Iran's untenable economy
An Iranian woman shops at a bazaar in Isfahan on July 7, 2009.
August 5th, 2011
04:00 PM ET

Iran's untenable economy

Editor's Note: Dina Esfandiary is a Research Analyst and Project Coordinator at the International Institute for Strategic Studies in London.

By Dina Esfandiary, The Diplomat

Mention of the words ‘structural reform’ these days usually conjures up images of the unrest in Greece. Bu taccording to a new report from the International Monetary Fund, Iran has also been restructuring its economy, introducing changes that have resulted in an unexpected growth rate of 3.2 percent in 2010-11.

Maybe.

Following a two week visit to Iran and discussions with Iranian officials in the spring, the IMF reviewed its initial criticisms, and applauded the regime’s removal of its decade-long subsidy programme. But economic mismanagement by Tehran has prompted scepticism of these findings – and is threatening to wipe out the potential for long-term growth. FULL POST

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Topics: Iran