Iran needs moderation in domestic and foreign policies

Hassan Rouhani, a former nuclear negotiator, was sworn in as Iran’s President on August 4th. He has succeeded Mahmoud Ahmadi-Nejad, who has left the country in dire economic situation.

Mr Rouhani, a pragmatist, won a presidential election on the strong backing from centrist voters, who demand change in Iran’s domestic and foreign policies.

Iran needs a centrist government, which would pursue reconciliation with the West. Radicalism and populism of Mr Ahmadi-Nejad have only led to the tightening of international sanctions against Iran over its nuclear programme and international isolation.

Iran’s oil exports have dropped significantly since the latest round of sanctions took effect. Inflation is officially running at 35.9 per cent. The rial has lost half of its value since mid-2010. The unemployment rate is above 15 per cent, with unemployment among university graduates close to 30 per cent.

Mr Rouhani wants to break the deadlock in nuclear talks with six world powers – the US, the UK, China, Russia, Germany and France. On the nuclear issue, he is backed by the supreme leader Ali Khamenei, who has a final say in all state affairs. Striking a deal with the US, which means a halt to the uranium enrichment programme and increased cooperation with the International Atomic Energy Agency, is the key to resolving the country’s economic problems.

photo: Ensie & Matthias / flickr.com / CC BY-SA 2.0

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