Ali Khamenei, the Supreme Leader of Iran, announces a name every year for the new Persian year, that is mainly an economic issue. For the first few days, the media and government figures weave things about it, but since it does not have the ability and is not interest in solving the people’s problems, these names are just slogans, and there is no more talk about it after a few days.
But the situation has changed in this regime in such a way that even the officials are mocking these namings and not paying any attention to them.
“Merely naming without considering its real requirements has practically for many years caused the naming to take on more of a propaganda and slogan role and sometimes become a contradiction to itself. (Azar Mansouri, state run news agency ILNA, March 27, 2021)
The economic situation is so bad that even the representative of Khamenei in Mashhad Ahmad Alamolhoda was forced to confess and said: “Should the wheel of people’s lives rotate behind the queue of chicken and oil?” (State-run news agency Tasnim, March 26, 2021)
The policy of allocating 4,200 tomans to each US dollar started in March 2018, at the same time as the exchange rate jumped, with the appearance of preventing an increase in the prices of basic goods.
“As experts have warned, this policy not only failed to help control inflation, especially commodity prices, but also destroyed $54 billion in foreign exchange, according to the latest official figures.” (Eghtesad Online, March 27, 2021)
Fully failed policies that destroy the remaining production capacities and currency resources; but eventually the allocation of $8 billion for importing some commodities was approved in the 2021-2022 budget.
In the field of production and industry, the situation is even worse. At the end of last year, the regime’s minister of Industry, Mine and Trade claimed that Iran has a positive economic growth.
In his latest statement, he announced the growth in 19 industrial branches, that despite the intensification of sanctions and the expansion of the coronavirus pandemic, they have provided the grounds for a growth of about 7.5 percent of the industrial index in the country’s economy.
“Economic experts showed that this statistic is only in Rials and under the shadow of more than 40 percent inflation. In a situation where economic growth is not reflected in the people’s shopping basket, last year’s industrial growth is nothing more than playing with the statistic. As we approach the last months of the government, we will see it more than before, and it will not have a tangible impact on the economic conditions of the people.” (State-run daily Arman, March 27, 2021)
The minister pointed to the production increase in the field of masks, detergents, ventilators, etc. He pointed out and said that currently 22 million masks are produced daily, and that they are even witnessing its export. He described these as the most important achievements of his ministry in 2020.
Albert Baghazian, a government economic expert, called the statistics a lie and said: “Statistics while they are not reliable and can be shown in different ways there has been growth while the effect must be observed, so the decline in the price of masks, which is not primarily production, does not indicate industrial growth and is mostly the playing with statistics of the Ministry of Industry, Mine and Trade in the final year of government.” (State-run daily Arman, March 27, 2021)
Economic analysts acknowledge that with inflation at above 40 percent, more people became poorer, and “it can be said that up to the 7th decile, they are having problems in earning a living.” (State-run daily Fars, March 6, 2021)
No wonder when, “the growth in per capita national income in 2019 is negative 5 percent and GDP growth negative 5.5 percent and the economy shrank by 5 percent and this trend continued in 2020, but the biggest catastrophe was the decline in investment, which is the lowest figure in the last 15 years.
“In simple terms, this means that tomorrow’s generation will not have enough nutrition and health and will not be able to meet their needs. Reduction of calories and malnutrition and mental disorder of the next generation due to malnutrition and anxiety and social tensions that are transmitted to families and children. Therefore, we will not have a prosperous generation in the next few decades.” (State-run daily Donya-e-Eghtesad, March 27, 2021)