The Deadlock of 'Corruption' in the Islamic Republic

Economic corruption cases in Iran are growing thicker every day. There is hardly a month that news of corruption, misconduct, and illegal actions by officials, managers, and their associates is not published. But what is the reason for widespread corruption in the Islamic Republic, and what are its roots? In this week's program, we have discussed this topic with two prominent experts: Ahmad Alavi, an economist and professor in Sweden, and Reza Haqiqatnezhad, a journalist at IranWire and a political analyst residing in Turkey. Mr. Alavi, let's start the discussion with you. Given the news about economic corruption cases, do you think this level of corruption in Iran is normal? How does the situation of corruption in Iran compare to other countries? If we evaluate Iran on an international scale based on the tables prepared by Transparency International, Iran had a score of about 30 last year, ranking 130th among 180 countries. Iran is among the countries where corruption is widespread and transparency is low. Countries like New Zealand, Finland, Norway, and generally advanced countries, especially in Northern Europe, have the least corruption, while countries like Sudan, Afghanistan, and Syria have the most. The measure used by Transparency International is called the Corruption Perceptions Index. We do not have absolute transparency, and transparency is both relative and partially understood. This means that corruption is essentially a phenomenon that only the tip of the iceberg is visible, while the majority remains hidden. Regarding transparency, it should be noted that these are indicators published based on reports and information provided by governments, and they should be approached with caution. Ahmad Alavi: 'Iran ranked 130th in terms of transparency among 180 countries last year. Iran is among the countries where corruption is widespread and transparency is low.' Iran has not had a good position in this index over the past thirteen years. This issue sends signals to international and domestic investors, as well as politically to other countries. This means that countries with high transparency have more credibility politically and economically. If they want to borrow from international banks, they can get loans with lower interest rates because everything is on the table and they have the ability to control, respond, and supervise. A country like Iran, which has had the lowest score and worst ranking over the past thirteen years and two terms of Ahmadinejad's presidency, does not have a good status. There have also been fluctuations in the following years, with its score fluctuating between 25 and 30, but overall it does not have a good position in the international arena. Mr. Haqiqatnezhad, what is your opinion? What is the reason for this level of corruption in Iran? Mr. Alavi mentioned the issue of transparency. This is important because after five years of talking, issuing directives, and claiming to fight corruption, the government has prepared a bill called the Transparency Bill, which is supposed to be submitted to the parliament. When we look at the bill, we see that important sectors of the Iranian economy, around which many corruption cases are raised or behind the scenes are connected to them, have no mention in this bill. Reza Haqiqatnezhad: 'In the Transparency Bill, we see no mention of the economic activities of the military, which in recent years has led to increased corruption in Iran. It is only mentioned that they can submit civilian reports of the military during peacetime to a committee that is also under the Supreme Transparency Council. This means there is no report to the people and no transparency.' It can be said that those who wrote this Transparency Bill either do not recognize the roots of corruption in Iran or cannot refer to them. Evidence shows that they cannot refer to these issues. This is one of the most important problems. In this bill, we see no mention of the economic activities of the military, which in recent years has led to increased corruption in Iran. Only one mention states that they can submit civilian reports of the military during peacetime to a committee under the Supreme Transparency Council. This means there is no report to the people and no transparency. Regarding the process of addressing these issues, there is also no news that the courts should be transparent. Regarding the institutions under Ayatollah Khamenei, some institutions have been said to report to the government when they benefit from state assets. However, there is no mention of their economic activities, which also constitute a significant part of the Iranian economy and where many corruption-related activities originate. It can be said that this bill, which has been prepared after five years, is similar to the Citizen's Rights Charter, which had no impact on improving the status of citizens' rights, and the reason is that either the government lacks the ability to do this, or that important non-governmental sectors have no desire to cooperate in this area. As long as there is no systematic will to solve the crisis, it seems that we will not take any steps forward in this regard. Mr. Alavi, Mr. Haqiqatnezhad mentioned the role of the military and the IRGC. I want to add another issue. Iran is an oil-rich country. Does the income that Iran derives from oil affect the level of corruption in this country? Certainly. However, contrary to some journalists or writers who blame oil, it does not seem that oil itself is to blame. Rather, the issue is how oil is utilized and its position in the economy. We have an outward-looking, oil-dependent economy that is centralized within the framework of governance, and these issues are effective in its composition but cannot be effective alone. We have countries like Canada or Norway where oil plays an important role in their economy, but they are not rent-seeking or corrupt. This is because they are not single-product and centralized or do not have an authoritarian governance. Alongside a centralized economy within the framework of monopoly or concentration economic theories, one of the foundations of lack of transparency and corruption is the presence of an ideology and an authoritarian constitution that is manifested in the rule of the jurist. I should add that the dominance of the military and security forces, which has been mentioned, is also important because they prevent the establishment of transparency with their own rules and mechanisms. Here, transparency refers to the division of various sections of society into private, public, and civil society by transparency researchers. This means that the part of society that is neither part of the private sector nor the public sector. The main duty of this part is because it is independent of the profit of the private sector and power. It seeks ideals and opinions that are independent of power and profit and can oversee those sections. This section cannot oversee the military and security forces and those who hold a significant part of the economy, and independent media cannot do this either. Therefore, the military and security forces play a fundamental role within the framework of an outward-looking, oil-dependent economy and, of course, centralized, and in combination with that authoritarian ideology and constitution, this issue is the source of lack of transparency in Iran and this widespread corruption. Of course, it can have components that we will address. Ahmad Alavi: 'The military and security forces play a fundamental role within the framework of an outward-looking, oil-dependent economy and, of course, centralized, and in combination with that authoritarian ideology and constitution, this issue is the source of lack of transparency in Iran and this widespread corruption.' Mr. Haqiqatnezhad, how much do you agree with Mr. Alavi's opinion? What impact does Iran's oil dependency have on this corruption? This is an old discussion. One of its serious advocates is Mr. Abbas Abdi, who frequently points to the role of oil in all economic and political dimensions of Iran. However, there is a more important issue, which is the role of executive institutions that want to distribute oil money or manage power. Essentially, we see in Iran that there is a well-known phenomenon. It is said that those who become president eventually become the opposition of the regime, and if we examine their fate, we see that they are even marginalized. Another issue is that those who enter the government become corrupt after a while. This is a permanent issue that government and state agents quickly become corrupt and are absorbed into corrupt relations after a while. It starts from very natural things. In Mr. Rouhani's first government, his first vice president and his chief of staff at that time had fierce competition over who would dominate the Iran Chamber of Commerce. This competition was even evident at the media level, and they wanted to seize the most important private sector trade institution in Iran. When the scope of competition in parts of the government that claim to be the cleanest and want to fight corruption becomes so evident over economic institutions and resources, the fate of hidden parts of the government or the military is entirely clear. What I think currently exacerbates corruption, regardless of where this money comes from, whether from imports, oil, or something else, is the systematic contamination of a significant part of the agents of the Islamic Republic, who, regardless of political factions, think that they are competing over the revolution's table to take a larger share of it. This is the main problem that has thwarted any efforts in any government in this regard. Mr. Haqiqatnezhad, you mentioned Mr. Rouhani. The Rouhani government often accuses the previous president, Mahmoud Ahmadinejad, of corruption. What role does the Rouhani government play in this corruption? We see at least even in the cases that are now being exposed that a part of these wrong policies that are adopted becomes a source of rent. At least regarding the 4200 Toman currency, we saw that everyone admitted that a wrong policy became a source of rent and corruption. Important cases regarding the associates of Mr. Rouhani and the accusations against some ministers show that this government has played a significant role itself. Reza Haqiqatnezhad: 'What I think currently exacerbates corruption, regardless of where this money comes from, whether from imports, oil, or something else, is the systematic contamination of a significant part of the agents of the Islamic Republic, who, regardless of political factions, think that they are competing over the revolution's table to take a larger share of it.' The first important directive that Mr. Rouhani issued in 2013 was addressed to Mr. Jahangiri and was about fighting corruption. The first important issue he discussed was at the assembly of the veterans of the IRGC, where he asked the IRGC to take on several national projects and abandon the rest. Many of the issues he initially spoke about, if we trace them, we see that not only has he been unsuccessful in many of them, but he has also adopted some wrong policies similar to the previous government or established stronger and more serious ties with the military. At least in terms of corruption, Mr. Rouhani could not clear the rubble of Ahmadinejad's government; rather, he added to its dimensions in some areas. Mr. Alavi, another discussion regarding Iran is the issue of ideology and divine governance and the religious aspect. How can such a widespread level of corruption be seen in an Islamic government? It seems that in the jurisprudential texts with which I am somewhat familiar, there is essentially no strategy regarding this issue because those texts belong to ancient times. An era when people were considered subjects, and even if religious leaders tried to live simply or maintain the rights of public assets, it was because they had a divine authority based on religious texts and were representatives of God. In modern society, the issue is that we have a society and economy that is the common property of citizens and the nation. This concept of citizenship did not exist at that time. Citizens, in a centralized and organized manner, oversee power and the institutions of power and wealth, and this is part of their rights. In modern society, the citizen is a rights-holder. The democracy that emerged in European countries was to hold power accountable, and this concept of accountability means that power belongs to the people and citizens, and if they transfer part of this power or delegate it, institutions must oversee it. These concepts are modern concepts that do not exist in religious texts. Imagine a jurist who, without being accountable or giving an account, is unwilling to be held accountable based on the support of the Guardian Council or the Assembly of Experts. They also say, based on those religious texts, that their duty is not to supervise but to support the jurist. Therefore, these concepts are new. If there is any reference in ancient literature to the Imam or the Prophet listening to the grievances of the subjects, ultimately, it was the subject who conveyed their grievance to the Imam. In modern concepts, it is the rights-based citizen who oversees with a broad civil society and seeks to clarify everything so that corruption, rent-seeking, and the distribution of political and economic resources do not occur in this way. Mr. Haqiqatnezhad, the mention of Mr. Khamenei was made. Ayatollah Khamenei has called for dealing with those disrupting economic security. Sadegh Larijani, the head of the judiciary, has also stated that disrupting the economic system carries very heavy penalties, and if it constitutes corruption on earth, the death penalty applies. However, it is not practically seen that economic defendants face punishment. Most of them are either fugitives or outside of prison, and the main perpetrators are usually not arrested. What is your assessment in this regard? Mr. Khamenei issued a command to combat corruption and discrimination in 2001. This means that for 17 years, he has claimed to be committed to this issue. However, what has happened in practice is that corruption in the Islamic Republic has increased.