TEHRAN, Iran: In the frigid air of a Tehran winter, a mother of two stands in a long line of shoppers waiting for the chance to buy discounted meat at a store supported by Iran鈥檚 government.
鈥淵esterday, after nearly two hours in the line, the shopkeeper said: 鈥業t is finished, try another day,鈥欌€� Zahra Akrami said recently. 鈥淎nd now I am here again.鈥�
Her struggle represents the economic paradox that faces Iran as it marks the 40th anniversary of its Islamic Revolution.
Despite holding some of the world鈥檚 largest proven deposits of oil and natural gas, Iran has seen a return to long lines for food 鈥� a sight once seen during the 1980s, when it was at war with Iraq. Inflation continues to rise as its currency, the rial, depreciates. University graduates are unable to find jobs.
Part of the economic challenges stem from the re-imposition of US sanctions that had been lifted under the nuclear deal Iran struck with world powers. Those sanctions have returned after President Donald Trump decided to pull America out of the accord.
But other problems persist, some dating back to policies instituted after the Islamic Revolution in 1979.
That revolt wouldn鈥檛 have been possible without impoverished Iranians rising up against Shah Mohammad Reza Pahlavi. His land reforms saw poorer rural residents move to the cities and become fresh recruits for the revolution. Ayatollah Ruhollah Khomeini鈥檚 calls for supporting the poor struck a populist tone among the struggling masses, as well as with the leftists who helped overthrow a regime that spent billions on US weapons.
Immediately after the revolution, Iran nationalized its oil industry, its main source of hard currency. Its new leaders also seized industries tied to the shah or companies of those who fled the country. Shiite charitable trusts, known as bonyads, also amassed vast holdings, as has Iran鈥檚 paramilitary Revolutionary Guard.
Today, economists consider Iran鈥檚 a 鈥渢ransition鈥� economy, meaning it is shifting from state control to being driven by a free market. However, some firms that moved into private ownership have seen the businesses collapse, leaving workers without pensions and fueling some sporadic protests.
鈥淣o week comes to an end without the closure of 10 to 50 companies,鈥� said Masoud Khansari, the head of Tehran鈥檚 Chamber of Commerce. 鈥淟ast year, 800 out of 1,500 contractor companies in the oil sector collapsed.鈥�
Iran鈥檚 oil industry never fully recovered from a strike that paralyzed it before the shah鈥檚 departure. Prior to the revolution, Iran pumped about 6 million barrels of oil a day. In January, it pumped 2.7 million.
There are bright spots. Iran鈥檚 per capita income has more than doubled since the revolution to $4,838 in 2018. Iran has more than 100,000 locally trained doctors and 18,000 medical centers, and it produces 95 percent of its own medicine, according to government statistics. Life expectancy is around 75, as opposed to about 57 before the revolution. Nearly every Iranian can read.
But for the average person, the only numbers they really care about are those at the cash register at neighborhood grocery stores.
鈥淯nfortunately, high prices have become crippling for people,鈥� lawmaker Mohammad Reza Sabaghian said. 鈥淪ome goods have seen up to a 200 percent increase in prices.鈥�
Staples like meat have grown more expensive. Lamb has reached to nearly $5 a pound, up from $3. Chicken is 70 cents a pound, up from 40 cents.
Analysts suspect part of the problem may be the US sanctions. As the rial falls, livestock breeders likely want the hard currency they can get selling the meat in neighboring countries. Iran produces nearly 90 percent of its domestic demand for meat, but it imports related items like medicine and corn.
The meat crisis has become a cudgel for government hard-liners who are eager to weaken the administration of President Hassan Rouhani, a relatively moderate cleric within the theocracy. State television repeatedly broadcasts stories about long lines at government-subsidized grocery stores, with those waiting criticizing Rouhani鈥檚 administration.
鈥淭he bones of the people are shattering under pressure of poverty,鈥� said Kazem Sedighi, an adviser to Supreme Leader Ayatollah Ali Khamenei.
In a dig at Rouhani, Sedighi added: 鈥淓conomic problems exist, but some officials are careless about the problems.鈥�
Part of Rouhani鈥檚 problem is Washington and the sanctions it restored in November. Germany, France and Britain, which have worked to preserve the nuclear deal, announced earlier this month that they have established a new system so their companies can continue trading with Iran without incurring US penalties for doing so.
However, that system has yet to come into effect, and the strains on Iran are clear. Efforts to import government-subsidized meat from abroad through the military saw a cargo plane crash in January, killing 15 people.
Yet the lines at stores continue daily.
鈥淓very day, the radio and TV are reporting about the trial of those officials who took public funds for themselves, but there鈥檚 no change in our life,鈥� said Assad Azari, a 63-year-old retired teacher and father of three waiting in line. 鈥淲e poor people shouldn鈥檛 have to wait hours for two kilos (4.4 pounds) of budget meat.鈥�