Digitalization Processes in Iran during the Period of Sanctions

Abstract

A set of unilateral sanctions against Iran had a negative impact on the economy of the Islamic Republic. Although restrictions harmed purchasing power of the population as well as IT-related businesses, the digital sector by relying on domestically designed systems showed resistance to ‘sanctions shocks’. World rankings place Tehran among the top 100 countries across various indicators of digital development. Global review indicates that the percent of population with Internet access in Iran has significantly increased recently, which corresponds to trends in some countries of the region. According to the national data, the Islamic Republic has achieved considerable results in expanding the network of broadband subscribers both in cities and rural area. Iranian electronic commerce is on the rise. There is a hike in the e-commerce sales nominal value and the number of online orders. Nowadays Tehran puts emphasis on enhancing multilateral cooperation within regional and inter-regional groupings that have their own digital agenda in line with the times. In particular, it is about the Eurasian Economic Union (EAEU), the Shanghai Cooperation Organization (SCO), the BRICS and the ‘Caspian five’. Intensifying such contacts could lead to adoption of new digital solutions inside the Islamic Republic. Specific elements of digitalization are reflected in national medium-term development plans. The Government considers digital transformation as a promising opportunity to generate economic growth. Serious effort is underway to improve e-government services and also manage a transition to a special ‘single-window’ gateway. Implementation of digital technologies in Iran has covered, inter alia, education, healthcare, housing and utility services, regulation of business activity.