Iran’s economic losses shatter any illusions of victory

The money Iran spent on its nuclear programme and regional proxies hasn’t brought Palestine any closer to liberation and has inflicted massive financial costs on the Iranian people

Iran’s economic losses shatter any illusions of victory

One wonders what Iran has gained from its nuclear programme other than human and economic losses that have accumulated over decades, at a time when the Iranian people are suffering from hardships, declining purchasing power, and poor services of all kinds. According to The New Yorker magazine, the programme provides only about 1% of Iran's energy needs, while costing $500bn in infrastructure, research, and the losses incurred from international sanctions.

Furthermore, it is estimated that Iran has spent between $100bn-$200bn over the past three decades on its military, political, and media arms across the region. This includes the Lebanese Hezbollah militia, Iraqi militias, the Houthis, Hamas, the criminal Assad regime in Syria, and others.

Factoring in the costs of sanctions and lost economic and investment opportunities for a country like Iran, which is oil-rich, has a large population, and a vast territory, experts estimate that successive generations of Iranian youth have lost at least $2tn over four decades. Meanwhile, Iran’s economy is under unprecedented strain, with inflation at 40% and the value of Iran’s currency, the rial, dropping lower every day.

Talk of victory does little to alleviate the suffering of Iranians, not to mention the Palestinians in Gaza who are being killed in the dozens every day

In the 1980s, South Korea was in a similar economic situation to Iran in the 1970s. However, its GDP today exceeds $1.7tn, while the Iranian economy does not exceed $300bn-$400bn at market prices. Given that Iran's land area is nearly 20 times—and its population eight times—larger than that of the United Arab Emirates, the UAE's GDP is larger than Iran's by $100bn.

Türkiye has also surpassed Iran since the 1990s, with its output reaching more than $1tn, despite its political and economic crises. Türkiye has a similar population to Iran's, but its per capita GDP is $16,000, while Iran's is less than $4,000. This helps explain how Israel managed to infiltrate Iran with hundreds of agents.

Expressions of victory by both Iran and Israel may serve domestic interests, but do not comport with reality. Talk is cheap and does little to alleviate the suffering of Iranians, not to mention the Palestinians in Gaza who are being killed in the dozens every day while simultaneously being starved by Israel. Despite defiant rhetoric by Iran and its so-called 'Axis of Resistance', Palestine is no closer to liberation, yet the death toll keeps rising.

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