March 10, 2007

NEWSFLASH!: YOU CAN'T RUN A FUNCTIONAL ECONOMY ON AN ISM:

Iran's talk is full of fire but its economy is burning: On current trends, Iran will cease to be a net oil exporter in 2015 (Chris Walker, 11 March 2007, Independent)

ehind the scenes, it is becoming clear that all is not well inside Iran, even in the middle of an oil price boom. At 3.9 million barrels a day, oil production remains stubbornly below its level at the time of the 1979 revolution.

A complete failure to invest in refining and the hostility to the use of Western technology has ensured that Iran imports much of its refined oil from the United Arab Emirates (UAE). Rather bizarrely, petrol has recently been rationed in some instances and is subject to strict government control - a whopping 86 per cent price increase has been proposed. On current trends, Iran would cease to be a net oil exporter altogether in 2015.

This seems to be extraordinary economic mismanagement. Despite a 20 per cent increase in the national budget last year, Mr Ahmadinejad had to go back to Iran's parliament, the Majlis, six times to ask for more money.


Which is why Ayatollah Khamenei has been backing reformers instead of hardliners for the best part of a decade.

Posted by Orrin Judd at March 10, 2007 10:38 PM
Comments

Gee, you'd think that if Khamenei was important Iran would have been run by reformers by now instead of hard liners. Khamenei obviously doesn't count for much in Iranian politics.

Posted by: BtC at March 11, 2007 5:20 AM

Exactly. That's what happens in a democracy. He can act as a stop on the actions of others but is severely limited in acting himself.

Posted by: oj at March 11, 2007 7:57 AM

One wonders why he did not support Khatami when the reformers did dominate the government, but were always shut down by the clerics.

Posted by: Chris Durnell at March 12, 2007 12:03 PM

how did you think Khatami got elected?

Posted by: oj at March 12, 2007 2:59 PM
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