Vol. 9(5), pp. 199-210. November, 2021. 

ISSN: 2360-784X

https://doi.org/10.14662/ijpsd2021125

 

Full Length Research

 

Abstract

Rentier governments have a high potential to empower populists because they feed on oil revenues as their source of income. Economically, populist rentier governments are largely economically distributive and radical and isolated. Unemployment, inflation, foreign debt, the recession, and the devaluation of the national currency will be prominent features of such governments. Although rentier governments are generally scattered around the world and the main focus of their populist type is seen in Latin America in particular, Ahmadinejad came to power in Iran with such a populist approach and was able to implement his populist policies. Based on Hertog’s theory of oil populist economics, this study seeks to pathologize Ahmadinejad's political economy. After coming to power in 2005, Ahmadinejad pursued populist economic policies, and due to financial indiscipline in managing oil revenues, on the one hand, and not relying on the theories of economists, specialists, and experts, on the other, the government suffered heavy bank debt. To the private sector, declining national currencies, rising liquidity, financial deficits, declining economic growth, declining production, stagflation, unemployment, and the latter's economic policies have largely been able to gain little satisfaction from outsiders, especially the underprivileged. Finally, despite the sharp rise in oil revenues, his economic policies have not been able to strengthen the economic and institutional infrastructure of Iran's economy. These policies, along with the inefficiency of economic and rational policies, in the long run, the country's economy faced structural crises. Thus, following the populist policies, the government made him economically vulnerable, so that Rouhani's government inherited Ahmadinejad's populist policies, which he also did not allow to continue. The damaging effects of these policies will likely remain on the country's economic structure for decades to come.

 

Keywords: Populist economics, populist government, oil populism, oil revenues, populist economic policies.

 

	Cite This Article As: Shaekhmahmodi, P. (2021). Political Economy of populist Rentier Governments in Iran (A Case Study of Ahmadinejad's Government). Int. J. Polit. Sci. Develop. 9(5):199-210