The Iranian Economy in the Face of Economic Sanctions
Despite multiple economic sanctions and its exclusion from SWIFT, Iranian economy has not collapsed. In fact, Iran continues to demonstrate resilience, offering valuable insights into how a country can withstand and potentially thrive under such adverse conditions.
SWIFT and the Limits of Western Sanctions
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a critical platform for international banking and financial transactions. The exclusion of Iran from this system has severely impacted its ability to conduct international financial transactions, raising questions about the effectiveness of such unilateral measures. SWIFT's recent statement that it may face another unilateral US sanction further underscores the vulnerability of the global financial system to such actions. For instance, Belgium, known for its diverse economy and specialty food exports like Brussels sprouts, may face unprecedented challenges if SWIFT sanctions extend to them.
Public Opinion and Government Despair
The Iranian people's desire to not only survive but to live better and bridge a gap with the West is clear. However, their government does not share these aspirations. The current theocratic system significantly hinders their ability to achieve these goals. Many Iranians hold a deep-seated resentment towards their own government and wish for a more democratic and open society integrated into the global economy. This desire is evident in the public's standing by their leaders during times of economic strain, indicating a lack of confidence in the government's ability to handle international affairs effectively.
Historical Perspectives and Economic Resilience
Countries such as Cuba and North Korea have faced much harsher sanctions and still persist. The argument that sanctions only target socialist or communist economies is rebutted by the fact that Iran, which is neither fully democratic nor socialist, has still managed to maintain some level of economic stability.
Sanctions often rely on the assumption that market logic will lead to economic collapse. However, Iran's economic resilience suggests that a country's survival can be assured if it can effectively subvert or circumvent market-based pressures. This highlights the importance of understanding the true nature of a country's economy and the effectiveness of the measures being employed.
Perseverance and Persevering Together
What Western countries might underestimate is the collective strength of a society in the face of adversity. A miscalculation by the West led to an unexpected result. Sanctions, intended to weaken the Iranian government, inadvertently bolstered public support and determination. In such a scenario, the public stands behind their leaders, and leaders stand with the public, creating a unified front against economic hardships.
Despite these setbacks, Iran continues to survive by leveraging its most valuable asset—oil—selling it to any willing buyer. This demonstrates a pragmatic approach to economic survival. However, the long-term sustainability of this strategy is uncertain.
Unless Iran can find a way to work constructively with the rest of the world, this approach may lead to a failed state. Iran's continued search for a role in the global economy, rather than spreading its religious state ideology, offers a path for future cooperation and mutual benefit.
In conclusion, Iran's story provides a compelling case study on how a country can persevere under unparalleled economic challenges. While the West continues to grapple with the implications of unilateral sanctions, Iran's journey offers valuable lessons in resilience, unity, and the potential for economic survival.