The state-run Arman Meli warns that Iran is facing an imminent economic catastrophe due to soaring inflation, a collapsing currency, and widespread poverty. Analysts stress the ineffectiveness of government cash subsidies and highlight the rising number of impoverished citizens seeking assistance. As internal corruption and mismanagement worsen conditions, calls for substantive reforms grow louder to avert social unrest.
A recent article in the state-controlled newspaper Arman Meli on February 12 forewarns of an approaching economic disaster in Iran, characterized by skyrocketing inflation, a plummeting currency, and widespread disenfranchisement among citizens. Economic analysts express grave concerns with stagnant wages that struggle to keep up with the ever-rising cost of living, resulting in increasingly dire consequences for many Iranians.
Hamid Haji Esmaeili, an economic expert, pointed out that over the past twenty years, international sanctions and relentless economic pressures have led to a steady decline in living conditions for Iranian citizens. He highlights not only the negative impact on the national economy but also identifies structural inefficiencies in resource distribution that have worsened the crisis significantly.
The Iranian rial depreciated to nearly 100,000 against the U.S. dollar, with inflation diminishing the purchasing power of average citizens, making it difficult for them to afford even staple goods. Government interventions, including cash handouts and rationed commodities, have largely failed to alleviate the financial strain on the populace.
Experts claim the government’s reliance on direct cash subsidies has become ineffective, with Esmaeili stating, “For nearly two decades, direct cash subsidies have been the government’s main policy to support the people. However, with inflation soaring and prices spiraling out of control, these payments have lost their effectiveness.”
Furthermore, economic and social crises loom over Iran as gas shortages and power outages plague the country, leading to disrupted industries and blackouts due to mismanagement and illicit activities, such as mining operations. The consequences of currency depreciation continue to impact day-to-day life severely.
Official statistics reveal a growing number of citizens seeking governmental assistance, with applicants for financial support rising seven to eight times in the last eight years. Currently, three million people receive direct aid, while at least eight million more require assistance but remain unserved due to a lack of resources.
The labor market is in turmoil, with stagnant wages preventing many from meeting their basic needs. Esmaeili condemned the wage determination process, which he believes is fundamentally flawed. He claimed that annual wage hikes, often around 20%, have done little to combat inflation.
Housing costs present one of the greatest economic challenges for many Iranian households, particularly for renters. Esmaeili emphasized that beyond increasing wages, the government needs to adopt supportive policies, such as rent subsidies and direct assistance for tenants to alleviate financial burdens on families.
Internal issues, such as pervasive corruption and resource mismanagement, significantly harm Iran’s economy. Esmaeili identified these factors as primary drivers of the economic crisis, highlighting how opportunities and wealth have become concentrated among a small elite, leaving the majority struggling to survive.
Esmaeili calls for a comprehensive restructuring of government economic policies, especially regarding resource distribution. He argues that many economic issues stem not solely from external pressures, but from a lack of transparency, entrenched corruption, and a culture of rent-seeking within the state.
As unrest grows in response to deteriorating living conditions and government corruption, mass protests have become frequent. Esmaeili warns that without urgent and effective economic reforms, the country risks facing significant social and political instability in the near future.
In summary, Iran is experiencing a severe economic crisis characterized by rampant inflation, a crashing currency, and escalating poverty levels among its citizens. Experts emphasize the need for urgent reforms, including a comprehensive overhaul of economic policies and direct assistance initiatives to aid the struggling population. Without substantial changes, Iran could confront substantial social unrest and instability.
Original Source: www.ncr-iran.org
