Economists Charge President Ahmadinejad with Plundering Iran's Wealth
Are educated Iranians finally getting fed up with President Ahmadinejad's inflammatory, emotional rhetoric and near total avoidance of fact? In an unprecedented move, more than 50 Iranian economists met with the president to tell him his economic policies are "inexpert" and lacked "any basis in science." Read the full story here.
Iran's leading economists and financial leaders bluntly criticized Ahmadinejad for mismanaging Iran's oil wealth and failing to reign in the rampant inflation that has proved devastating to Iran's poor. In 2005 Ahmadinejad was elected largely on the strength of his promise to spread Iran's oil wealth to the country's poor, but it is the poor who have been most hurt by his capricious economic policies. In OPEC's second largest oil producer the rate of inflation is expected to rise to 17% by next March. The price of basic foods and services has risen sharply over the past few months.
With money supply growth running at a whopping 40%, economists charged that Ahmadinejad is emptying Iran's coffers without regard for the needs of future generations. Fulfilling rashly made campaign promises, the president is using Iran's wealth to fund a flood of infrastructure projects in the country's 30 provinces.
Seen as particularly dangerous by the country's economists was Ahmadinejad's decision made earlier this year to lower interest rates. Financial leaders lambasted the president for failing to consult either the central bank chief or economy minister.
In past encounters, President Ahmadinejad has vehemently rejected criticism of his economic policies, denying charges that inflation is out of control and pointing to his pet building projects as evidence of Iran's technological progress. It will be interesting to see if the combined weight of the country's top economists and financial leaders can reign in the president or whether he will continue to plunder Iran's wealth for his own political gain.
Condemning the president's economic policies, the economists told Ahmadinejad,
"In your government, economic policies are adopted without any basis in science
or the directives of the fourth development plan."
Iran's leading economists and financial leaders bluntly criticized Ahmadinejad for mismanaging Iran's oil wealth and failing to reign in the rampant inflation that has proved devastating to Iran's poor. In 2005 Ahmadinejad was elected largely on the strength of his promise to spread Iran's oil wealth to the country's poor, but it is the poor who have been most hurt by his capricious economic policies. In OPEC's second largest oil producer the rate of inflation is expected to rise to 17% by next March. The price of basic foods and services has risen sharply over the past few months.
With money supply growth running at a whopping 40%, economists charged that Ahmadinejad is emptying Iran's coffers without regard for the needs of future generations. Fulfilling rashly made campaign promises, the president is using Iran's wealth to fund a flood of infrastructure projects in the country's 30 provinces.
Seen as particularly dangerous by the country's economists was Ahmadinejad's decision made earlier this year to lower interest rates. Financial leaders lambasted the president for failing to consult either the central bank chief or economy minister.
"Such decisions are harmful and inexpert. The most sensitive financial institutions of the country will be weakened and in the not too distant future we will see the negative outcomes of these decisions," the economists said.
In past encounters, President Ahmadinejad has vehemently rejected criticism of his economic policies, denying charges that inflation is out of control and pointing to his pet building projects as evidence of Iran's technological progress. It will be interesting to see if the combined weight of the country's top economists and financial leaders can reign in the president or whether he will continue to plunder Iran's wealth for his own political gain.
Labels: banks, dissidents, economy, inflation, infrastructure, Iran, Mahmoud Ahmadinejad
