Tehran must put the lid on failed policies
Iran is one of the few regional countries to enjoy an abundance of natural, financial and human resources. If those resources were to be put to good use, Iran will no doubt become one of the leading nations in terms of economic development and in maintaining high growth rates.
Unfortunately, matters never proceed along expected lines in Iran ... rather, they tend to veer in the opposite direction. Iran has lost more than three decades worth of development and been overtaken by many countries. Hundreds of billions of dollars were pilfered and given to failed countries, such as Syria, or to extremist organisations, such as Hezbollah at the expense of the Iranian people and their collective well- being.
Instead of striving to raise of their standard of living, the authorities pursue sectarian illusions, and it was especially so during the tenure of the former President Ahmadinejad, who is now being criticised by the incumbent President Hassan Rouhani after coming to power only to find an empty state treasury.
Economic catastrophe
This reflects the size of the economic catastrophe that has befallen the nation. The steep drop in growth — a negative 5.8 per cent in 2013 — is expected to continue this year, but could reach 2.5 per cent in 2015 if negotiations with major powers over the nuclear programme are successful. However, if they fail, Iran shall witness a general economic collapse as a result of the continuation of sanctions. In the recent past, manufacturing has shrunk by 10 per cent and the income level by a precipitous 20 per cent, while inflation topped 45 per cent.
President Rouhani has pledged he will cut inflation to 20 per cent this year, while government debts would reach $ 80 billion. During the past eight years, job creation has been practically zero. His efforts were curtailed to propping up failed regimes and supporting the opposition in many Arab countries. Such revelations from President Rouhani’s administration is giving rise to trepidation within conservative circles and among the populace because of the wastage of state resources to pursue political agendas that were far removed from reality. Rouhani has indicated that “Iran’s tarnished image of recent years must be changed”, a clear enough reference to the Ahmadinejad era.
He also intends to improve relations with the international community, including the West and GCC countries, whom his predecessor had often offended.
This is no easy task, but it is not impossible and can contribute to the exit of Iran fromits isolation and for it to tread the path of growth once again.
In this regard, the Iranian economy must be brought into themodern era, and thatwould happen with the replacement of its dilapidated infrastructure. Transportation of all kinds must New technologies must be sourced to help the industrial and agricultural base. In the area of multilateral economic ties, Iran must restore its relations with the global comity of nations and in particular with the neighbours, especially the GCC, who are critical to the Iranian economy in terms of trade. Iran must respect the sovereignty of the GCC countries and refrain from interfering in their internal affairs.
It is only thus that the new policy of President Rouhani can be fruitful and reflect positively on the living standards of the Iranian people and provide a jobs boost.