Prosperity in Depth: Iran The Iranian Economy The Glass Half Empty
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To understand where the Iranian economy is going, it’s important to remember where it’s been. Like so many other oil rich countries lacking the legal and political institutions of a modern marketbased economy, prerevolutionary Iran suffered from what has been dubbed the resource curse—a dependence on natural wealth that inhibited balanced economic development and sustained a culture of corruption. Indeed, discontent fed by the resource curse was an important factor leading to the overthrow of the Shah in 1979. After the consolidation of power as an Islamic republic under the Ayatollah Khomeini, the government proposed to run the economy on a model aimed at avoiding that trap.
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