Iran Economy in Brief – No. 5

Economy Matters But Health Matters More

Until a decade ago pupils in Tehran were used to see schools shut due to heavy snow. Today in wintertime their schools are shut, as it happened 4 days in this week, due to polluted air. Three million cars driving in Tehran cause considerable amount of pollution: low quality of gas and gasoline, not well-functioning motors and passive emission standard are among the reasons. Recent Government’s aid-packet as €625m credit-loans meant to encourage people buying more cars, would lead to an even more polluted air. It’s true that Automobile Industry, like many others, is in trouble, however developing public-transport and improving infrastructure might be a better way to help both industries and people health.


Subsidies after 5 years: allocated or not?

 9th Iranian Government launched its “re-allocation of subsidies” program, on 18 December 2010, when the oil price was 100$/b. The Government wanted to save the money by cutting “hidden subsidies” in energy -water, gas and electricity bills and fuel- spending it to boost the economy, in particular domestic production. Households were divided into 10 groups according to their income and a monthly compensation was assigned to low-incomes: IRR450K per family-member, equivalent to $45 then, $12 today. Failing to distinguish the eligibles correctly, the new Government has to continue paying $1billion/month. Considering the current oil price of 36$/b, “subsidies” do not seem to be “re-allocated” properly.


Yalda: Winter’s Messenger

Iranians close autumn and start winter through a festival called “Shab-e Chelle” or “Shab-e Yalda”: the longest night of the year corresponding to the night of 20-21 December, known as “winter solstice”. As it gets dark, celebration starts and goes through the night. By tradition a setting of various foods is prepared: pomegranate, watermelon, nuts and medlar are usually essential and versus of Hafez poems, Persian 14th century poet, is read. At this night, the price of these foods goes as high as tripled: watermelon €1/kg, pomegranate €1.5/kg, nuts €12/kg. A simple preparation for a household would cost €30. The tradition goes back to Zoroastrian period and by the following morning the count down of 90 days left to Norowz, Persian new year, is started.

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