Economists' Account of Four Decades of Governance by the Islamic Republic; We Have Made 30% of Society Poor

Masoud Nili, Davood Soori, and Zahra Kavyani, three well-known economists in Iran, criticized the economic governance of the Iranian government over the past four decades, stating that there has been no significant achievement in reducing poverty, and that as of the year 1402 (2023), about 30% of our population lives below the poverty line. According to these economists, many efforts have been made to reduce poverty and inequality since the revolution, but no success has been achieved. The website 'Fardaye Eghtesad' brought these three economists together to discuss the economic trends under the governance of the Islamic Republic and the 'widespread distribution of poverty.' Various topics were raised in this roundtable, one of which emphasized the government's 'data manipulation,' claiming that the government asserts a decrease in the unemployment rate. However, they questioned whether defining one hour of work per week as employment can adequately cover a household's expenses. From the perspective of these economic experts, many employed individuals are also considered poor. The roundtable indicated that observations of the Iranian economy show that the governance style has been based on deeming the profitability of enterprises as undesirable. Consequently, the government fundamentally considers profitability as 'anti-justice' in its efforts to 'support the poor,' preventing surplus from being created to establish a social security system. The summary of these individuals' statements provides a relatively 'clear' picture of today's situation in Iran, as it was stated in this roundtable that 'today, after four decades, we have lost our physical assets, which were the basis of production.' It was emphasized that the environment has deteriorated and social capital has decreased. These economists argue that although education in Iran has increased, the country's human capital remains very low. A notable point made by Davood Soori is that most of 'our poor are working poor or educated poor.' According to Soori, these individuals are healthy and young, and he claims that 'about 60% of our poor are like this.' Masoud Nili also stated that the trend of per capita income is declining, which institutionalizes poverty widely in society. The trend of expanding poverty has always been criticized by experts, who have warned about it. In this regard, on Tuesday, September 4, Farshad Momeni, an economist and head of the 'Religion and Economy Institute,' deemed the effort to 'desensitize' the current conditions in Iran as 'disgraceful,' stating, 'We are experiencing a situation where, according to official data, approximately one in three Iranians is absolutely poor.' Momeni noted that 'based on official data,' nearly one in three Iranians is 'absolutely poor,' and for the first time in 100 years, the population of the poor in Iran doubles in less than three years. Siamak Javadi, a financial economics lecturer and researcher at the University of Texas, previously told the Persian section of Voice of America that the Islamic Republic has 'systematically infected all members and dimensions' of Iran. Additionally, Jamshid Asadi, an economist, mentioned to Voice of America that 'the fear of the ruling system' has eliminated the greatest potential for Iran's leap in the digital economy. Jamshid Asadi stated that the 1403 budget will lead to the expansion of poverty and intensification of inflation, while a proposal to increase taxes by 50% in Iran is on the table; the Raisi government is replacing the euro with the dollar. They want to survive; 70% of workers have a second job. Retired individuals have gathered in several cities in Iran, calling Raisi incompetent and urging him to return to his clerical duties. Media reports indicate 'absolute misery'; eggs have become the only food for workers. Education inflation has broken a 12-year record. Economic experts warn that public dissatisfaction will increase due to livelihood problems. The consequences of the economic crisis include the annual theft of 100 billion tomans worth of road equipment.