POL218Y5 Lecture Notes - Lecture 7: Akbar Hashemi Rafsanjani, Mohammad Khatami, Intelligentsia
6 Apr 2020
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Oil became iran"s primary export and precludes the need for high taxes. This is not necessarily good because when your government can print its own money without relying on yours, they feel no accountability towards you and therefore doesn"t need to satisfy your demands (also a problem in. Oil revenues had allowed the government to spend a lot of money on subsidies and this had led to massive spending on social welfare expenditures. This has led to a population explosion because having children is cheap and paid for. Under the shah, there was high levels of economic growth and iran was in its takeoff stage by 1977. Opec (oil cartel): iran was well established with opec and was able to control the demands and prices of their own oil by pumping however much they wanted (making demands higher or lower based on their amounts).
