Iran's subsidy withdrawal: why now?

The recent action by government to cut down on subsidies has been overdue and should have been done decades ago; however, that was not the government’s intention.

Iran’s economy suffers a great deal from a number of things, mainly huge government enterprise and state run industry. Iran has one of the highest service sectors in the Middle East. Not to mention the corrupt enforcement and entities that exists within the government.

Iran’s economy, greatly suffers from mismanagement, corruption and embezzlement. Leaving the private sector out of the growth has left the government to handle everything from the banking sector to running airports and all facets of Iranian daily life. You can compare Iranian regime to semi communist regime. And the reason I say semi is because there is still the Bzaris in Iran that run their own operations.

In the last paragraph I mentione Bazaris. Who are they? And how have they contributed to Iran’s growing pain? Bazaris are small business owners but they are like cartels. They have had a great deal of impact and influence in Iran’s political as well as economic down turn. The fact that they don’t pay taxes and the government has no control over them has had a great deal of adverse affect on Iran’s economy. The 1979 revolution was funded and sponsored by the Bazari community who hated Shahs latest reform programs. So I think Ahmadi ‘s move against Bazari Cartel will also decide his fate.

The subsidies in Iran have been in place for several decades. Iran, a country that is rich in natural resources and has heavily depended on the revenues and profit of oil and gas. However, as the population is growing and because of the incompetence of decades of government run enterprises who had had no intention to help to grow Iran’s economy, the burden of continuous subsidies will have an adverse impact on the economy.

The Iranian government is in huge debt and Iran could become the Zimbabwe of the Middle East.

But that is not why I am writing this article. I am more interested in understanding why now? Why has Ahmadinejad’s government decided to take such a drastic move in such a volatile time? Knowing that this is such an emotional topic, and as someone who knows that your fate will be decided by such a move, why would you take such a dramatic action? Just think about it: more than half of the population went on the streets last year in the rigged elections. The majority of Iranians resent this current administration. Why you think anyone would do something like this?

I actually think they are trying to divide the country in a very strategic and controlled way. They are employing the divide and conquer concept. They will use that money to pay their supporters as well as officials and leave the other half without anything. The revolutionary guard who is 100% behind Ahamdinejad’s policies and agenda will benefit tremendously from the saving from the stop in subsidies.

Ahmadinejad’s government has already started to pay off their officials and supporters.

Iran is on the verge of becoming the next North Korea as well as Zimbabwe. We are becoming more of a military and fascist state than ever. Iran’s current status is grim and the economic forecast is not good. The average Iranian will suffer tremendously and, in a country where one must have several jobs in order to survive, this government move will break the foundation of our social as well as our family structure.

The Iranian regime has done what every dictatorship and totalitarian regime does, keep the nation hungry and needy, so that it keeps them in power.

God Bless Iran and Iranian people - Long Live freedom and Democracy



Amir Nasiri 
Movement4Democracy 

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