Iran has received much attention from a geopolitical and regional standpoint, but its economic challenges have not attracted a similar degree of interest. With a population of 69 million, considerable hydrocarbon resources, a dynamic and entrepreneurial middle class, and a relatively well-educated labor force, Iran's economic potential is considerable. This volume takes stock of critical developments in the Iranian economy in recent years. The study reviews the key issues and policy responses, highlights the nature of the challenges ahead, and draws implications for the next phase of reforms. The authors conclude that major challenges remain, although significant advances have been made in recent years in opening up the economy to international trade and foreign direct investment, encouraging the private sector, removing exchange restrictions, reforming the tax system, and enhancing macroeconomic management.
general government operations, including municipal budgets and the Social Security Organization. 1 This chapter does not address the issues of quasi-fiscal activities in the banking system ( Chapter 2 ), fiscal dominance over monetary policy ( Chapter 3 ), or the relationship between public enterprises and central government financial operations.
The next section of the chapter derives three sets of long-term simulations of consumptionfromhydrocarbonwealth. Then the results of these simulations are compared with a baseline medium-term fiscal projection in order to