Djavad Salehi-Isfahani Briefs Congressional Staff on Iran's Economy

Djavad Salehi-Isfahani, MEYI Fellow and Visiting Fellow at Brookings, recently briefed Congressional staff on the current state of Iran's economy. Expressing a unique perspective on Iran's internal dynamics and implications for U.S. policy, he pointed out both positive indicators and continued challenges that will impact Iran's longterm prospects for growth.

Short-term trends noted, include:

• Steady growth in Iran's economy; high levels of investment, especially in infrastructure
• A lack of institutional infrastructure to support the flourishing private sector
• Lively debate on economic policies among the general public in Iran
• Continued efforts to control private banks by President Ahmadinejad's administration

To provide a picture of Iran's longterm prospects for growth, he referenced several positive indicators, including: shifts in family behavior (i.e. lower levels of fertility and higher investment in education), a rich influx of oil revenues to support development of infrastructure, and improvements in poverty reduction.

Providing jobs for the youth population and promoting more sophisticated youth economic and social policies remain significant challenges in Iran. Levels of youth unemployment, drug addiction, and suicide are on the rise. Further, social inequality remains unaddressed and legal and institutional reforms are needed to reward individual effort and private investment.

Read the full transcript of his remarks here.