Regime corruption at the heart of Iran’s economic crises

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Ebrahim Raisi

Ebrahim Raisi

IRGC – Islamic Revolutionary Guard Corps

IRGC – Islamic Revolutionary Guard Corps



As Iranian citizens are suffering under the Iranian regime’s corruption and wrong economic policies, regime officials and the country’s state media are finally acknowledging that their part in these crises.

Mardom Salarie, a state-run daily, wrote on September 19 that the skyrocketing inflation rate in Iran is having a ‘devastating effect on the country’s economy’ and on the lives of Iranian families. They explained that the inflation rates have widened the divide of classes, as many families are struggling to afford basic needs with their meager incomes.

Mardom Salarie acknowledged that nearly 25 million families live in Iran. According to economists, about 40 percent of them receive less salary than approved the laws of the Ministry of Labor, and some receive even less.

According to statistics from the Central Bank, the poverty line in Iran has reached around 10 million Tomans. On the other hand, the official income of Iranian citizens barely reaches 5 million Tomans at present.

Despite the very low incomes of Iranians, Mardom Salarie explained that the inflation in Iran continues to increase, and they have heard from many economists who predict that the situation will only get worse by the end of the year.

Many experts have examined Iran’s economic crisis. The regime and its apologists try to blame sanctions for the current economic recession in Iran, but some officials and state media acknowledge the regime’s role in creating and amplifying these crises.

In a comment from Iranian MP Hassan Lofti, published in the state-run Roudade 24, he said that the laws of the regime generate corruption, and if this continues, they will lose 80% of their political legitimacy. He also blamed the cause of the economic corruption on the ‘lack of transparency’ within the regime.

Alongside the corruption that has caused the rising rate of inflation, liquidity growth has also had a part to play. Mardom Salarie expressed that, “One of the main reasons for inflation is the growing budget deficit and the government’s inability to resolve this issue.”

To compensate for the budget deficit, the regime began printing banknotes at a rapid rate which, in turn, increased Iran’s liquidity. The inflation rate rose rapidly due to the production rate being far behind the growth of liquidity and continues to rise to this day.

According to Mardom Salarie, Iran’s inflation rate has reached more than 45% this August. This is an unprecedented figure, and it is predicted to reach 60% with the current budget deficit and Tehran’s inability to grow trade.

As Mardom Salarie explained, “…the government should either control inflation or prevent the increase of prices by subsidizing the consumer or increase the salaries so that the people can cover their expenses.”

They said that while the government is still facing a budget deficit, it is unlikely that salaries will be raised so it is likely the situations of Iranian families will only worsen in the coming months.

As MP Lotfi acknowledged, the regime has long lost its political legitimacy after years of corruption coupled with oppression. As a result, people’s protests and their anger toward the regime continue to increase.

Source » iranfocus

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