Iran..Electoral competition highlights the economic reality | Economy

Al Jazeera Net correspondents

Tehran- Following the death of the late Iranian President Ebrahim Raisi, last month, the Iranian and foreign media exaggeratedly discussed the repercussions of the incident on the country’s foreign policy, but the electoral competition that accompanied the candidacy period for the upcoming elections shed light on the government’s economic record.

By issuing economic promises, former Iranian presidents have always been able to win the largest percentage of voters’ votes over the past decades, as in recent days the economic aspect has captured the lion’s share of the press conferences held by candidates for the upcoming presidential elections.

In light of the bazaar of economic promises and criticism directed at the 13th government; Political circles in Iran are divided over the current government’s economic record. Among those who want to employ him as propaganda for candidates close to the late president, and others who raise him as a peg to persuade voters not to vote again for the political movement that brought it 3 years ago.

Official numbers

In this context, the editor-in-chief of economic affairs at the Iranian Mehr Agency, Mohammad Hussein Seif Allahi, defends the economic performance of Raisi’s government, stressing that official statistics and economic indicators show a decline in liquidity (reducing the financial supply curbs inflation) by 18% and unemployment falling to 8.1% during the period. The last three years.

Speaking to Al Jazeera Net, Saif Allahi believes that the national economy has improved in recent years because the current government was able to nullify the effect of US sanctions, increase the country’s exports of crude oil, and release part of the Iranian funds that were frozen in South Korea and Iraq.

The Iranian researcher continued that the government of the late Raisi had already succeeded in attracting $5.5 billion in foreign investments during the last Iranian year alone (which ended on March 21, 2024), in addition to reducing the pace of inflation by more than 24% and supporting the wheel of industry.

National currency

When he referred to the current government’s abolition of the weighted currency (42,000 Iranian riyals equivalent to one dollar), which was designated for importing basic goods with the help of the private sector, Saif Allahi explained that the government made such a decision – despite its seriousness – because of the economic corruption resulting from it, and that the authorities… Those affected by the decision did everything they could to thwart it, but the government’s economic team contained its repercussions and secured basic goods through its channels.

He believed that the government of the late President Raisi had also succeeded in improving the national currency despite US sanctions and controlling the price of hard currency, adding that the country’s foreign trade, especially with neighboring countries, had improved and reached $152 billion as of last month.

Saif El-Lahi concluded that the government continues its tireless efforts to build housing and provide more job opportunities for citizens until the last day of its life, adding that many of the large economic projects that began during the past few years will not be completed until the inauguration of the next president in about a month, and he expressed his regret for turning a blind eye. Political circles are blind to the completion of projects that are not yet complete.

Promises and failures

On the other hand, economics professor and former president of the Iranian Chamber of Commerce and Industry, Hossein Salah Warzi, believes that the failures of the previous government overshadow its economic achievements, adding that many of the promises made by the government’s economic team have not been fulfilled, and some have not yet begun.

Speaking to Al Jazeera Net, Salah Warzi recalled the direct relationship between economic indicators and the living situation, stressing that the 13th government had indeed failed to implement its most prominent promises, which were:

• Putting an end to the collapse of the Tehran Stock Exchange.
• Building one million housing units annually
• Providing one million job opportunities every year.

He added that, contrary to the economic indicators announced by official circles, the Iranian currency has lost more than two-thirds of its value during the past three years, and that inflation has doubled several times during the same period, in addition to the government’s cunning in imposing taxes contradicts the promises it made to achieve justice.

Reasons for improvement

Werzi said that the government has not yet been able to solve the energy shortage crisis in the country. This led to cutting off gas to industrial towns in the winter and cutting off electricity in the summer, until the industrial sectors began to complain of a decline in production due to the lack of energy.

The Iranian academic attributed the improvement in some economic indicators in his country, including the increase in oil exports, to:

• The American side was lenient due to the Democratic administration’s desire to save the nuclear agreement.
• Iran joining some international organizations such as Shanghai.
• Normalizing relations with some neighboring countries.
• Some economic sectors recovered after the end of the Corona pandemic.

The predominance of politics

In light of the current situation regarding the economic reality in Iran, observers see an intertwining between the economic and political systems in the country and that the government’s economic file cannot be considered apart from the external challenges that obstruct its plans at the internal and external levels, and the role of foreign policy and its ability to achieve this cannot be overlooked. Addressing these challenges.

As the campaign period approaches for the early presidential elections, scheduled for the 28th of this month, a segment of Iranians do not find it difficult to promote their preferred candidate. All it has to do is criticize the current economic situation, while others believe that the government’s hands are almost tied in making some economic decisions due to the necessity of it adhering to the higher policies that were previously drawn up by the symbols of the Islamic Revolution.

Meanwhile, Arman Melli newspaper published an article under the title “The Role of the President of the Republic in the Economy,” in which it wrote that in light of the complexity of the political framework and the role played by various parties in making economic decisions in Iran, the President has several tools and powers to direct the national economy, adding that Despite this, the president faces restrictions in implementing his economic policies.