Islamic Republic of Iran: Managing the Transition to a Market Economy

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Author/Editor:		Jbili, A. \| Kramarenko, V. \| Bailén, J. M.
Published:	March 1, 2007
Electronic Access:		Link to Abstract
Summary: This Special Issues Paper takes stock of key developments in the Iranian economy in recent years, reviews the key issues and policy responses, highlights the nature of the challenges ahead, and draws implications for the next phase of reforms. Iran has received much attention from a geopolitical and regional standpoint, but its economic challenges have not attracted a similar degree of interest. Yet, with a population of 69 million, considerable hydrocarbon resources, a dynamic and entrepreneurial middle class, and a relatively well-educated labor force, Iran's economic potential is considerable. Equally important is Iran's experience with economic reform, which deserves attention for several reasons: (i) Iran is in transition to a market economy, and the process has been neither been smooth nor supported by external conditions; (ii) significant advances have been made in recent years in opening up the economy to international trade and foreign direct investment, encouraging the private sector, removing exchange restrictions, reforming the tax system, and enhancing macroeconomic management; and (iii) despite the progress achieved, major challenges remain.

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Subject(s):		Markets \| Iran, Islamic Republic of \| Economic reforms

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