Rising inequality in Iran: who is to blame?
There have been reports of rising inequality under the Ahmadinejad’s administration (for example, in the Persian sites of Rastak and Aftab), which, unlike their claims for rising poverty, are grounded in facts. Survey data show convincingly that inequality has increased in the last few years, but what has caused it is uncertain and subject to dispute. The popular explanation (popular among reformists) for the rise in inequality in recent years is, of course, President Ahmadinejad policies. But there is a deeper, somewhat related, explanation which should not be overlooked– the oil boom itself. Deciding which explanation is more important goes to the heart of political economy questions that have occupied many minds in Iran in recent years. (more…)
Stagnant rural incomes
The gap between rural and urban incomes has been widening because the rural areas appear to have missed the recent boom or President Ahmadinejad’s redistribution. According to survey data, in 2007, the gap between rural and urban per capita household expenditures reached its highest level, nearly 50 percent, up from 45 percent in 2004. During these three years, when urban families enjoyed (a modest) 3.5 percent annual growth, rural expenditures grew by zero percent! Why the rural economy has fallen behind or out of national favor is anybody’s guess, but here are a few leading explanations. (more…)
Tyranny of numbers 
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