Chapter Three. Factional Rivalries And Economic Policies

Abstract

This chapter discusses the varying approaches of the different political factions in Iran to economic issues and the impact of the rivalries for power, between the factions, on economic developments since the Islamic revolution. In the early years after the Islamic revolution the position on economic policies that became dominant in the IRI was that of the Radical Left faction which promoted state intervention, high taxation, and the limitation of property rights. This was followed by comprehensive economic restructuring policies in all sectors of the economy: industry, services, and agriculture. The end of the Iran-Iraq War in 1989 provided the framework for economic reform in Iran. After the failed economic reform program during Rafsanjanis Presidency, many Iranians laid their hope in Mohammad Khatami, who was elected President in 1997. The Iranian economy requires major structural reforms, including the privatization of the religious foundations.Keywords: economic policies; economic restructuring policies; factional rivalries; Iran-Iraq War; IRI; Islamic revolution; Mohammad Khatami; Rafsanjani