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Copyright © Cambridge Political Economy Society

research-article

The Iranian economy under the Islamic Republic: institutional change and macroeconomic performance (1979–1990)

Adnan Mazarei, Jr.*

*Economist, International Monetary Fund.

Abstract

This paper examines developments in economic institutions and the macro-economic performance of Iran since the 1979 revolution. The Iranian revolution is interpreted as a populist movement aimed at income and wealth redistribution, and at restructuring in a rentier economy. Subsequently, the macroeconomic performance of Iran since the revolution is analysed. While recognising the significant impact of the revolutionary disruptions, the decline in oil revenues and the war with Iraq, it is argued that the prevailing economic conditions in Iran are largely the outcome of populist economic policies adopted by the Iranian government.

Manuscript received October 14, 1991; final version received April 11, 1994.


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