Iran  

Iranian workers have an above average level of physical capital, ranking in the top half, worldwide. However, both the unemployment rate at 15% and the inflation rate at 17% are measurably high, ranking 87th and 100th out of 104, respectively. Despite this, the domestic savings rate is elevated at 44%, and household expenditure is strong at 25% of GDP, and the interest margin, at less than three percentage points, is low, suggesting a competitive banking sector. Iran’s reliance on raw material exports is extremely high with a concentration level of 70%, ranking the country amongst the bottom 10 internationally. Unsound economic fundamentals have discouraged foreigners from direct investment in Iran, leading to meagre investment equalling 0.27% of Iran’s GDP. Iran’s capacity to earn foreign currency through its exports is also extremely low, indicating weak terms of trade with its partners.

There are only eight formal procedures required to start a business in Iran, forming relatively few barriers to entry. In terms of value added by the service industry, Iran ranks in the bottom quintile worldwide. With ICT exports forming only 0.1% of total exports, Iran ranks in the lowest 25 countries on this variable, but the country fares better with regard to high-tech exports, ranking just above global average, worldwide, at 56th. In terms of internet infrastructure, Iran has a relatively high bandwidth available to consumers, but the number of secure servers is very low. With 106 personal computers per 1,000 Iranians, the country’s performance is below the global average on this variable, but the proportion of national income spent on R&D is comparatively higher, ranking in the top third of all countries in the Index.

Iranian citizens have very few political rights or civil liberties. Iran is closer to an autocracy than a democracy, with democratic institutions existing in name only. However, there are some constraints on the power of the executive branch, with checks and balances preventing rulers taking policy decisions on a whim. Multiple parties hold seats in the Iranian executive branch of government, but one party largely outnumbers the rest, showing an overall lack of competition. Despite the presence of elections, the President is designated through undemocratic means. Only one party controls the legislative branch of government, reemphasising a lack of competitive democracy, and the judiciary is dependent on the executive for its power. Iran’s political instability is moderate, with the last fundamental regime change occurring less than five years ago.

The number of primary age children enrolled in Iranian schools is just above the global average, and the number of teachers per pupil also ranks in the top half at one to 19. However, with only 81% of children enrolled at secondary level, and 27% enrolled in tertiary education, Iran ranks below average on both of these variables. Iran also has one of the highest proportions of girls to boys in primary and secondary schooling, with 105 girls per 100 boys, ranking fourth on this variable. The average Iranian worker receives 5.1 years of secondary education, and 3.8 years of tertiary education; both figures are just below the global average. Governmental expenditure, at just under $2,000 per student, is also below average, worldwide.

There are few doctors and nurses and relatively few hospital beds per capita in Iran, ranking below the global average in both variables. Health-adjusted life expectancy is also in the bottom third, with a value of 58 years, but only 4% of citizens are undernourished, a low proportion internationally. Infant mortality rates are high, with over 3% of live births resulting in death within the first 12 months. Five-sixths of citizens have access to improved sanitation facilities, but only 62% are happy with the quality of their water. Iranians appear satisfied with their general health, with 85% expressing satisfaction, and less than one-fifth consider themselves to have ongoing health problems, ranking in the top 20 in this variable.* However, only 62% consider themselves well rested and over a quarter of those polled reported feeling physical pain the previous day, ranking Iran in the bottom third on both variables.*

Iran has severe security challenges relating to refugees and groups with a history of discrimination or other grievance. Iran also has a high level of human flight, with many of the most educated citizens choosing to live and work elsewhere. The Iranian government is also categorised as a government that has used violence against its own citizens, ranking in the bottom quartile in this variable, although no Iranians were killed in civil wars in 2007. Homicide rates are low, with approximately 28 homicides per one million people; however, nearly a quarter of respondents indicated that they had property stolen in 2008, ranking in the bottom 10 countries, worldwide.* Furthermore 9% of citizens reported being assaulted, and only 51% feel safe walking the streets at night, ranking Iran 69th and 71st, respectively.*

In Iran, the legal and judicial systems are underdeveloped, and laws are not always applied fairly and universally. In addition, the regulatory environment is hostile to commercial activity and markets are often uncompetitive. Iran’s bureaucracy is also inefficient and ineffective in its implementation of policies; Iran ranks in the bottom quintile in all three variables. The right to self determination through free and fair election does not exist in Iran; despite this, over half are satisfied with the honesty of the electoral process.* Four in five Iranians have confidence in Iran’s armed forces and the same proportion believe corruption to be widespread in local businesses and government; both figures are significantly above the global average.* Just over half of Iranians approve of the court system, an average number, worldwide.*

As a theocracy, freedom of religion is greatly limited in Iran, and freedoms of speech and movement are also very low. Polls suggest Iran is an unsuitable place for outsiders, with less than half considering their area as a good place for ethnic minorities, ranking in the bottom 15 worldwide.* Worse still, only 30% recommend their area for immigrants, ranking seventh lowest of all countries.* Furthermore, only three-fifths of the population are happy with their freedom of choice, ranking very poorly worldwide.*

Generally speaking, the importance of friends is below average in Iran. Only 71% of Iranians feel they can rely on their friends and family in times of need.* A very low proportion comparably, while just 11% feel they can place trust in their fellow citizen, ranking in the bottom 10 countries, worldwide.* Membership in social organisations is around the global average and Iran ranks above the global average on the number of citizens that are members of religious, sports, arts, and environmental organisations. While 36% donated and 45% helped strangers a month prior to the survey, only 13% claimed to have volunteered their time to an organisation.*

* Data taken from the Gallup World Poll

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