What Have More Than a Decade of Resistance Economy Achieved for Iran?

More than a decade has passed since the Supreme Leader of the Islamic Republic announced the "Resistance Economy" policies to counter the sanctions imposed by Western powers. Some connected economic experts say that the outcome of Ayatollah Khamenei's Resistance Economy for Iranian citizens, after 11 years, has been nothing but a mismatch between income and expenditure, a deepening class gap, and an unbelievable surge in foreign currency rates alongside the collapse of the national currency's value. Every government has also tried to improve the dire economic situation under the guidance of the Supreme Leader. Ibrahim Raisi claimed he wanted to "surgically" fix Iran's economy, but Abdolnasser Hemmati, his defeated electoral rival who had criticized Raisi's economic policies, became the Minister of Economy in the fourteenth government and stated that Iran's economy faces risky paths with limited choices ahead. One of these paths, according to him, was the policy of "single exchange rate for currency," which has now placed the Minister of Economy on the list for impeachment in the twelfth parliament, which is controlled by conservatives. In the program "Paragraph One," we discussed this issue with Mehdi Qudsi, an economic expert at the International Economic Studies Institute in Vienna, Austria, and Abdolreza Ahmadi, an economic expert and member of the Iran Novin Party in Germany. Mehdi Qudsi, an economic expert at the International Economic Studies Institute in Vienna, raised the issue of sanctions and government revenues in the radio program "Paragraph One," stating that when the government is in need and cannot cover its expenses, it compensates for its budget deficit by manipulating the exchange rate and reducing the value of the rial. Qudsi believes that the government institution in the Islamic Republic is in a vicious cycle, compensating for its expenses through inflation, which it perceives as a form of tax. He references 16th and 17th century France, where the government covered its expenses by imposing heavy taxes, ultimately leading to the French Revolution. Qudsi considers the Supreme Leader's remarks about the "endogenous" and "exogenous" nature of the Resistance Economy as entering a cycle that other examples like Cuba, Venezuela, and even Syria had entered before changing their political systems, managing to maintain their economic systems and labeling them as "Resistance Economies." Abdolreza Ahmadi, another guest on the program, views the issue of "sanctions" in South America as a "secondary discussion." He points to the changes brought about in Argentina by President Javier Milei, arguing that the increase in the value of the Argentine currency is evidence of a "market-based" and "free economy." According to this expert, the "57 discourse" led Iran into the wrong territory of state economy and eliminated private ownership. Ahmadi also assesses the surge in the dollar price, apart from the mismatch in Iran's imports and exports, as a result of domestic inflation and the lack of foreign currency reserves. He refers to a listener's message about the "moral collapse" of Iranian society, stating that when the concept of homeland is systematically eliminated from the hierarchy of governance, national interests give way to personal and group interests for those at the bottom to save themselves, thus corrupt holding companies add to each other. Qudsi, an expert on sanctions economics, traces the roots of Iran's economic problems to the constitutional law and the powers of the Supreme Leader, stating that they wanted to bring oil to the people's doorstep and thought they could easily do this with subsidized prices. Qudsi cites the difference in the cost price of gasoline in Iran and Europe, stating that a European pays about 1.5 euros per liter for gasoline, while this price, with government subsidies, costs Iranians two cents; a practice that will not last long. Nevertheless, Qudsi believes that there have been bright economic periods in the Islamic Republic, citing the presidency of Mohammad Khatami, during which employment and unemployment rates improved significantly, but this period did not continue due to the Supreme Leader's interference. In contrast, Ahmadi believes that where there is a state-centric view of the economy, even when facilities are handed over to the people, semi-state entities come in and play the rent game. Qudsi, raising the issue of Iran's economy deviating from a balanced path, states that the extreme policies of Ali Khamenei, implemented since Mahmoud Ahmadinejad's era, have increased the pressures of sanctions to the extent that imports and exports have become costly for Iran. He points to the Gulf countries, arguing that despite not being democratic, they have adopted a correct policy towards other countries and superpowers, whereas in Iran, the stubbornness of the political system and the autocracy of those at the top have come at the cost of people's lives and the economy. Ahmadi considers the "authoritarianism" prevailing in Saudi Arabia and the UAE to be of a "patriotic" nature, stating that this type of governance does not function in Afghanistan, as the political context is not oriented towards "homeland." This former business journalist at the Atlas Economic Research Foundation emphasizes the Islamic Republic's "exclusionary" view of human resources, believing that this perspective has led to institutions like Astan Quds monopolizing the entire market, forcing individuals to rely on semi-state entities to establish startups. Qudsi analyzes the scope of this definition within the framework of a "benevolent dictator," where in such a society, the dictator provides services to enhance his power, thereby inflicting intermittent shocks on society and placing it on a path of development. However, according to Qudsi, there is no guarantee that the heirs of a benevolent dictator will change course. This expert believes that in the case of individual governance, since one person is responsible, the likelihood of irresponsibility increases, which causes their power to change in response to an external shock or internal shock, stirring the society. However, Ahmadi generally believes that the authoritarian monarchies in the region have yielded better results for their citizens than republics. He cites American political philosopher Fukuyama, who presents a simple reason for this in the context of state-nation building, stating that if you want society to grow, you need a political system in which all people find their identity. Amid the struggles over the impeachment of the Minister of Economy in the fourteenth government, which has been brought to the parliament's agenda due to the government's policies in the currency sector, Ahmadi considers Abdolnasser Hemmati to be part of the current problems in Iran's economy.