October 11, 2021

Thanks to sanctions, Iran loses foreign investors

Featuring Rachel Ziemba

Source: Asia Times

Journalist Kourosh Ziabari

As the Raisi administration continues to refuse to chart a clear path for the resumption of the stalled nuclear talks with world powers in Vienna, and the removal of the daunting sanctions on Iran remain improbable, things are getting worse for the average Iranian.

The naked truth about the oil-rich country is the unchecked entrenchment of poverty has been worsened by the government’s soaring budget deficit and the withdrawal of foreign investors who once helped prop up different sectors of the economy.

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Rachel Ziemba, a geo-economic expert and an adjunct senior fellow at the Center for a New American Security, told Asia Times Iran is lucky to have a dynamic private sector, which can function as an incubator of its economic perseverance, but even the success of the private sector hinges on the removal of the sanctions and also the choices the government makes.

“Sanctions have reinforced the role of the government, the degree of inter-party lending and the role of the Islamic Revolutionary Guard Corps in the economy. However, the private sector has taken strides to improve data, make suggestions and suggest reforms including more alignment with FATF regulations,” she said.

Read the full story and more from Asia Times.

Authors

  • Rachel Ziemba

    Adjunct Senior Fellow, Energy, Economics, & Security Program

    Rachel Ziemba is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). Her research focuses on the interlinkages between economics, finance and security i...