Iran

Iran (Persian: ?????) is a Middle Eastern country located in Southwest Asia bordering Azerbaijan, Armenia, and Turkmenistan to the north, Pakistan and Afghanistan to the east, Turkey and Iraq to the west. Although locally known as Iran at least since the Sassanian period, until 1935 the country was referred to in the West as Persia. In 1959, Mohammad Reza Shah Pahlavi announced that both terms could be used. In 1979 a revolution which was eventually led by the Ayatollah Khomeini, established a theocratic Islamic Republic, changing the country's official name into the Islamic Republic of Iran (?????? ?????? ?????). The name Iran is a cognate of the Aryan meaning "Land of the Aryans."

Economy

Main article: Economy of Iran

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The economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. The current administration has continued to follow the market reform plans of the previous one and has indicated that it will pursue diversification of Iran's oil-reliant economy. Iran is attempting to diversify by investing revenues in other areas, including petrochemicals. Iran also is hoping to attract billions of dollars worth of foreign investment by creating a more favorable investment climate (i.e., reduced restrictions and duties on imports, creation of free-trade zones).

Related Topics:
Oil - Agriculture

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Iran is OPEC's second largest oil producer and holds 10% of the world's proven oil reserves. It also has the world's second largest natural gas reserves (after Russia). The strong oil market in 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iran's financial situation tightened in 1997 because of lower oil prices. The subsequent rise in oil prices in 1999/2000 afforded Iran fiscal breathing room. Iranian budget deficits have been a chronic problem, in part due to large-scale state subsidies -- totaling some $7.25 billion per year -- including foodstuffs and especially gasoline.

Related Topics:
OPEC - 1996 - 1997 - 1999 - 2000

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On March 20, 2006, Iran plans to participate in a new International Oil Bourse, trading oil priced as Petroeuros, rather than Petrodollars, as oil is traded in all other markets (as of 2005). This attempt to rebalance trading relationships in the world economy may trigger a series of far reaching consequences. A few observers, especially among peak oil production theorists who believe that an oil crisis is imminent, argue that there is a potential for a resource war with the United States of America over the flow of both dollars and oil. Others, including military leaders and peak oil theorists who believe that a crisis is further off, argue that the results of war game scenarios cast doubt on the arguement that a war is the most likely result of the Oil Bourse.

Related Topics:
Bourse - Petroeuro - Petrodollar - Market - World economy - War

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The services sector has seen the greatest long-term growth in terms of its share of GDP, but the sector remains volatile. State investment has boosted agriculture, however, with the liberalisation of production and the improvement of packaging and marketing helping to develop new export markets. Large-scale irrigation schemes, together with the wider production of export-based agricultural items such as dates, flowers and pistachios, produced the fastest economic growth of any sector in Iran over much of the 1990s, although successive years of severe drought in 1998, 1999, 2000, and 2001 have held back output growth substantially. Agriculture remains one of the largest employers, accounting for 22% of all jobs according to the 1991 census.

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According to the U.N. World Drug Report for 2005, Iran has the highest proportion of opiate addicts in the world -- 2.8 percent of the population over age 15. Only two other countries -- Mauritius and Kyrgyzstan -- pass the 2 percent mark. With a population of about 70 million and some government agencies putting the number of regular users close to 4 million, Iran has no real competition as world leader in per capita addiction to opiates, including heroin.

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