During her meetings with members of the Italian Parliament and NGOs, the President-elect of the National Council of Resistance of Iran Mrs. Maryam Rajavi was invited to address a session at the Luigi Einaudi Foundation—an esteemed cultural, political, and economic research institution in Torino. In her speech, she shed light on the profound economic and social crises gripping Iran, which have been exacerbated by the ruling regime.
One pivotal question that Ms. Rajavi raised was why, despite having vast wealth at its disposal, is the clerical regime failing to solve some of the country’s economic problems and alleviate the explosive discontent within Iranian society.
Mrs. Rajavi pointed out that a significant portion—up to half—of Iran’s gross domestic product is siphoned into the financial and commercial activities of companies and foundations directly connected to the Supreme Leader and the Islamic Revolutionary Guard Corps (IRGC). These entities wield immense economic power in Iran, both in terms of sheer influence and financial clout.
Yet, they are exempt from taxes, and their profits remain isolated from the broader economy. In fact, they consume 25 to 30 percent of the government’s annual budget, further compounding the economic challenges faced by the Iranian people. Additionally, the IRGC and the Supreme Leader’s foundations acquire massive loans from banks, which they rarely repay.
As a consequence, the nation’s banking system teeters on the edge of bankruptcy. These ill-conceived policies have resulted in almost negligible economic growth over the past decade, with an annual budget deficit exceeding 50 percent and a soaring inflation rate reaching around 70 percent.
Mrs. Rajavi also highlighted other pressing economic crises, such as the depletion of the National Development Fund, high unemployment rates, exorbitant expenditures on the IRGC’s nuclear and missile programs, sponsorship of terrorism, inadequate energy supply, and environmental challenges, notably the scarcity of clean water. She argued that the regime, driven by its thirst for power, continuously impoverishes and deprives the Iranian people. Consequently, it ignites ever-increasing dissent, culminating in an economic situation reminiscent of the final stages of a religious dictatorship.
Mrs. Rajavi’s insights provided crucial context and understanding of the challenges faced by Iran and its people, shedding light on the need for meaningful change and the pursuit of a more equitable and stable future for the nation.
Though one doesn’t need to take the word of the Iranian Resistance to understand the dire socio-economic devastation in Iran. The severity of living conditions for millions of oppressed citizens has reached a point where even state-affiliated experts, despite censorship, security pressures, and manipulation of statistics and research, admit to some of the existing realities.
According to the state-run website ECO Iran, economic analysts state that, based on statistics published by the Central Bank since the 2010s, per capita income in Iran has experienced a sharp 34 percent decline. Furthermore, capital depreciation has increased by 4.5 percent. Gross fixed capital formation has registered the most substantial decrease, equivalent to 43 percent. Per capita, exports have declined by 22 percent, while imports have plummeted by 78 percent. During this period, the construction sector has also experienced a significant drop of 42 percent in added value.
The living conditions of the people in Iran are rapidly heading toward a collapse, with all poverty indicators moving at an alarming pace. The situation has reached such a critical point that the standard of living is only comparable to some of the world’s most impoverished countries.
According to the state-run news agency ILNA, while inflation is around 120 percent, the government claims it to be 40 percent, leading to skepticism and doubts raised by a member of parliament undermining the data provided by the government regarding price hikes and inflation. With a staggering “120 percent inflation,” the minimum wage for workers only sees a meager 27 percent increase, and attempts to file complaints and demand fair wages often lead to nowhere.
Masoud Nili, a senior state-affiliated economist, has been warning for several years about the alarming and persistent surge in chronic inflation. According to Nili, the official inflation rate is already above 50 percent, and if it is not brought under control, he emphasizes that “it will become impossible to manage the economy even at its current state, and there is a fear that the country’s administration might come to a standstill.
Highlighting the similarities to the weaknesses and incompetence of the Shah regime, which ultimately led to its collapse, Dr. Azad Armaki, a state-affiliated sociologist pointed out that “a similar situation is unfolding today, and through constant warnings from its own officials, the Islamic Republic is placing its own demise on the table for discussion, making it a topic of debate.”
Dr. Azad Armaki emphasized that he does not believe in the collapse of society itself, but rather acknowledged the possibility of the political system’s collapse.
As the revolutionary society of Iran has grown sick and tired of the hollow warnings, advice, and manipulative propaganda of the ruling clerical establishment, every day, thousands of Iranians from various walks of life are taking to the streets to cry for equality while its youth demonstrate their resolve to overthrow the tyrannical regime by torching and burning the regime’s symbols and centers of repression and corruption.
Consistently and tirelessly, the organized Iranian Resistance continues to urge the international community to stop appeasing the extremist plunderers of Iran and instead take a united stance against the oppressive regime. With economic hardship and a destructive war plaguing Europe, it is common sense that ultimate change in Iran would not only serve this very country but also far beyond.
Source » ncr-iran