Arbeitspapier

Oil-rent Boom in Iran?

The present article aims to analyze the effects of high oil prices since 2003 on Iran. The theoretical basis of the analysis is the rentier state approach, the basic element of which is that rents are at the free disposal of the rentier. Empirically, the paper examines the issue areas of foreign policy, domestic policy and economic policy. After proving that the oil price - despite fluctuations - has constantly been at a high level in the first decade of the twenty-first century, the discussion demonstrates that Iran has used the increased rent income to support a populist policy. In terms of economic policy, the regime has pursued a redistributive strategy. The country's foreign policy, particularly the ostentatiously pursued atomic program, has been very expensive since it provoked sanctions whose costs were initially balanced only by high rent income. Yet, in his first term, Ahmadinejad failed to prepare Iran for the situation that has occurred as a result of the global financial crisis: the redistributive policy of the regime has meant that an oil price below US$70 or US$75 now constitutes a severe challenge for the Iranian state budget.

Language
Englisch

Bibliographic citation
Series: GIGA Working Papers ; No. 111

Classification
Sozialwissenschaften, Soziologie, Anthropologie
Subject
Iran
oil
rentier-state approach
domestic policy
economic policy
foreign policy
Mineralölwirtschaft
Branchenkonjunktur
Rent Seeking
Erdölpolitik
Verteilungspolitik
Außenpolitik
Iran

Event
Geistige Schöpfung
(who)
Beck, Martin
Event
Veröffentlichung
(who)
German Institute of Global and Area Studies (GIGA)
(where)
Hamburg
(when)
2009

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Beck, Martin
  • German Institute of Global and Area Studies (GIGA)

Time of origin

  • 2009

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