Iran earns hundreds of billions of oil a year, why are the people poor?Why?

Mondo International Updated on 2024-01-24

In the field of global economy, Iran is undoubtedly a country with abundant resources and great potential. It has abundant oil and gas resources, as well as a large number of mineral resources. However, despite these resources, the standard of living in Iran has not improved significantly. Why is that?

First of all, we can look at Iran's GDP. The country's GDP has surpassed $370 billion, making it a major economy in the Middle East. Iran is the fourth largest country in the world in terms of oil reserves and the second largest in terms of natural gas reserves. Every year, Iran earns hundreds of billions of dollars from oil exports. However, these revenues do not directly benefit ordinary Iranians.

Secondly, Iran's mineral resources should not be underestimated. More than 3,800 mines have been discovered, including 47 billion tonnes of iron ore, 3 billion tonnes of copper and 150 tonnes of gold. These mineral resources, which were supposed to be an important pillar of Iran's economic development, did not actually lead to significant improvements.

Hassan Younasan, development director of the Iranian Organization for the Development and Revitalization of Minerals and Mining, has pointed out that Iran urgently needs to attract foreign capital and technology to improve the productive capacity and international competitiveness of the mining and metallurgical industry. This means that Iran's own technical and financial capabilities are relatively weak and unable to make full use of its mineral resources.

So why haven't Iran's oil and mineral resources brought a better life to the common people?There are many reasons for this.

First, due to the constraints of Iran's political and economic system, most of the resource gains are in the hands of a few people and are not equitably distributed. This has led to a further widening of the gap between the rich and the poor, leaving the majority of the population unable to share in the benefits of resources.

Secondly, international sanctions are also an important reason. Due to the tense relations between Iran and a number of countries, as well as the controversy over its nuclear program, the international community has imposed a series of sanctions on Iran. These sanctions have limited Iran's economic development and external development, preventing resource gains from fully translating into domestic development and improvement.

In addition, there are problems with the structure of Iran's economy. The economic model, which is overly dependent on oil and mineral resources, makes Iran's economy vulnerable to fluctuations in international oil prices and market demand. Once the oil *** Iran's economy will be in trouble, and the living standards of ordinary people will also be affected.

To sum up, although Iran has abundant oil and mineral resources, due to the limitations of the political and economic system, international sanctions, and problems with the economic structure, these resources have not brought a better life to the people. To change this situation, Iran needs to carry out political and economic reforms, strengthen the rational use and equitable distribution of resources, and actively engage in foreign cooperation to attract foreign investment and technology, so as to achieve economic diversification and sustainable development. Only in this way will Iran's ordinary people benefit from oil and mineral resources and emerge from poverty.

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