Iran’s Economic Mirage: Exposing the Regime’s Corruption and Failing Prosperity

Written by
Shahriar Kia

In recent days, officials of Iran’s clerical regime have been making much fanfare about economic growth and how the mullahs’ president, Ebrahim Raisi, has made “huge economic prosperity.” Yet, the facts on the ground, sometimes acknowledged by state media or revealed during factional feuds, tell the opposite.

Saeed Lilaz, an economist associated with the government, raised concerns on June 14 about Iran’s escalating inflation rate. He stated, “The inflation rate in 2022 has surpassed 50%, marking the highest level since 1943. If we halve Iran’s current liquidity, half of it was generated from Naser al-Din Shah’s era until the end of Hassan Rouhani’s government, while the other half originated during Mr. Ebrahim Raisi’s 23-month tenure. This indicates widespread looting of the Iranian nation over the past five years, particularly in the last 23 months. If this trend continues, I worry about the situation this year.”

In damning admission last month, the Deputy Director of the regime’s Planning and Budget Organization acknowledged the Raisi government’s budget deficit of 794 quadrillion rials. Additionally, the Chairman of the Executive Board of the National Development Fund revealed last month that out of a $150 billion fund, only $10 billion remains.

Ali Khezarian, the spokesperson of the Article 90 Commission in the Iranian parliament, acknowledged on June 14 the widespread corruption within the system. He revealed that government officials and managers control a significant portion of the national wealth, amounting to a fortune of 500 quadrillion Rials (approximately $11.9 trillion), with no transparency or public knowledge.

According to Khezarian, “The properties registered so far consist of immovable assets, as announced in 2016-2017, totaling 150 quadrillion Rials based on the value at that time. Considering the increase, it is now estimated to be around 500 to 750 quadrillion Rials. This staggering amount reflects the extensive real estate capital in the country. The government lacks accurate information about its own property since it is held by certain managers who utilize it without proper registration. Consequently, people’s assets are under the control of a select few.”

Khezrian made these acknowledgments in a bid to fortify and call for accelerating the process of the so-called “productive assets plan,” not to think about Iranian people’s problems.

The Iranian regime’s recent announcement to sell public properties has triggered concerns of widespread corruption. Supervised by a delegation of seven top officials, approved by Supreme Leader Ali Khamenei, and with the parliament attempting to legalize it as the “productive assets plan,” this move is viewed as a desperate attempt to offset Iran’s significant budget deficit.

The plan follows a previous privatization initiative, which already granted considerable financial control to the Revolutionary Guards (IRGC), and this new scheme could effectively give them ownership over the entire country. The lack of transparency and protests from officials and state media have intensified the controversy surrounding the plan, which involves auctioning properties belonging to ministries, universities, state institutions, governmental companies, and more, potentially generating around $445 billion for the regime.

According to the state-run Donyay-e Eghtesad daily on February 1, “Economic authorities announced there are one million pieces of government property, which should be determined in the form of selling surplus properties. Meanwhile, 20,000 acres of land belong to some organizations in the first four districts of Tehran. Estimates of the average land value in the north of the capital show that only these 20,000 hectares equal 200 quadrillion rials, which is many times the amount of the entire country’s next year’s budget bill.” Based on the current dollar exchange rate in the market, the regime will earn roughly $445 billion.

Meanwhile, on Saturday, June 24, Tejarat newspaper acknowledged the alarming decline in dairy product consumption in Iran due to rising poverty. “This trend has raised concerns, especially for children and teenagers growing up during this period. The decreasing consumption of dairy products can be attributed to economic policies that have caused significant shocks to the market,” the paper writes.

According to Tejarat newspaper, “Analysis of reports from the Statistics Center confirms that as dairy consumption declined in the country, the export volume increased. Previously, approximately 10% of production was exported, but this figure has now risen to about 20%. This indicates that an equivalent amount of dairy products, such as milk powder and butter, are being exported rather than consumed domestically.”

The ongoing economic crises and the regime’s perversive corruption have exacerbated the explosive state of society. Raisi’s economic failure suggests Khamenei’s failure to consolidate power in his regime by appointing Raisi as president.

After two major uprisings shook the regime, Khamenei consolidated power by rigging elections and backing Raisi, a notorious murderer. However, ongoing protests and internal struggles have exposed the regime’s vulnerability. The international community should support the Iranian people’s demand for regime change and self-determination.

It is worth noting that on February 16, Mohsen Ranani, a state-affiliated economist, in an open letter to Khamenei wrote: “The early defeat of Raisi’s government and its management shows the system has reached the end of its period of declining efficiency. The timing of the final collapse of the structure occurs depends on many events. But we know that the blade of the scissors is closing on the government from the inside and outside, and one incident is enough to bring the two blades of this scissor together.

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