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A Western journalist's observations from Iran
Location: BlogsLive Blog! Iran 360˚: Exploring Politics, Economics and Society in a Global Hot SpotLive Blog! Iran 360˚: Exploring Politics, Economics and Society in a Global Hot Spot    
Posted by: ICFJ Staff 4/4/2008 2:56 PM
There is a big wealthy class in the Iranian society. Part of these people are members of the new elites . However, the are lots of people who are having problems with inflation.
Barbara Slavin, the author of "Bitter Friends, Bosom Enemies" just spoke of her observations for a recent trip to Iran. Here are some points:

  • There is a big wealthy class in the Iranian society. Part of these people are members of the new elites . However, the  are  lots of people who are having problems with inflation.
  • The money is invested in the real estate not production. The inflation rate is close to 30 percent. Amid high oil prices, the Iranian  rial has not appreciated. The Iranian economy depends much more on imports because of high oil prices and this hurting manufacturing in Iran.
  • The wealthy class go to Dubai for New Year shopping, but you've got the other side. People who were meant to benefit from Ahmadinejad. They get hand outs but not suffiencet.
  • The poor class is having problems and many of those I spoke with didn't vote in the parliamentary election.
  • Amid gas rationing, the problem with traffic and gas smuggling exist.
  • Ahmadinejad has acknowledged problems with inflation, but blames devil intentions of the foreigners.
  • Because of high unemployment and economic problems, a braindrain is happening in Iran. 40 percent of the youth say that they will leave the country if they could, according to a poll.
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