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Originally Posted by Positive Balance  Economically, Iran is heading towards a cliff. They have a fund into which oil revenues are supposed to go, the Oil Stabilization Fund. The idea is that when oil prices are high, excess revenues go into the fund, so that when oil prices drop the funds can be used to overcome the sudden loss in government revenues. The problem is that in the past few years, oil prices were extremely high and public spending in Iran also rose extremely fast, primarily because of Ahmadinejad's populism. How will he continue to pay for all this profligate spending now that the primary source of revenue has gone? (The difficulty with which a very minor reform of the insane fuel subsidies was accomplished in 2007/2008 can give you a hint.) This is a huge problem waiting to happen, even if it has been covered up by the emphasis of Iranian government officials on the nuclear issue.
As for the Iranian economy doing better than most Arab states, I don't know about 'better', but the same mistakes are being made everywhere in the region. At least Iran has a highly educated population, relative free social mobility, and decent infrastructure, at least in the urban centers. It's a shame that economic populism is ruining all the great gifts the country possesses. |
You are, of course, absolutely correct. Ahmadinejad's economic policies have been short-sighted, stubborn, and at times downright careless. Personally, I believe that Mohsen Rezai was the most qualified candidate, especially in terms of economic issues. He seems like an intelligent, competent individual, having studied Mechanical Engineering, holding a PhD in economics, and his military credentials are also worth mentioning, having been a Chief commander of the Revolutionary Guards corpse for 16 years. Unfortunately, he had a very weak showing in the polls.