In the realm of mathematics and statistics, it becomes painfully evident how the Iranian regime’s economic policies have led to monopolization and oppression, inflicting severe blows upon the Iranian people. The Fraser Institute, a think tank that specializes in social policies, recently released a report evaluating economic freedom across countries.
Shockingly, the Iranian regime ranks 160th out of 165 countries in this report. The reasons behind this dismal ranking include a lack of financial transparency, an inhospitable business environment, and the pervasive grip of government monopolies.
“The Fraser Institute has assigned Iran an economic freedom index score of 4.53 out of 10, indicating a slight decline from last year’s score of 4.58. The institute’s data reveals that Iran’s scores in the four sub-indices of ‘Government Size,’ ‘Legal System and Property Rights,’ ‘Regulations,’ and ‘Strong Money’ have all witnessed relative declines,” reported the state-run newspaper Donya-e Eghtesad.
Iran finds itself once again among the bottom 10 countries in the economic freedom index, alongside nations like Congo, Algeria, Argentina, Libya, Yemen, Sudan, Syria, Zimbabwe, and Venezuela.
This disgraceful situation, for a nation with a rich history and an ancient civilization, serves as a stark reminder of the regime’s self-serving interests at the expense of the Iranian people’s well-being.
Farshad Momeni, an economist associated with the so-called reformist faction, recently lamented, “Over the past 15 years, the power structure’s preference has been to address its challenges in an ad-hoc, fragmented, and isolated manner.
“Consequently, they have failed to resolve any significant issues during this time, exacerbating the crises. The path to salvation lies in heeding all voices through equitable power and wealth distribution, rather than catering solely to the interests of the oligarchs when formulating policies.”
One telling indicator of the rampant corruption within the regime is the annual report on foreign currency loan arrears in 2022. These arrears have surged from 8.8% in 2019 to a staggering 16.6% in the last three months of 2022.
In plain terms, this signifies that regime officials and financial entities secured foreign currency loans, primarily in dollars, to the extent of their influence and have failed to repay them. Doubling these arrears in under two years is touted as a sign of growth and progress, but it exposes the stark reality of corruption.
As reported by the state-run daily Etemad, “These delays reveal that certain individuals and groups within the government have plundered Iran’s foreign currency resources.” The report further underscores, “Foreign currency borrowers wield significant influence in the realms of press, media, advertising, politics, and the judiciary.”
This issue constitutes one of the most substantial waves of organized corruption, theft, and looting within Iran’s economy, especially in the past two decades, with figures matching the scale of currency looting during Ahmadinejad’s era, estimated at $22 to $30 billion, and Rouhani’s tenure, amounting to $30 billion.
Another concerning matter highlighted in the Central Bank’s data is the threefold increase in bank debt to the Central Bank, bizarrely touted as an indicator of growth and progress under Ebrahim Raisi’s government.
The corruption within banking networks, wherein loans are disbursed primarily to their members, resulting in widespread dissatisfaction, is an open secret.
Evidence points to select members within Supreme Leader Ali Khamenei’s inner circle benefiting from the immense wealth amassed through the banks.
Nearly the entire liquidity of Iran is concentrated in the hands of approximately 300 individuals, all belonging to the military-security-spiritual oligarchy and hailing from the country’s ruling families.
These individuals collectively possess ten times the liquidity of the country’s general budget, yet the government struggles to collect even a single rial in taxes from them.
This alarming situation unfolds while the number of marginalized individuals in the country is estimated to exceed 30 million.
Recently, the Director General of Tehran Municipal Services revealed Khamenei’s deep concern regarding the escalating social damages.
Khamenei’s apprehension stems from the realization that the millions of deprived individuals living below the poverty line may one day rise against the regime.
Parliament member Ali Rezaei candidly admitted, “The wealth gap in our country continues to widen. If this trend persists, the relief committee will soon need to support 85 million people.”
The issue extends beyond statistical manipulation. Iran’s banking sector, burdened with rampant money printing and currency distribution, conceals its insolvency under the guise of ‘imbalance,’ further reflecting the overall economic imbalance, with double-digit inflation being just one of its consequences.
Former World Bank representative Farhad Nili has issued a dire warning, stating, “The inflationary pressure of money in the country has surged, and policymakers have lost their ability to address banking discontent.” He likened this situation to a time bomb, citing the perilous ratio of actual money to virtual money within Iran.
