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Insuring the Deal

Economist
Insuring the DealInsuring the Deal

When President Hassan Rouhani took office in the summer of 2013 economists recommended that Iran  should follow pragmatic policies to produce fiscal and monetary stability while opening its economy to the international community.

Although declining oil prices make it difficult to reduce the budget deficit, the administration was successful in achieving economic stability. This was further underpinned by the historic nuclear deal, which is expected to help the country reintegrate with the global economy.

As time goes by and positive trends prevail, growth and prosperity should be part and parcel of economic life of this country of 80 million people. But the key question is whether the expected progress will take too long only to exhaust the masses and possibly move populists to reclaim their old turf?

Needless to say, the people understandably expect the manifestation of the historic nuclear deal in their day-to-day lives.

If the government is unable to deliver it, critics will waste little time to attack the deal. No sign of improvement means more criticism and greater leeway for Rouhani’s political opponents.

This particular issue is so important that US Secretary of State John Kerry said Iran’s sanctions relief could be felt within six months and that Iranian efforts to reinforce links with the world will eventually produce results.

The government should accelerate the process so that the positive signs become evident sooner than opponents find time to challenge the implementation of the Joint Comprehensive Plan of Action. And if the P5+1 really wants assurance about the success of the long-pending deal, it should help Iran’s economy get back on track and Rouhani will do all he can to implement the accord.

Hence, economic integration between Iran and the world is and will be a major factor for the successful implementation of JCPOA. This alone will guarantee a permanent end to years of unwanted tensions related to Tehran’s nuclear energy program. It also will help ensure that the history of relations between Iran and the West in future will be written differently than was in the past.   

 

Financialtribune.com