Iran’s Corruption Epidemic: A Crisis of Loyalties and Instability
As protests continue to rock Iran following the murder of Mahsa Jina Amini, a growing sense of instability has gripped the country. The nation is reeling from the impact of economic sanctions imposed since 1979, which have created an environment ripe for corruption to thrive.
Corruption and Instability in Iran
According to Hashem Pesaran, a prominent Iranian economist, only 20% of Iran’s economic woes over the past three decades can be attributed to sanctions. However, efforts to bypass these barriers have led to the emergence of informal black markets, where corruption can flourish as individuals seek alternative ways to access goods and services.
The Case of Babak Zanjani
The case of Babak Zanjani, a businessman who was tasked by officials during Mahmoud Ahmadinejad’s presidency to export Iranian oil while evading international sanctions, is a stark example of how corruption has become entrenched in Iran. Despite being initially sentenced to death for embezzlement, he was later pardoned and remains at large.
The Debate Over International Sanctions
The debate over the role and effectiveness of international sanctions continues to rage on. While some argue that more sanctions are needed to force the Islamic Republic to adopt acceptable behavior, others contend that regime insiders only benefit from sanctions while ordinary Iranians bear the brunt.
- Countries imposing sanctions claim they are targeted toward specific individuals and activities, but the reality is that they often have a devastating impact on average citizens.
- The anemic economy, combined with difficulties in repatriating Iran’s foreign exchange earnings, has resulted in an ever-weakening rial and high inflation, which Iranians feel daily.
The Effectiveness of Sanctions
Moreover, while sanctions may hurt ordinary Iranians, they seem to have little effect on limiting the access of officials to Western luxury goods and lifestyles. Sightings of officials flaunting expensive watches, iPhones, and designer clothes have become routine, casting doubt on the effectiveness of sanctions in curbing corruption.
Lack of Accountability
The inconsistency in enforcing sanctions has led to suspicions that foreign powers are not serious or consistent in applying penalties. Iranians inside and outside the country point to instances where visible trades, such as luxury goods, slip through the sanctions’ walls and are used as a reward for loyalty to the regime.
- The lack of accountability is further exemplified by cases of bribery, embezzlement, and diversion of funds, which have become routine in Iran.
- A common thread among these cases is their link to vast networks of patronage and rent-seeking interests, often including prominent members of the clergy.
Conclusion
As Iranians cry out for punishment for the regime’s egregious human rights conduct, sanctions seem to be the only instrument in the toolbox to bring about behavioral change within the mullahcracy. However, if not better targeted and enforced, sanctions may continue to perpetuate corruption and instability in Iran.
About the Author
Nadereh Chamlou is a nonresident senior fellow at the Atlantic Council’s empowerME initiative and an international development advisor.