Changes

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 While establishment of the Imam Reza fund for cheap loans to youth has been popular, a law increasing the minimum was revoked because of the huge strain on employers.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 While establishment of the Imam Reza fund for cheap loans to youth has been popular, a law increasing the minimum was revoked because of the huge strain on employers.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.)