Since 2011, Iran has had two problems in its state-run and oil-dependent economy. The first problem was a set of severe sanctions against Iran for its nuclear program. The second was the war in the Middle East after Arab uprisings in which Iran was engaged directly or indirectly. Along with other factors, especially the corrupt management in the economy, Iran's economy suffered structural bankruptcy. The statistics show that the depth of the impact of these two factors. The comparison between the two periods of 2005-2010 and 2011-2016, shows that in the second period the Iranian economy has damaged sharply. In the first period, Iran's average economic growth without oil was 5.6 percent, while in the second period it fell to -0.3 percent. Considering the unprecedented increase in oil revenue and high rate of governmental investments in the first period, Iran's GDP increased to $ 599 billion for the first time in the history. While after the effects of sanctions and Iran's expenditures in the region's wars, especially in Syria and Iraq, this figure fell to $ 354 billion in 2016. The effects of these problems are concretely seen in the Iranian economy. In these few years, 14,000 factories were closed, 22,000 factories operated with less than 50% capacity and 24,000 factories operated with 50-70%. Despite rising oil prices from 2011 to 2013, the fragile oil-dependent economy of Iran has experienced an unprecedented recession, which is still ongoing. After assignment of an agreement named The Joint Comprehensive Plan of Action in July 2015, some economic indicators are recovering. The purpose of this study is to identify the relationship between Iran's economy and foreign policy, especially in the case of Syria and Iraq, which has been conducted in a descriptive-analytical manner. The results of the study indicate that Iran's economy is strongly linked to foreign policy, and if the crisis continues in the Middle East, Iran's economy will suffer more.
Publication Date : December 21, 2018
|APA||Sadri Alıbabalu, S . (2018). The Relationship between Economy and Foreign Policy: The Case of Iran (2011-2016) . InTraders International Trade Academic Journal , 1 (1) , 66-76 . Retrieved from https://dergipark.org.tr/en/pub/intraders/issue/41434/448651|