…the RG takeover was claimed to have reduced the ability of sanction supporters to monitor and reduce the flow of capital and technology into the economy, especially to the energy sector. This policy has backfired since the increased role of RG businesses in the energy sector has magnified the effectiveness of sanctions…
The net result of the mismanagement of the economy, along with the expansion and cartelisation of RG commercial activities, has led to a situation in which, in all key economic indicators, Iran has fallen behind all its neighbours barring those in conflict. This has occurred despite having the second largest natural gas reserves in the world, the fourth largest oil reserves in 2009 and one of the best-educated labour forces in the region. The puzzle facing the Iranian economy is that despite having all the raw ingredients for rapid economic development and industrialization, there has been a gradual but very clear downward spiral in industrialization and technological growth. It seems that the more the RGs businesses are pushed to the forefront of the economy, the greater the decline in key economic indicators and social wellbeing.
