Transcript purchasing power parity

Zach Busch, Kelsea Kitto, Payton Boyer, & Erin Fischer
KELSEA KITTO
http://www.iranchamber.com/history/articles/images/iranian_map_1808.jpg
Historical Background
• The nation of Iran, once known as Persia, has held an abundant
amount of power within that region.
• Even with invasion of other races including Arabs, Turks, and
Mongols, Iran never failed to keep its national identity. They take
pride in their culture and heritage.
• When the invasion of the nation started, the Arabs brought
Muslims, which resulted in Islam being the predominant religion.
In the centuries that followed, Iran was ruled by a succession of
Arab, Iranian, and Turkic dynasties.
• In the thirteenth century, the Mongol leader, Genghis Khan,
invaded the un-united territory of Iran, and Mongol dynasties
came to rule Iran for about two centuries.
• In 1501 the Iranian Safavis created a strong and centralized empire
and also established Shia, which became their official religion
(http://www.mongabay.com/reference/new_profiles/133ir.html)
Geography
• Area: 1.6 million sq. km.
(636,295 sq. mi., slightly
larger than Alaska).
• Arable land: 9.78% of the
country.
• Cities: Capital--Tehran. Other
cities--Isfahan, Tabriz,
Mashhad, Shiraz, Yazd, Qom.
• Terrain: Desert and
mountains.
• Climate: Semiarid; subtropical
along the Caspian coast
(http://m.state.gov/md5314.
htm)
Economic Conditions
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Traditionally Iran was an agricultural society, but by the 1970’s Iran had achieved significant
industrialization and economic modernization based on an import-substitution model, which
was maintained by the demand for oil all around the world.
However, the economy stopped rising after the Islamic Revolution.
In March 1989, the government instituted a new 5-year plan for economic development,
which loosened state control and allowed Iranians to have more access to foreign materials;
however, the plan did not fully succeed.
The economy of Iran ranks at the seventeenth highest in the world by purchasing power
parity (PPP). The economy of Iran is a mixed, and transition economy with a large majority of
the economy coming from oil and gas.
Another domestic vulnerability is Iran’s dependence on its oil sector; the government’s chief
source of revenue is from their oil exports.
Iran has experienced strong economic growth in recent years due to the rise in international
oil prices, but remains susceptible to oil price when the demand is low. Iran has taken steps
to broaden the amount of exports that they offer, to stabilize their economy when the
demand for oil isn’t favorable.
Iran is very much dependent on their gasoline imports to meet their consumption needs. In
hopes to decrease the country’s dependency on oil and gasoline in order to maintain a good
economy, the county is furthering their research and would like to invest in developing their
own petroleum sector (http://en.wikipedia.org/wiki/Economy_of_Iran)
Social Conditions
• The population is politicized, and with the current
economic and social problems, the only smart solution
for the preservation of cultural Islam and their social
societies is to allow for political, economic, and social
reforms to further gradually.
• Democratic reforms do not need to conflict with the
culture in order to work.
• A prolonged confrontation between the more
traditional conservative thinkers and Islamists in the
regime will allow what both groups want, an Islamic
Republic (http://www.state.gov/r/pa/ei/bgn/5314.htm)
Ethnic, Caste, and Religious Groups
• Persians are the largest ethnic group in Iran, though there are
many other races that can be identified. The Arabs are the
predominate ethnicity in the southwest; however there are
other ethnicities that can be found in addition: Iran’s
population includes Kurds, Balochi, Bakhtyari, Lurs, and other
smaller minorities.
• Percentage of Ethnic groups (2008 est.): Persian 61%, Azeri
16%, Kurd 10%, Lur 6%, Baloch 2%, Arab 2%, Turkmen and
Turkic tribes 2%, other 1%.
• Religion: Most Iranians are Muslim; Shia branch of Islam
being the dominant religion.
• Percentage of Religions: Shi'a 89%, Sunni 9%, Zoroastrian,
Jewish, Christian, and Baha'i 2%
(http://www.state.gov/r/pa/ei/bgn/5314.htm)
Ideologies
• It seems likely that some significant degree of shared cultural
or political identity is necessary for an ambiguous ideology to
serve as a point of unity at all.
• Thus, while ethnic divisions in Iran were certainly significant
in the revolution, the main revolutionary proponents thought
of themselves fundamentally as Iranians and, usually, as
Shiites.
• The Iranian Revolution showed how rather unspecific or
unrelated revolutionary ideology can be; and Ayatollah
Khomeini and the "clerical radicals" demonstrated what more
modern ideological directions a revolution can take as a result
of the struggle to define the new regime of meaning that is an
important aspect of revolutionary states
(http://www.springerlink.com/content/k272155570u2ghq4/)
PAYTON BOYER
http://i-cias.com/e.o/slides/iran.politics.parliament01.jpg
How are Rulers Chosen?
• Of a total population of about 65 million, more than 46 million
people - all those over 18 - are eligible to vote. Young people
constitute a large part of the electorate with about 50% of voters
being under 30.
• Voter turnout hit a record high at 80% in the 1997 elections which
delivered a landslide victory for reformist President Mohammad
Khatami. Women and young people were key to the vote.
• But with disillusionment growing, only about 60% of the electorate
voted in the final round of the 2005 election.
• The president is elected for four years and can serve no more than
two consecutive terms.
• The constitution describes him as the second-highest ranking
official in the country. He is head of the executive branch of power
and is responsible for ensuring the constitution is implemented.
Role of Political Parties and Interest
Groups
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Only candidates and parties that do not oppose the religious system of governance
participate in elections in the Islamic Republic of Iran. This is enforced by the clerical
Guardian Council which vets candidates. Parties and candidates usually have operated in
loose alignments within two main coalitions, the conservative and the reformist both of
them coming from the former single-party Islamic Republic Party. Since 2009, only the
conservatives have been allowed to participate and prominent reformist parties have been
banned and their members jailed.
There are about 74 political parties outside Iran; These 74 parties can be divided into 6
ideological branches:
Communists (20 parties; the most important: the Hekmatist Party)
Socialists and Social-Democrats (10 parties; the most important: Organization of Iranian
People's Fedaian-Majority)
Ethnic nationalists (24 parties; the main one: the Democratic Party of Iranian Kurdistan)
Muslim-Democrats (5 parties; mainly the People's Mojahedin Organization of Iran and the
Freedom Movement of Iran)
Liberal-Democrats & Secular Nationalists (14 parties; mainly the National Front of Iran and
the Constitutionalist Party of Iran)
Anti-Islamic Nationalists (1 party : The Kingdom Assembly of Iran)
Political Map of Iran
How do Individual Citizens Participate
in Politics?
• All those over 18 - are eligible to vote. Young
people constitute a large part of the
electorate with about 50% of voters being
under 30.
• Only candidates and parties that do not
oppose the religious system of governance
participate in elections in the Islamic Republic
of Iran.
ERIN FISCHER
http://i.telegraph.co.uk/multimedia/archive/02128/Ayatollah-Ali-Kham_2128806b.jpg
The Way Political Institutions Exercise
Power
• The President
– Signs legislation and treaties (Central Intelligence Agency, 2009)
– Recognizes foreign ambassadors and selects Iranian ambassadors (Central
Intelligence Agency, 2009)
– Presides over the Council of Ministers and selects members (Central
Intelligence Agency, 2009)
• The Council of Ministers
– Serves as the equivalent of an American presidential cabinet (Central
Intelligence Agency, 2009)
• The Guardian Council (Judiciary)
– Interprets the constitution (Central Intelligence Agency, 2009)
• The Supreme Leader
– Appoints important officials to the judiciary and military (Central Intelligence
Agency, 2009)
– Controls the military (Central Intelligence Agency, 2009)
• Parliament
– Controls the financial business of the state (Central Intelligence Agency, 2009)
Inter-Relationships Between Political
Institutions
• The president appoints the members of the
Council of Ministers (Central Intelligence Agency,
2009)
• The Supreme Leader and the President hold similar
positions, but the Supreme Leader is more
influential (Central Intelligence Agency, 2009)
• The Supreme Leader selects important military
officials, and the president takes no part in military
operations (Central Intelligence Agency, 2009)
• The Council of Ministers works with parliament to
pass legislation (Central Intelligence Agency, 2009)
Restraints on Political Institutions
• Council of Ministers can be removed with a vote of no
confidence in parliament (Central Intelligence Agency, 2009)
• President has no official military power & SL does (Central
Intelligence Agency, 2009)
• SL doesn’t sign legislation, President does (Central
Intelligence Agency, 2009)
• Judicial review is practiced by The Guardian Council on all
bills (Central Intelligence Agency, 2009)
• Parliament can impeach the president (Central Intelligence
Agency, 2009)
• The President can dismiss members of the Council of
Ministers (Central Intelligence Agency, 2009)
ZACH BUSCH
http://a.abcnews.com/images/Blotter/gty_saeed_jalili_iran_thg_111104_wg.jpg
Functions Performed by Political
Institutions
•The Supreme Leader is the highest-ranking political figure in Iran. He has power over the
armed forces, the ability to handpick the head of the judiciary and half the Guardian
Council, makes most security and foreign policy decisions, and is even responsible for
confirming the results of presidential elections (Szczepanski, 2012)
•The current Supreme Leader is Ayatollah Ali Khamenei (Szczepanski, 2012)
•The Assembly of Experts is a publicly elected body that appoints the Supreme Leader and
oversees his actions. In theory, the Assembly could remove the Supreme Leader
(Szczepanski, 2012)
•The Judiciary’s purpose is to judge whether laws passed by the Majlis (parliament)
conform with sharia law (Szczepanski, 2012)
•The Majlis is a unicameral parliament tasked with creating and voting on bills. It can also
impeach the president and cabinet. The Guardian Council approves all laws passed by
parliament (Szczepanski, 2012)
•The President is the head of government. His job is implementing the constitution, and he
also has a role in making domestic and foreign policy (Szczepanski, 2012)
•The Expediency Council mediates conflicts between the Majlis and the Guardian Council
(Szczepanski, 2012)
Establishment of Internal Order
•The Iranian Constitution, which provides the blueprints for the governmental
structure in Iran, was ratified in 1979 and revised in 1989 (CIA World Factbook,
2012)
•Iran is an Islamic theocracy, and all law is based in Sharia law (CIA World Factbook,
2012)
•Iran is divided into 31 provinces (CIA World Factbook, 2012)
•While the central government of Iran is supreme, Article 7 of the Iranian Constitution
calls for publicly elected City and Village Councils
•The Supreme Leader has the power to appoint and remove the head of television and
radio, as well as the six-member council that oversees the media (Tristam 2012)
•The Supreme Leader is Commander in Chief of the armed forces and appoints heads
of the military, law enforcement, and the Revolutionary Guard Corps (Tristam 2012)
•The Revolutionary Guard Corps is a branch of Iran’s military that protects Iran’s
Islamic system (Tristam 2012)
External Security
•Iranian military and security are headed by the Supreme National Security
Council (SNSC) and the Supreme Leader (GlobalSecurity.org, 2012)
•The Constitution gives the SNSC power to manage national defense and
security policies, to coordinate “political, intelligence, social and economic
activities in relation to general defense/security policies,” and to “exploit
material and non-material resources” to address “internal and external
threats” (GlobalSecurity.org, 2012)
•The SNSC also runs Iran’s nuclear program
•Military service in Iran is compulsory for males (CIA World Factbook, 2012)
•It is estimated that, if necessary, Iran could mobilize up to one million men
(GlobalSecurity.org, 2012)
•Iran’s Military expenditure is approximately 2.5% of its GDP
•The Supreme Leader alone has the power to declare war (Tristam, 2012)
Resolving Conflict Between Different
Groups
• Shia Islam is the majority and official religion of Iran, and religious minorities (Sunni
Muslims, Zoroastrians, Jews, Christians, and Baha’is) are subject to persecution (CIA
World Factbook, 2012)
•The major ethnic minorities in Iran (Azeris, Kurds, Arabs, and Baluchis) face ethnic
tensions that occasionally turn violent. Kurds have had “repeated clashes” with Iranian
security forces” (Hassan, 2008)
•Some minorities feel like second-class citizens, and the Kurds often have separatist
tendencies (Hassan, 2008)
•Demonstrations by minorities can end in violence, either on the part of the protestors or
by the overreaction of Iranian security forces (Hassan, 2008)
•Iran does not contain a single official Sunni mosque, and the government has had an
active role in blocking the building of Sunni mosques (Hassan, 2008)
•The international community has called for additions to the Iranian Constitution
defending the rights of minorities and punishing those who violate these rights.
International rights groups have called for the reprimanding of Iran for its “repression of
women, dissidents, and religious and ethnic minorities” (Hassan, 2008)
Raising Money to Pay for Services
• Petroleum makes up 80% of Iran’s exports (CIA
World Factbook, 2012)
•Taxes make up 27.2% of GDP (CIA World Factbook, 2012)
•National Budget consists of $130.6 billion in revenue
and $92.22 billion in expenditures, as of 2011 (CIA
World Factbook, 2012)
•Investment composes 27.5% of GDP (CIA
World Factbook, 2012)
•The income tax rate is 35%, the corporate tax rate is
25%, and the sales tax rate is 1.5% (World Tax Rates,
2011)
What Services does the Government
Provide? To Whom?
•Iran has a highly centralized 13-year (K-12) public
education system. Approximately 4.7% of GDP
is education expenditure (CIA World Factbook, 2012)
•Iran’s education system is criticized internally as being
too Western, and there are plans for a drastic
education overhaul in the near future that will “fortify
Islamic values” and “counter the clout of the country’s
increasingly secularized middle class” (Erdbrink, 2011)
•The Iranian Constitution entitles citizens to healthcare,
and approximately 73% of the workforce is covered by
health care and social security
•In 2009, health expenditures in Iran constituted 3.9% of
GDP (CIA World Factbook, 2012)
Regulating the Behavior of Citizens
•Iranian journalists, political activists, etc. are frequently arrested for
speaking out against the regime (International Campaign for
Human Rights in Iran, 2011)
•Even peaceful demonstrations are met by brutality and arrests by
the Iranian police, often followed by imprisonment, torture, denial
of medical treatment in prison, and/or execution (Head, 2012)
•There is no separation of church and state in the Islamic Republic of
Iran. Religious minorities are constantly persecuted , and those
who convert from Islam to another religion may face execution
(Head, 2012)
•Iran’s Morality Police has authority to arbitrarily ban activities and
items they deem to be morally questionable and/or un-Islamic,
such as Barbie dolls, (Morgan, 2012) squirt guns, and women’s
fashion they deem too “modern” (Mostaghim, 2010)
Resources
Central Intelligence Agency. (2009). Iran. CIA World Factbook. Retrieved from https://www.cia.gov/library/publications/the-worldfactbook/geos/ir.html
Erdrink, Thomas. (2011, January 1). Iran overhauls education system to erase Western influences. The Washington Post. Retrieved from
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/01/AR2011010101345.html
Hassan, Hussein D. (2008). CRS Report for Congress: Iran: Ethnic and Religious Minorities. Retrieved from
http://www.fas.org/sgp/crs/mideast/RL34021.pdf
Head, Tom. (2012). Human Rights in Iran – Iranian Human Rights Abuses. About.com. Retrieved from
http://civilliberty.about.com/od/internationalhumanrights/p/iran101.htm
GlobalSecurity.org. (2012). Supreme National Security Council. GlobalSecurity.org. Retrieved from
http://www.globalsecurity.org/military/world/iran/sndc.htm
International Campaign for Human Rights in Iran. (2011). Death in Prison: No One Held Accountable. International Campaign for Human
Rights in Iran. Retrieved from http://www.iranhumanrights.org/2011/06/death-in-prison/
World Tax Rates. (2011). Iran Tax Rates. World Tax Rates. Retrieved from http://www.taxrates.cc/html/iran-tax-rates.html
Morgan, David. (2012, January 16). Iran’s morality police crack down on Barbie. CBS News. Retrieved from http://www.cbsnews.com/8301503543_162-57359747-503543/irans-morality-police-crack- down-on-barbie/
Mostaghim, Ramin and Alexandra Sandels. (2010, May 25). Morality Police launch crackdown on clothing and hairdos deemed un-Islamic.
Los Angeles Times. Retrieved from http://latimesblogs.latimes.com/babylonbeyond/2010/05/iran-fashion-crackdown.html
Szczepanski, Kallie. (2012). The Islamic Republic of Iran’s Complex Government. About.com. Retrieved from
http://asianhistory.about.com/od/iran/a/irangovt.htm
Tristam, Pierre. (2012). Who Rules Iran? About.com. Retrieved from http://middleeast.about.com/od/iran/a/who-rules-iran.htm