The Political Economy of the Islamic Republic of Iran

Abstract:

The Political Economy of the Islamic Republic of Iran

The field of economics is often limited to the study of the manner in which the wealth is produced, distributed and consumed. Accordingly, the important issue of destructive and conflictual activity is treated tangentially. The political economy of the Islamic Republic of Iran provides a salient counter example. Post-revolutionary conflictual parallel institutions, particularly the jurisconsult of the supreme guide and its army, the Guardians of the Islamic Revolution (Sepah) as well as their economic organizations namely religious and military parastatal foundations (such as Bonyad, Setad, Khatam) determine the perimeter of a particular type of political economy. The dual character of protected and non-protected sectors in the Iranian economy explains how the oil rents are mobilized to appropriate resources by parastatal sectors in the absence of clearly defined property rights. Destructive coordination is a new concept that I have developed which captures major features of this type of political economy as well as similar cases in the MENA region.