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See L.A. Times
story - 11-10-08
TERMS
-
Mahmoud Ahmadinejad
Iran's president elected in 2005 on a populist
platform. He is up for reelection in June 2009.
(Iran's president is only permitted to serve two
consecutive terms)
-
Ayatollah Ali Khamenei
Iran's Supreme Leader.
-
Islamic Republic
Alternative name for Iran (full country name:
"Islamic Republic of Iran")
INTRO
In an open 30-page letter to the
country's parliament, 60 Iranian economists
condemned the policies of Iran's President, Mahmoud
Ahmadinejad, for contributing to Iran's high
inflation, stunted growth and job losses.
The letter demonstrates waning
support for Ahmadinejad among members of Iran's
elite ahead of the presidential election in June
2009.
BACKGROUND
-
Iran's government
Although Ahmadinejad serves as Iran's elected
president, real power remains in the hands of a
group of religious Islamic hardliners led by
Supreme Leader Ayatollah Ali Khamenei.
-
Iran's economy
Iran is facing 20% inflation, sluggish growth
and an uncertain job market. Iran's economy is
dependent on oil revenue (oil accounts for 80%
of Iran's foreign earnings) making the country
especially sensitive to fluctuations in the
price of oil. Iran has taken a big hit with the
drop of oil prices from $147 a barrel in July
2008 to around $60 in November, for example.
-
Iran's nuclear program
Iran and the West have been at odds due to
Iran's drive to master nuclear technology by
enriching uranium. Iranian officials say
they want to enrich uranium in order to maximize
the country's ability to produce nuclear energy.
The West fears Iran is trying to develop nuclear
weapons. (The technology required to enrich
uranium ore to produce energy is the same as
that required to develop nuclear weapons).
-
Economic Sanctions
The international community has imposed three
rounds of economic sanctions* against Iran to
punish and coerce the country's leaders into
suspending its uranium enrichment activities.
The sanctions force Iran to conduct trade
through intermediaries (i.e. the Emirates). The
middlemen apply their own costs to traded goods
raising the price of Iranian exports and
increasing the cost of imports. The arrangement
costs Iran billions of dollars and increases
risk and transit time.
*A sanction is a law or decree adopted by a
group of nations acting together to coerce an
entity into taking a course of action. Countries
that participate in the sanction limit or
conduct no trade with the offending country.
CRITICISM OF
AHMADINEJAD
-
World economic crisis
Ahmadinejad has claimed that Iran has not been
affected by the global economic downturn. The
Iranian economists, however, contend that the
crisis has affected Iran's economy, in part
because of the effect the crisis has had on the
price of oil, and will continue to take its
toll. They urge the government to put aside its
"extremist idealism" and deal with the reality
of the impending economic crisis.
-
Criticism of Ahmadinejad
The economists have blamed Iran's government for
ballooning expenditures since Ahmadinejad took
office in 2005. When Ahmadinejad was running for
office, he promised the Iranian people that he
would distribute oil income among the
population, create equal opportunities and
reduce inflation. When he came to power, he
launched a series of populist economic policies.
-
International Affairs
The economists criticized Ahmadinejad for
creating hostility with the world by making
controversial statements (stating his wish to
wipe Israel off the map of history for example)
and acting defiantly regarding Iran's nuclear
program. Tension and perceived insecurity has
scared off potential investors, say the
economists, damaging Iran's economy.
IRAN'S PRESIDENTIAL ELECTIONS JUNE
2009
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