater the opportunities for its citizens to increase income and well-being. According to this report, competitiveness encompasses five main structures: government size, legal system and property rights, monetary stability, freedom of foreign trade, and business and tax regulations. Each of these structures includes sub-structures, totaling around 40. In the 2018 Global Economic Forum report, the United States ranks first, followed by Switzerland and Japan, while the African country of Chad ranks last. The ranking of the ruling system in this competitiveness report is concerning not only globally but even within the Middle East. The ranking of 130 in 2016, the last year of Hassan Rouhani's first term, is lower than Iran's ranking during the presidencies of Mohammad Khatami (2000), Ali Akbar Hashemi Rafsanjani (1990), and even Abolhassan Banisadr (1980). Among the countries in the Middle East, the competitiveness of the ruling system is lower than that of Israel, Kuwait, Oman, Qatar, Saudi Arabia, and Turkey. In 1980, when the Islamic Revolution was two years old, Iran's ranking (97) was one better than Israel's (98). After 36 years, during Hassan Rouhani's presidency, Israel's ranking became 38, while Iran's dropped to 130. Not to mention the comparison of Iran's ranking with that of South Korea. Which foreign entity is responsible for the free fall of Iran's economy in the global market? As mentioned, sanctions did not create the poor economic conditions in Iran but rather exacerbated them. However, if sanctions are indeed severe and destructive, one must ask why Iran should be subjected to sanctions among all these countries? Who allows the lives of eighty million Iranians to be contingent upon the ideological dogmas and their own substantial profits? In summary, not only is the current state of Iran's economy dire, but there is also no hope for improvement in the future unless all structures change.