Comparison of the Economic Performance of 6 Governments after the Revolution – Part 2

Comparison of the economic performance of 6 governments after the revolution

According to Iran Gate’s report on the country’s economic situation, the comparison of the economic performance of 6 governments after the revolution is so dire that many citizens consider the main performance to be much weaker than other governments, based on their memories of past periods. According to most economists, the score of Ibrahim Raisi and his government, especially in the economic field, is much lower than the governments that have brought the country to its current crisis-ridden state.

In addition to serious weaknesses in the management field, Ibrahim Raisi and his government also lack quantity in the intellectual and theoretical areas, unlike the noticeable quantity of the thirteenth government. Each of the post-revolution governments under review reveals their direction and orientation in terms of managing the country’s economy. However, this is not at all discernible about the Raisi government. Many believe that the reason for this confusion is the academic weakness of the thirteenth cabinet and the lack of operational capabilities among the members of the government.

Iran Gate has examined the overall economic policies of governments after the revolution in a two-part dossier. This report, which is the second part of this dossier, focuses on the approach of the governments of Mahmoud Ahmadinejad (ninth and tenth), Hassan Rouhani (eleventh and twelfth), and Ebrahim Raisi (thirteenth).

The rich populist

Economists almost unanimously agree on the proposition that Mahmoud Ahmadinejad is an oil populist. Liberals consider him a left-wing populist, while communists and socialists introduce Ahmadinejad as a populist from the ranks of far-right politicians. However, Ahmadinejad can perhaps be classified among figures like Bolsonaro in Brazil (far-right), Chavez in Venezuela (socialist), Maduro in Venezuela (socialist), Thaksin in Thailand (far-right), Trump in the United States (far-right), all of whom share the common characteristic of being populists. Despite significant ideological differences among them, they all share their populism as a common feature.

Perhaps the best description of Ahmadinejad recently was given by Saeed Hajarian. Hajarian referred to Ahmadinejad as a wealthy populist. Although looking at the statistics and figures related to the budget deficit between 2005 and 2013, one can clearly understand the dire situation of the government. However, considering the sudden and unprecedented increase in oil prices and the absence of oil sanctions, it can be said that Ahmadinejad had the wealthiest government after the revolution.

Ahmadinejad attributed this situation to the foreign policy of Mohammad Khatami in the seventh and eighth governments. The result of this situation was an income of approximately 800 billion dollars during the eight years of Ahmadinejad’s presidency. However, in the end, almost nothing remained for the country.

Shifting from Niavaran Circle to the Maidaan Hole.

The economic policies of Hassan Rouhani underwent significant changes with the change of his government. In his first term, he appointed a combination of technocrats and liberals in the government, which was a first in the history of the Islamic Republic. This was the first time that such a homogeneous combination was put to work in the economic team of the government. The team, led by Ali Tayebnia and with the guidance of the Nili brothers, notably excelled in managing economic crises, including the crisis of financial and credit institutions. In essence, it can be said that the economic team of the government had its roots in Niavaran circle, consisting of liberal economists.

However, in Rouhani’s second term, there was a complete turnaround. Just like his political positions had visibly changed after 2017, his approach to the economy also showed considerable changes. After winning the twelfth presidential election, Rouhani introduced a peculiar composition to the tenth parliament, which shocked everyone and indicated a change in Rouhani’s approach to macroeconomic management of the country.

The composition, which now included Dejpasand and Nobakht alongside Tayebnia and Nili, was practically a losing team that only presented a caricature of the country’s prominent technocrats.

Perhaps it can be sarcastically said that Hassan Rouhani made a historical shift from Niavaran Circle to the abyss of Tehran’s Maidan Square, and still no one knows the reason for this change of approach. Of course, some defenders of the government claim that the main reason for this change was the arrival of Donald Trump in America and the United States’ withdrawal from the JCPOA agreement. However, this justification cannot in any way indicate the reason for such a misguided decision.

Because in a crisis situation, he should have naturally turned to experienced economists who could handle both minor and major crises, instead of appointing Farhad Dejpasand as the Minister of Economy, a person even his own students throw their hands at in his class, and his academic inadequacy is completely evident.

Great doctor, empty pocket.

As mentioned earlier, the government of Ebrahim Raisi is the most uncertain government after the revolution. A kind of theoretical confusion is clearly visible in the statements and decisions of government officials. Many believe that the government of Ebrahim Raisi is a mixture of populism and political bluntness, which is currently experiencing stagnation.

It might be worth revisiting the description of the Ahmadinejad and Raisi governments as populist leaders, one wealthy and the other poor. Ibrahim Raisi now heads a cabinet that is not only highly inexperienced in populism but also attempts to fulfill the promises made by Mahmoud Ahmadinejad with an empty pocket, devoid of the oil dollars of the late 1980s.

The thirteenth government is neither right nor left. It is a symbol of managerial confusion and academic poverty. This poverty has now plunged the country into a state of decay, creating a new crisis every day, all caused by this very government. Without being able to solve the previous crisis, the government moves on to the next one. This is how we witness the proliferation of economic crises, both small and large, in the country. These crises manifest themselves in the ugly face of inflation, which increasingly suffocates the people.

Comparing the economic performance of the six governments after the revolution – Part One

Economy in focus as Iran’s president embarks on a landmark visit to Syria