Development Economics Iran

Iran is a country which is currently going through a stage of metamorphosis. It could be said that Iran’s political and economic landscape is changing and hopefully for the better. The previous President Mahmoud Ahmadinejad was a political hardliner and a staunch critic of the Western Powers whereas Hassan Rouhani, the newly elected President is a diplomat and as willing to open talks with Western Countries over the pressing issue of Nuclear Proliferation. Hassan Rouhani has previously held the position of ‘Chief Nuclear Negotiator’ under President Khatami who himself was a diplomat and was willing to bring modern reforms in Iran.
Ahmadinejad has left Iran to Rouhani in a state of economic crisis. When Ahmadinejad announced Iran’s budget in March 2013 which is the start of the Iranian financial year it was of about $65 Billion but the Budget itself had a deficit of $25 Billion. Iran’s inflation rate is currently soaring at about 37% and unemployment rates are through the roof with data suggesting that 43% of all Iranian families have at least one family member unemployed.
Inflation out all those above mentioned above is probably the worst issue in Iran currently which has caused riots on more than one occasion. The officially announced rates by the central Bank of Iran hover around 30-40% but independent studies have shown these rates to be in excess of 40%. Inflation has been caused by a number of factors in Iran like the dwindling exchange caused by lack of exports due to international sanctions, an incomplete execution and exceptionally hardliner policies by Ahmadinejad.
The most pressing issue currently in Iran in terms of political urgency is the nuclear crisis and the way it has crippled the economy through various international sanctions like the lack of any form of Trade between Iran and the US, various sanctions by the United nations and the European Union regarding the banking sector, the commodities market, the automotive market, the petrochemical