Iran Pestle
1. Iran PESTLE Analysis
1.1. Political
Iran’s government structure is a combination of democracy and modern Islamic theocracy. The head of state is the Supreme Leader, who makes all the major decisions on foreign policy and has control over the armed forces. The Supreme Leader is elected by the Assembly of Experts, which consists of 86 clerics. The clerics are chosen by the Guardian Council, which consists of six jurists and six theologians elected by the Supreme Leader. The Guardian Council is one of the most influential bodies in the country’s political landscape. Iran’s Parliament consists of 290 members who are elected by the public every four years. The Parliament must have approval from the Guardian Council before passing laws. The Parliament has the authority to summon or prosecute ministers or even the president. The President is the executive branch of power and is also elected every four years by the public, although the Guardian Council must approve the candidate before an election (Zohari 2011). Figure 1 illustrates Iran’s government system (Wikipedia 2011).
Figure 1 – Islamic Republic of Iran’s Government Structure
Source: http://en.wikipedia.org/wiki/File:Iran_gov_power_structure.svg
One of the most prominent factors affecting foreign direct investment (FDI) in Iran is political instability. Although the country has made significant progress since the Iranian/Islamic Revolution in 1979 (the overthrow of the monarchy), the recent sanctions imposed on Iran by the United Nations (UN) is harming the country’s economy. Iran attempted to avoid a fourth round of UN sanctions by stalling its nuclear fuel plan. They did not succeed: on 9 June 2010, a Security Council resolution was approved. The sanctions expand current UN measures of restricting the country’s banking sector further, banning the sale of additional types of heavy weapons and aims to set up a cargo inspection rule similar to the one in place in North Korea. Hillary Clinton (US
1.1. Political
Iran’s government structure is a combination of democracy and modern Islamic theocracy. The head of state is the Supreme Leader, who makes all the major decisions on foreign policy and has control over the armed forces. The Supreme Leader is elected by the Assembly of Experts, which consists of 86 clerics. The clerics are chosen by the Guardian Council, which consists of six jurists and six theologians elected by the Supreme Leader. The Guardian Council is one of the most influential bodies in the country’s political landscape. Iran’s Parliament consists of 290 members who are elected by the public every four years. The Parliament must have approval from the Guardian Council before passing laws. The Parliament has the authority to summon or prosecute ministers or even the president. The President is the executive branch of power and is also elected every four years by the public, although the Guardian Council must approve the candidate before an election (Zohari 2011). Figure 1 illustrates Iran’s government system (Wikipedia 2011).
Figure 1 – Islamic Republic of Iran’s Government Structure
Source: http://en.wikipedia.org/wiki/File:Iran_gov_power_structure.svg
One of the most prominent factors affecting foreign direct investment (FDI) in Iran is political instability. Although the country has made significant progress since the Iranian/Islamic Revolution in 1979 (the overthrow of the monarchy), the recent sanctions imposed on Iran by the United Nations (UN) is harming the country’s economy. Iran attempted to avoid a fourth round of UN sanctions by stalling its nuclear fuel plan. They did not succeed: on 9 June 2010, a Security Council resolution was approved. The sanctions expand current UN measures of restricting the country’s banking sector further, banning the sale of additional types of heavy weapons and aims to set up a cargo inspection rule similar to the one in place in North Korea. Hillary Clinton (US
References: Central Bank of Iran (2011) http://www.cbi.ir/SimpleList/AnnualReview_en.aspx [accessed on 09/03/2011] Dahl, F Economy of Iran. (2011) http://en.wikipedia.org/wiki/Economy_of_Iran [accessed on 07/03/11]. Environmental Issues in Iran. (2011) http://en.wikipedia.org/wiki/Environmental_issues_in_Iran [accessed on 10/03/2011] Foreign Direct Invetment in Iran History of Iran. (2011) http://en.wikipedia.org/wiki/History_of_Iran [accessed on 07/03/11]. International Monetary Fund. (2011) http://www.imf.org/external/country/IRN/index.htm [accessed on 09/03/11]. Iran. (2011) http://en.wikipedia.org/wiki/Iran [accessed on 07/03/11]. Iran Hostage Crisis. (2011) http://en.wikipedia.org/wiki/Iran_hostage_crisis [accessed on 09/03/11]. Iran Inflation. (2009) http://www.thearynews.com/english/newsdetail.asp?nid=23175 [accessed on 09/03/2011] Iran Tax Rates Iranian coup d’état. (2011) http://en.wikipedia.org/wiki/1953_Iranian_coup_d’état [accessed on 09/03/11]. Science and Technology in Iran (2011) http://en.wikipedia.org/wiki/Science_and_technology_in_Iran [accessed on 10/03/2011]