A World Bank report highlights a distressing surge in poverty in Iran, affecting nearly 10 million Iranians, as the country grapples with a “lost decade of growth” marked by sanctions, economic mismanagement, and fluctuating international oil prices. This report, the World Bank’s first official assessment of poverty in Iran since the 1979 Islamic revolution, sheds light on the profound impact of sanctions and other factors on the Iranian economy.
The study underscores the complex interplay of elements contributing to the rise in poverty. Sanctions, particularly those imposed by the United States since 2011, have significantly disrupted Iran’s economic landscape. The report points to a decade of economic stagnation, portraying an economy where inequality and poverty escalated. The effects were intensified by the on-and-off nature of the sanctions, impacting economic growth and the well-being of Iranians.
Before the imposition of sanctions in 2011, Iran had experienced a period of decreasing poverty. The percentage of the population falling below the global poverty line had reduced from 40 percent in 1980 to approximately 20 percent in the early 2000s. However, the subsequent decade witnessed a reversal of this trend, leading to a concerning increase in poverty rates.
The economic challenges in Iran played a role in the massive protests that unfolded last year, sparked by the death of a young woman detained for allegedly violating strict Islamic dress codes. These protests highlighted the discontent and frustration among Iranians over economic hardships and social issues.
The report emphasizes that women have borne the brunt of the impact, being disproportionately affected by both sanctions and the COVID-19 pandemic. The economic woes have exacerbated existing gender inequalities, deepening the challenges faced by women in Iran.
Despite the economic struggles, Iran has seized opportunities for a diplomatic thaw with the United States to increase its oil production and exports – a critical source of foreign currency. While Tehran has expressed intentions to further boost output, Washington has indicated its plans to tighten restrictions on shipments.
Notably, the World Bank’s researchers were unable to conduct on-the-ground assessments in Iran, highlighting the sensitivity of the issues discussed in the report. Released on November 15 with minimal publicity, the report delves into politically charged subjects, addressing the impact of sanctions (sensitive to Washington) and the prevalence of poverty (sensitive to Tehran). As the findings become public, they shed light on the pressing challenges faced by Iranians and the broader implications of a “lost decade” on the nation’s socio-economic landscape.
