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Entries in Ayatollah Ali Khamenei (29)

Monday
Mar222010

Iran Analysis: Politics and Subsidy Reform (Harris)

Kevan Harris writes in Middle East Report:

Although most Iranians forget it today, Mahmoud Ahmadinejad was elected in 2005 on a platform of technocratic competence. The clique surrounding his rise to mayor of Tehran and beyond once called themselves Abadgaran, “the Developers.” In a column four months after Ahmadinejad’s election to the Iranian presidency, commentator Saeed Laylaz reminded readers of the sage advice of Deng Xiaoping, arguing that a hard-line conservative government could push through economic reforms where the reformist administration had failed. “The cat is finally catching mice,” Laylaz wrote, “and its color no longer matters.” After the exhaustion of the reform movement’s momentum, Ahmadinejad presented himself to the people as the intrepid engineering professor, the humble, principled and no-nonsense expert who could get things done. “Expert,” in fact, is one of the good doctor’s favorite words.

What occurred was instead second-rate. The network of clients enveloping the new president set its sights on capturing the money and resources controlled by the ossifying bureaucracy of the Islamic Republic. Abadgaran men and assorted hangers-on replaced the aging first generation of post-revolutionary technocratic cadres. No sweet plum remained unpicked in the state agencies and ministries, not even in provincial offices and the development projects they oversaw. The rebellious tone with which this turnover was presented—“throw the bums out”—resonated with the lower social strata, who have rarely benefited from state largesse.


In 2007, the president stuck a pitchfork of his own in the 60-year old Planning and Budget Organization, taking away its independent auditing power. But overall the Ahmadinejad administration has not exactly been distinguished by fiscal discipline and managerial efficiency. Ahmadinejad, for instance, has paid three rounds of highly publicized visits to the oft-neglected provinces. On his tours, he has been met with hundreds of thousands of handwritten letters asking for small favors—resolving a quarrel with a local official, helping a son lacking sufficient connections for a state post, defraying the cost of an upcoming wedding or paying an overdue bill. The supplicants received personalized replies, and a few dozen thousand-toman notes (1,000 tomans equal $1) were stuffed into the envelopes for good measure. Ahmadinejad’s political vehicle was nothing less than a new patronage machine. It is an administration charismatic in appearance, but inconsistent in policy and practice.

In the spring of 2010, with the country still in political tumult over the dubious election of the previous June, and in economic pain due to global recession, the reinstalled engineer-president announced a plan that drew out critics of his competence in droves. The government proposed to enact the most sweeping economic policy change in over a decade: a phasing out of price subsidies for nearly all staple commodities—bread, electricity, water and gasoline—starting in March and continuing until 2015, when they would cease entirely. The plan provoked immediate protest and predictions of chaos, prompting parliamentarians to chop half of the cuts out of the budget bill they passed on March 9

Easy Money No More

Ahmadinejad’s political opponents within the Islamic Republic, from reformists to pragmatic conservatives, and irrespective of their feelings about the Green Movement arising after the June election, were pleased to see the president on the economic hot seat at last. After 15 years of attempting to construct their own versions of a modernization project, they were aghast that this upstart had labeled them as the backward, out-of-touch cronies of an old elite. Whether they had sought to do so through a glasnost-style opening, like former President Mohammad Khatami, or through a top-down economic restructuring, like Khatami’s predecessor Akbar Hashemi-Rafsanjani, they had been equally disparaged. Infuriating them more was that Ahmadinejad liberally stole from their policy playbook, just as President Bill Clinton was etched into the pages of US history though the use of softened Republican Party talking points. Politically, the Islamic Republic’s bêtes noires in the Bush administration gave the Iranian regime easy targets with which to justify their position: a region in conflagration and blatant enforcement of double standards in nuclear geopolitics.

For most of Ahmadinejad’s first term, the money poured in, in the form of oil rents inflated due to the same regional crises. The government rode the heady boom in land prices and resplendent construction projects. In 2006–2007, many Iranians with capital jumped into the housing market, seeing dizzy gains of 100 percent every year. The resulting real estate bubble temporarily concealed the lack of a coherent development policy. The benchmarks and proposals of the Fourth Five-Year Plan (2005–2009), passed in Khatami’s era, were discarded in favor of hundreds of bridges to nowhere, and most of these were not even completed. The economy entered a liquidity trap, where over-accumulation of capital and a lack of profitable outlets for investment drove down the rate of return while sending prices into an upward spiral. Finally, Iran’s central bank reined in the easy money in mid-2008, months before the collapse of global financial markets (with much resistance from the president, who forced the two largest state banks to continue to hand out loans, resulting in the large debt burdens of today, as borrowers default). Each block of every middle-class neighborhood in Tehran is now home to three or four real estate offices, all filled with jacketed agents listlessly huddled together.

The economic hangover allowed political competitors to pin the label of ineptitude on the president’s dwindling faction and make it stick. If any theme permeated the televised debates between presidential candidates before the June 2009 election, it was competent governance. The intra-elite bickering was so intense that it arguably burned through the electorate’s apathy and ignited mass participation in the balloting.

Into this environment the President introduced his subsidy reform law, whose provisions were as follows: The government spent around 40 percent of its 2006 budget ($40 billion) on such subsidies and even more during 2008’s oil price peak. Of the revenue gained from the lessening of subsidy levels, the state would keep 20 percent, ostensibly compensating for increased costs in the public sector. Another 30 percent would be allocated to industries that rely heavily on subsidies and development of more energy-efficient infrastructure. The remaining 50 percent would be given back to Iranians in direct cash transfers or indirect welfare benefits, “targeting” the poorest strata of the population. After five years, the prices of the staples were to be close to regional market levels. The parliament wrote into the law that the government should gain no less than $10 billion and no more than $20 billion during the first year, which would have meant increasing prices for subsidized goods on average between 2.5 and 4 times their current levels.

Debate over the law was heated, even a bit melodramatic, with parties for and against seeming to believe equally in the awesome power of unregulated markets. The president identified this single reform as the solution to the country’s many economic, social and perhaps even cultural woes. On March 9, amid reports that Parliament would approve only half of the cuts, state news agencies relayed that Ahmadinejad was praying in the chamber for passage of them all. Critics of the law, including stalwart conservatives in Parliament, predicted hyperinflationary catastrophe and industrial collapse. Green Movement supporters hoped that an intensification of economic grievances would keep middle-class Iranians, some of whom see the plan as a government attack upon their livelihoods, coming into the streets. Labor activists foresaw a new surge of working-class unrest to fuel the Green fire.

The drama of the subsidy debate was all the higher for playing out against the backdrop of the post-election turmoil and the fragmentation of the political elite into so many temporary chiefdoms, with the accompanying fleeting wars and alliances. In this climate, no policy initiative on the scale of subsidy reform would proceed without the express approval of Ahmadinejad’s patrons, Supreme Leader Ayatollah Ali Khamenei and the Revolutionary Guards. Why, given the hubbub, did they permit the president to move forward with the subsidy-cutting plan? Have they gone nuts?

Read rest of article....
Monday
Mar222010

Iran: View from Tehran "Changes within the System are Impossible"

A reliable EA source passes on these insights from a well-placed contact:

Today an Iranian friend called.

According to him, the Government did effectively scare the people by killing and arresting them and relentlessly summoning political activists or journalists to court. It also is promoting itself through intense propaganda.

Oppositional administrative structures are virtually destroyed, which was one of the reasons for the tohubohu [confusion] on 22 Bahman [11 February, the anniversary of the Revolution]. Nevertheless the people resist, and growing rifts are visible within the regime's body. The number of people, even very religious ones, who doubt the Government's pretentions, is growing day by day. Meanwhile many have realised that changes within the system are impossible, and even parts of the clergy favour a separation of state and religion.



He said "hormat-e hokumat shekast" (the ruler's honour is broken --- just think of people's reaction to the Supreme Leader's attempted fatwa on the ceremonies of Chahrshanbeh Suri). Apparently Ahmadinejad and his mafia possess documents relating to the Supreme Leader, which force Khamenei to abide by their wishes.

He deemed Ayatollah Mahdavi Kani's support for Rafsanjani as essential and favoured a tripartite tactic of oil sanctions, political challenge, and popular resistance to bring down this regime, even though it would be hard for the Iranian people. Without sanctions the govt would have enough income to maintain its pressure on dissidents, i.e., the Iranian majority.

This friend is very religious and has good contacts to the ruling classes. He reported also that Sepah [Revolutionary Guard] is smuggling money out from the country via Dubai.
Sunday
Mar212010

The Latest from Iran (21 March): Happy New Year, Mr Ahmadinejad

1750 GMT: It's All About US and Us. A slowish news phase, so the media are focusing on Ayatollah Khamenei's Sunday speech. It's on the lines of the Twitter publicity put out by his office (1330 and 1420 GMT), but this extract is especially provocative:

The enemies wanted to divide the people... and to create a civil war, but the nation was alert. If they were able to do it, the US and Zionist regime would have sent troops to Tehran's streets, but they knew it would hurt them. Thus they spread propaganda and supported the rioters.

1730 GMT: We've posted Iranian New Year videos featuring defiant chants from the opposition.

1440 GMT: Parliament v. President. Islamic Republic News Agency is claiming a fight-back against Parliamentary resistance to Ahmadinejad subsidy reform and spending proposals, quoting Arsalan Fathipour, head of the Parliament's economic commission, "We believe it is not possible to implement the subsidy reform plan at 20,000 billion tomans ($20 billion). So delegates intend to raise the figure to 35-38,000 billion tomans ($35-38 billion)." That would be almost all the $40 billion demanded by the President.

NEW Latest Iran Election Video: Nowruz and the Green Movement
NEW Iran Snap Analysis: A Rights-First Approach in Washington?
NEW Iran Video and Summary: Karroubi’s New Year Message
Latest Iran Video and Transcript: Obama’s Nowruz Message (20 March)
Iran Appeal: Japan’s Deportation of Jamal Saberi
Iran Analysis: Ahmadinejad Fails in Qom? (Verde)
Iran: Inside the Mind of the Interrogator
The Latest from Iran (20 March): Nowruz


1430 GMT: Obama and Iran. Edward Yeranian of the Voice of America claims that there was a "mized" reception amongst "Iranians inside and outside Iran" of President Obama's Nowruz message.


1420 GMT: "Rights" Annoys Khamenei. The emphasis in Barack Obama's Nowruz message on rights for Iran's people has annoyed the Supreme Leader. His office's Twitter barrage continues:
USA President sent letter and message to normalize relations, but his actions was against his words....USA President called distruptives "civil movement" and supported arsonists in recent events....Aren't you ashamed of killing in innocent people in Iraq and Afghanistan while talking about Human Rights?

1340 GMT: Winning on the Internet. The Guardian of London offers an interview with Austin Heap, the creator of the Haystack initiative to assist Iranians with access to the Internet, evading regime blocks and protecting their security.

1330 GMT: Everything Most Excellent Here. Really. The Supreme Leader's Twitter machine is extracting English quotes from his Nowruz message. My favourite so far: "Last Iranian year was the nation's year and their victory; a year of seeming presence in glorious arena."

1005 GMT: Speaking of Rights. Nooshabeh Amiri, writing in Rooz Online, considers "Women’s Movement [As] a Prelude to the Green Movement".

1000 GMT: US, Iran, and Rights. We've put our snap analysis of a possible shift in US policy on Iran into a separate ent

0900 GMT: The Ruling of the Umpire. The Iran-based blogger Persian Umpire is back after an absence with three entries: one on the events of 22 Bahman (11 February), one on waiting outside Evin Prison for a detained friend, and one on last week's Chahrshanbeh Suri (Fire Festival) ceremonies.

The summary of the festival offers one of the classic observations of this post-election crisis: "No one gave a certain rodent’s bottom for the fatwa [of Ayatollah Khamenei]. In fact it solidified people’s resolve to come out and celebrate."

0700 GMT: As Iranians celebrate Nowruz, they have been greeted by messages for the New Year. And there is more than a bit of politics behind the best wishes. The most pointed intervention may have come from Mehdi Karroubi, who derided the regime (a "small barge" not a "galleon") as illegitimate. We have the video and a summary.

President Ahmadinejad offered his own message, but the question is whether it has been overshadowed by events which do not point to 1389 as his happiest year. Consider....

As EA's Mr Verde predicted, the President got both a slap and a warning with the release of Hashemi Rafsanjani's relative and political ally Hossein Marashi from prison. Officially, the freedom is only temporary for Nowruz --- Marashi was jailed on Thursday after an appeals court upheld a one-year sentence for "propaganda against the regime". Beyond the official, the political significance will be whether Marashi goes back to prison; if not, it will be a dent in the authority of the Government.

Rooz Online echoes Mr Verde's assessment of an Ahmadinejad failure in his Thursday mission to Qom to get the support of senior clerics, claiming "the chief authorities refused his presence". (Rooz adds a name to those who did meet with Ahmadinejad: Ayatollah Makarem-Shirazi.)

In Tehran three lawmakers, prominent in economic discussions, criticised Ahmadinejad for his Friday suggestion of a referendum on his subsidy reform and spending plans, saying he is legally obliged to execute the economic reform plan approved by the Parliament. Gholam Reza Mesbahi Moqaddam, Ali Tavakkoli, and Elyas Naderan  said in ajoint statement, "The president does not have the right to disobey a law which has been approved by the Parliament."
Sunday
Mar212010

Iran Video and Summary: Karroubi's New Year Message

[youtube]http://www.youtube.com/watch?v=TodPGumtlvk[/youtube]

Amidst the Nowruz messages inside and outside Iran, Mehdi Karroubi made his contribution yesterday. There was a lot more beside New Year Greetings --- Mr Verde analyses:

Karrroubi says that he does not believe in an Islamic Republic which is limited to a few clerics like Ahmadinejad supporters such as Mesbah-Yazdi, Jannati, Shojooni, Hassani, Hosseinian, Ahmad Khatami or an Iran which only includes officials like Ahmadinejad, Mohammad Reza Naqdi, Gholam-Hossein Elham, Saeed Mortazavi, and Jalalladin Farsi (who he says is a murderer). Ridiculing Ayatollah Khamenei's reference to the "ship of the regime", he says that the current regime is like a "meagre barge" not a large "galleon".


Karrtoubi also talks about the martyrs of the street protests, the tortures, the detentions, the press closures and imprisoned journalists and former regime officials.

He says that he will give his life in order to defend the country, Islam and the Islamic Republic, but he adds that he does not believe in a regime that belongs only to a small group and their beliefs
Friday
Mar192010

The Latest from Iran (19 March): Untamed?

2120 GMT: Mahmoud Goes to the Country? OK, it's not just Internet chatter. EA readers bring me up to speed: in a televised statement on Friday night, President Ahmadinejad set out the possibility of a referendum on his proposal to control $40 billion from subsidy reductions (the Parliament only gave him $20 billion).

And Ahmadinejad wasn't pulling punches: he said that his "conservative" opponents in Parliament were verging on "treason" with exaggerated statements of the inflationary potential of his plan. Fortunately, he reassured, their economic estimates were not correct.

NEW Iran: Ethnic Minorities and the Green Movement (Ghajar)
NEW Iran Academic Question: Suspending North American Studies?
Latest Iran Video: Mousavi’s and Rahnavard’s New Year Messages (18 March)
Iran: Reading Mousavi & Karroubi “The Fight Will Continue” (Shahryar)
Iran & the US: The Missed Nuclear Deal (Slavin)
The Latest from Iran (18 March): Uranium Distractions


2110 GMT: Containing the Poet. Another story to pick up --- National Public Radio has a profile of 82-year-old Simin Behbahani, the poet who is so dangerous that Iranian authorities seized her passport as she was about to board a flight for an awards ceremony in Paris.


2100 GMT: Back from a movie break. (Iran as Wonderland? Discuss.) Little happening this evening, though there is Internet chatter that Ahmadinejad may go to the country for a referendum on his subsidy reform proposals.

The break is useful to pick up on a couple of important stories. Persian2English has posted an English translation of the Committee on Human Rights Reporters statement of 17 March, responding to the regime's efforts to break human rights activists with charges of their role in US-backed "cyber-warfare":
Exaggerated claims that human rights activists are connected to foreign or political organizations have been repeatedly disseminated by Tehran’s prosecutor, domestic and military media, intelligence interrogators, and internet bandits. No plausible or credible evidence has been introduced to back their accusations of blatant lies....

The Committee of Human Rights Reporters has indicated in their mission statement, in interviews, and in their official announcements that their activities are limited to human rights issues, and they are proud of their work.


1615 GMT: And Via Satellite. European Union ambassadors have declared in Brussels that the EU is determined to end Iran's "unacceptable" jamming of satellite broadcasting and Internet censorship: "The EU calls on the Iranian authorities to stop the jamming of satellite broadcasting and Internet censorship and to put an end to this electronic interference immediately."

1520 GMT: Internet Diplomacy? Secretary of State Hillary Clinton, in an interview with Bloomberg, has highlighted the US Government's support of initiatives to get around Iranian restrictions on Internet access.

Clinton declared, “We’re doing a lot, let me just put it at that, because we think it is in the interests of American values and American strategic concerns to make sure that people have a chance to know what is going on outside of Iran." She claimed that a license had been issued to an (unnamed) company to boost access. Clinton added:
I’m sure that the Iranian authorities will do what they can to block any move that we make, so it’s like a chess game. We’ll go back and make another move, because we think we owe it to the Iranians, particularly during this period when there is so much at stake

1430 GMT: The President and the Clerics. An EA reader brings up to speed on the Ahmadinejad visit to Qom: Khabar Online has pictures of the President with Ayatollahs Mesbah Yazdi, Nouri-Hamedani and Jafar Sobhani, as well as a group shot.

Ahmadinejad's deputy for religious affairs claims that the meeting's atmosphere was good with the President "convincingly" answering some complaints from the clerics. The marjas brought up the people’s income problems, which should be solved, and cultural matters. AN promised to deal with these and also to transform Qom into the most beautiful town of the country.

Another meeting is planned with Jame’eye Modarressin (Association of the Teachers and Researchers of Qom).

1230 GMT: Political Prisoner Watch. Human Rights Activists in Iran have issued a list of 2560 detainees for the Iranian Year 1388 (March 2009-March 2010). The large majority were arrested after the election.

0855 GMT:  Political Prisoner Watch. Philosophy student Ali Moazzami has been released on bail; however, other detainees such as journalist Emadeddin Baghi remain behind bars for Nowruz.

0845 GMT: Remembering. Mourners gathered yesterday at the graves of post-election martyrs, placing flowers and cards.

In front of Evin Prison, relatives gathered to demand the release of detainees, including Ms Elham Ahsani, supporter of the Mothers of Mourning.

0825 GMT: Rafsanjani Watch. Here's the Rumour of the Day --- Islamic Republic News Agency claims Hashemi Rafsanjani flew to Kish Island to meet his son Mehdi Hashemi, who wants to return illegally to mainland Iran via Dubai.

AFP picks up on the news, which we reported last night, that Hossein Marashi, a relative of Rafsanjani's wife and an ally of the former President, has been jailed for one year for "spreading propaganda".

0820 GMT: Economy Watch. Jahangir Amuzegar offers a broad analysis of the state of Iran's economy and the problems it poses for President Ahmadinejad.

0815 GMT: Qom Absentee. Looks like one person who was not at the President's meetings with senior clerics (see 0645 GMT) was Ahmadinejad's Chief of Staff Esfandiar Rahim-Mashai. Khabar Online, unsurprisingly, surmises that this is because the President was firmly told to leave Rahim-Mashai behind.

0755 GMT: On the International Front. Lots of media attention to apparent tensions in Moscow between Secretary of State Hillary Clinton and her Russian hosts over Iran. The immediate focus is on whether Russia will finally help Tehran to bring the Bushehr nuclear power plant on-line (Helpful Hint: the Russians are playing a double game, trying to delay completion while publicly declaring that they will ensure Bushehr will start operations in 2010).

The wider issue --- overlooked in The New York Times summary --- is whether Russia will give public backing to an expanded sanctions programme. The dispute in Moscow moves the arrow towards "No".

0745 GMT: Taming the Internet? The New York Times highlights the ongoing battle of the opposition for access to and dissemination of information with "Iran’s Opposition Seeks More Help in Cyberwar With Government". The article highlights both the steps forward and the sizeable challenge that remains. The take-away quote from Mehdi Yahyanejad of the Persian-language news portal Balatarin:
The Islamic Republic is very efficient in limiting people’s access to these sources, and Iranian people need major help. We need some 50 percent of people to be able to access independent news sources other than the state-controlled media.

0730 GMT: Pick Your Analysis. In sharp contrast to the analyses of other "Western" observers, Scott Peterson of the Christian Science Monitor asks, "Does Iran’s most powerful man – whose official title is God’s Deputy on Earth, infallible to his ardent followers – think he is winning?"

Caution is needed here as well. Peterson's supporting evidence of "several close observers" is primarily two unnamed Iranian academics, and some of their declarations are sweeping:
[The Supreme Leader is] in triumphant mood right now. But deep down, he knows he’s lost the war of legitimacy and popularity....Deep inside –-- this is my belief –-- he does not have a very good sleep at night. He’s very angry –-- that’s what I can see in his face. The slogans they leveled against him, the image he’s got –-- he’s lost a lot of the popularity he had.

More useful may be assessments which don't rely on speculating inside Khamenei's head:
It’s almost like one voice coming out of the establishment, state-run television, all their hard-line newspapers, saying that "we managed to crush them”

At the same time, worries are clear to see. They are not in a state of panic [as] in the past, but are still on very high alert. They feel that enemies are organizing, and reformers are just pawns.

0645 GMT: We start the morning clearing away the underbrush of distorted or wayward analyses of Iran's internal situation.

Flynt and Hillary Mann Leverett have written another hit piece, with weakly-supported polemic posing as analysis, claiming the death of the Green Movement.

Far more seriously (since I am not sure key circles in Washington are still paying attention to the Leveretts' repetitions), Najmeh Bozorgmehr of the Financial Times, who has been a quality front-line journalist in Iran, has carried out an examination of the opposition which gets muddled in editing. Bozorgmehr's evaluation is sharp and incisive in places, such as "The Green Movement’s leaders have changed course, publicly urging followers to stop mass demonstrations, to avoid bloodshed and to win support of other social groups, notably lower-income people." She adds, "Iranian analysts and western diplomats doubt if the regime has snuffed out the challenge of the opposition."

However, Bozorgmehr also has some loose, unsupported sentences, "Reformists concede that the intensifying radicalism of demonstrations helped Mr Ahmadinejad to shore up support." And the headlines are caricatures: the Financial Times goes for "Iran's Regime Contains Opposition", while the Irish Times creates, "Hard Line Seems to Have Tamed Iran's Green Movement".

Elsewhere, others have not been tamed. Journalist and activist Isa Saharkhiz, who has been detained for eight months, has told his family that he went on hunger strike Thursday morning and that other prisoners in Section 350 of Evin Prison will join him to protest illegal detention and inhumane conditions.

And President Ahmadinejad has tried to carry out his own taming by visiting senior clerics in Qom. The Financial Times reports that Ahmadinejad met six marja but gives no details beyond that. There is only the cryptic sentence from an analyst, "A massive lobby by the most influential authorities happened to convince the clergy to see the president."

That just raises another question: which "most influential authorities"? We are monitoring.