Government, Oil, and Economic Development in Iran (2005-2011)

salasel, farhad; sheikhzade, hosein; khodaverdi, hasan

Volume 14, Issue 3 (Political researches of the Islamic world, Fall 2024) پژوهشهاي سياسي جهان اسلام 2024, 14(3): 0-0 | Back to browse issues page

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salasel F, sheikhzade H, khodaverdi H. Government, Oil, and Economic Development in Iran (2005-2011). پژوهشهاي سياسي جهان اسلام 2024; 14 (3)
URL: http://priw.ir/article-1-1861-en.html

Government, Oil, and Economic Development in Iran (2005-2011)

Farhad Salasel¹

, Hosein Sheikhzade ^*²

, Hasan Khodaverdi³

1- PhD student at Islamic Azad University, South Tehran Branch, Tehran, Iran.
2- Associate Professor, Department of Political Science, Kharazmi University, Tehran, Iran.(Responsible author) , sheikhzade@khu.ac.ir
3- Associate Professor, Department of Political Science, Islamic Azad University, South Tehran Branch, Tehran, Iran.

Abstract: (289 Views)

The issue of development entered political literature in the second half of the twentieth century. According to development theories, this phenomenon is subject to various political, economic, cultural and international variables. In Iran, theoretical discussions of development were raised since the early Qajar period and reached their peak in the Constitutional Revolution. In the executive sphere, development planning began in the late 1320s. However, economic failures indicate the continued inefficiency of the governments' development-oriented strategy. Although the development process in Iran is subject to numerous factors, the footprint of oil has been visible in both the development and underdevelopment of this country since 100 years ago. The main question of the research is which economic policies did oil revenues lead to the adoption of by governments in the years 1384 to 1400 and what impact did these policies have on development indicators? The research method is descriptive-analytical and its theoretical framework is the resource scarcity theory. The present study seeks to prove the hypothesis that oil revenue in this 16-year period has helped create employment and reduce relative poverty on the one hand, and on the other hand, through the mechanisms of the "resource curse", it has caused an increase in relative poverty, increased inflation, and excessive growth in imports. According to the results obtained: the relationship between oil and development in the 16-year period from 1384 to 1400 has been subject to the political-economic discourse of governments and the level of capability of their managers; in the years 1384 to 1392, the government used oil revenue to reduce inequality, but this policy required injecting liquidity into the market, so it caused an increase in inflation, but in the years 1392 to 1400, the government managed oil revenue in such a way that the result was a temporary containment of inflation, and this policy led to a stagnation of production and an increase in inequality.

Keywords: Iran, Islamic Republic, government, economic development, oil