The Command Post
Global Recon
August 19, 2003
Corruption in the Iranian Economy

Here is the story:

Two years ago, Hossein Yazdi was looking forward to a quiet retirement. Now he's back at work as one of Tehran's countless unofficial taxi drivers, trying to supplement a monthly pension of $65. "[Two pounds] of meat costs $5 these days; most weeks my wife and I go without," he says. "If things carry on like this, people like us will soon be dying of starvation."

Daily conversation here turns with alarming speed to the daily struggle to make ends meet. But what makes such talk baffling is that most economists consider the country to be relatively well managed.

"Iran has huge resources of oil and gas, and the rise in oil prices since 1999 from $10 a barrel to over $26 today has given the economy an immense boost," says Yves Cadilhon, head of the French economic mission in Tehran.

So what are many Iranians complaining about? A powerful group of clerics and merchants who, critics say, have a stranglehold on the economy.

For Saeed Laylaz, an assistant manager at Iran's largest car manufacturer and a supporter of moderate President Muhammad Khatami, the gripes are an effect of political reforms. "People are no longer afraid to speak out: they're not getting angrier, just more vocal," he says.

Jahangir Amuzegar, who was Iran's finance minister in the 1970s, disagrees. "It's the envy factor," he says. "I doubt anybody is getting poorer, but the trouble is that a tiny minority is getting richer very quickly."

(Also posted on my blog.)

Posted by Pejman at August 19, 2003 07:55 PM | TrackBack
Comments

Seems like quite a bit of money is missing. I wonder what the breakdown of what's going to the military, Republican Guard, graft and PLA/Hezzbolah.

Posted by: Steve H. at August 21, 2003 09:48 AM

Steve, the Mullah basically have lots and lots of unaccountable hired thugs. The problem with hired thugs is that they cost money, lots of money. When they screwed the economy so much, it isn't hard to find willing unemployable men to do your bidding.

Posted by: BigFire at August 21, 2003 09:54 AM

The theocrats running Iran and their mullah friends are probably doing an Edwin Edwards with the treasury, except that while Edwards during his first term as Louisiana governor invested most of his embezzlins in unlucky gambling, these Iranian folks are salting the people's "former" money away in numbered offshore accounts, foreign investment and other venues promising comfortable retirements when their present golden goose bites the dust, as it surely will before too much longer.
It's real easy to set up paper companies that deal through other paper companies that own things under still other paper companies' names.
While these jamokes donate large amounts of money to terrorist organizations, those sums are drops in the proverbial bucket compared to the kind of money that can be pilfered from a large government. We're looking at billions of dollars, here, not the "paltry" few million they need to support terrorism, or to hire armies of enforcers.
Such self serving embezzlement practices are, as they say, meat and drink to third world strongmen and their ilk.
Even Saddam's probably got enough financial resources scattered around the globe for him to have relinquished control of Iraq peacefully while there was still time and slithered off to some remote bastion of luxury and security, except that for reasons known only to him, he preferred to do things the hard way.

Posted by: Seth at August 22, 2003 05:15 PM

Wow Seth,

Nice analogy, N'onc Edwin vs Mullahs R Us. You must have spent some time down on the bayou, or know someone from there. Good call. Like momma Gump used to say, "greed is as greed does."

Hound Dog

Posted by: JimmyTheSaint at August 23, 2003 11:26 PM

Yeah, I've spent some time out in the parishes, JTS. Had a lot of fun thereabouts, back in my young studmuffin days.
Yeh, boo, I known a lot o' dem Heberts, an' dem Thibodeaux's, one time I was by Pierre's for de crawfish berl...

:-)

Posted by: Seth at August 23, 2003 11:49 PM

Like your handle upgrade, reminds me of one of my favorite mystery series, both the books and the 60s TV show.

Inspector Teal has left Scotland Yard.

Posted by: Seth at August 23, 2003 11:52 PM

Seth,

This handle comes from an old Springsteen album, either Greetings from Asbury Park or The Wild, The Innocent & The E Street Shuffle, I forget which. The song Lost in the Flood is one of his best early works. Give it a listen, you might enjoy. Both of those albums are wall to wall worth a listen.

Posted by: JimmyTheSaint at August 24, 2003 12:20 AM

JimmyTheSaint

I have a friend who's got everything Bruce S. has ever recorded. I'll have to borrow them from her in the coming week.

Posted by: Seth at August 24, 2003 12:43 AM

Seth,

I just dug the CD out of the back of my car, and it is Greetings from Asbury Park, NJ. That was his first album, I think, and The Wild The Innnocent & The E Street Shuffle was his second. I prefer his vintage stuff to anything he put out after Nebraska.

Haven't seen Wolf's comments of late. He busy straightening out the district of criminals? Give him best regards.

Posted by: JimmyTheSaint at August 24, 2003 03:05 AM

He's actually due in tomorrow;
The freelance job he got me back east is turning into something a little longer than I'd expected. I only returned home when I did to take care of stuff I have to do on the home front, we're flying back east in three or four days.
Man, am I getting some good insights!

Posted by: Seth at August 24, 2003 03:16 AM

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