Will Iran's Rouhani survive the bleak economy?
Video     Photos     Pakistan     World     Islam     Health     Crime     Islamic News     Business     Society     India     Travel     Middle East     Sport     sci/tech      Contact      RSS
Search

Declared absconder : Is Ishaq Dar in a real fix?

India cancels $500m arms deal with Israel

Assad and Putin discuss end game in Syria

Arab League emergency meeting: Divisions fail decisions

Why Did Saudia summon COAS and Pakistan PM?

The difference between the Sunnis and the Takfiri Wahhabism!

Who conspired against Khatm.e.Nubuwwat (PBUH) law?

Dirty Politics: PTI’s blunder of making alliance with Taliban’s father

Myanmar’s treatment of Rohingya Muslims ‘a dehumanising apartheid’: Amnesty report

Scientists warns of upsurge in major earthquakes in 2018

UNGA resolution: Is Pakistan on right track for Kashmir’s freedom?

Imran Khan paves way for father of Deobandi Taliban to his new Pakistan

Rana Sanaullah blames Intelligence Agencies for Shirazi kidnapping

Report: Saudi Arabia deficit reaches $32.4bn

Russia eyes active role in Afghanistan, breaking with three-decade restraint

While Saudi Arabia discusses Iran and Hezbollah in Cairo, its plans for Lebanon are backfiring

Afghanistan opium cultivation: A bigger threat than ISIS to Pakistan and Iran

Why Nawaz Sharif is hesitant to remove Ishaq Dar?

Can Islamabad protests lead into Military take over?

Iran: Saudi-drafted Arab League statement full of lies, worthless

Nasrallah: US did what it could to help Daesh in Syria's Bukamal

Interior Minister gets 48 hours to evict defiant Islamabad protesters

ABNA | Syrian civilian killed, material damaged in terrorist rocket attacks in Damascus

Pakistan nears its moment of truth

MERH | Study indicates discrimination against Shias in Bahrain

The Prophet, an ‘Ummi’..

Does Israel has secret ties with 'many' Arab, Muslim states?

Why Pentagon persuaded Congress to delink LeT from Haqqani network?

Security council appointed panel says no missiles sent to Houthis, refuting Saudi Arabia claim

The conditional release of Saad al-Hariri; Saudi Arabia kept his two children in Riyadh

How has Islamophobia changed over the past 20 years?

Saudi: Palestinian Abbas must endorse US’ plan or leave

Egyptian authorities crack down on televised fatwas

Saudi Arabia’s empty trumpeting for war against Iran

Replacing Finance minister: Is PML-N going to make Ishaq Dar a perfect scapegoat?

Faizabad sit in: Is another model town like action in the offing?

Is Shahbaz Sharif deliberately weakening PML-N?

Would Nawaz seek a presidential pardon?

Senior Iranian official warns Macron against meddling in Iran’s internal affairs

Palestine to freeze ties with US if Trump admin closes mission in Washington

The Martyrdom of Imam Hassan (AS)

Lebanese PM Accepts France Invite: Will This End Crisis?

Arab media: Baghdad not ready to host Saudi Crown Prince

Barzani seeking to mend ties with Iran, worrying US

The series of the arrogant prince

US troops told to ignore child abuse in Afghanistan

Shafaqna special: Did PML-N launch Tehrik.e.Labaik?

Balochistan mass murder:  A terrorist activity or human trafficking?

TTP in Afghanistan: How does Abdullah Abdullah’s confession shift burden from Pakistan to US?

Free Balochistan posters: A new game plan against CPEC

Lebanon's Hariri leaves Saudi capital for France: Lebanese TV

Saudi siege of Yemen leaves three cities without clean water: Red Cross

Social Structure Founded by the Prophet (pbuh)

Death and Burial of the Prophet Muhammad (PBUH)

How has Islamophobia changed over the past 20 years?

West Eyes Nuclear Deal-Style Missile Pact with Iran

Saudi Arabia’s Desperate Moves against Hezbollah

International conference on lovers of Ahlul Bayt (as) and the Takfiri issue

3,000 more US troops deployed to Afghanistan: Pentagon

US Claims North Korea Behind FALLCHILL Malware

Saudi Arabia and Israel want to drag US into war against Iran: Former CIA officer

The story of a French woman who married four ISIS terrorists

'Saudi King Salman to step down next week'

Pakistan, US trade blame over cross-border terrorism

Delinking LeT from Haqqani network: Did US ditch India?

Is PTI backing Tehreek-e-Labbaik protests?

Israel ready to share intel on Iran with Saudi Arabia: Military chief

Saudi Arabia blackmailing detained princes to fill state coffers: Report

Netanyahu: Israel Will Act Alone to Force Iran Out of Syria

50,000 Yemeni children will die by end of the year, says Save the Children

Saudi storms home of detained cleric Salman Al-Ouda

Morsi tells lawyer of threats to his life

How Israel and Saudi Arabia Conspire to Seize Control of the Middle East?

How Trump’s CIA Used Bin Laden Files and a Neocon Think Tank to Escalate Tensions With Iran

Decline in terrorism: Has Pakistan won the proxy war led by Israel and India?

Is TTP returning to South Waziristan again?

Scapegoat: Is Supreme Court going to disqualify Jhangir Tareen?

Is this the end of Nawaz dynasty in Pakistan?

US president takes issue with ‘naïve’ Times op-ed on Xi-Trump ties

Yemeni hospitals will run out of fuel in three weeks: UN

Will new chairman review NAB’s in-house legal view on Musharraf?

How serious is Iraqi Kurdistan about reviewing ties with Washington?

Why Pakistan wants Afghanistan to join CPEC?

Lebanese Bankers Fear Qatar-Style Blockade by Saudis

Corruption in Israel is not just an Israeli issue

New constituency’s controversy: Is PML-N trying to delay the election?

Media Silent as 1 Million Protesters March in Spain to demand the release of Catalan political prisoners

Did Israel enforce Trump to renegotiate nuclear agreement with Iran?

Non-bailable arrest warrants: Has Nawaz Sharif abandoned Ishaq Dar?

Shafaqna Insight: Why India cannot sabotage CPEC?

Zimbabwe army deploys soldiers outside Harare

Sheikh Salman to be tried later this month on false espionage charges

Startling revelations: How politician used terrorists to target their rivals?

Turkish President slams Saudi Crown prince over ’Moderate Islam’

Islamic Jihad vows retaliation for Israeli attack

Don’t get ‘too close’ to Iran: US warning to Pakistan

Re-opening of Hudabiya case: What is the game behind the curtains?

UK Hindu minister urges military aid to Israel

iPhone X owners complain of ‘green line of death’ on screen of $999 device

Rapprochement with Israel carries a heavy price tag for Riyadh

2017-03-31 12:37:17

Will Iran's Rouhani survive the bleak economy?

 

TEHRAN, IRAN - DECEMBER 1:  Syrian PM Wael Nader al-Halqi (Not Seen) meets with Iranian President Hasan Rouhani  in Tehran on December 1, 2013. (Photo by Fatemeh Bahrami/Anadolu Agency/Getty Images)

Iranian President Hassan Rouhani is credited with pulling the economy back from the brink, but less than two months before his re-election bid, has he done enough to convince voters?

 

 

“This year was full of stress – no jobs, recession, a stagnant housing market,” said Ali Bakhtiyari, a jeweller in the Tajrish bazaar of northern Tehran.

 

 

Business has been slow, he said, even during last week’s run-up to Nowruz, the Persian new year.

 

 

The government is trying to unlock things, but four years have passed. The locks should have been opened by now,” he told AFP.

Such sentiments are heard everywhere on the Iranian street, and weigh heavy on Rouhani’s bid for re-election in May.Supreme leader Ayatollah Ali Khamenei

has also been sharply critical of the government’s economic performance.

“What has been done is far from the expectations of the people and the supreme leader,” Khamenei said in his Nowruz address, focusing particularly on the unemployment rate which stands at 12 percent, and at over a quarter for young people.

 

 

Despite the criticism, most experts say Rouhani, a moderate cleric who won power in 2013 by promising to rebuild ties with the West and ease social pressures, has done about as much as he could.Rouhani inherited an economy crippled by sanctions and the unconstrained spending of his populist predecessor, Mahmud Ahmadinejad.

He faced the near-impossible task of reining in inflation, which hit 40 percent, while also stimulating the economy.

 

 

“I’d give Rouhani good grades. He hasn’t done everything, but he’s brought down inflation, tried to attract more business, tackle corruption and outdated banking practices,” said Rouzbeh Parsi, director of the European Iran Research Group.

Rouhani can point to impressive figures.Gross domestic product (GDP) shrank 7.7 percent the year before he took power. This year the IMF forecasts it will grow by 6.6 percent.

 

 

Inflation has dropped to single digits. A nuclear deal with world powers ended sanctions and brought an endless stream of foreign suitors to Iran’s door.

But much of the growth is from the return of oil revenues that are not trickling down.

“It’s still not going fast enough for the average Joe on the street,” said Parsi.

The central problem is a cash crunch. Wealthy Iranians are still not investing in new businesses.

 

 

“This is the most critical problem,” said Saeed Laylaz, an economic advisor to the president. “If we can’t attract investment, GDP will sink back to zero.”

Without greater transparency, investors will remain cautious, he said.

But greater transparency does not sit easily with a conservative establishment still wedded to the revolutionary priorities of opposing Israel and the West, and projecting power around the Middle East – priorities which require a certain amount of shadowy financing.

 

 

“At some point, the political leaders will have to decide: are they in the money-making business or the revolutionary-rhetoric business?” said Parsi.The other major problem is that Iran’s banks are a mess, riddled with toxic debts from an uncontrolled construction boom.

 

 

Bad loans and worthless properties account for up to 45 percent of total bank assets, according to a report in November.Hopes that foreign money might make up the shortfall in domestic cash have not panned out.

 

 

Global banks remain fearful of engaging with Iran’s murky system, and everyone is waiting to see whether US President Donald Trump re-imposes sanctions as he threatened during his campaign.

 

 

“Expectations were set high by both Iran and other signatories to the nuclear deal for how much tangible economic benefit would flow into Iran after the sanctions,” said Ellie Geranmayeh, of the European Council on Foreign Relations.“Part of the problem relates to the difficulty of doing business in Iran — there’s so much red tape and so many hurdles to jump.”

 

The saving grace for Rouhani is that his conservative opponents appear unable to coalesce around a single candidate to run against him in May.

Some analysts have interpreted the supreme leader’s criticism as a sign he wants a conservative to replace Rouhani.

 

 

But Geranmayeh said he was just keeping the government in check: “He’s the balancer. Part of his role is to critique every sitting government and make sure no one camp becomes overly popular.”

 

Nor are voters likely to turn to hardliners or civil unrest for a way out of their economic woes – such paths have already been well tested in Iran.

 

 

“If people are tired and impatient, they won’t go back to the conservatives. They just won’t participate at all. That isn’t good for anyone,” said Laylaz.If Rouhani gets a second term, “he must be more aggressive on economic, social and political reforms. He has no choice. The alternative is catastrophe.”

 

 

pk.shafaqna.com

 

Categories:  
Tags:   US ، Iran ، Hassan Rouhani ،
From other agencies (RSS Reader)