Iran: Overcoming a Rentier Economy

In Uncategorized on December 31, 2015 at 2:59 pm

By Antonio Graceffo
Shanghai Jiaotong University, China MBA
PhD Candidate, Shanghai University of Sport
Prepared for the course: Constitutional Struggles in the Muslim World,
University of Copenhagen

About one third of Iran’s GDP is dependent on a single asset, oil, which has turned Iran into a classic example of a rentier economy (Graeber 2015). Rentier economies can be based on control of natural resources, property, financial assets, or intellectual property. (Standing 2014). Rentier states are capable of generating income without developing businesses. As a result, “When a country becomes a rentier state, it loses the incentive to diversify and expand other sectors of its economy, remaining stagnant in the raw materials sector.” (Sha’er 2015).

This paper will provide a detailed description of the problem the rentier economy poses Iran. Next, it will propose solutions, including sub-steps that make the solutions politically realistic. Then, it will identify potential opponents to the solutions, as well as potential allies. Finally, in the conclusion, this paper will stress that these solutions are both necessary and politically feasible.
Read the full paper on Aacdemia

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