Global economist unveils the beautiful land of Persia
Diminishing Embargo open doors to globally companies to get ready to do business with Iran.
23 JANUARY 2014, PARK AVENUE, NEW YORK
SummaryIran has undergone severe embargo owing to its nuclear program. It was sanctioned by many nations of the world including the US, China, UK and so forth. This has made the Islamic nation go backwards in terms of economic development and businesses. However, having settled Iran interim and Iran reached an agreement with the US, and it is now open for business again. Lots of companies in the United States as well as other countries are getting ready to do business with Iran. Culturally Iran is the homeland of Mewlana Jalaluddin Rumi [Rumi] (1207 - 1273 / Persia) poet. in 2007, Mewlana Jalaluddin Rumi was named most popular poet in US.
Where is the Oil Wealth – Iran?
Iran is one of the major oil producers and exporters in the world. It has a great historical background and cultures. It is one of the founder members of the organization of petroleum exporting countries. A holistic study on Iran shows that are having much of the global oil wealth. Iran is an Islamic nation at the present, and located in the northeastern shore of the Persian Gulf. It is the hub of the Shia Islam, the second largest Islamic group in the world.
Brief History of Iran
One of the oldest and continuous civilizations in the world began in Iran. The history of Iran dates back to 4000 BC. It was unified as a nation by the Medes in 625 BC. The nation underwent an amazing turning point during its Islamic conquest between 633 and 656 BC. The country was continually under the reign of a shah from 1501 to 1979 when the Islamic revolution took place. Iran was formally known as Persia. Since the Sassanian era, Iranians call their nation Iran, but the country was officially known as Persia. The reigning shah of the Persian Gulf nation in 1935, Reza Shah Pahlavi, officially changed the name of the country to Iran in order to please Adolf Hitler.
Iran is the homeland of Mewlana Jalaluddin Rumi [Rumi] (1207 - 1273 / Persia) poet. in 2007 he was named most popular poet in US. Rumi's works are written in Persian and his Mathnawi remains one of the purest literary glories of Persia, and one of the crowning glories of the Persian language.
Various dynasties, wars and so forth have taken place in the Persian Empire over the years. It was conquered by Alexander the Great and later taken by the Achaemenid dynasty through fight. Afterwards, the nation was taken over by the Sassanian dynasty. The nation was also conquered by Turks, Mongols, Arabs and so forth. It was during the Safavid dynasty that Shia Islam was made the religion of the nation.
Crude oil was discovered in Iran in the early 20th century. The discovery raised international interest on the country. Great Britain and Russia became interested in the nation owing to the mineral deposit. Great Britain and Russia made an agreement with divided Iran into spheres of influences. Also, owing to its oil reserves, the United States particularly picked interest in Iran after the World War II.
On coming into power, Mohammed Mossadegh, the Prime Minister of Iran in 1951 took control of the oil industry from the Great Britain. Britain depended on Iranian oil and after several trail to overthrow, the government failed to connive with the US to oust the Mohammed Mossadegh and instituted Shah Mohammad Reza Pahlavi to power. This led to the Iranian revolution which forced the shah to exile and an Islamic republic was formed.
Iran an OPEC member
Since it was formed in 1960, OPEC’s mission has been misunderstood by many countries of the world. The organization was formed for the betterment of its member nations. It works to ensure that member nation’s benefit in the sale of crude oil drilled from them. The domination of the oil and gas industry and control of pricing in the industry by the erstwhile multinational oil firms “Seven Sisters” led Iran, Kuwait, Iraq, Saudi Arabia and Venezuela to a meeting in which OPEC (organization of petroleum exporting countries) was born.
The formation of the organization was as a result of the move first made by Iran and Venezuela and supported by Kuwait, Saudi Arabia and Iraq. The group was joined by other members including Nigeria, Algeria, Angola, Gabon, Indonesia, Libya, Qatar, Ecuador and the United Arab Emirate. The primary aim of establishing the group is to bring together and coordinate the member nation’s petroleum policies.
Due to the embargo forced on Iran, the country could not function in its usual oil exploration and export capacity. However, after it reached a temporary agreement with world powers over its nuclear activities, Iran wants its OPEC members to make room for its return to the oil market. Iran reached an interim consensus with the P5+1 nation which included the US, the UK, China, Russia, France and Germany on November 2013 which reduced some of its trade sanctions. However, the sanction imposed by the US and Europe on Iran that prevents the importation of oil from the country was not eased.
Iran beckoned on its OPEC member countries to help it get back to the market. The former second largest producer of petroleum was producing up to 3.6 million barrels of oil per day in 2011 has been drawn backward due to the embargo as it now produces 2.6 million barrels of oil per day. The nation also experienced a decline in its crude oil export to other nations due to the sanction. Iranian minister for petroleum, Bijan Namdar Zanganeh said that he hopes the member countries will show wisdom and open doors for them and not to fight with them.
Embargo on Iran
The growing global concern on Uranium Iranian research has caused lots of countries to place an embargo on the nation. However, in 2009, International Atomic Energy Agency head said that no official evidence points hands to the fact that Iran is developing nuclear weapons. The IAEA further reported concerns in 2011 about the chances of Iran taking military measures in its nuclear programs. It stated that some Iran may be developing nuclear weapons in secret and it calls for attention.
Not only governments, but also lots of multinational companies have imposed sanction against Iran following its nuclear dimension.
1.The UN has imposed various sanctions against Iran with respect to the ongoing nuclear research in the country. Following the report by the Board of Governors of the International Atomic Energy Agency as regards Iran’s failure to comply with its safeguard agreement, the UN imposed sanctions on the country.
The UN Security Council resolution 1696 was passed on 31 July 2006 and demanded that Iran suspend the processes.
The UN Security Council resolution 1737 was passed on 23 December 2006 and banned the supply of nuclear related materials and technology to Iran. It also froze asset of major individuals and companies which have something to do with the program.
The UN Security Council resolution of 1747 was passed on 24 March 2007 and expanded the subsequent embargo.
The UN Security Council resolution 1803 was passed on 3 March 2008 and extended the asset freeze and many more
2.Iran also received lots of other non-UN-mandated sanctions. Countries like China, Australia, Canada, India, Israel, Japan, South Korea, Switzerland and the United States placed an embargo on Iran. However, India was against expanding its sanction as it cannot do without the 12 percent of the oil it imports from Iran. The United States imposed a total economic ban on Iran. The embargo included a ban on companies transacting with Iran, ban on Iranian financial institute, ban on every Iranian import and many more.
The sanction has taken serious effect on Iran and affected the nation greatly. It brought severe difficulty on the nation as it made the production and export of oil in Iran very difficult. Iranian economy was almost totally dependent on oil, and this has led to the continuous fall in the economy according to data published by the Iranian Central Bank. Iranians share in the export of oil products were remain continued to be decreased from 84.9 percent in 2006/2007 to 79.8 percent in 2010/2011. The sanction has also made it very difficult for Iran to continue with its nuclear program as it imposed difficulty in purchasing the equipment and materials for the program.
Past Present and Future of Iran from Socio-economic & political standpoint
Revolution in Iran
The Iranian revolution, commonly known as Islamic Revolution of Iran or the 1979 Revolution is an event which took place under the Qom religious scholar led to the ousting of Mohammad Reza Shah Pahlavi out of the office. Pahlavi was supported by the United States to keep him in the office. The revolution led to the dynasty system with an Islamic republic. The leader of the revolution was the Grand Ayatollah Ruhollah Khomeini, and he was supported by various Islamic organizations as well as student movements.
The demonstration against Mohammad Reza Shah Pahlavi began in October 1977, and it was religious based. The demonstration was fueled in January 1978 and was consequently followed by strikes and other demonstrations which crippled the country. Under the heat of the demonstration, Pahlavi, the last Persian monarch went for exile and left his duties to some substituting group. Ayatollah Khomeini was returned to Iran two weeks later after over 14 years of exile. This led to the revolution in Iran and the overthrowing of the royalist government.
Khomeini was brought to official power, and the nation was made an Islamic republic in April 1, 1979. A new constitution based on theocratic-republic was enacted. Khomeini became the Supreme leader of the country.
Iranian revolution was an unusual one. It did not have characteristics and features common to other revolutions. The revolution brought surprises globally. There was no financial crisis, angry military, and it happened in a nation enjoying prosperity.
Persecution of Baha’I’s in Iran
The Islamic Republic of Iran is dominated by the Shia Islam. This is the second largest sect of Islam which believes in infallibility, sinless and divine authority of Ali’s descendants. These descendants are called Imams. Iran does not accept anything that speaks against the Ali’s descendants and his prophet. This explains why Baha’I’s are persecuted in the country.
Baha’I’s persecution does not take place only in Iran but also in many other countries of the world. The Baha’I’s Faith sprung up in Iran and therefore Iran is the place with the largest number of Baha’i followers. The persecution arose because the Baha’I’s teaching was not in line with the traditional Islam beliefs. The teaching also questions the position of Prophet Muhammad and thus it was placed out of Islamic faith. The Baha’I’s was seen as an apostate, and therefore many believed that he deserved to die.
The members of the group are severely persecuted, arrested, imprisoned, tortured, executed, denied employments, denied government benefits, access to higher education and civil rights and so forth. Baha’u’llah established the faith in 1863 in Iran where about 89 percent adhered to the Shai doctrine of the coming messiah. Baha’u’llah lay claims that he is the messiah foretold by Báb that would come.
This simply means that he was the manifestation of God. This led to an unrest, chaos and immense disagreements. He not only made claims be the manifestation of God, he also made a suggestion that Western Sciences be included in the curricula, that men and women are equal, that priests are not necessary anymore and many more.
Baha’u’llah tried to bring the disputing sides together rather than holy war in order to further spread his faith. He wanted to engage in the dialog with some government agencies, but the nature of his claims made it difficult for people to accept his faith and therefore Babi’s are still persecuted till date in different parts of the world.
Iran and USA Position on Nuclear Reactor Issue: Historically and Today
In the 1950s, the US was busy promoting nuclear power around the world. The US nuclear industry's first client was Iran – then under the control of Shah Mohammed Reza Pahlavi.US started “Atoms for Peace” program in 1957; under this program US linked a civilian nuclear development deal with Iran. The US sold a small research reactor to Iran after 3 years later. This was 1967, when this reactor went online, Iran signed the NNPT.
In 1970, the U.S. (joined by France and Germany) began negotiations for the development of 20 nuclear reactors within Iran. The "nuclear superpowers" conjointly mentioned establishing an Iranian nuclear weapons program. When U.S. intelligence did finally discover Israel's nuclear facility, in 1960’s, Israeli leaders insisted that it was absolutely for peaceful functions which they weren't fascinated by getting a nuclear weapon.
In 2005, US Secretary of State Colin Powell advised to Congress that Iran was harboring a scheme to make nuclear weapons. The argument was weakened, however, as a matter of fact, it was Powell who earlier created the notoriously claim that Republic of Iraq harbored "Weapons of Mass Destruction." During a gathering with United Nations agency officers in Geneva, Iran's Supreme leader Ali Khamenei offered a dramatic response to Powell's allegations: He formally declared a binding ruling for banning the assembly, reposting of nuclear weapons. "We do not like atomic bombs and, supported our non-secular teaching, we'll not pursue them," Iranian President Mahomet Khatami announced. It absolutely was a sentiment that ought to have given comfort to a cautious world that has nonetheless to listen to any similar statements from the leaders of nuclear-armed Superpowers.
Top Cities in Iran
Tehran is the capital of Iran with a population of about 8.3 million people. It is the largest city and urban area in the country. It is also the largest city in Western Asia. Lots of mosques, churches, Zoroastrian fire temples, synagogues and so forth exist in the city. Tehran is the economic center of Iran. It is where up to 30 percent of Iran’s public sectors are located. A few foreign companies also exist in the city. Modern industries in this city include automobiles, electronics, electrical equipment, weaponry, textile, chemical products, cement, sugar and so forth. It is the center of furniture and carpets in Iran. Tehran has four airports and an oil refinery.
Mashhad is a city located in the province of Razavi Khorasan. It is the second largest city in the nation as well as the second largest holy city in the world. Mashhad therefore attracts over 20 million tourists and pilgrims annually who come to reverence the Imam Reza shrine. Besides religious activities, the city also accounts for lots of other activities including manufacturing activities. Manufacturing activities taking place in this city include carpet manufacturing as well as the production of pharmaceuticals, textiles, processed foods, chemicals and many more.
Isfahan was Persian capital in 1598 when Shah Abbas the Great moved his capital from Qazvin to the city. This brought about the golden age of the city that lasted until its invasion by Afghans. Isfahan is notable for its rug manufacturing, food and various other cultural activities. It is a major textile-milling center in the nation and center of Cotton, silk, wool and so forth. Other materials manufactured in the city include carpets, foodstuffs, metals and so forth.
Karaj is a city located in the northern Iran. It is economically important due its closeness to Tehran. Different kinds of goods are produced in Karaj including chemicals, fertilizers, processed agricultural products and so forth. Karaj is very important for its transport and industrial features. It also connects the northwestern Iran with a large population and the Caspian Sea.
This is a city in northwestern Iran. It is a manufacturing center as well as a center for commercial and transportation activities. Products manufactured here include among others carpet, textile, processed foods, soap, electronics, footwear and so forth. The modern industries in this city include petrochemicals, refinery, cement, electrical and electronics, home appliances, leather, nutrition and dairy, vehicles, machinery and so forth. It is the home of lots of companies and basically the home of Iran Tractor Manufacturing Co (ITMCO), one of the biggest industrial complexes in the Middle East which produces a host of commodities.
Iran Energy Scenario
The energy consumption has risen in last ten years due to rapid industrialization. The total energy supply reached up to 1493.21 million barrels of oil in 2008. The annual growth rate of energy consumption increased at a rate of 6.4% from 636.3 Mboe to 1187.4 Mboe during 1998-2008. Figure below presents fuel energy supply and type in past years.
Iranian energy sector broadly depends on Oil & Gas but due to decrease in fossil fuel reserves, the government has decided to control and reduce the energy consumption especially in commercial and residential sectors. The contribution of crude oil and gas in energy has decreased up to 44.02% and 54.93% respectively in the last decade. The contribution of the other energy resources like hydropower, coal, biomass, solar energy and the wind is only 1%, which is far below relative to the other countries.
Challenges and Opportunities in Iran
Iran has undergone severe embargo owing to its nuclear program. It was sanctioned by many nations of the world including the US, China, UK and so forth. This has made the Islamic nation go backwards in terms of economic development and businesses. It has also slashed back from its former position as the second highest producer of crude oil to the sixth largest. This makes it potentially risky to do business in Iran even with the interim consensus reached between the US and Iran over the lifting of some of the trade embargo.
However, having settled Iran interim and Iran reached an agreement with the US, and it is now open for business again. As a matter of fact, Iran pleaded its OPEC member nations to make way for it to enter the international market. Lots of companies in the United States as well as other countries are getting ready to do business with Iran. Iran has lots of natural resources. Its oil reserve is one of the largest in the world. Thus, doing business with Iran is one of the best ways to make huge lots of revenues especially with the trade sanctions lifted.
Nanotechnology Development in Iran
Iranian policy makers have put special focus on fast advancement of emerging technologies especially nanotechnology. The government's attention to nanotechnology in Iran began in 2001, when Iranian President Mohammad Khatami announced Technology Cooperation Office (TCO) for developing tasks for nanotechnology in the country.
In 2003, after comprehensive researches and evaluations, TCO recommended the creation of a council and was given the job of defining a direction for nanotechnology advancement in Iran. After the formation of this council in 2001, many activities were arranged by TCO and the most essential ones:
1. Networking in between country labs that have tools of typical interest,
2. Identifying Iranian experts energetic in nanotechnology and assisting their tasks,
3. Supplying financial motivations to Iranian scientists to publish nanotechnology articles in international peer reviewed journals.
4. Finding worldwide partners for study and medical collaborations,
5. Advertising advances in nanotechnology in Iran and various other countries,
6. Offering of sophisticated nanotechnology programs in M.S and Ph.D. programs throughout Iranian colleges.
Iranian Nanotechnology Initiative Program (NINI) was approved by Iranian cabinet in July 2005. Provided the critical duty NINI played pivotal role in the advancement of nanotechnology in Iran, and targeted three goals as mentioned below:
1. Getting access to a reasonable share of international trade of products that include the usage of nano-materials or use of nanotechnology,
2. Developing the suitable foundation for getting the benefits of nanotechnology with the intention of boosting the top quality of life of individuals in Iran,
3. Powerful advancement of nano-science Institutionalizing sustainable, nanotechnology, nano market and so forth.
As a result of policy and available official reports, Iran is now considered at the top in the Middle East and 9th in the world in the field of nanotechnology. Iran has achieved self-reliance in the field of nanotechnology. Iranian technocrats gained the ability to produce 38 types of nanotechnology equipment and tools at laboratory scale.
Currently almost 200 companies are working in different fields of nanotechnology and produced more than 130 products. Automobile is one of the industries which using nanotechnology and making an increasing use of nanotechnology products.
Iran has gone through lots of tolls and hassles. The various dynasties as well as the revolution did not leave the nation same. However, the Persian Gulf countries still survived in the presence of these challenges. This shows that how strong Iran is? With the trade embargo lifted on an interim basis, it is expected that Iran will still rise to a high pedestal in the global economy as well as in the production and export of crude oil.
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""We are global citizens under one roof with no barriers." " Antonio Bhardwaj
"“Like a sculptor, if necessary, carve a friend out of stone. Realize that your inner sight is blind and try to see a treasure in everyone.” " Mewlana Jalaluddin Rumi [Rumi] (1207 - 1273 / Persia)
" The minute I heard my first love story, I started looking for you, Not knowing how blind that was. Lovers don't finally meet somewhere. They're in each other all along. " Mewlana Jalaluddin Rumi [Rumi] (1207 - 1273 / Persia)