Tag Archives: Iran-Iraq War

Assessing the Costs of Islamic Republic’s Policy Choices and Actions

The costs of the actions  and policies pursued by the Islamic Republic since its founding in 1979 have not received enough scrutiny.    The sanctions have already imposed an enormous cost on the Iranian people.  But consider the following:

 1.  The 1979 Revolution-Opportunity cost and loss of investment, comes to $ 59 to $732 billions.  According this paper,  The costs imposed on the average Iranian citizen are quite high. For a country with per capita real GDP of less than US$ 10,000 for the sample period, an annual opportunity cost equal to US$ 2,500 is very high. To better understand this issue, think about roads not built, research and development not funded, health care improvements not realized, houses not built, and pension and retirement savings not made. In other words, the average Iranian is significantly poorer than his/her neighbors or in comparison with what (s)he could have earned due to policies and actions taken by the Iranian state.”  P.  28

2.  The Hostage Crisis of 1979-1981  cost Iran  $12 billions of its assets  in the United States when U.S. froze these assets.

3.  The Iran-Iraq war ( 1980-1988) cost  Iran  In excess of  $500 billion.

4. The Nuclear Program-keeping Iran’s nuclear program going has already “cost Tehran more than $100 billion in lost oil revenue and foreign investments alone.”   

When one thinks of these enormous figures,  one can see how much of Iran’s economic potentials have been destroy due to policy choices of the regime in Tehran.                                     



Bahman Baktiari