Long lines to buy discounted meat reflect Iran’s economic woes
tehran — In the frigid air of a Tehran winter, a mother of two stands in a long line of shoppers waiting for the chance to buy discounted meat at a store supported by Iran’s government.
“Yesterday, after nearly two hours in the line, the shopkeeper said: ‘It is finished, try another day,’” Zahra Akrami said recently. “And now I am here again.”
Her struggle represents the economic paradox that faces Iran as it marks the 40th anniversary of its revolution.
Despite holding some of the world’s largest proven deposits of oil and natural gas, Iran has seen a return to long lines for food — a sight once seen during the 1980s, when it was at war with Iraq. Inflation continues to rise as its currency,
the rial, depreciates. University graduates are unable to find jobs.
Part of the economic challenges stem from the re-imposition of US sanctions that had been lifted under the nuclear deal Iran struck with world powers. Those sanctions have returned after President Donald Trump decided to pull America out of the accord.
But other problems persist, some
dating back to policies instituted after the revolution in 1979.
Immediately after the revolution, Iran nationalised its oil industry, its main source of hard currency. Its new leaders also seized industries tied to the shah or companies of those who fled the country. Charitable trusts, known as bonyads, also amassed vast holdings, as has Iran’s Revolutionary Guard.
Today, economists consider Iran’s a “transition” economy, meaning it is shifting from state control to being driven by a free market. However, some firms that moved into private ownership have seen the businesses collapse, leaving workers without pensions and fueling some sporadic protests.
“No week comes to an end without the closure of 10 to 50 companies,” said Masoud Khansari, the head of Tehran’s Chamber of Commerce. “Last year, 800 out of 1,500 contractor companies in the oil sector collapsed.”
“Unfortunately, high prices have become crippling for people,” lawmaker Mohammed Reza Sabaghian said. “Some goods have seen up to a 200 percent increase in prices.”