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Begin New Search Topic Economics Political Geography Iran Content Type Policy Brief

1. Iran’s New Budget Perpetuates Economic Challenges

Author:
Henry Rome
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The president is proposing de facto cuts to salaries and subsidies as well as more money for the military, while avoiding the tough reforms Iran’s economy needs. On January 11, President Ebrahim Raisi submitted his budget proposal to the Majlis for the Iranian year 2023/24. Drafted amid the most severe protests the Islamic Republic has faced since its establishment in 1979, the proposal includes no economic olive branches to the people and avoids structural reforms that could help rein in inflation and fuel growth.
Topic:
Economics, Reform, Budget, Democracy, and Energy
Political Geography:
Iran and Middle East

2. Snapback Sanctions on Iran: More Bark Than Bite?

Author:
Henry Rome and Louis Dugit-Gros
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Threatening to reimpose old UN sanctions would likely have little practical effect on Tehran’s ability to trade oil and export drones, while the plethora of other potential complications suggest that it should be treated as a tool of last resort. In recent weeks, the United States, Britain, France, and Germany have argued that Iran’s sale of drones to Russia for use against Ukraine violates UN Security Council Resolution 2231, the backbone of the Joint Comprehensive Plan of Action (JCPOA). These allegations, combined with ongoing diplomatic deadlock over reviving that 2015 nuclear agreement, have led some to suggest pursuing “snapback,” a provision that would reimpose terminated UN resolutions on Iran and essentially scrub the JCPOA from the books. How would snapback work, and what political, economic, and security consequences would it have?
Topic:
Security, Economics, Nuclear Weapons, United Nations, Sanctions, Nonproliferation, and JCPOA
Political Geography:
Iran and Middle East

3. Korea's Economic Presence in Iran under Trump and Its Prospects during the Biden Presidency

Author:
Shirzad Azad
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
On July 14, 2015, when Iran and the 5+1 group (the United States, Russia, China, France, Britain, and Germany) ultimately agreed over the Joint Comprehensive Plan of Action (JCPOA), the Republic of Korea (ROK) was practically one of the top three trade partners of the Persian Gulf country. In early May 2016 and only a few months after the nuclear deal was carried through, the then Korean President, Park Geun-hye, made an official visit to Iran where the two countries vowed to ratchet up their economic relations from roughly $6 billion to more than $18 billion in the years to come. Accompanied by “the largest business delegation in the history of Korean presidential trips,” Park’s high-profile trip to Iran persuaded many interested experts and observers to believe that the East Asian country was really determined to shore up its economic weight in Iran by drawing certain policies relevant to the long-term presence of Korean businesses in the Middle Eastern country (Choi 2016). Despite all those upbeat expectations about the ROK’s future economic and technological role in Iran, however, various data and statistics coming out indicate that over the past several years nearly all well-known Korean brands and products have increasingly lost their market share in the Mideast country to brands and goods supplied by other competitors. As a matter of fact, in the late 1990s and early 2000s the East Asian nation emerged as one of the Persian Gulf country’s top trading partners in the world, outstripping a number of Tehran’s traditional trading partners from the West. And while Korea managed to even expand its economic presence in Iran in the heydays of sundry international sanctions levied against the Middle Eastern country over its contentious nuclear program a couple of years before the JCPOA was eventually agreed in 2015, the ROK has been doing relatively poor in Iran during the past years (Azad 2018). Such lackadaisical performance, epitomized by abandoning the long-established pattern of significant trade in energy with Iran, has critically influenced a sharp decline in the total volume of two-way commerce between the two countries. While the plummeting share of Korean brands and goods in Iranian markets had indubitably something to do with certain policies pursued by the Moon Jae-in-led Korean government, however, the main culprit turned out to be the Trump administration’s unilateral withdrawal from the nuclear deal in May 2018. The crippling sanctions which Washington under Trump subsequently imposed on Iran played a pivotal role in reshaping the scope and size of Korean commercial connections to the Persian Gulf country, though some unprecedented diplomatic and political troubles involving Seoul and Tehran during the past years have also had a lot to do with those punitive economic and financial measures targeting the Iranians. How did then the Koreans respond to those unique circumstances rendered largely by Trump’s approach toward the Persian Gulf country? What are going to be the prospects of a Biden administration’s policy shift for Korea’s economic performance in Iran? This study seeks to shed some light on Trump’s Iran policy with regard to Korea, its repercussions for the East Asian nation’s economic relationship with the Middle Eastern country, and potential solutions to chip away at those impediments under a Democrat administration in Washington led by Joe Biden.
Topic:
Foreign Policy, Economics, Donald Trump, JCPOA, and Joe Biden
Political Geography:
Iran, Asia, South Korea, and United States of America

4. The Ahvas Protests Are the minorities' demonstrations a reflection of a crisis in Tehran?

Author:
FARAS
Publication Date:
08-2021
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On July 15, Khuzestan in South West Iran witnessed a range of protests against the disintegrating economic and living conditions in the country, particularly the lack of water within the province, which was called ‘water protests’ or ‘thirst protests’, This was extended to other Iranian cities outside Khuzestan. The protesters' demands evolved to demand the overthrow of the regime itself raising slogans of ‘Death to Khamenei’.
Topic:
Economics, Water, Minorities, and Protests
Political Geography:
Iran and Middle East

5. Sanctions and the End of Trans-Atlanticism: Iran, Russia, and the Unintended Division of the West

Author:
Rawi Abdelal and Aurélie Bros
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Sanctions have become the dominant tool of statecraft of the United States and other Western states, especially the European Union, since the end of the Cold War. But the systematic use of this instrument may produce unintended and somewhat paradoxical geopolitical consequences. The sanctions imposed on the Islamic Republic of Iran and the Russian Federation in the field of energy are particularly illustrative of this phenomenon.
Topic:
Economics, Energy Policy, Sanctions, Geopolitics, Secondary Sanctions, and Transatlantic Relations
Political Geography:
Russia, Iran, Middle East, North America, and United States of America

6. Next steps toward a final deal with Iran

Author:
Steven Blockmans and Luigi Scazzieri
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
On January 20th, the International Atomic Energy Agency (IAEA) confirmed that Iran had been implementing its commitments as part of the Joint Plan of Action (JPA) agreed by the E3+3 in Geneva on November 24th of last year. In particular, the Agency confirmed that Iran had not installed new centrifuges, that it had stopped enriching uranium above 5%, that it had disabled connections between cascades being used to enrich up to 20%, and that it had begun the process of diluting half of its stockpile of 20%, while the other half is to be converted to oxide over the next six months. Over the next six months, the IAEA will continue to monitor Iranian enrichment, and activities at Arak, Fordow and Natanz. Immediately following the IAEA announcement, the US and EU suspended some of the sanctions currently imposed on Iran. Sanctions relief, quantified at $7 billion, comprises both the suspension of some sanctions and the repatriation of $4.2 billion of oil revenues in tranches.
Topic:
Security, Economics, International Cooperation, International Organization, Treaties and Agreements, International Security, and Nuclear Power
Political Geography:
Iran

7. Easing US and EU Sanctions on Iran

Author:
Kenneth Katzman
Publication Date:
06-2014
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Since the seizure of US hostages in Iran following the 1979 revolution, the US government has imposed a succession of economic penalties against the Islamic Republic. The complexity and severity of these sanctions intensified following Iran's resumption of a uranium enrichment program in 2006. However, there are a variety of ways to provide extensive sanctions relief should there be a deal placing long-term restrictions on Iran's nuclear activities.
Topic:
Economics, Energy Policy, Nuclear Weapons, Sanctions, and Nuclear Power
Political Geography:
Europe, Iran, Middle East, and North America

8. Iran and the P5+1: Getting to "Yes"

Publication Date:
08-2014
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
That nuclear negotiations between Iran and the P5+1 (China, France, Russia, the UK, U.S. and Germany) were extended beyond the 20 July 2014 deadline was neither unexpected nor unwelcome. The parties ha d made enough headway to justify the extension, which was envisioned in the Joint Plan of Action (JPOA) that was signed in November 2013 and came into force in January, but given the political and technical complexity, they remain far apart on fundamental issues. Unless they learn the lessons of the last six months and change their approach for the next four, they will lose the opportunity for a resolution not just by the new 24 November deadline but for the foreseeable future. Both sides need to retreat from maximalist positions, particularly on Iran's enrichment program. Tehran should postpone plans for industrial- scale enrichment and accept greater constraints on the number of its centrifuges in return for P5+1 flexibility on the qualitative growth of its enrichment capacity through research and development.
Topic:
Development, Diplomacy, Economics, Nuclear Weapons, and Nuclear Power
Political Geography:
Russia, China, Iran, Middle East, and France

9. Iran Sanctions: Preferable to War but No Silver Bullet

Author:
Barbara Slavin
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The broadest and toughest sanctions regime imposed on any country except Libya has not convinced Iran's leaders to abandon a program that appears aimed at developing nuclear weapons. Instead of seeking even more crippling economic penalties—such as an oil embargo—that would fracture the international consensus on Iran, the United States should tighten implementation of measures already in force and enact more sanctions linked to human rights, which have a wide constituency in Europe and demonstrate to the Iranian people that international concerns extend beyond nuclear weapons. The U.S. should also work with its diplomatic partners to craft new proposals that would couple acceptance of limited uranium enrichment with rigorous international monitoring, and encourage China, Iran's major trading partner, to use its leverage in support of nonproliferation.
Topic:
Economics, Human Rights, Nuclear Weapons, Sanctions, and Nuclear Power
Political Geography:
United States, China, and Iran

10. Iran's Youth: The Protests Are Not Over

Author:
Tara Nesvaderani
Publication Date:
06-2010
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Iran has the most politically active youth among the 57 nations of the Islamic world. As the most restive segment of their society, Iranian youth also represent one of the greatest longterm threats to the current form of theocratic rule. Young activists have heavily influenced the Islamic Republic's political agenda over the past 13 years. After the 2009 presidential election, youth and women were the two biggest blocs behind the region's first sustained “people power” movement for democratic change, creating a new political model in the Middle East. The Islamic Republic has forcibly regained control over the most rebellious sector of society through mass detentions of young activists, expulsions from universities and widening the powers of its own young paramilitary forces. Nevertheless, the demands from young people have not changed over the past year, and their anger is boiling just beneath the surface. The regime also remains vulnerable because it has failed to address basic socioeconomic problems among youth. The impact of Iran's youth on the political, economic and social agenda of the country over the next 25 years is important for U.S. policymakers to consider when facing complex decisions in balancing Iran's nuclear program and its internal political turmoil.
Topic:
Economics and Politics
Political Geography:
Iran

11. Saudi Public Backs Iran Sanctions but Split on Military Action

Author:
David Pollock
Publication Date:
01-2010
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
A highly unusual and credible private poll of Saudi citizens taken in late November 2009 by a reputable regional firm shows solid popular support for tough measures against Iran, even though domestic economic issues loom larger in the public's perception. Conducted in partnership with Pechter Middle East Polls, a new, Princeton-based research organization, the survey involved face-to-face interviews with a representative sample of 1,000 Saudi citizens in the major metropolitan areas of Riyadh, Jeddah, and Dammam/al-Khobar. A comparable poll was conducted in Egypt during the same period, with a representative national sample of 1,000.
Topic:
Arms Control and Proliferation, Economics, Weapons of Mass Destruction, and Sanctions
Political Geography:
Iran, Middle East, Arabia, and Saudi Arabia

12. Iran's Subsidies Conundrum

Author:
Semira Nikou
Publication Date:
09-2010
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Iran has subsidized petroleum products, basic foodstuffs, medical goods and utilities since 1980, first to manage hardships during the eight-year war with Iraq, and then to prevent political and economic challenges after the war. Since the 1990s, three presidents have tried to cut back subsidies that are now estimated to cost Iran between $70 billion and $100 billion annually. President Mahmoud Ahmadinejad won parliamentary approval for a controversial plan to phase out subsides by 2015. Under the plan, universal price controls are to be replaced with small cash payments to families and direct support of industries. Some economists are concerned that lifting price controls will trigger dramatic rises in inflation and unemployment. The cutbacks come at a time the government already faces serious economic troubles and tougher international sanctions. For the public, the change is likely to produce the most economic disruption since the revolution. Economic reforms have triggered unrest in the past. If reform succeeds, however, the program could help reduce waste, shrink state outlays and enhance efficiency and productivity.
Topic:
Economics, Labor Issues, and Monetary Policy
Political Geography:
Iraq, Iran, and Middle East

13. Iran's Youth, The Unintended Victims of Sanctions

Author:
Djavad Salehi-Isfahani
Publication Date:
08-2010
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The effect of the international sanctions on Iran is to deepen its current economic recession and make recovery very difficult if not impossible. In doing so, it will inflict pain on the general population. By prolonging the recession, the sanctions will hurt Iran's youth (15-29 year olds) particularly harshly, as they will bear the brunt of the resulting unemployment. They account for 70 percent of unemployment, and any improvement in their condition depends on economic recovery.
Topic:
Economics and Sanctions
Political Geography:
United States and Iran

14. The Russian Handicap to U.S. Iran Policy

Publication Date:
04-2009
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
There are voices in the Obama Administration who believe that the Kremlin is able and willing to exert pressure on Iran to prevent it from acquiring nuclear weapons. However, perceived geopolitical and economic benefits in the unstable Persian Gulf, in which American influence is on the wane, outweigh Russia's concerns about a nuclear-armed Iran. The Kremlin sees Iran not as a threat but as a partner or an ad-hoc ally to challenge U.S. influence. Today, both Russia and Iran favor a strategy of "multipolarity," both in the Middle East and worldwide. This strategy seeks to dilute American power, revise current international financial institutions, and weaken or neuter NATO and the OSCE, while forging a counterbalance to the Euro-Atlantic alliance. Russian technological aid is evident throughout the Iranian missile and space programs. Russian scientists and expertise have played a direct and indirect role in these programs for years. According to some reports, Russian specialists are helping to develop the longer-range Shahab-5, and Russia has exported missile production facilities to Iran. Moscow has signed a contract to sell advanced long-range S-300 air-defense systems to Iran. Once Iran has air defenses to repel Israeli or American air strikes and nuclear warheads for its ballistic missiles, it will possess the capacity to destroy Israel (an openly stated goal of the regime) and strike targets throughout the Middle East, in Europe, and the Indian subcontinent. Beyond that, if and when an ICBM capability is achieved, Tehran will be able to threaten the U.S. homeland directly. Given the substantial Russian interests and ambitions, any grand bargain would almost certainly require an excessively high price paid by the United States to the detriment of its friends and allies. Russia simply does not view the situation through the same lens as the U.S.
Topic:
Conflict Resolution, Foreign Policy, Economics, and Nuclear Weapons
Political Geography:
Russia, United States, Europe, Iran, and Middle East

15. Icon or Omen? Dubai's Debt Problem and the Gulf

Author:
Simon Henderson
Publication Date:
12-2009
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Late on November 25, just before the start of the Islamic Eid festival and, coincidentally, Thanksgiving in the United States, Dubai's flagship investment company Dubai World announced that it would be requesting a six-month delay on paying its debts. Within hours, Dubai's reputation was being rewritten, and its ambition to be a financial center, building on its historic reputation as a focal point for regional trade, was being recast. Uncertainty continued on November 30, when the Dubai government said that it would not guarantee Dubai World's debt. In any event, the larger story has been the nervousness of world financial markets, which are now also evincing worry about the debt of countries like Greece or Ireland. Within the Middle East, the focus is on the extent of support that Dubai will receive from Abu Dhabi, the neighboring -- and richer -- member sheikhdom of the United Arab Emirates (UAE), whether other city-states like Bahrain and Qatar are also at risk, and whether Dubai's links with Iran will change as a result of its financial situation.
Topic:
Debt, Economics, and Financial Crisis
Political Geography:
United States, Iran, Middle East, Arabia, Bahrain, Dubai, and Abu Dhabi

16. An Iranian Financial Intelligence Unit: Less than Meets the Eye

Author:
Michael Jacobson
Publication Date:
04-2007
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The State Department's International Narcotics Control Strategy Report, released on March 1, offers a little-noted reference to a dubious claim: an Iranian government statement (made to the UN) that Tehran has established a Financial Intelligence Unit (FIU). The report notes that Iran has provided no further details. Even if the Iranian claim were true, the creation of an FIU would do little to combat terrorism financing in the nation, given Tehran's official support for terrorist groups. In other countries, FIUs are an important element of effective counterterrorism policy -- though the record of key Middle Eastern nations is somewhat mixed in this regard.
Topic:
International Relations, Economics, and United Nations
Political Geography:
Iran and Middle East

17. Is Iran Facing an Economic Crisis?

Author:
Kelly Campbell
Publication Date:
05-2007
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Western policy toward Iran relies heavily on economic pressure, and Iran's political trajectory is shaped in large part by its economic prospects and constraints. A toughened regime of UN Security Council sanctions against Iran and uncertainties about the viability of its petroleum sector—compounded by deep structural distortions caused by a history of economic mismanagement—raise real questions about the state of the Iranian economy. The Iran Policy Forum at the United States Institute of Peace convened a meeting to discuss the status of Iran's economy and energy sector; the effect of Iran's uncertain political climate and concerns over its nuclear program on the economy; and actions the government should take to avoid future economic troubles. This USIPeace Briefing summarizes the discussion.
Topic:
Security, Economics, and Political Economy
Political Geography:
United States, Iran, and Middle East

18. The Bottom Line on Iran: The Costs and Benefits of Preventive War versus Deterrence

Author:
Justin Logan
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
It appears increasingly likely that the Bush administration's diplomatic approach to Iran will fail to prevent Iran from going nuclear and that the United States will have to decide whether to use military force to attempt to delay Iran's acquisition of a nuclear weapons capability. Some analysts have already been promoting air strikes against Iran, and the Bush administration has pointed out repeatedly that the military option is “on the table.” This paper examines the options available to the United States in the face of a prospective final diplomatic collapse.
Topic:
Conflict Prevention, Economics, and War
Political Geography:
United States, Iran, and Middle East

19. Iran's Shadow Government in Lebanon

Author:
Mehdi Khalaji
Publication Date:
07-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Having come into existence by virtue of Iranian military and financial patronage, Hizballah has used massive Iranian support to transform itself from a purely military group into an armed political party that has had an enduring impact on Lebanese political life and served as an outpost of Islamic fundamentalism in the region.
Topic:
Economics, Politics, and Religion
Political Geography:
Iran and Lebanon

20. Turkey And The Bush Administration: The Question Marks

Author:
Alan Makovsky
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Turkey's economic crisis is naturally the leading issue in bilateral U.S.-Turkish relations, and it is almost certainly topping the agenda of today's meetings of Foreign Minister Ismail Cem with Vice President Richard Cheney and other senior officials. Of course, these meetings pose the difficult question of how much Washington should do, if anything, to bail out its strategically vital ally. But this is only one of several uncertainties characterizing U.S.-Turkish relations in the early days of the Bush administration. Because so much of Turkey's importance to the United States derives from its critical strategic location, bilateral relations are greatly affected by U.S. policies toward other states in Turkey's region. Of most concern to Turkey will be the evolution of Bush administration policy toward Iraq, Iran, and Russia, and also toward Europe's nascent bid to develop an autonomous security capacity.
Topic:
International Relations, Security, Defense Policy, Economics, and Energy Policy
Political Geography:
Russia, United States, Iraq, Europe, Iran, Washington, Turkey, and Middle East

21. Lebanon: Between Hong Kong And Hanoi

Author:
Yossi Baidatz
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
In recent weeks, a simmering debate between the two major power centers in domestic Lebanese politics has spilled into public view. This debate pits newly installed Prime Minister Rafiq Hariri, who represents those who want Lebanon to take advantage of Israel's withdrawal from southern Lebanon to focus on internal stability, economic reconstruction and securing foreign investment, against Hizballah leader Shaykh Hassan Nasrallah, who — with the support of Syria and Iran — champions maintaining Lebanon's role on the front line of the ongoing revolutionary resistance against Israel. This tension was described in the Lebanese newspaper an-Nahar as the choice between "Hanoi" (Nasrallah) and "Hong Kong" (Hariri). As with most Middle East crises, the development of this delicate and flammable dispute carries both risks and opportunities for Lebanon and other players on the Middle East scene.
Topic:
International Relations, Security, Foreign Policy, Economics, International Political Economy, Politics, and Terrorism
Political Geography:
United States, Europe, Iran, Middle East, Israel, Syria, and Hong Kong

22. Iran — Investor Inhibitions

Author:
Caspar Fithin
Publication Date:
10-2000
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
This week, the Majlis approved a government bill authorising immediate use of the 2000-01 budget surplus. The windfall surplus, largely the result of increased oil revenues, should amount to 6-10 billion dollars by the end of the fiscal year in March. It will certainly transform Iran's external finances, but its impact on the domestic economy will be less immediate, and it will do little to ease investor concerns. Khatami's efforts to attract greater foreign investment depend on reform of the judiciary and other key changes to the regulatory climate. In the meantime, continuing political turmoil will deter all but those investors prepared to take a long-term view of Iran's economic potential.
Topic:
Economics, Government, International Trade and Finance, and Politics
Political Geography:
Iran and Middle East