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Structural Adjustment and the Iranian Economy

In: Economic Challenges Facing Middle Eastern and North African Countries

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  • Massoud Karshenas

Abstract

Over the past twenty years Iran’s relative ranking in the world economy has declined considerably. Comprehensive institutional reform is essential if this process of economic retrogression is to be reversed and sustainable growth achieved. This chapter identifies the needed reforms by studying the ill-fated reforms of the First Five-Year Plan. Contrary to the claim frequently made by critics of economic reform, Iran’s current economic problems are not due to the excesses of economic liberalization and price adjustments under the plan, but rather to the reforms not being sufficiently far-reaching. A number of complementary institutional reforms are suggested as neccessary prerequisites for the success of any future price reform and liberalization program.

Suggested Citation

  • Massoud Karshenas, 1998. "Structural Adjustment and the Iranian Economy," Palgrave Macmillan Books, in: Nemat Shafik (ed.), Economic Challenges Facing Middle Eastern and North African Countries, chapter 11, pages 202-224, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26124-6_11
    DOI: 10.1007/978-1-349-26124-6_11
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