Iran Economists Slam Ahmadinejad For “Policy of Tension” With World

Iran‘s confrontational attitude toward the rest of the world is costing the country dearly in lost trade and investment, according to a letter signed by 60 economists published on Saturday.

The open letter, the latest broadside against President Mahmoud Ahmadinejad and published by the semi-official Ilna news agency, denounced the “heavy price paid by the country over the negative consequences of government policy.”


Iran's President Mahmoud Ahmadinejad speaks with journalists ...
Iran’s President Mahmoud Ahmadinejad speaks with journalists after meeting with his cabinet in Tehran January 23, 2008.REUTERS/FARS NEWS/Files

In particular, it spoke of the “misguided trade policy and the policy of tension with the rest of the world, which has deprived Iran of opportunities for trade and foreign investment.”

by Siavosh Ghazi, AFP
It said the sanctions imposed by the UN Security Council over Iran’s refusal to halt uranium enrichment had added billions of dollars in extra costs to the country’s foreign trade.

The letter, signed by economists from major universities around the country, criticises what it calls “extremist idealism,” an “undue haste in acting” and the “absence of cost assessment on economic programmes.”

The economists also warn that the current global economic crisis “will impose heavy costs on the country,” while also pointing out that government finances will be severely hurt by the precipitous recent drop in oil prices.

Crude oil income accounts for 80 percent of foreign earnings…

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One Response to “Iran Economists Slam Ahmadinejad For “Policy of Tension” With World”

  1. David Phillips Says:

    As the price of crude oil has more than halved from its summer peak, many consumers across the globe will start seeing the benefits by way of lower gasoline, diesel and heating oil prices.

    So while a lower crude price is great news for some, it is of course bad for Iran and Russia, two of the top world producers.

    The Iranian ecomomy is so dependent onthe heavy sour crude oil, or Soroosh grade, which has not been in as much demand as the lighter sweet crudes.

    At the height of the high West Texas Intermediate and Brent Crude oil prices, there were accounts of tankers full of Iranian heavy sour lined up in the Persian Gulf at anchor with no buyers for their cargo.

    The Iranian government needs to diversify its economy if it is to avoid serious consequences for its growth potential.

    Meanwhile, those who trade crude oil will enjoy the recovery by going long and watch as the July 2008 $150 peak is challenged once more.

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