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 Iran (2008)Iran (2007)
 IranIran
Agriculture - products wheat, rice, other grains, sugar beets, sugar cane, fruits, nuts, cotton; dairy products, wool; caviar wheat, rice, other grains, sugar beets, fruits, nuts, cotton; dairy products, wool; caviar
Background Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and the shah was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority vested in a learned religious scholar referred to commonly as the Supreme Leader who, according to the constitution, is accountable only to the Assembly of Experts. US-Iranian relations have been strained since a group of Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Persian Gulf and led to clashes between US Navy and Iranian military forces between 1987 and 1988. Iran has been designated a state sponsor of terrorism for its activities in Lebanon and elsewhere in the world and remains subject to US and UN economic sanctions and export controls because of its continued involvement in terrorism and conventional weapons proliferation. Following the election of reformer Hojjat ol-Eslam Mohammad KHATAMI as president in 1997 and similarly a reformer Majles (parliament) in 2000, a campaign to foster political reform in response to popular dissatisfaction was initiated. The movement floundered as conservative politicians, through the control of unelected institutions, prevented reform measures from being enacted and increased repressive measures. Starting with nationwide municipal elections in 2003 and continuing through Majles elections in 2004, conservatives reestablished control over Iran's elected government institutions, which culminated with the August 2005 inauguration of hardliner Mahmud AHMADI-NEJAD as president. In December 2006 and March 2007, the international community passed resolutions 1737 and 1747 respectively after Iran failed to comply with UN demands to halt the enrichment of uranium or to agree to full IAEA oversight of its nuclear program. In October 2007, Iranian entities were also subject to US sanctions under EO 13382 designations for proliferation activities and EO 13224 designations for providing material support to the Taliban and other terrorist organizations. Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and the shah was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority vested in a learned religious scholar referred to commonly as the Supreme Leader who, according to the constitution, is accountable only to the Assembly of Experts. Iranian-US relations have been strained since a group of Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Persian Gulf and led to clashes between US Navy and Iranian military forces between 1987 and 1988. Iran has been designated a state sponsor of terrorism for its activities in Lebanon and elsewhere in the world and remains subject to US economic sanctions and export controls because of its continued involvement. Following the election of the reformist Hojjat ol-Eslam Mohammad KHATAMI as president in 1997 and similarly a reformist Majles (parliament) in 2000, a campaign to foster political reform in response to popular dissatisfaction was initiated. The movement floundered as conservative politicians prevented reform measures from being enacted, increased repressive measures, and made electoral gains against reformers. Starting with nationwide municipal elections in 2003 and continuing through Majles elections in 2004, conservatives reestablished control over Iran's elected government institutions, which culminated with the August 2005 inauguration of an ultra-conservative layman as president.
Budget revenues: $64 billion


expenditures: $64 billion (2007 est.)
revenues: $110.8 billion


expenditures: $93.61 billion (2006 est.)
Debt - external $13.8 billion (31 December 2007 est.) $13.73 billion (2006 est.)
Economy - overview Iran's economy is marked by an inefficient state sector, reliance on the oil sector (which provides 85% of government revenues), and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale workshops, farming, and services. President Mahmud AHMADI-NEJAD failed to make any notable progress in fulfilling the goals of the nation's latest five-year plan. A combination of price controls and subsidies, particularly on food and energy, continue to weigh down the economy, and administrative controls, widespread corruption, and other rigidities undermine the potential for private-sector-led growth. As a result of these inefficiencies, significant informal market activity flourishes and shortages are common. High oil prices in recent years have enabled Iran to amass nearly $70 billion in foreign exchange reserves. Yet this increased revenue has not eased economic hardships, which include double-digit unemployment and inflation. The economy has seen only moderate growth. Iran's educated population, economic inefficiency and insufficient investment - both foreign and domestic - have prompted an increasing number of Iranians to seek employment overseas, resulting in significant "brain drain." Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale workshops, farming, and services. President Mahmud AHMADI-NEJAD has continued to follow the market reform plans of former President RAFSANJANI, with limited progress. Relatively high oil prices in recent years have enabled Iran to amass nearly $60 billion in foreign exchange reserves, but have not eased economic hardships such as high unemployment and inflation. The proportion of the economy devoted to the development of weapons of mass destruction remains a contentious issue with leading Western nations.
Exchange rates rials per US dollar - 9,407.5 (2007), 9,227.1 (2006), 8,964 (2005), 8,614 (2004), 8,193.9 (2003)


note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002
rials per US dollar - 9,227.1 (2006), 8,964 (2005), 8,614 (2004), 8,193.9 (2003), 6,907 (2002)


note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002
Executive branch chief of state: Supreme Leader Ali Hoseini-KHAMENEI (since 4 June 1989)


head of government: President Mahmud AHMADI-NEJAD (since 3 August 2005); First Vice President Parviz DAVUDI (since 11 September 2005)


cabinet: Council of Ministers selected by the president with legislative approval; the Supreme Leader has some control over appointments to the more sensitive ministries


note: also considered part of the Executive branch of government are three oversight bodies: 1) Assembly of Experts (Majles-Khebregan), a popularly elected body of 86 religious scholars constitutionally charged with determining the succession of the Supreme Leader (based on his qualifications in the field of jurisprudence and commitment to the principles of the revolution), reviewing his performance, and deposing him if deemed necessary; 2) Expediency Council or the Council for the Discernment of Expediency (Majma-e-Tashkise-Maslahat-e-Nezam), is a policy advisory and implementation board consisting of over 40 permanent members representing all major government factions and includes the heads of the three branches of government, and the clerical members of the Council of Guardians (see next); permanent members are appointed by the Supreme Leader for five-year terms; temporary members, including Cabinet members and Majles committee chairmen, are selected when issues under their jurisdiction come before the Expediency Council; the Expediency Council exerts supervisory authority over the executive, judicial, and legislative branches and resolves legislative issues on which the Majles and the Council of Guardians disagree and since 1989 has been used to advise national religious leaders on matters of national policy; in 2005 the Council's powers were expanded, at least on paper, to act as a supervisory body for the government; 3) Council of Guardians of the Constitution or Council of Guardians or Guardians Council (Shora-ye Negaban-e Qanun-e Assassi) is a 12-member board made up of six clerics chosen by the Supreme Leader and six jurists recommended by the judiciary (which is controlled by the Supreme Leader) and approved by the Majles from a list of candidates recommended by the judiciary (which in turn is controlled by the Supreme Leader) for six-year terms; this Council determines whether proposed legislation is both constitutional and faithful to Islamic law, vets candidates for suitability, and supervises national elections


elections: Supreme Leader appointed for life by the Assembly of Experts; Assembly of Experts elected by popular vote for an eight-year term; last election held 15 December 2006 concurrently with municipal elections; Hojjat ol-Eslam Ali Akbar RAFSANJANI was elected Speaker in September 2007, following the July death of former Speaker Ayatollah Ali Akbar Meshkini-Qomi; president elected by popular vote for a four-year term (eligible for a second term and third nonconsecutive term); last held 17 June 2005 with a two-candidate runoff on 24 June 2005 (next presidential election slated for 2009)


election results: Mahmud AHMADI-NEJAD elected president; percent of vote - Mahmud AHMADI-NEJAD 62%, Ali Akbar Hashemi-RAFSANJANI 36%
chief of state: Supreme Leader Ali Hoseini-KHAMENEI (since 4 June 1989)


head of government: President Mahmud AHMADI-NEJAD (since 3 August 2005); First Vice President Parviz DAVUDI (since 11 September 2005)


cabinet: Council of Ministers selected by the president with legislative approval; the Supreme Leader has some control over appointments to the more sensitive ministries


note: also considered part of the Executive branch of government are three oversight bodies: 1) Assembly of Experts, a popularly elected body of 86 religious scholars constitutionally charged with determining the succession of the Supreme Leader - based on his qualifications in the field of jurisprudence and commitment to the principles of the revolution, reviewing his performance, and deposing him if deemed necessary; 2) Expediency Council or the Council for the Discernment of Expediency, is a policy advisory and implementation board consisting of permanent members, who number over 40 and represent all major government factions and include the heads of the three branches of government, and the clerical members of the Council of Guardians (see next); permanent members are appointed by the Supreme Leader for five-year terms; temporary members, including Cabinet members and Majles committee chairmen, are selected when issues under their jurisdiction come before the Expediency Council; the Expediency Council exerts supervisory authority over the executive, judicial, and legislative branches and resolves legislative issues on which the Majles and the Council of Guardians disagree and since 1989 has been used to advise national religious leaders on matters of national policy; in 2005 the Council's powers were expanded, at least on paper, to act as a supervisory body for the government; 3) Council of Guardians of the Constitution or Council of Guardians or Guardians Council is a 12-member board made up of six clerics chosen by the Supreme Leader and six jurists selected by the Majles from a list of candidates recommended by the judiciary (which in turn is controlled by the Supreme Leader) for six-year terms; this Council determines whether proposed legislation is both constitutional and faithful to Islamic law, vets candidates for suitability, and supervises national elections


elections: Supreme Leader appointed for life by the Assembly of Experts; Assembly of Experts elected by popular vote for an eight-year term; last election held 15 December 2006 concurrently with municipal elections; president elected by popular vote for a four-year term (eligible for a second term and third nonconsecutive term); last held 17 June 2005 with a two-candidate runoff on 24 June 2005 (next presidential election slated for 2009)


election results: Mahmud AHMADI-NEJAD elected president; percent of vote - Mahmud AHMADI-NEJAD 62%, Ali Akbar Hashemi-RAFSANJANI 36%
Exports 2.52 million bbl/day (2006 est.) 2.836 million bbl/day (2004 est.)
GDP - composition by sector agriculture: 11%


industry: 45.3%


services: 43.7% (2007 est.)
agriculture: 11%


industry: 44.9%


services: 44.1% (2006 est.)
GDP - real growth rate 4.3% (2007 est.) 4.3% (2006 est.)
Household income or consumption by percentage share lowest 10%: 2%


highest 10%: 33.7% (1998)
lowest 10%: NA%


highest 10%: NA% (1998)
Imports 153,600 bbl/day (2004) NA bbl/day
Imports - commodities industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services, military supplies
Imports - partners Germany 12.2%, China 10.5%, UAE 9.3%, France 5.6%, Italy 5.4%, South Korea 5.4%, Russia 4.4% (2006) Germany 12%, China 10.5%, UAE 9.4%, France 5.6%, Italy 5.4%, South Korea 5.4%, Russia 4.5% (2006)
Industrial production growth rate 4.8% excluding oil (2007 est.) 3.2% excluding oil (2006 est.)
Inflation rate (consumer prices) 17% (July 2007 est.) 12% (2006 est.)
International organization participation ABEDA, CP, ECO, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, MIGA, NAM, OIC, OPCW, OPEC, PCA, SAARC, SCO (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO (observer) ABEDA, CP, ECO, FAO, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, MIGA, NAM, OIC, OPCW, OPEC, PCA, SCO (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO (observer)
Judicial branch The Supreme Court (Qeveh Qazaieh) and the four-member High Council of the Judiciary have a single head and overlapping responsibilities; together they supervise the enforcement of all laws and establish judicial and legal policies; lower courts include a special clerical court, a revolutionary court, and a special administrative court The Supreme Court and the four-member High Council of the Judiciary have a single head and overlapping responsibilities; together they supervise the enforcement of all laws and establish judicial and legal policies; lower courts include a special clerical court, a revolutionary court, and a special administrative court
Labor force 28.7 million


note: shortage of skilled labor (2006 est.)
24.29 million


note: shortage of skilled labor (2006 est.)
Labor force - by occupation agriculture: 25%


industry: 31%


services: 45% (June 2007)
agriculture: 30%


industry: 25%


services: 45% (2001 est.)
Legal system based on Sharia law system; has not accepted compulsory ICJ jurisdiction based on Shari'a law system; has not accepted compulsory ICJ jurisdiction
Legislative branch unicameral Islamic Consultative Assembly or Majles-e-Shura-ye-Eslami or Majles (290 seats; members elected by popular vote to serve four-year terms)


elections: last held 20 February 2004 with a runoff held 7 May 2004 (next to be held in March 2008)


election results: percent of vote - NA; seats by party - conservatives/Islamists 190, reformers 50, independents 45, religious minorities 5
unicameral Islamic Consultative Assembly or Majles-e-Shura-ye-Eslami or Majles (290 seats; members elected by popular vote to serve four-year terms)


elections: last held 20 February 2004 with a runoff held 7 May 2004 (next to be held in February 2008)


election results: percent of vote - NA; seats by party - conservatives/Islamists 190, reformers 50, independents 43, religious minorities 5, and 2 seats unaccounted for
Pipelines condensate 7 km; condensate/gas 397 km; gas 19,161 km; liquid petroleum gas 570 km; oil 8,438 km; refined products 7,936 km (2007) condensate 7 km; condensate/gas 397 km; gas 17,099 km; liquid petroleum gas 570 km; oil 8,521 km; refined products 7,808 km (2006)
Political parties and leaders formal political parties are a relatively new phenomenon in Iran and most conservatives still prefer to work through political pressure groups rather than parties, and often political parties or coalitions are formed prior to elections and disbanded soon thereafter; a loose pro-reform coalition called the 2nd Khordad Front, which includes political parties as well as less formal groups and organizations, achieved considerable success at elections to the sixth Majles in early 2000; groups in the coalition include: Islamic Iran Participation Front (IIPF), Executives of Construction Party (Kargozaran), Solidarity Party, Islamic Labor Party, Mardom Salari, Mojahedin of the Islamic Revolution Organization (MIRO), and Militant Clerics Society (Ruhaniyun); the coalition participated in the seventh Majles elections in early 2004; following his defeat in the 2005 presidential elections, former MCS Secretary General and sixth Majles Speaker Mehdi KARUBI formed the National Trust Party; a new conservative group, Islamic Iran Developers Coalition (Abadgaran), took a leading position in the new Majles after winning a majority of the seats in February 2004; following the 2004 Majles elections, traditional and hardline conservatives have attempted to close ranks under the United Front of Principlists; the IIPF has repeatedly complained that the overwhelming majority of its candidates have been unfairly disqualified from the 2008 elections formal political parties are a relatively new phenomenon in Iran and most conservatives still prefer to work through political pressure groups rather than parties, and often political parties or groups are formed prior to elections and disbanded soon thereafter; a loose pro-reform coalition called the 2nd Khordad Front, which includes political parties as well as less formal pressure groups and organizations, achieved considerable success at elections to the sixth Majles in early 2000; groups in the coalition include: Islamic Iran Participation Front (IIPF), Executives of Construction Party (Kargozaran), Solidarity Party, Islamic Labor Party, Mardom Salari, Mojahedin of the Islamic Revolution Organization (MIRO), and Militant Clerics Society (Ruhaniyun); the coalition participated in the seventh Majles elections in early 2004; following his defeat in the 2005 presidential elections, former MCS Secretary General Mehdi KARUBI formed the National Trust Party; a new apparently conservative group, the Builders of Islamic Iran, took a leading position in the new Majles after winning a majority of the seats in February 2004
Political pressure groups and leaders the Islamic Republic Party (IRP) was Iran's sole political party until its dissolution in 1987; Iran now has a variety of groups engaged in political activity; some are oriented along political lines or based on an identity group; others are more akin to professional political parties seeking members and recommending candidates for office; some are active participants in the Revolution's political life while others reject the state; political pressure groups conduct most of Iran's political activities; groups that generally support the Islamic Republic include Ansar-e Hizballah, Followers of the Line of the Imam and the Leader, Islamic Coalition Party (Motalefeh), Islamic Engineers Society, and Tehran Militant Clergy Association (Ruhaniyat); active pro-reform student groups include the Office of Strengthening Unity (OSU); opposition groups include Freedom Movement of Iran, the National Front, Marz-e Por Gohar, Baluchistan People's Party (BPP), and various ethnic and Monarchist organizations; armed political groups that have been repressed by the government include Democratic Party of Iranian Kurdistan (KDPI), Komala, Mujahidin-e Khalq Organization (MEK or MKO), People's Fedayeen, Jundallah, and the People's Free Life Party of Kurdistan (PJAK) the Islamic Revolutionary Party (IRP) was Iran's sole political party until its dissolution in 1987; Iran now has a variety of groups engaged in political activity; some are oriented along political lines or based on an identity group; others are more akin to professional political parties seeking members and recommending candidates for office; some are active participants in the Revolution's political life while others reject the state; political pressure groups conduct most of Iran's political activities; groups that generally support the Islamic Republic include Ansar-e Hizballah, Muslim Students Following the Line of the Imam, Tehran Militant Clergy Association (Ruhaniyat), Islamic Coalition Party (Motalefeh), and Islamic Engineers Society; active pro-reform student groups include the Office of Strengthening Unity (OSU); opposition groups include Freedom Movement of Iran, the National Front, Marz-e Por Gohar, and various ethnic and Monarchist organizations; armed political groups that have been repressed by the government include Mujahidin-e Khalq Organization (MEK or MKO), People's Fedayeen, Democratic Party of Iranian Kurdistan (KDPI), and Komala
Population below poverty line 18% (2007 est.) 40% (2002 est.)
Suffrage 16 years of age; universal 18 years of age; universal
Telephone system general assessment: currently being modernized and expanded with the goal of not only improving the efficiency and increasing the volume of the urban service but also bringing telephone service to several thousand villages, not presently connected


domestic: the addition of new fiber cables and modern switching and exchange systems installed by Iran's state-owned telecom company have improved and expanded the main line network greatly; main line availability has more than doubled to 22 million lines since 2000; additionally, mobile service has increased dramatically serving nearly 13.7 million subscribers in 2006


international: country code - 98; submarine fiber-optic cable to UAE with access to Fiber-Optic Link Around the Globe (FLAG); Trans-Asia-Europe (TAE) fiber-optic line runs from Azerbaijan through the northern portion of Iran to Turkmenistan with expansion to Georgia and Azerbaijan; HF radio and microwave radio relay to Turkey, Azerbaijan, Pakistan, Afghanistan, Turkmenistan, Syria, Kuwait, Tajikistan, and Uzbekistan; satellite earth stations - 9 Intelsat and 4 Inmarsat (2006)
general assessment: currently being modernized and expanded with the goal of not only improving the efficiency and increasing the volume of the urban service but also bringing telephone service to several thousand villages, not presently connected


domestic: the addition of new fiber cables and modern switching and exchange systems installed by Iran's state-owned telecom company have improved and expanded the main line network greatly; main line availability has more than doubled to 19 million lines since 1995; additionally, mobile service has increased dramatically serving some 8.5 million subscribers in 2005


international: country code - 98; submarine fiber-optic cable to UAE with access to Fiber-Optic Link Around the Globe (FLAG); Trans-Asia-Europe (TAE) fiber-optic line runs from Azerbaijan through the northern portion of Iran to Turkmenistan with expansion to Georgia and Azerbaijan; HF radio and microwave radio relay to Turkey, Azerbaijan, Pakistan, Afghanistan, Turkmenistan, Syria, Kuwait, Tajikistan, and Uzbekistan; satellite earth stations - 9 Intelsat and 4 Inmarsat (2006)
Unemployment rate 11% according to the Iranian government (June 2007) 15% according to the Iranian government (2007 est.)
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