The Real Problem With Iran's Nuclear Program? Rumors of Clean Energy Technology Which Will Collapse Entire Antiquated, Environmentally-Destructive Hydrocarbon Fuel Industry.
From Wikipedia: The economy of Iran is a mixed and transition economy with a large public sector. Some 50% of the economy is centrally planned.[20][21] It is dominated by oil and gas production, although over 40 industries are directly involved in the Tehran Stock Exchange.[22]
It is the world’s seventeenth largest by purchasing power parity (PPP)[1] and twenty-fifth by nominal gross domestic product.[2]The country is a member of Next Eleven.
A unique feature of Iran‘s economy is the presence of large religious foundations, whose combined budgets represent more than 30% of central government spending.[23]
Price controls and subsidies, particularly on food and energy,[24][25] burden the economy. Contraband, administrative controls,widespread corruption,[26][27] and other restrictive factors undermine private sector-led growth.[28] The legislature in late 2009 passed President Mahmoud Ahmadinejad‘s bill to reduce subsidies. This is the most extensive economic reform since the government implemented gasoline rationing in 2007. [28] Due to its relative isolation from global financial markets, Iran was initially able to avoid recession in the aftermath of the 2008 global financial crisis.
Most of the country’s exports are oil and gas, accounting for a majority of government revenue in 2010.[29]
Oil export revenues enabled Iran to amass well over $100 billion in foreign exchange reserves as of 2010.[30][31]
Due to increasingly stringent sanctions imposed by the international community as a result of the country’s nuclear program,[4][32] oil exports fell by half, allowing Iraqi oil exports to overtake Iran’s for the first time since the 1980s.[33] In September 2012, the Iranian rial fell to a record low of 23,900 to the US dollar.[34]
Exports aided self-sufficiency and domestic investment, although double-digit unemployment and inflation remain problematic.[35] Iran’s educated population, constrained economy and insufficient foreign and domestic investment prompted an increasing number of Iranians to seek overseas employment, resulting in a significant “brain drain“.[36][37]
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