Rentier state and economic problems
Kai Ryssdal, of Marketplace from American Public Media, interviewed Virginia Tech economist Djavad Salehi-Isfahani. The professor offered first-hand observations of events in Tehran, Iran and a clear explanation of why being a rentier state causes a disconnect between the citizens and the government. He also suggested how continuing economic problems might affect politics.Salehi-Isfahani left Tehran after the election and was asked, "What was the mood economically when you left?"
He replied:
I think people were not at that time thinking really about the economy because it was at the beginning of the political tensions... The mood was still focused pretty much on politics. And the economy was the way it had been before, which is high inflation and high unemployment...
When I was there, the days when were protests, you actually had to work hard to find out where it was. When you stepped outside your home, the grocery stores were open, the banks were open. The people you talked to were all pretty much concerned about their daily lives, and my impression is that that's very much the case still.
Because Iran is an oil-rich nation, that relationship between the government and the people isn't working the way it works in Western democracies. Where you pay taxes, and you expect services from the government. In Iran you don't pay taxes, and you expect services from the government. And the relation is basically the government gives money to the people and then it expects them to behave. And when they don't behave it gets very upset...
Labels: economics, Iran, politics
posted by Ken Wedding @ 6:55 PM
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