Iran implementing “economy of resistance” to fight off western sanctions

Posted on July 28, 2012

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It seems like Iranian officials have finally started to realize what damage is being done to the whole country with sanctions being imposed on the Islamic Republic.

A few days ago a special meeting with representatives from Iranian parliament, presidential administration and the juridical system was held in the parliament, regarding the “economy of resistance” that Iran is implementing.

The five-hour meeting discussed the poverty, rising expenses on food, the industrial situation in the country, and also agricultural problems.

Iran’s parliamentary members, ministers of economy and finances, mining and commerce industry officials, oil ministry officials, and also officials from agricultural sphere, and Iran’s central bank participating in a dialogue, and sharing ideas.

The following problems were discussed, and agreed upon to be solved: inflation, high prices of agricultural goods, low level of currency exchange for traveling abroad, country’s dependency on oil money, and possible discounts in local banks.

Prior to that, country’s supreme leader Ayatollah Ali Khamenei made a speech, talking about country’s economic problems, and urged officials to find a way to deal with these issues.

After the meeting, Iranian parliament speaker Ali Larijani said that in order to tackle the impact of economic crisis and lower the high expenses in the country, a special headquarters was established.

This headquarters has been established from the members of Iran’s Iranian parliament, presidential administration and the juridical system – a total of 9 people.

Larijani noted that this headquarters has already began its work, while not yet being ratified, adding that because of the sanctions imposed by the West on Iran, these sanctions impact country’s economy badly, therefore it is needed to apply the “economy of resistance”.

ISNA reported that after the meeting, the minister of economy and finance Shamsaddin Hosseini said that Iran is currently saves money, and closely monitors domestic production to lessen the impact of international sanctions.

Another thing that Iran is currently implementing  the “travel exchange” (rial-to- foreign currency) strategy for its citizens, to save resources. Head of Iran’s Central Bank Mahmoud Bahmani said that from now on the “travel exchange” would only be available for pilgrims traveling to holy places.

The first conference on the “Economy of Resistance” was hosted in Tehran on May 17, 2012. The conference was inaugurated in the presence of Secretary of the Supreme National Security Council Saeed Jalili.

The conference was organized based on a guideline made by Supreme Leader of the Islamic Revolution Ayatollah Ali Khamenei who had said an economic system should be established to confront sanctions imposed by the West on Iran in recent years.

The United States and the European Union this month severely ramped up their sanctions on Iran with the aim of strangling its oil-export dependent economy in a bid to force it to roll back its nuclear activities.

“Economy of resistance” in action

Iran started off by first halting the imports of 19 oil-related products, according to deputy oil minister Mohammad Reza Mogaddam.

Iran’s Oil ministry, Ministry of Defense, and Khatam al-Anbia Air Defense Base signed a joint agreement upon which they will be jointly manufacturing some of the oil industry’s products.

Then, president Mahmoud Ahmadinejad ordered that the country starts to stockpile emergency first products, such as wheat, sugar, raw meat, rice that would be enough to hold the country alive for 3 months, if necessary.

Deputy minister mineral resource industry Hassan Radmard said this process in the country has already started, adding that some the products are being imported from outside countries as well.

Time will show whether this strategy of Iran will actually help. One thing is clear – Iran is stockpiling wheat, sugar, raw meat and rice – a move that some would assess as paying too much for nuclear ambitions.

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