When President Rouhani makes his pitch to the Iranian electorate for a second term in office, he will be judged not just on his striking of the JCPOA deal, but also his administration’s ability to capitalise on it: on the latter his scorecard is mixed. Mr Rouhani has delivered a “return to tranquillity” with solid economic policy making and a return to international oil markets, but the gains are not widespread and unemployment is very high.
Mr Rouhani promised to flush corruption out of Iranian institutions and privatise the Iranian economy: his failure on this account creates a strong feedback loop into the underperforming economy. The lack of reform will continue to hold back government ambitions for productivity improvements.
More often than not it is the state-owned sector which is the international face of Iranian enterprise and this acts as a drag on foreign investment. It is inefficient, delays productive reform, attracts corruption and makes foreign companies nervous about sanctions exposure. Foreign investors want to see a healthy, thriving private sector in Iran and if they see that, they will invest in it.
In President Rouhani’s Norwuz address, he referred to the “pathway” he has laid out for the Iranian economy and argued for patience with long-term policies to make it a success. This is true to a large extent, and if in the next four years involves genuine reform in the state-sector and banking, it could begin to bear fruit.
In other developments, Russia and Iran have been in talks over a 100kbpd oil supply agreement and development partnerships for 11 Iranian fields worth over $20bn. Russia and China’s economic influence in Iran is growing from strength to strength: China now accounts for 36% of Iran’s exports, compared to only 12% ten years ago.
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Languages of Mexico
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The overwhelming majority of Mexicans today speak Spanish. According to the CIA, Spanish is spoken by 92.7 percent of the Mexican population. About 6 percent of the population speaks Spanish as well as indigenous languages, such as Mayan, Nahuatl and other regional languages. Indigenous Mexican words have even become common in other languages, including English. For example, chocolate, coyote, tomato and avocado all originated in Nahuatl. .When President Rouhani makes his pitch to the Iranian electorate for a second term in office, he will be judged not just on his striking of the JCPOA deal, but also his administration’s ability to capitalise on it: on the latter his scorecard is mixed. Mr Rouhani has delivered a “return to tranquillity” with solid economic policy making and a return to international oil markets, but the gains are not widespread and unemployment is very high.
Mr Rouhani promised to flush corruption out of Iranian institutions and privatise the Iranian economy: his failure on this account creates a strong feedback loop into the underperforming economy. The lack of reform will continue to hold back government ambitions for productivity improvements.
More often than not it is the state-owned sector which is the international face of Iranian enterprise and this acts as a drag on foreign investment. It is inefficient, delays productive reform, attracts corruption and makes foreign companies nervous about sanctions exposure. Foreign investors want to see a healthy, thriving private sector in Iran and if they see that, they will invest in it.
In President Rouhani’s Norwuz address, he referred to the “pathway” he has laid out for the Iranian economy and argued for patience with long-term policies to make it a success. This is true to a large extent, and if in the next four years involves genuine reform in the state-sector and banking, it could begin to bear fruit.
In other developments, Russia and Iran have been in talks over a 100kbpd oil supply agreement and development partnerships for 11 Iranian fields worth over $20bn. Russia and China’s economic influence in Iran is growing from strength to strength: China now accounts for 36% of Iran’s exports, compared to only 12% ten years ago.
