Iran.

1 Iran ...
Author: Horace Rich
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1 Iran

2 Sovereignty, Authority, and PowerSection One Sovereignty, Authority, and Power

3 Politics in Action Mistakenly called a totalitarian state – elections do happen Is flip flop between reformers (Khatami) and conservatives (Ahmadinejad) At core of nation is a written constitution Many argue nation will collapse with struggle between theocracy and democracy – but has lasted since 1979

4 Geographic Setting Notable for two features: Fast facts on Iran:Inhospitable land for agriculture Its location on a strategic crossroads Fast facts on Iran: 79.47 million people Live on only 27% of the land 2nd largest oil producer in Middle East; 4th in world 82% literacy rate 73 year life expectancy 51% speak Farsi Are Persians, not Arabs

5 Sovereignty Was world’s largest empire under CyrusRival nation was Greece – Alexander the Great did leave Persian political structure in place Capital was Persepolis King’s authority supported by strong military and state religion of Zoroastrianism Set the stage for authoritarian government

6 Shiism (Shi’ism, Shi’a…)7th to 16th centuries had little unity – only held together by Islam Religion survived invaders who converted (like Mongols) Shiism became state religion in 16th century under Ismail – founder of Safavid Empire Fight between Sunnis and Shiites over leadership – when Ali killed Shiite opinion became minority Waiting for Hidden Imam but until then rulers of Iran stand in his place

7 Legitimacy in the Modern StatePahlavi shahs tried to secularize the state Ayatollah Khomeini was leader of 1979 Revolution – anchored nation in Shiism – created Constitution of 1979 Legitimizes state today Complex mixture of theocracy and democracy Complex issues with rift between reformists and conservatives – seen in Qom also

8 Political Culture Shiism important unifying threadComplex history has created multi-faceted culture by: Authoritarianism but not totalitarianism Union of political and religious authority – separated by Qajars but reinstated in 1979 Revolution Shiism and sharia central: 90% are Shiite; sharia law important source of legitimacy Escape from European colonialism Geographic limitations Influence from Persia Iranian nationalism

9 Political and Economic ChangeSection Two Political and Economic Change

10 Political and Economic Change1st large empire in the world 2 revolutions in 20th century: and 1979 Impacted by Safavid, Qajar, and Pahlavi dynasties and 1979 Revolution - created current Islamic Republic Lack of arable land, emphasis of trade by land, and location marginalized Iran – oil helped

11 Safavids (1501 – 1722) Modern Iran traced to Safavid familyRevived title Shah-in-Shah – began forcible conversion to Shiism – by mid-17th century converted 90% Sunnism survives among tribal groups at periphery Also had small groups of “People of the Book” Transported 100,000 Armenians to become craftsman and merchants Capital created in Isfaham, recruited Persian scribes into the courts Financial issues prevented creation of large bureaucracy or big army – absolute power limited by lack of central state Survived because society below it was fragmented, ethnic differences, Shiite clerics in opposition lived far from capital

12 Qajars Safavids collapsed 1722 when invaded by Afghan tribesmen½ century of civil war followed until Qajars reconquered area Capital moved to Tehran Declared Shiism state religion Rule coincided with 19th century imperialism – invaded 12 times Russians and British won major concessions – Qajars borrowed from European banks to fund court expenses Resentment culminated in 1905 constitutional revolution – began over handover of custom collections to Europe – by 1906 British advised compromise and Cossack Brigade threatened to join protestors 1906 constitution created: direct elections, separation of powers, laws made by legislature, popular sovereignty, bill of rights; questions about whether democracy was compatible with Islam

13 Qajars: Continued Retained monarchy but created Majles which had extensive authority Constitution modeled after European liberal secular system of government with concessions to Shiism Official religion Only Shiites could hold cabinet posts Clerican courts retained right to implement sharia law Guardian Council formed Popular sovereignty was restricted by clerical veto power Over next 10 years disillusionment set in: pressure from Europe, famine afterWW1 killed over 1 million, internal conflict from warring factions, weak central government, loss of sovereignty during WWI 1921 is in complete disarray

14 Pahlavis (1925 – 1979) 1921 General Reza Khan – commander of Cossack Brigade carried out a coup d'état – created 1st nontribal dynasty to rule all of Iran Ruled with iron fist until 1941 when invaded – abdicated in favor of his son Muhammad Reza Shah Reza Shah ruled for 12 years with control of army but free press, independent judiciary, competitive elections, and had to deal with Communist Tudeh Party National Front led by Dr. Muhammad Mosaddeq Middle class support Nationalization of Iranian oil Sever shah’s links with armed forces 1951 elected Prime Minister – 1953 overthrown by CIA/ British operation – creates deep distrust of USA Reza Shah rules with iron fist until 1979

15 Pahlavis - Continued Built state rested on military, bureaucracy, royal patronage system Had secret police called SAVAK Was transformed into rentier state – state no longer relied on taxes and became one product economy based on oil Adopted import substitution industrialization Bureaucracy expanded to 21 ministries Passed Family Protection Law that contradicted sharia law and White Revolution (land reform) State control of banks, TV, radio, oil, mining Reza Khan used coercion, confiscation, diversion of water to make himself largest landowner – then Reza Shah created Pahlavi Foundation Push for secularization, centralization, industrialization, and social development appealed to urban class only

16 Pahlavis - Continued 1953 coup, disregard for constitutional liberties, stifling of the press and political parties, and lack of civil society produced widespread resentment by clergy, intelligentsia, urban working class 1975 Shah announced formation of Resurgence Party – declared Iran one party state and threatened those who would not join Replaced Islamic calendar, gave himself new titles, prepared to create Religious Corps

17 Islamic Revolution Iranian exiles denounced Pahlavis in “Fifty Indictments of Treason during Fifty Years of Treason” Led by anti-shah cleric Ayatollah Ruhollah Khomeini who created Islamic fundamentalism Denounced monarchies, courtiers, large landowners, senior military officers, foreign connected capitalists, palace dwellers Called for overthrow of Pahlavi monarchy Argued jurist’s guardianship gave him authority over community as the whole – only senior clerics could interpret sharia and were true representatives of the people Pressure from various sources forced shah to loosen up on human rights at same time prices were rising and oil revenues were dropping

18 Islamic Revolution - ContinuedCivil society regrouped Students took to the street to protest September 8, 1978 Blood Friday In urban areas began to replace policy with pasdaran and judicial system with sharia 2 million protesters came out demanding return of Khomeini, creation of republic Due to opposition and loss of soldiers Shah fled nation February 11, 1979 Pahlavi dynasty fell

19 Islamic Republic April 1979 referendum replaced monarchy with Islamic Republic – liberals like PM Mehdi Bazargan wanted democratic Islamic Republic - but Khomeini said Islam itself was democratic New constitution drawn up by Assembly of Religious Experts Most secular organizations boycotted elections on grounds state media was controlled, voters intimidated – most of those elected were clergy Bazargan threatened to submit his own secular constitution, state TV showed him shaking hands with US policy makers Khomeini declared US embassy den of spies, embassy invaded, Bazargan resigned Launched Cultural Revolution – purge of secular values and institutions

20 Islamic Republic - Continued1st decade clerics consolidated power because Khomeini’s charisma Iraqi invasion of Iran Oil prices rose Second decade brought challenges Khomeini died Cease fire with Iraq-Iran War Fall of world oil prices Division between conservatives and liberals https://www.youtube.com/watch?v=hUeo36Vzkb8 ABC News Special: Iran Hostage Crisis

21 Iran after September 11 At first two nations brought close due to mutual hatred of Sadam and Taliban Iran helped US displace Taliban in Afghanistan, helped install pro- American government in Baghdad 2003 Iran proposed to negotiate all major issues: nuclear, recognition of Israel, role in Persian Gulf, their support for Hamas and Hezbollah Ended in 2003 when Bush gave “Axis of Evil speech” Undermined moderate Khatami and led way for Ahmadinejad US put pressure on Iran through embargoes US persuaded Europe to not invest large sums of money into Iran US military has upper hand in firepower Iran too large to be occupied, still major exporter of oil Iran could prompt Hezbollah to attack Israel, undermine US positions in Baghdad and Kabul

22 State and Economy: 19th CenturyIntegration of Iran into world system began due to various factors Iran’s foreign trade increased 10x – 83% with Russia and Britain Exports: carpets, silk, raw cotton, opium, dried fruit, rice, tobacco Imports: tea, sugar, kerosene, industrial products, foreign investment Produced economic dependency – when prices rose for manufactured goods and prices fell for raw materials created desire for tariff protection, self-sufficiency, industry development, economic diversification Traditional handicrafts devastated, cash crops limited land for edible grains – led to famines Foreign competition brought many local merchants, shopkeepers, workshop owners in bazaar together – created national propertied middle class

23 State and Economy: The Oil EconomyGreater integration began 20th century due to oil – Britain bought controlling shares of Anglo-Persian Oil Company – by 1951 largest in the world 1951 nationalized oil – by 1978 oil income near $100 billion Financed 90% of imports and 80% of annual budget Created in Iran a rentier state But little taxation means little representation and too reliant on single commodity Reza Shah tried to lessen dependency on oil by encouraging other exports and attracting foreign investment

24 Society and Economy Reza Shah squandered oil revenue1960 to 1977 GNP grew 9.6% a year Land reform created 644,000 moderately prosperous farms, new factories, schools, Trans-Iranian Railway, health services Led to population explosion – doubled 18 to 36 million Improvements didn’t make shah popular – he felt wealth would trickle down but it did not Land reform left many with only 24.7 acres – subsistence farmers New factories only assembly plants One of worst doctor/patient ratios Limited enrollment in school Income disparity 2nd worst only to Brazil Horrendous pollution

25 Society and Economy: ContinuedInequalities created dual society in Iran: modern sector and traditional sector Upper class Pahlavi family - .01% Modern middle class – 10% Modern lower class – 32% Traditional middle class – 13% Traditional lower class – 45% Jalal Al-e-Ahmad published “Plague from the West” - said ruling class was destroying Iran and they could only survive by returning to their cultural roots Ideas developed further by Ali Shariati – said 3rd world people needed to use violence to liberate themselves from colonialism – had new interpretation of Shiism echoed in Khomeini’s writings – seen as true theorist of Islamic Revolution

26 Iran in the Global Economy: Under ShahOil boom 1970s gave shah opportunity to play huge role in regional politics 2nd most important member of OPEC Curried favor with west – spent over $20 billion on US arms Intervened in Strait of Hormuz, Afghanistan, Kurds in Iraq Military expenditures tied Iran to industrial countries of the West and Japan – majority of imports came from the USA Oil revenues paved the way for the Revolution – programs under Shah widened class and regional divisions, raised public expectations without meeting them, made state independent of society, made it dependent on oil and imported products Revolution promised to end

27 Under the Islamic RepublicBegan with hopes of rapid development of the economy and independence from the West Main problem is instability in oil market – it provides Iran with 75% of its total revenues – problem compounded by: Population explosion Iran-Iraq War Emigration Resulted in 20 year crisis – GDP fell 50%, unemployment 20%, $30 billion in debt – but rising oil prices ended this Did have some success: Reconstruction Ministry: libraries, schools, electricity and running water all brought to rural areas Agricultural Ministry: dam and irrigation, land distribution Adult literacy grew, infant mortality fell, life expectancy grew, family planning began

28 Citizens, Society, and the StateSection Three Citizens, Society, and the State Have had little direct experience with democracy but do understand importance of civil society, until Pahlavi Shahs had very little reach into people’s everyday lives Local government more of a presence Sharia set rules

29 Cleavages Religion – almost 90% are Shia Muslims but almost 10% Sunni, 1% Jews, Christians, Zorastrians, Baha’i; religious minorities have left since the Revolution Ethnicity – Persian, Azeri, Gilaki, Kurds, Arabi Social Class – peasantry and lower middle class source of support for regime; middle and upper middle class are secularized and critical of the clerics; middle class have not fared well economically Reformers vs. Conservatives – fundamental cleavage is debate over theocracy v. democracy Pragmatic conservatives v. radical clerics – division among clerics; pragmatic clergy favor liberal economic policies and encourage foreign trade, free markets, foreign direct investment but radicals are younger and more militant– call for social justice, care for the poor, state sponsored wealth distribution, price controls

30 Civil Society Source of unhappiness with Pahlavi was government incursion into private lives of citizens – the civil society Has not been restored under the current regime and that creates discontent especially among middle class Under Khatami Iranians had “Tehran Spring” but reforms were limited by conservative elements in government Under Ahmadinejad closed down newspapers, banned and censored books, didn’t tolerate peaceful protest, prominent scholars, lawyers, directors were arrested Haleh Esfandiari – director of Woodrow Wilson Center in DC Nasrin Sutoodeh – human rights lawyer Jafar Panahi – dissident Iranian director Indication that civil society is alive is growing number of young people who are attracted to western popular culture

31 Political ParticipationDespite guarantees in 1979 Constitution, began closing down newspapers, labor unions, private organizations, political parties; due process ignored, imprisoned without trials, political reformers executed, demonstrations banned Actions against demonstrations didn’t curtail them; especially on college campuses 2002 protests over court ruling on death sentence for reformist academic 2003 protests over privatization of university system 2009 protests over 2009 presidential election – Ahmadinejad 63%, Mousavi 34% Government sent tens of thousands of Revolutionary Guards and Basij Called themselves the “Green Movement” - rallied around Neda Agha Soltan 2011 Mousavi and Medhi Karroubi encouraged supporters to march in honor of freedom seeking protesters in Egypt and Tunisia

32 Women and the Political SystemThe veil has become symbol of oppression but more for westerners than for women themselves; veil predates birth of Islam Traditionally women have stayed home, with little education or opportunity to work outside the home – 20th century Iran is exception because woman have better access to education Judges often interpret sharia narrowly Calls its policy “equality with difference” Women must wear scarves and long coats in public, can’t leave the country without the consent of male relatives; occasional stoning But women are allowed educations, make up 33% of labor force Not well represented in the Majles

33 Political InstitutionsSection Four Political Institutions

34 Linkage Institutions: Political PartiesPolitical parties constitutional but not allowed until Khatami’s election Since then multiple parties have formed Usually operate in loose alignments within two coalitions: conservative and reformist 2013 parties were Islamic Society of Engineers Front of Islamic Revolution Stability Moderation and Development Party Combatant Clergy Association –Hassan Rouhani Islamic Coalition Party Many political parties of former dissidents are now in exile Liberation Movement National Front Mojahedin Fedayin Tudeh Party system reflects factionalism

35 Elections Constitution promises free elections - since revolution have had 7 presidential elections Elections have varied from free to controlled - today voting is free of intimidation but choice is highly constrained, citizens over age of 18 may vote Interior Ministry can ban organizations on the grounds they don’t subscribe to valayat-e faqeh Majles Elections of 2004 and 2008 Main obstacle to fair elections has been the Guardian Council – excludes numerous people from running 2004 they excluded 3,500 candidates–reformers withdrew from politics and conservatives won– received a clear majority but voter turnout at only 51% 2008 elections was repeat of 2004 Presidential Election of 2005 Khatami stepped down in 2005 Guardian Council disqualified 1000 candidates, only 7 ran 1st round was sent Rafsanjani and Ahmadinejad to second round of voting – Ahmadinejad won

36 Elections - Continued Presidential Election of 2009Reformers attempted to rally behind one candidate – Mousavi Opinion polls showed close race so when Ahmadinejad got 63% calls of fraud launched Mousavi urged supporters to fight and appealed to Guardian Council Khamenei agreed to investigation - votes recounted - Ahmadinejad won – endorsed by Khamenei – protests were held at his inauguration Arrests followed, Mousavi portrayed as tool of secular foreigners Elections of 2012 and 2013 2012 contest between Supreme Leader and president; Khamenei’s supporters won large majority of seats, 5,000 candidate registered but 1/3 were disqualified by Guardian Council – came down to two camps United Front of Principalists – Khamenei’s supporters – won 101 seats Resistance Front – Ahmadinejad’s supports – won 50 seats Most reformists were disqualified by Guardian Council but won 43 seats 2013 presidential election Guardian Council disqualified Rafsanjani and Ahmadinejad’s choice Mashaei Of 8 allowed to run only Rouhani had slightly different stance than traditionalists – won 50.7% of votes

37 Interest Groups Difficult to draw line between parties and interest groups Important interest group for factory workers is called Workers’ House Few interest groups have formed for business because private businesses have been crowded out Government still controls 65% to 80% of the economy

38 Mass Media Over 20 newspapers were shut down shortly after the Revolution more were closed 1981 Majles passed law making it illegal to use “pen and speech” against the government Recently some restrictions have been lifted Freedom of the press is a major issue After 2000 Majles elections outgoing Majles approved press control law which Council of Guardians ruled could not be overturned by new legislature 60 pro-reform newspapers were shut down Radio and TV are run by Islamic Republic of Iran Broadcasting (IRIB) Many newspapers and magazines are privately owned Iran’s elite is well educated and magazines cater to them but most are nonpolitical

39 Government InstitutionsIranian state rest on the Islamic Constitution drawn up by Assembly of Religious Experts after 1979 Revolution – amended in 1989 Final document 175 clauses and 40 amendments - complex mixture of theocracy and democracy Affirms full belief in God, Divine Justice, the Qur’an, Day of Judgment, Prophet Muhammad, the Twelve Imams, return of the Hidden Imam, faith in Khomeini’s doctrine of Guardianship of Islamic Jurists, declares all laws have to conform to these divine principles The supreme leader, the Guardian Council, the Assembly of Religious Experts, and the Expediency Council do not fit into a three branch arrangement – all three have broad executive, legislative, and judicial powers – have a dual executive

40 The Supreme Leader Constitution named Khomeini Leader for LifeSaid that if no leader emerged after his death authority would pass to leadership council of senior clerics – but followers distrusted senior clerics who rejected velayat-e faqeh so they elected Ali Khamenei – got all titles except Imam Constitution gives powers to leader but most importantly he is the faqih – leading Islamic jurist to interpret the meaning of religious documents and sharia Can also eliminate presidential candidates, dismiss the president, grant amnesty, commander in chief, declare war and peace, convene Supreme Military Council, appoint and dismiss members of military and those of Revolutionary Guards, nominate and remove judges, nominate 6 clerics to 12 man Guardian Council Appoints Expediency Council Authorized to fill important posts outside the state structure Friday Mosque Preachers in the main cities Director of nation radio-TV network heads of the main religious endowments

41 The Guardian Council Represents theocratic principles 12 male clerics6 appointed by supreme leader 6 nominated by the chief judge and approved by the Majles Bills passed by Majles are reviewed by Guardian Council to ensure they conform to sharia Have power to decide who competes in elections With supreme leader exercises jurist’s guardianship

42 The Assembly of Religious Experts1989 amendments elevated 86 Assembly of Religious Experts into what has become the senate of the legislature comprised only of clerics Have power to dismiss the Leader if he is found to be “mentally and physically incapable of fulfilling his arduous duties” First action was to elect Ali Khamenei Were required to have seminary degree equal to a masters - in revised to allow non-clerics to serve – candidates still subject to approval by Guardian Council 2007 Rafsanjani picked as chairman – was a moderate 2011 pressured to step down from position (is still on Expediency Council)

43 Expediency Council Guardian Council can overturn decisions and laws made by Majles so two bodies often argue Khomeini created this body to referee their disputes Began as council for 13 clerics Was institutionalized by 1989 constitutional amendments – today 32 members Can originate its own legislation Appointed by Supreme Leader Collectively are most powerful men in Iran

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45 The Executive Is chief executive and highest official after the Leader; chosen every 4 years by electorate; must win a majority; can’t serve more than 2 terms; must be a pious Shiite of Iranian origin between 15 and 75; disagreement whether language restricts positon to only males Has power to conduct country’s internal and external policies Signing international treaties, laws, and agreements Chair the National Security Council Draw up annual budget, supervise economic matters Propose legislation to the Majles Execute policies Select vice presidents, cabinet ministers/other senior officials Appoint provincial governors, town mayors, ambassadors Can have up to 12 vice presidents Khomeini promised technocrats would run executive but clerics have filled position 4 times Cabinet conducts the real day to day work of governance 2011 Khamenei and Ahmadinejad openly competitive Ahmadinejad fired minister of intelligence but Khamenei reinstated him President refused to attend cabinet meetings but resumed when 300 MPs urged him to respect Khamenei

46 The Bureaucracy President heads bureaucracy – even though shah criticized for this it still continues Largest ones include Ministries of Culture and Islamic Guidance Intelligence Heavy Industries Rural Reconstruction Clergy dominate the bureaucracy, allocate ministries to their relatives and protégés Ministers seem to be highly trained technocrats with advanced Western degrees but are powerless

47 Semipublic InstitutionTheoretically autonomous but directed by clerics appointed personally by the Supreme Leader and are called Foundations - are para-statals - over 100 Foundation of the Oppressed Martyrs Foundation Alavi Foundation Pilgrimage Foundation Housing Foundation Foundation for the publication of Imam Khomeini’s Works Huge budgets, exempt from paying state taxes

48 The Majles Elected legislature exercises considerable power – considered centerpiece of Islamic Constitution in 1906 Unicameral; are directly elected by the people Was weakened in 1989 constitutional amendments Various powers: enact or change laws (with approval of Guardian Council), interpret legislation as long as it doesn’t contradict judicial authorities, appoint 6 of 12 members of Guardian Council chosen from list drawn up by chief judge, investigate and supervise all affairs of the state, approve or oust cabinet ministers, approve the budget Constitution uses term qanun rather than sharia to gloss over question if law comes from God or the people Majles is 290 members, elected by citizens – male and female – 18 or older

49 The Judiciary Headed by chief justice who must have an understanding of sharia and be a cleric, appointed by the supreme leader for a five year term - beneath chief justice is Supreme Court Distinction between two types of law: sharia and qanun Sharia Muslims all subscribe to same moral values Supersedes all other types of laws Much of legitimacy of the supreme leader is based on his authority as interpreter of this sacred law Qanum: No sacred basis – is a body of statues passed by the Majles Can not contradict sharia Jurist guardianship means Supreme Leader and the Guardian Council have final say in law Islamized judiciary by interpreting sharia very strictly and enacting penal code –Retribution Law –prompted many modern-educated lawyers to resign Permits blood money Mandates death penalty for “moral transgression” and sanctions stoning, live burials, finger amputation Divided population into male and female and Muslims and non-Muslims treating them unequally Ban on usury But modern judicial system was not dismantled –Khomeini said local sharia judges would pronounce final verdicts but saw need to retain ultimate control so still have appeals system

50 The Military Supreme leader is commander in chiefAfter 1979 Khomeini created Revolutionary Guards – commanders appointed by supreme leader –protects the republic, has a great deal to say in Iran’s nuclear program, large number of former Guards sit in Majles Shah created regular army, navy, air force – they defend the borders the Basij gained international attention in Mousavi accused them of brutally containing the demonstrators – are civilian volunteers Has placed Muslim chaplains handpicked by Leader’s office in regular divisions to keep theological and political eye on professional officers 540,000 active troops – 8th largest in the world

51 Subnational GovernmentHighly centralized but is divided into provinces, districts, sub-districts, townships, and villages Provinces headed by governors-general Districted headed by governors Sub-districts headed by lieutenant governors Towns headed by mayors Villages headed by headmen Management of local affairs under the supervision of councils elected directly by the local population

52 Section Five Public Policy

53 The Policy-Making ProcessComplex due to constitution and factions within ruling clergy Laws can originate in many places and can be modified or blocked by many directions Clerics once constitution in place drifted into two loose blocs The Society of the Militant Clergy –statist reformers or populists; want to consolidate lower-class support by creating a welfare state; emphasize democratic over theocratic features of the constitution; want to reform capitalist system through state regulation; labeled progressives The Association of the Militant Clergy – laissez-faire conservatives; wanted to retain middle-class support by removing price controls, lowering business taxes, cutting red tape; were middle of the roaders and traditionalists Polarization between two groups created major constitutional gridlock To break gridlock Khomeini resorted to Sunni concept of maslahat – “public interest” and “reasons of state” – Khomeini claimed truly Islamic state could safeguard public interest by suspending important religious rulings –pubic interest was to be primary meaning the state could overrule the views of the clerics and in the name of public interest could destroy mosques, confiscate private property, cancel religious obligations

54 Policymaking FactionsConservatives vs. reformists Created by theocracy vs. democracy Conservatives uphold principles of the regime in 1979 – wary of west and modernization Reformists less wary of west, advocate involvement with west, do not believe political leaders must be clerics Statists vs. free-marketers Cuts across conservatives and reformers Statist thing government should take an active role in controlling the economy Free-marketers want to remove price controls, lower business taxes, encourage private enterprise, balance the budget Factions often brought gridlock and instability Have led many of Iran’s best and brightest to leave the country

55 Importance of Qom Legitimacy of modern Iranian theocracy has roots in Qom where Khomeini began to denounce the shah and where he set up his government after returning from exile – is a city of seminaries But scholars there are not entirely comfortable with a theocratic state Some feel only rightful union of religion and politics will happen with Twelfth Imam’s return and until then men of religion should be careful not to get involved in politics

56 Economic Issues Conservatives cautious about the influence of secular prosperity on devout Shiism Oil has created vertical divide in the society Almost no one denies the benefits that oil has brought to Iran Factions don’t agree on whether or not secularists should be allowed to make policy Management of the economy has been criticized, especially under Ahmadinejad who was elected based on promise to provide government subsidies to consumers 2011 gas priced so low domestic refiners refused to raise production to meet demand – encouraged oil smuggling and corruption among companies that deal with oil When tried to end subsides in 2010 price of gas up 75% and diesel by 2000%, electricity and water bills increased as did price of bread – gave monthly cash transfers to families and claimed would only harm those who were rich as they had to pay more – did work to reduce waste and encouraged conservation Economic sanctions have really hurt them

57 Population Policy Brought down overall birth rate in Iran since 1979 Revolution when encouraged to have large families Greater educational and professional opportunities to women also helped birth rate drop

58 Foreign Affairs Ahmadinejad most polarizing head of governmentDeclared the Holocaust a “myth” Argued Israel should be “wiped away” Threatened to retaliate against American interests everywhere in the world Rouhani long record of international relations; sees US as permanently in conflict with Iran, but has expressed concern over Iran’s brain drain and has supported membership in the WTO Iran’s most important international membership is OPEC

59 Nuclear Energy Bush’s Axis of Evil speech created controversy regarding Iran’s international relations Iran’s nuclear program goes back for decades but has been under scrutiny by west since Sept. 11 Says purpose is for power, not weapons but 2002 revealed two secret nuclear sites 2005 International Atomic Energy Agency announced Iran broke seals on one of its nuclear sites placed there in 2004 by UN 2006 Britain, France, Germany offered Iran trade, civil-nuclear assistance, promise of talks with USA if stopped enriching uranium – Iran refused – led to sanctions by UN Security Council – has caused economy to suffer greatly Deal to lift sanctions was created June 2015

60 Political Challenges and Changing AgendasContemporary Iran faces two major challenges Internally – how to synthesize theocracy with democracy and clerical authority with mass participation External – major challenge comes from the United States – Axis of Evil speech increased pressure – economic sanctions, lack of diplomatic relations, barring from WTO, accusation that Iran sabotages the Arab- Israeli peace process, help terrorist organizations, and violate democratic and human rights of its own citizens