Throughout history, inequality has been a central concern for thinkers. Many people widely perceive government policies in Iran as the primary source of this issue. The past four decades have witnessed an unprecedented rise in societal inequality, fostering rampant corruption and powerful institutions seen as its key drivers.
These are the views of economist Hossein Raghfar, who recently spoke about the social and psychological harms of Iran’s crisis-ridden society. He delves into the roots of the crisis, highlighting the role of the regime’s ideological leaders and officials. However, he avoids mentioning the crucial role of the regime’s former supreme leader, Ruhollah Khomeini, and his successor, Ali Khamenei, who continued Khomeini’s policies.
Raghfar criticizes Khomeini’s dismissive attitude towards the economy, famously stating that “the economy belongs to a donkey” and promising “free water and electricity.” These policies, Raghfar argues, have plunged millions of Iranians into poverty and misery, laying the foundation for a corrupt and dysfunctional economic system.
He provides examples of a “mafia” supported by Khamenei, alleging that “a specific group controls the economy, dictating the price of a Chinese car, sold for $40,000 in Iran despite costing only $14,000 elsewhere. Additionally, 58,000 smuggled cars are imported annually.” Raghfar further criticizes the prevalence of “obnoxious consumerism” and the financing of large shopping malls with public funds, including social security and banking system resources.
The state-run website Fararu, acknowledging this situation, warns of “the very dangerous and gross inequalities that have formed now, leaving society vulnerable to a potential eruption.”
Aware of this dire situation, the regime seeks to suppress any discussion of widespread poverty. Raghfar recounts, “A few years ago, the Sociological Association sought to hold a meeting about social problems. They were told they could discuss anything except poverty! Ultimately, they were not allowed to address this critical issue.”
Economist Taimur Rahmani examines the long-term economic consequences of the regime’s policies, emphasizing their historical context. He compares economic growth, liquidity growth, and inflation rates from 1972 to the present, highlighting the detrimental effects.
Rahmani further emphasizes that the poorest segments of society bear the brunt of any economic hardship. He contrasts these realities with the unfulfilled potential acknowledged by Masoud Nili, a regime expert.
Nili stated that “without the current 40-year trajectory, Iran could have achieved $350 billion in exports, a $1.2 trillion GDP, 3% inflation, and unemployment within the same range, with economic growth exceeding 5%.”
Nili, however, concludes disturbingly that “there are two groups: one plundering the remaining resources, and the other, through ignorance and prejudice, accelerating the path to destruction.”
Massoud Hajjarian, analyzing the decline of the middle class, describes the emergence of a new class within the regime, which he terms the “state class.” This class, according to Hajjarian, thrives on resources like oil, taxes, monopolies, and control over public assets.
He asserts, “We are facing an entity that encompasses the state, the ruling class, and the capitalist class, leaving no room for anything else.” He further claims that “parts of this class evolve into powerful factions, essentially gangs, but it’s important to note that they are competing oligarchs, not necessarily rivals of the government itself.”
It is said that when we compare Iran with the world, we see that while the poverty rate in Iran is increasing, in the world this trend has been decreasing. According to the state-run daily Ham Mihan, “Statistics show that in 2023, about 30% of our population is below the poverty line, which includes nearly 26 million people. One out of every three Iranians is below the poverty line.”
