IMF Says Iran’s Economy Set to Grow on Successful Subsidy Plan
bloomberg.com / Ladane Nasseri
03-Aug-2011 (one comment)

Iran’s economic growth has accelerated and cuts in subsidies have been achieved without sharp increases in inflation, improving the outlook for further gains, the International Monetary Fund said.

Growth accelerated to 3.2 percent in 2010-2011 from 0.6 percent two years earlier, the IMF said in a report published today. The inflation rate only rose by about 4 percentage points in the first five months of this year, to 14.2 percent, even after subsidies for energy and food were scrapped, it said.

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Mash Ghasem

Ms. Nasseri seems to have taken a nap while writing this!

by Mash Ghasem on Wed Aug 03, 2011 11:29 PM PDT

To begin with IR started to pay cash for Gas in December, but two months ago they announced that they will issue Energy Credit Cards, instead.

According to some reports IR's retreat, from "Goal Orientation of Subsidies" (their euphemism for cutting back on social assistance) seems to have been in reaction to the mass non-payment of energy bills by poor and working class families.

One unforeseen result of taking away Energy Subsidies is how so many small and mid-size bussineses have gone bakrupt and out of bussiness due to their inability to pay the bill for electricity or gas, thus paving the way for junk imports from China, India,...to flood Iranian markets and further diminish Iranian made goods and industrial production in general. How all of this is suppose to set the stage for further growth, remains a valid query?!

Another unforeseen result of taking away subsidies could be the overthrowing of IR itself: simply be creating a material base for opposition to unite, a task no opposition group has been able to do. We should all thank  IR for digging its own grave, by its own hands.


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