Primary Causes of Poverty and Popular Uprisings in Iran
The Enormous Cost of the Regime's Warmongering, Terrorism and Domestic Suppression
January 2018
As the uprising against the clerical regime engulfed various Iranian cities, protestors' slogans expressed some aspects of the cause of that movement, namely grueling high prices and economic strains on an array of social sectors. Giving rise to these circumstances is the fact that the religious dictatorship has channeled Iran's human resources and economic reserves toward domestic suppression, warmongering and expansion of terrorism abroad, leading to increasing poverty and deprivation among the population in Iran.
The cost of war and terrorism: Not declared in official state budget
According to assessments conducted by the Iranian Resistance and international experts, Supreme Leader Ali Khamenei has spent close to $15B to $20B a year in Syria over the past six years.1 The regime's warmongering and fatal intervention in Syria alone cost the Iranian people at least $100B between the start of the war to the end of 2017.
In addition to Syria, Tehran has used its military and terrorist arm, the Islamic Revolutionary Guard Corps (IRGC), to interfere in conflicts in Iraq, Yemen, Lebanon, and Afghanistan while exporting terrorism to dozens of other countries in five continents around the world.
The cost of manufacturing weapons of mass destruction and ballistic missiles, and of acquiring illicit material and equipment for the nuclear program can also be factored into the regime's overall expenditures. A high-level assessment reveals that the regime spends at least $25B to $30B in these arenas from sources that are not declared in its official annual budget.
In order to pay for its warmongering and domestic suppression, the regime has created a private network outside of official state structures. Particularly after 2005 (during the presidency of Mahmoud Ahmadinejad), Khamenei expanded his economic reach considerably by transferring the ownership of state enterprises, taking control of the financial market, and eliminating state subsidies.
With the help of his enterprises and institutions, which operate through front organizations masked as private companies, Khamenei has taken over the bulk of Iran's economy. This is how Khamenei pays for the undeclared and unofficial costs of war and suppression. These organizations and institutions, which include the IRGC, now control over 50% of Iran's Gross Domestic Product (GDP). Official state institutions have no control or oversight on these entities' sources of revenue or expenditures. They are also either exempt from taxes or simply do not pay them.
Some of the most important of these entities include but are not limited to the following2: The IRGC's Khatam al-Anbia Construction Headquarters, other IRGC-affiliated economic powerhouses, Khamenei's Setad (Headquarters for Executing Imam's Orders), the Mostaz'afan (Oppressed) Foundation, Astan-e Qods Razavi (religious foundation in Mashhad), Shahid (Martyr) Foundation, Emdad (Aid) Committee, IRGC Cooperatives Foundation, Bassij Cooperatives Foundation, Qadir Investment Company (tied to the Ministry of Defense), the Armed Forces Social Welfare Organization (SATA), Khatam al-Osia Base (tied to the Ministry of Defense), State Security Forces Cooperatives Foundation (NAJA), and the Islamic Republic Army Cooperatives Foundation (BTAJA).
https:// www.ncr-iran.org/en/news/iran-protests/24191-primary-causes-of-poverty-and-popular-uprisings-in-iran