Transcript Presented by: Johanna Murphy

Holy Oil & Water:
The Economics of a Theocratic Nation
Presented by: Johanna Murphy
“The Troubles” in Northern Ireland
Conflict between Israel & Hezbollah
Decades of conflict between Pakistan & India
The Taliban rule in Afghanistan
The Problem
A theocratic nation will not hold a strong
position in a liberal international
political economy
What is Theocracy?
 Theocracy as “a mode of governance prioritizing a
religious conception of the good that is strict and
comprehensive in its range of teachings.”
Liberal Economic System
 Purpose of economic activity is to enrich individuals & the
state should play a very small role in the economic system
Islamic Republic of Iran
Strong Position in Global Economy
Organization whose role includes administering trade agreements, providing
a forum for trade negotiations, helping governments settle trade disputes, &
reviewing national trade policies.
Relationship between oil demand
and Iranian GDP
I. Individual Level
 If a developing nation’s
leader places adherence
to religious practice
above all other goals
including prosperity…
Ayatollah Khomeini
II. Domestic Level
 If a developing nation’s economy is state controlled…
Iranian Economic Sectors
State Sector
All these will be publicly owned & administered
by the state
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All large-scale & mother industries
Foreign trade
Major minerals
Banking
Insurance
Power generation
Dams & large-scale irrigation networks
Radio & television
Post
Telegraph & telephone services
Aviation
Shipping
Roads
railroads
Private Sector
Services that supplement the economic activities
of the state
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Agriculture
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Animal husbandry
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Industry
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Trade
III. International Level
 If a developing nation is a radical theocracy operating
in an open, global market environment…
Conclusion