Changes

==Economy==

==Economy==

 

Pre-revolutionary Iran's economic development was rapid. Traditionally an agricultural society, by the 1970s Iran had achieved significant industrialization and economic modernization. However, the pace of growth had slowed dramatically by 1978, just before the Islamic revolution. Since the fall of the shah, economic recovery has proven elusive thanks to a combination of factors, including fluctuations in the global energy market. Economic activity was severely disrupted additionally by years of upheaval and uncertainty surrounding the revolution and the introduction of statist economic policies. These conditions were worsened by the war with Iraq and the decline in world oil prices beginning in late 1985. After the war with Iraq ended, the situation began to improve: Iran's GDP grew for two years running, partly from an oil windfall in 1990, and there was a substantial increase in imports. However, Iran had suffered a brain drain throughout the previous decade and wartime policies had resulted in a demographic explosion.  

Pre-revolutionary Iran's economic development was rapid. Traditionally an agricultural society, by the 1970s Iran had achieved significant industrialization and economic modernization. However, the pace of growth had slowed dramatically by 1978, just before the Islamic revolution. Since the fall of the shah, economic recovery has proven elusive thanks to a combination of factors, including fluctuations in the global energy market. Economic activity was severely disrupted additionally by years of upheaval and uncertainty surrounding the revolution and the introduction of statist economic policies. These conditions were worsened by the war with Iraq and the decline in world oil prices beginning in late 1985. After the war with Iraq ended, the situation began to improve: Iran's GDP grew for two years running, partly from an oil windfall in 1990, and there was a substantial increase in imports. However, Iran had suffered a brain drain throughout the previous decade and wartime policies had resulted in a demographic explosion.  

During the 2005 election campaign, President Ahmadi-Nejad promised to redistribute oil revenues to the impoverished, fund large infrastructure projects, and privatize Iranian state enterprises. He has been criticized within Iran for not carrying through on many of his promises. While establishment of the Imam Reza fund for cheap loans to youth has been popular, a law increasing the minimum was revoked because of the huge strain on employers. The "Shares of Justice" program—distributing shares of state-owned enterprises to the poor—faces a number of potential problems.  

During the 2005 election campaign, President Ahmadi-Nejad promised to redistribute oil revenues to the impoverished, fund large infrastructure projects, and privatize Iranian state enterprises. He has been criticized within Iran for not carrying through on many of his promises. While establishment of the Imam Reza fund for cheap loans to youth has been popular, a law increasing the minimum was revoked because of the huge strain on employers. The "Shares of Justice" program—distributing shares of state-owned enterprises to the poor—faces a number of potential problems.  

 

 

Unemployment was estimated to be 20% for 2007, according to the International Monetary Fund. Unemployment, a major problem even before the revolution, has many causes, including population growth, high minimum wage level and other restrictive labor policies. Farmers and peasants enjoyed a psychological boost from the attention given them by the Islamic regime but hardly appear to be better off in economic terms. The government has made progress on rural development, including electrification and road building, but Iran still faces inefficiencies related to agricultural land usage which are politically difficult to reconcile. Agriculture also has suffered from shortages of capital, raw materials, and equipment, problems dating back to the 1980-1988 war with Iraq. (See Foreign Relations above.)  

Unemployment was estimated to be 20% for 2007, according to the International Monetary Fund. Unemployment, a major problem even before the revolution, has many causes, including population growth, high minimum wage level and other restrictive labor policies. Farmers and peasants enjoyed a psychological boost from the attention given them by the Islamic regime but hardly appear to be better off in economic terms. The government has made progress on rural development, including electrification and road building, but Iran still faces inefficiencies related to agricultural land usage which are politically difficult to reconcile. Agriculture also has suffered from shortages of capital, raw materials, and equipment, problems dating back to the 1980-1988 war with Iraq. (See Foreign Relations above.)