Tuesday, April 6, 2010

Iran: The New USSR

I found this article by searching far and wide through Google. It is entirely too difficult to find articles from uncommon/foreign outlets on the world's largest search engine, but that is another issue.
This article talks about the looming economic sanctions against Iran due to their tremendous debt. They are dealing with unemployment and inflation ranging around 20%, which is astronomical for that type of data. Iran also has an unstable banking and currency system. The article says that Iran is using billions upon billions from subsidies that they have no intention nor the capibility of paying back. As is well documented, there has been plenty of political corruption in Iran. The elections of 2009 and the connections we are studying show this to be true, but this is also a reason that Iran is in such economic trouble. There are many opposing sides within the government and from religious factions. The President Mahmoud Ahmadinejad has made the banks give out loans with incredibly low interest rates, and has made other questionable decisions. The only thing keeping their economy alive is their exporting of oil, which is a common tale in the region. However, the most important part of this article is where the pressure to impose the sanctions are coming from. The United States. This rivalry reminds us of the Cold War, with Iran having nuclear capability, but also having a smoke screen that tries to show a country of power.
The United States, along with the United Nations, has imposed sanctions on Iran before,and have even weakened their strongest export, oil, by discouraging foreign companies from investing. However, the sheer fact that the United States is involved with Iran speaks volumes. I compare it to the Cold War with the USSR. Iran has a volatile leader in Ahmadinejad who compares to the many Soviet leaders, and it has a scary idea. The United States still does not know how to handle the ideal of Islam just as it did not know how to deal with the idea of communism. The United States had a different tactic in attacking the economy of the USSR by increasing their own spending, but they are doing a similar thing to the Iranians. They are pushing for more economic sanctions which will hurt Iran instead of increasing their already ridiculous spending. The USSR apparently had atomic weapons as does Iran. The similarities go on and on. However, the most similar characteristic is the appearance of stability in Iran. Just as the USSR did, Iran's leaders have created an illusion of a strong and capable nation. However, there are reports every day of retention of human rights, riots at universities, and a struggling economy. There is one quote from the article that is very telling:
Iran's economic problems are linked to its extensive use of subsidies — billions of dollars a year — to keep basic necessities such as electricity, gasoline, bread and other food staples far below their true market value (Shuster)."
Iran is having to spend billions of dollars to keep the daily infastructure of their country alive. This is exactly what the USSR had to do during the Reagan years to make it seem like they were still a force to be reckoned with(there are many that say Reagan did not have anything with the downfall of the USSR that is was just a matter of time). It may be the case with Iran, as it was with the USSR, that the country will ruin itself before the United States can do any visible damage. Iran is one of the few countries standing up the United States in an era of American dominance, the United States if fighting back economically, and Iran could be done by the end of the rivalry. That sounds a lot like a modern day USSR.


http://www.scpr.org/news/2010/04/05/irans-economic-troubles-mount-as-sanctions-loom/

1 comment:

  1. The comparisons of the USSR to Iran are certainly there, but I'm not sure it fits, for one reason. The USSR and the US were the two main players on the world stage during the Cold War. It was us versus them, and everybody else was pretty much on the sidelines, or supporting one or the other. Today is a far different world, now you have more economically competitive nations, globalization has taken root, and the fact that the US is essentially the sole remaining superpower. It's become somewhat of a David versus Goliath fight, and in this case, we're the monster trying to impose our will on the world. There's strong evidence that sanctions wouldn't even work. I highly doubt China and other nations will stay away from Iran's oil once the US pulls out. Taking away the 2nd largest producer from our market puts a ton of pressure on the other oil producing countries, and there's no question that the prices would skyrocket, severely impacting the global economy. How far will we go to cut off Iran from the world in order to get what we want? What happens between the US and Iran will not be isolated to the two nations, the repercussions will be felt everywhere, and Iran knows it. Iran's economic situation, however unstable it is, does not matter so much here, it is what the rest of the world does once the US makes its move.

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