Last updated:

December 22, 2025

The economy on the verge of collapse, imposed poverty on the people of Iran/ Siamak Malamahmoudi.

Perhaps the most obvious reflection of the government’s performance in reducing poverty and promoting welfare can be seen in the spread of protests against the economic situation and deep class divide in Iranian society. These protests, especially in the years 1996 and 1998, have engulfed all parts of Iran and continue to this day with sporadic waves created by the affected segments of the population. These protests are a desperate reaction to the lack of justice and social welfare, as well as the wrong political and economic policies of the government.

Currently, poverty has spread to such an extent and has increased to the point that various groups in society, from workers to teachers, retirees, stock market shareholders, and victims of bank looting, have all been directly affected by the government’s mismanagement and are experiencing a worsening situation day by day. The recent protests by retirees are still receiving media coverage.

Although Iranian officials often attribute the current situation to the US withdrawal from the nuclear deal, widespread sanctions, and the global coronavirus

A look at the available statistics

The question is whether the overall economic performance of President Rouhani’s government has helped to promote social justice and reduce class inequality or not? The answer to this question must be sought from the statistics provided by the Central Bank.
Based on the economic growth curve, it can be said that Iran’s economy is facing its most difficult period in various aspects. Reports from the Iranian Statistical Center show that the Rouhani government has been responsible for all negative economic growth records. These reports have shown that Iran’s economy has experienced negative growth for 8 consecutive quarters. This is the first time in the past three decades that such a long and consecutive period of negative economic growth has occurred.
By comparing the beginning and end days of Rouhani’s presidency, we find that the economic growth in 2013 was about 2.5%, while this figure has reached negative 7% for 2019. Although we have also witnessed negative economic growth in the 10th and 11th governments, this situation has

Government Inflation Policies

Iran’s economy, especially in recent years, has been facing multiple crises and shocks: the US withdrawal from the nuclear deal and intensifying sanctions, significant decrease in oil exports, and the shock of the COVID-19 virus which led to the closure of many businesses, are among the most important shocks. But is it the government’s policies that are leading the situation towards more difficulties or not?

During these years, the business environment has become more unfavorable than before and necessary facilities have not been provided to improve the people’s situation. On one hand, the government pretends to support low-income groups by providing very insignificant subsidies compared to the real inflation rate, while on the other hand, it drains much more money from the people by injecting more cash into the society. Moreover, the government itself, without any source of income, creates money and borrows, which worsens the current situation.

In fact, the financial crises have put the government in a difficult situation to cover its expenses. To the extent

Created By: Siamak Molamohammadi
April 21, 2021

Tags

"Rouhani Government's Human Rights Record" Government economy Monthly Peace Line Magazine Number 120 peace line Poverty burden Siamak Malamhamedi State and human rights ماهنامه خط صلح