Students rest at a university while waiting for a final exam in Tehran, Jan. 18, 2009. (photo by REUTERS/Morteza Nikoubazl)[/caption]The state of the economy has long been a dominant factor in shaping Iran'spolitical evolution since the country's1979 Islamic revolution. Now, more than a year and half into Hassan Rouhanis presidency, hisgovernment is missingbillions of dollars in lost revenues asIransoil-driveneconomysuffersfrom theprice of crude's tumble tohalf itsvalue since last June.
Rouhani swept to power in 2013 with campaign pledges to solvethe Islamic Republics high unemployment andinflation and bringprosperity to the country.So far, some of the economic damage caused by what has largely beendescribed asmismanagement bythe previous administration as well asinternational sanctionshas been recovered.Stabilizing the national currency andimplementing conservative monetaryand fiscal policies have halved the official annualinflationratetoless than 20%, down from nearly 40% during PresidentMahmoud Ahmadinejads tenure.
In addition, re-engaging with the international community and endingyears of sanctionshave been among Rouhanistools to combat these issues.Rouhani said in a June 2014press conference,One way to resolve unemployment is toreach a deal in nuclearnegotiations. Because when the sanctions are lifted, investments willflow to our country.The TehranChamber of Commerce, Industries, Mines and Agriculture recentlysuggested that Iran could absorb $500 billion inforeign investmentsonce the sanctions are fully lifted.
A diplomatic push led by Foreign Minister MohammadJavad Zarif has so far resulted in a limited easing of sanctions underthe interim deal reachedover Tehrans nuclear program.
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This article was written byMaysam Bizr for the Al-Monitor on February 17, 2015. Maysam Bizris a freelance journalist and translator in Iran who focuseson Iran's foreign policy and nuclear program. He has worked for and contributes tovarious media outlets in Iran . On Twitter:@m_bizar
