For Iran’s economy, the free fall continues

As long as the focus of the regime is beyond its borders, its economic woes will continue

For ordinary Iranians, these are indeed tough times, dealing with an economy that is essentially in a downward spiral and a currency that is lessened in value. Over the past four months, the Iranian rial has lost more than a quarter of its value against the US dollar, while inflation now is above the 8 per cent mark, with food prices and other basic commodities soaring. Indeed, over the past months too, frustrations at the declining economic circumstances have led to protests as Iranians vent their frustrations at their deteriorating lot. Unemployment is above 11 per cent.

The economic situation has deteriorated to the point now that Iran’s parliamentarians have summoned President Hassan Rouhani and have given him 30 days to respond to their request for answers on how he has managed the economy so far. It’s the first time Iran’s political leader has faced such a summons, and he is under pressure to prioritise the economy at a time when the United States is restoring economic sanctions after withdrawing from the agreement on the Tehran regime’s nuclear programme.

The reality is that Iran’s current economic woes are a natural consequence of the policies its leadership has been engaged in now for decades, and Iranians need look no further than the presidential palace and government buildings in Tehran for the root cause of their economic travails. What’s more, the diplomatic, economic and commercial isolation that Iran now faces will only continue for the foreseeable future as long as its regime insists in meddling in matters beyond its borders.

This regime has but one goal — to spread its sectarian agenda. It does this by arming Al Houthi rebels, in breach of United Nations arms embargo resolutions, to spread terror and chaos in Yemen. Similarly, it funds Hezbollah militias in Syria to prop up the regime of President Bashar Al Assad in Syria, in meddling in the internal politics of Iraq and Lebanon, and generally supports and endorses forces of sedition across the region and the Arabian Gulf.

What the regime in Tehran has yet to realise is that its plight can been lessened and situation improved if it changed its behaviour and outlook, and became a positive force for change, ceasing to purposefully antagonise its neighbours. As long as Iran puts its external interests over and above its internal needs, its economic circumstances cannot improve. That’s a message that won’t sit well with Iranian parliamentarians. But that is the message the country’s leadership must heed.