Many have congratulated Iran that its recent crisis has come to an end and some even traveled to Tehran to congratulate officials face to face. However, the crisis has not ended and it’s actually very complicated.
According to some media reports, increased prices of poultry and poultry products sparked the protests. The Iranian authorities claim that egg prices increased by 40% due to bird flu. Egg prices increased by 30% in last November while the price of the Iranian rial in the black market decreased to 42,000 rials per one dollar from 39,000 rial. This led to significant increase in the overall inflation rate - – but not overly high – which is now 11%.
The increase in egg prices is inconvenient but it does not make hundreds of thousands of people take to the streets. Before the authorities blocked social media networks, Radio Farda published on January 2 a video that shows protestors burning a police station in Qahderijan which is 24 kilometers away from Isfahan. Qahderijan is very small and no one thinks about it. Its villagers have felt injustice as the river of Zayanderud which irrigates Isfahan dries before it reaches their village. This is due to Iran’s mismanagement of dwindling water resources.
Imminent economic crisis
Iran suffers from several crises. Managing water is only one thing of many other issues which have accumulated since the 1979 revolutionHuda al-Husseini
He added that the Iranian regime is willing to sacrifice what the economy desperately needs in favor of its ambitions in Syria. According to the Central Bank, Iran decreased expenditure on development to one-third while the state’s revenues fell short of expectations during the last three quarters which ended in December.
Iran suffers from several crises. Managing water is only one thing of many other issues which have accumulated since the 1979 revolution. For example, pension funds face bankruptcy in the short term. There are also the government’s annual arrears to the social security which suffers from lack of funds. Given the number of Iranians who reached old age, we can tell that Iran is a country that’s getting older before it gets rich, and this will affect pension payments resulting in a crisis that will be much worse than any other crisis.