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Economics Explained

Iran's Economy Could Be Huge, But They Don't Care

Sep 29, 2023
Exploring the untapped economic growth opportunities in Iran and the barriers preventing it from reaching its potential, including authoritarian government and heavy reliance on fossil fuels. It examines the consequences of Iran's war with Iraq and the rise of bonyads as tools of corruption. The chapter also discusses the impact of sanctions on Iran's economy and highlights the missed potential of the country as an economic superpower.
15:52

Podcast summary created with Snipd AI

Quick takeaways

  • Iran's economy has the potential to rival major global economies like Germany and the United States, but it is currently underperforming due to the government's disregard for the well-being of its people and corruption within the country's economic system.
  • Extensive sanctions imposed by the United States and other countries have crippled Iran's economy, leading to fluctuating output figures and limiting its access to global trade and technological advancements.

Deep dives

The Potential of Iran's Economy

Iran has the potential to be one of the world's most prosperous economies, given its large population, well-educated workforce, abundant natural resources, and strategic geographical position. It could rival the output of countries like Germany, Japan, the United States, and China. However, despite these advantages, Iran's economy is currently underperforming, with a GDP per capita similar to Sri Lanka and Lebanon. The authoritarian government's disregard for their people's well-being and the corruption within the country's economic system contribute to this economic failure.

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