Iranian Economy

iran_football_match.jpgAll’s not well with the Iranian economy;

“But not all the developments since 2003 have strengthened Iran. Despite the oil price bonanza, Iran's economy is in poor shape. With roughly the same population, its GDP is half that of Turkey. Even the official unemployment figures have risen to 12.4 percent (a massive understatement) under Ahmadinejad and what few jobs have been created are in the public sector. The Tehran stock market lost 25 percent of its value last year and another 12 percent so far this year.

In June, 50 of the country's leading economists wrote an open letter saying that Ahmadinejad's economic policies lacked "expertise and scientific basis." Inflation is officially running at 12 percent, but most economists reckon it to be close to double that level. There are credible reports of large-scale capital flight to Dubai and elsewhere, fueled by Ahmadinejad's fatuous decree to state and private banks to cut their interest rates, whose main impact has been to dry up bank lending.”

Related:
United States, Iran Trade Barbs at UN
The George and Mahmoud show
Iranian minister urges World Bank to back nuclear energy investment
Iranian Economy- Crony Capitalism in Islamist Garb
Recent publications from IMF
Inside Iran
Iran in Maps

Thomas Schelling on the Iran nuclear issue;

“I don’t think the U.S. has a convincing argument against this Iranian charge of nuclear apartheid — especially since we’ve been allies of Israel for many decades knowing they have nuclear weapons. Although, the Iranians should recognize clearly the limits on Israel — even when it had the perfect target for tactical nuclear weapons of Egyptian troops as sitting ducks out in the Sinai desert in 1973, Golda Meir didn’t use them.

I don’t know if there is any way to stop the Iranians from acquiring nuclear weapons. If they do, we should try to persuade them to declare — as the Indians and Pakistanis have done — that they are for deterrence and defense, not for offensive use.

Further, we should assist the Iranians in making sure custody of their weapons are secure in any time of disruption. In the case of a riot in the streets, will the weapons be safe? Who might grab them in case of civil war?

It is important for the Iranians to understand — and have access to — technology like we have in the U.S. that disables bombs if they get into the wrong hands. U.S. weapons, for example, have “permissive action links”— a radio signal code that arms weapons but that will also automatically disarm them it if launched at an unauthorized target.

This will be a big dilemma for the U.S. If the Iranians get weapons, will we be willing to share the technology to ensure the security of their use? That is where the debate is heading.”

Pages

Powered by Movable Type 5.02

About this Entry

This page contains a single entry by Paul published on September 21, 2006 1:19 AM.

Should the State have a monopoly over security and violence? was the previous entry in this blog.

Best Lie I've Read Today is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.