Spotlight on Iran September 2012—Shahrivar 1391 Week of September 4‐11, 2012 Editor: Dr. Raz Zimmt Highlights of the week President’s interview provokes sharp criticism and spurs speculations on his political intentions “A colony run by Britain”: Iranian reactions to Canada’s decision to cut off ties with Tehran Fiction or fact? Online release of Iranian novel reignites media frenzy Rial continues losing ground against dollar and euro Central Bank: significant increase in informal economy in Iran Tehran hosts its first-ever Startup Weekend, an event dedicated to encouraging technological entrepreneurship President’s interview provokes sharp criticism and spurs speculations on his political intentions An interview given by President Mahmoud Ahmadinejad to the Iranian television last Tuesday, September 4, drew strong criticism from his political opponents and fuelled speculations on his political intentions ahead of the next presidential elections, to be held on June 14, 2013. In the interview, the president discussed a wide variety of issues pertaining to domestic and foreign policy. Among other topics, Ahmadinejad addressed the economic crisis in Iran, saying that the country’s economic problems stem from the combination of the economic sanctions and the activity of several groups inside Iran that seek to hurt the economy in order to attain political and economic objectives. The president admitted that the economic sanctions have created problems for the economy and the productive sector, and that Iran has difficulties transferring funds and 184-12 2 selling its oil. He stressed, however, that the Iranian people can bear the consequences of the sanctions, and that the governemnt is working to find solutions to the difficulties that the sanctions have brought forth. He claimed that the government has been successful in achieving economic progress despite the psychological warfare campaign waged by Iran’s enemies, and expressed his hope that the government will be able to lower the inflation rate and bring stability to the foreign currency market. The president criticized the banking system, arguing that its conduct and current interest rate policy is detrimental to the economy. He also criticized what he referred to as the authorities’ excessive intervention in government affairs. Ahmadinejad reported that, in the course of the coming year, the government intends to implement fundamental economic reforms. Speaking about the subsidy policy reform, the president said that last year the government had transferred 80 percent of the reform budget directly to Iranian citizens, and used the remaining 20 percent to strengthen the productive sector. He rejected the criticism voiced by government critics of the reform’s implementation, and stated that the government intends to proceed with the second phase of the reform plan. In addition, the president discussed the corruption scandals exposed in recent years, saying that his is the most clean-handed government in the history of Iran and that the most important foundations underpinning his government are care for the citizens, justice, and morality. He expressed his support for his government ministers, said that he has confidence in their integrity, and accused his political opponents of waging a campaign against his government. 184-12 3 The interview given by the president to Iran’s official broadcasting service drew strong criticism from Majles members affiliated with his critics in the conservative camp. Ruhollah Bigi Yilanlou, the deputy chairman of the Majles Economic Committee, said that the president’s assertion that his government is the most clean-handed in the history of Iran is inconsistent with the recently exposed corruption scandals involving the government. He added that the people of Iran are suffering from economic problems, and that the president is making a big mistake by denying these problems. A government that claims to be responsible for the country’s progress cannot absolve itself of responsibility for the economic crisis and must take measures to solve the economic problems. The Majles member said that, if it weren’t for the Supreme Leader and his supervision, the problems Iran is facing would be much more severe. Seyyed Hossein Naqavi Hosseini, the spokesman of the Majles National Security and Foreign Policy Committee, said that, instead of admitting his mistakes, the president is trying to lay the blame for the economic problems at the door of other people. According to Hosseini, if the economic situation really is the result of actions taken by elements outside of the government, this is indicative of a weakness in the government, which allows others to make its decisions. He further added that the style used by the president in the television interview is not helpful for solving the problems in the difficult economic conditions faced by Iranian citizens. The Majles member also criticized the official broadcasting service for the way it had conducted the interview, arguing that it could have been expected to act in such a way as to make the people of Iran feel that their demands and problems have been communicated to the president by the interviewer. Hossein Sobhani-nia, also a member of the Majles National Security and Foreign Policy Committee, said that, after the successful Non-Aligned Movement summit recently held in Tehran, the president could have been expected to avoid slandering other top officials, which undermines the feeling of internal unity created during the summit (Farda, September 5). The president’s interview was also criticized in the written press and on social networks. In an editorial published by the reformist daily Shargh, Mohammad-Baqer Nowbakht, a member of the Expediency Discernment Council Research Center, said that the president did not acknowledge his government’s responsibility for the economic problems. Even though Iran’s revenues during the Ahmadinejad government have been unprecedented thanks to the increase in oil prices, his government has 184-12 4 failed to meet the economic objectives set within the multi-year development program. Economic growth dropped from 6.9 percent in 2005 to 2.7 percent in 2008 and, according to experts, continues to decline. The government has not implemented the overall policy set by the Supreme Leader and has not met the economic objectives, which is why the president cannot argue that his government has achieved economic progress and that it is not largely responsible for the economic problems (Shargh, September 6). An editorial published by the E’tedal website, titled “Mr. Ahmadinejad! Don’t you think the people have grown tired of your words?” also strongly criticized the president. During Ahmadinejad’s seven-year presidential term, he has accused everybody even though no one has opposed him, the article said. Despite the magnitude of corruption, he continues claiming that his government is the most clean-handed in history. While the price of chicken has crossed the 8,000-toman mark and the dollar has crossed the 2,000-toman mark, the president failed to address the criticism directed at his government and, in a statement that goes against all the efforts to neutralize the effects of the sanctions, publicly announced that there are no buyers for Iranian oil. The interviewer would have been well advised to ask the president a few more questions, the article said. For instance: Do you know that the price of one kilogram (2.2 lbs) of chicken has reached 8,000 tomans? Do you know that many Iranian men feel ashamed in front of their wives and children because they are out of work or get paid so little that they can’t afford to spend 23,000 tomans on meat or 1,900 tomans on milk? When the dollar crossed the 1,200-toman mark two years ago, you said that it would drop below 1,000 tomans. Do you know that it was trading for 2,200 tomans yesterday? You said that the price of oil would exceed 200 dollars, but over the past year it was trading around 100 dollars. Would it not be better if you laid off your economic advisors? This is not the first interview where the president praises himself and blames all the problems on his domestic critics, E’tedal said. The website called on Ahmadinejad not to forget that he has held the presidential office for over seven years, and that it is inappropriate to lay all the blame for his failures on others instead of providing answers about his conduct and the conduct of his government, because nobody buys that anymore (http://etedaal.ir, September 6). 184-12 5 Many Iranian web surfers, too, criticized the president’s interview. A web surfer who commented on the Tabnak website’s report about the interview said that, in his opinion, it would have been enough for the president to answer just one question: What positive changes have taken place in the lives of Iranians during his seven-year presidency? (Tabnak, September 5). In addition to the criticism sparked by the president’s remarks on the economic situation, the interview fuelled speculations on his political intentions now that his presidential term is drawing to a close. When asked whether he intends to uncover the names of those involved in corruption during his government’s last year in power, the president replied, “How do you know this is the government’s last year?” The government is part of the people, Ahmadinejad said, and the people will remain forever. His reply reignited speculations on his intentions to try and maintain his political influence in managing state affairs after the elections, and even run his controversial office chief Esfandiar Rahim Masha’i as a presidential candidate. In response to the interview, Majles member Mohammad Dehqan condemned the president, and said that his remarks are indicative of his intention to continue working behind the scenes even after the presidential elections, in similar vein to the Russian model adopted by President Vladimir Putin.