World War I: The Primary Cause Of The Russian Revolution

1158 words - 5 pages

Wendell Berry eminently alleged, “In a society in which nearly everybody is dominated by somebody else's mind or by a disembodied mind, it becomes increasingly difficult to learn the truth about the activities of governments and corporations, about the quality or value of products, or about the health of one's own place and economy” (“Quotes About Economy”). This, in fact, relates back to the Iranian Revolution. With these caveats in place, the Iranian economy may be designated as: oil-centered, state-ruled, imports-reliant, and stagnant. During 1970, Iran had attained remarkable industrialization and economic modernization based on an import-substitution model, supported by the ...view middle of the document...

Even a minor decrease in oil prices consequences in reduced foreign exchange distribution, imports, and employment. In 1975, a fall in oil revenues, Iran’s leading cause of income, led to a serious economic catastrophe. Accordingly, one example of this is that “Iran’s oil and gas exports, which previously accounted for three quarters of total exports, plunged last year because of international sanctions, and they may fall further” (Torchia 6). The country will tremendously suffer from shortages of wealth, raw materials, and possessions. Currently, Iran's economy is corrupt as a result of sanctions, an incompetent subdivision, and dependence on the oil revenues. As a result of inadequacies in the economy, market activity flourishes and there are many scarcities of merchandises. Overall, the greater tendency is that price control and aids continue to weigh down the economy, while governmental control and corruption challenge the possibility for improvement. This is noteworthy because revolution, war, and mismanagement over economic policy have weakened potential. In addition to oil revenues not being able to sustain the economy, inflation and the unemployment rate continue to be in the double digits due to economic turmoil.

Sanctions clearly have an impact on the downfall of the economy because the unemployment rates continue to intensely increase. During this period, an aspiration was to ensure self-reliance and protect justice; one of the administration’s objectives was to improve the population growth. This policy has significantly contributed to the war conditions and hesitant economic sanctions due to low countrywide proficiency. The economy was further open to price misrepresentations and an extravagant and imbalanced system. To manage the price rises, an array of wage was enacted, limiting of vital goods was strengthened, and imports were dense through harsh distributions. The result was, expectedly, miserable. The gross domestic product (GDP) declined a few percent a year on average. Similarly, an example of a low GDP is that “With the population already up by 60 percent, per capita income was down to 55 percent of the1977/78 level. Unemployment reached nearly 16 percent. Inflation climbed to 28.2 percent—the highest since the end of World War II” (“Iran’s Economy: Status, Problems, and Prospects”). There proved to be a nationwide infrastructure and a considerable industrial production capability. Inclusively, a trend is that a transformation in GDP, up or down, has a major influence on the financial market. A bad economy usually means lesser profits, which in turn means lower stock expenses. Thus, in a period of time, the economy suffered intense inflation and the price of...

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