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How Ahmadinejad changed Irans economy

Author

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  • Nader Habibi*

    (Brandeis University, USA)

Abstract

Mahmoud Ahmadinejad won the 2005 presidential election promising economic justice and fairness. Throughout his eight-year presidency, he adopted several populist financial and fiscal policies intended to fulfill his promise. Initially he froze the privatization program but later reactivated it after substantial changes that set aside a portion of shares for the poor. Ahmadinejad brought many commanders of the Revolutionary Guards and Basij militia into his cabinet and facilitated the sale of a large number of privatized firms to these institutions and their economic units. As a result, the Revolutionary Guards are now actively involved in all types of economic and financial activities in Iran. His most important economic reform was the reduction of price subsidies on energy and fuel products. With the active support of the Supreme Leader and the Revolutionary Guards, Ahmadinejad implemented the price subsidies reform in December 2010.

Suggested Citation

  • Nader Habibi*, 2015. "How Ahmadinejad changed Irans economy," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 305-312, January-M.
    • Handle: RePEc:jda:journl:vol.49:year:2015:issue1:pp:305-312
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    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v049/49.1.habibi.html
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    Citations

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    Cited by:

    1. Ilya A. Vaskin, 2020. "Buying Loyalty Of Voters Or Local Elites? Political Alignment And Transfers To Provinces In Tutelary Regimes: The Case Of Iran," HSE Working papers WP BRP 73/PS/2020, National Research University Higher School of Economics.

    More about this item

    Keywords

    Iran; Sanctions; Ahmadinejad; Development;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems

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