Survey Shows Iranian Pessimism on Economy, Pride in Healthcare Response

Recent Western reporting and analyses of Iran depict dire circumstances and make natural assumptions about how the population must be reacting to an economy battered by sanctions from the United States and ravaged by the COVID-19 pandemic. A public opinion survey conducted in September and early October by the University of Maryland’s Center on International and Security Studies and IranPoll provides data to compare with these assumptions. The telephone survey included a national probability sample of 1,004 respondents. Some results are surprising, and some are remarkably similar to public attitudes about the pandemic in the United States and European countries.

The survey finds that Iran’s public is more pessimistic about the economy than they were earlier in the Trump administration’s maximum pressure campaign. But domestic mismanagement and rising inflation appear to be bigger factors in this shift than the sanctions per se. Those most directly affected by COVID-19 are more negative about the economy. Yet, the Iranian public is generally satisfied by the government’s response to the pandemic and support public health efforts, even when they make a bad economic situation worse. 

Reactions to the Economy

Those Iranians who believe the economy is very bad and getting worse are more numerous now than at any time since CISSM first asked these questions in 2015. When asked to rate Iran’s economic situation, 74 percent called it either somewhat bad (22 percent) or very bad (now a 53 percent majority). Throughout 2018 and into fall 2019, those seeing the economy as “very bad” fluctuated between 40 and 45 percent. The October 2020 level of those saying “very bad” is a marked increase—13 points higher than a year ago. When asked about the direction of economic conditions, 72 percent said they were getting worse—18 points higher than a year ago (October 2019). Only 22 percent said they were getting better.

Optimism about Iran’s economic future has declined unevenly over time. The last time our polls recorded a plurality thinking the economy was getting better was in May 2015, shortly before the nuclear deal was signed. When JCPOA conditions for suspension of nuclear-related sanctions were met in January 2016 but the economy did not show tangible gains, pessimism began to gain ground. Its previous peak was in April 2018, shortly before the Trump administration fulfilled its threat to withdraw from the JCPOA if Iran did not make more concessions. As the Trump progressively ratcheted up its maximum pressure campaign by reimposing sanctions the Obama administration had lifted and adding new sanctions on Iran, the public remained generally pessimistic. Yet, the percentage holding that view declined ten points from April 2018 to October 2019 as the negative effects of new sanctions had less impact on everyday life than anticipated, unemployment decreased, and currency devaluation slowed. 

Respondents with higher nominal monthly incomes were progressively more likely to see Iran’s economy as very bad and getting worse. For example, of those in the highest income bracket (average household monthly income over 6 million tomans), 64 percent said the economy was “very bad” and 88 percent said it was “getting worse.” In the lowest income bracket (under 1 million tomans), a lesser 52 percent said the economy was currently “very bad” and 60 percent thought it was getting worse.

This suggests that the recent jump in economic pessimism is related to Iran’s steep currency de-valuation. Average consumer prices have increased by 30 percent this year, which is high – but lower than 41 percent last year. Higher-income Iranians have experience even steeper inflation, because the currency has depreciated sharply despite government efforts to stabilize it in mid-2019. The open exchange rate went from 11,369 tomans to one U.S. dollar in October 2019 to 29,740 tomans to one dollar in October 2020--a 162 percent increase.

We periodically ask Iranians what has the greatest negative impact on their economy: foreign sanctions and pressures, or domestic economic mismanagement and corruption. Given the emphasis placed by Western media and policy experts on “crippling economic sanctions,” it would be natural to expect that a majority of Iranians see this factor as paramount, but that has never been true in CISSM surveys.

In our most recent survey, 57 percent saw domestic issues as the bigger factor, while 36 percent blamed sanctions more. Before the Trump administration withdrew from the JCPOA, a slightly higher 63 percent called domestic mismanagement the more important issue. If the renewed US sanctions have affected general public attitudes at all, they have caused more Iranians to blame foreign pressures rather than their own government. Iranians with higher monthly incomes, however, are progressively more likely to attribute bad economic conditions to domestic mismanagement, with 75 percent of those at the top holding this view. 

Reactions to the Pandemic

Iran’s weak economy and the ravages of COVID-19 are mutually reinforcing. When Iranians think about how their society should respond to the pandemic, large but not overwhelming majorities endorse strong measures, while a significant minority disagrees—a pattern similar to that found in Western countries. This is striking given the severity Iranians clearly see in the country’s economic situation. A clear majority of 58 percent thought the government should close restaurants and “workplaces where people work in close proximity” to prevent the virus’ spread--“even if this would damage Iran’s economy.” Twenty-nine percent disagreed, saying “it is more important for the government to encourage economic activities, even if this would lead to more people getting sick.” 

Experience of the virus in one’s own circle is a majority phenomenon in Iran. Fifty-nine percent knew someone who has gotten sick “among…family, friends, and acquaintances,” while 41 percent did not. Over a third (37 percent) report personally knowing someone who has died from the disease. The virus’ economic impact has also been harsh, with one in five (19 percent) Iranians reporting that someone had lost a job in their own household. Iranians who know somebody who has died from the virus or who have suffered a pandemic-related job loss are about ten points more likely to say that economic conditions are very bad than those who have not had these experiences.

For comparison with the United States, Kaiser Family Foundation found in September that a lesser 24 percent of Americans knew someone who has lost their life to COVID-19. On the pandemic’s job costs, Kaiser asked a broader question in the United States—whether someone in one’s household had “lost a job, [has] been placed on furlough, or had…income or hours reduced because of the coronavirus outbreak.” In October, 45 percent of Americans said yes. It appears that in the early fall, somewhat more Americans had been affected by job loss, while somewhat fewer had lost somebody they knew to COVID-19 than was the case in Iran. 

Despite the strain that the coronavirus has placed on Iran’s public health care system, we did not find widespread dissatisfaction. Asked to “rate the performance of the public healthcare system in Iran,” a strikingly high 85 percent called it “very good” (38 percent) or “somewhat good” (47 percent), with only 15 percent calling it somewhat poor (9 percent) or very poor (6 percent). Rural respondents viewed the system especially warmly, with 45 percent calling it “very good” (urban respondents, 35 percent). This may reflect past investments Iran has made in building out basic healthcare in more isolated areas.

Although Iran has been hard-hit compared to other countries in the region, most Iranians seem relatively satisfied with their government’s performance. We asked respondents to think of “other countries that are similar to Iran” and then ponder whether Iran’s response has been more effective, less effective, or about the same. Given this subjective yardstick, only 25 percent thought Iran had been less effective. Thirty percent thought it had been about the same, and 40 percent thought Iran had been more effective than other similar countries. The more dissatisfied quarter of respondents tended to be more urban, and more pessimistic about the economy than the average Iranian.

These numbers suggest that Iranians are less pleased with their government’s handling of the pandemic that citizens of some advanced countries are, but more positive than people in the United States and the United Kingdom. The Pew Summer 2020 Global Attitudes Survey asked respondents in 14 advanced countries whether their country had done a good job or a bad job with COVID-19. Top scores went to Denmark (95 percent) and Australia (94 percent), and Sweden (71 percent) was comparable to Iran, while the U.S. (47 percent) and U.K. (46 percent) had the lowest satisfaction levels.

We asked about personal compliance with COVID-19 guidelines and about closing schools during the pandemic. The responses were similar to attitudes in the United States. A clear majority of Iranians supports public health measures, but this is not unanimous. Thus, 91 percent said they “wear a mask over [their] mouth and nose” when going out in public, but only 57 percent said they “always” do so. When a vaccine “becomes available in Iran and is approved by Iran’s Ministry of Health,” only 10 percent said they would not take it; however, less than two thirds (62 percent) said they would definitely get themselves vaccinated. Nearly two-thirds (67 percent) said schools should remain closed while 27 percent responded that they should be open for in-person classes.

In conclusion, Iran’s public has a consensus that the country’s economic situation is worse than any time since at least 2015. But they do not see the United States as the primary cause of the country’s troubles. Iranians also seem quite aware that Iran is not the only country in crisis now. Their attitudes toward the pandemic are not different in kind from those found in richer countries, and they are generally proud of their public health service’s response. 

Photo: IRNA

Burned by Trump, Iranians Report Negative Views of the United States

Three new waves of nationally-representative surveys conducted by the University of Maryland over the past six months paint a damning picture of the Trump administration’s Iran policy. Negative perceptions of the United States among the Iranian public are at the highest recorded level in over a decade of public opinion research conducted by the university’s Center for International and Security Studies at Maryland (CISSM) and IranPoll.

Long considered one of the most “pro-American” populations in the Middle East, 86 percent of Iranians reported unfavorable views of the United States, of which 73 percent reported “very unfavorable” views. Perceptions of the United States were most positive in August 2015, shortly after the Joint Comprehensive Plan of Action (JCPOA) was agreed by Iran and the United States, France, Germany, the United Kingdom, Russia, and China. As frustrations grew over the implementation of sanctions relief and following the Trump administration’s withdrawal from the deal negative perceptions steadily increased.

Iranians believe that US sanctions policy is intended to cause direct harm to ordinary people. While the Trump administration claims that humanitarian goods and supplies may freely enter Iran, 70 percent of Iranians believe that US policy intends to block humanitarian trade.

“As the United States increases it pressure on Iran, Iranians are becoming more distrustful and disdainful of the United States, making them less likely to encourage their government to adopt conciliatory policies toward the United States and its allies,” said Ebrahim Mohseni, a research associate at CISSM and one of the report’s authors.

But the negative perceptions of the United States are not merely shaped by sanctions impacts. More fundamentally, Iranians are increasingly doubtful that the United States offers a model to emulate. In 2005, during the Iraq War, a Zogby survey found 37 percent of Iranians saying “America is a model country for its values and freedoms.” Now, the percentage expressing that view has plummeted to 12 percent.

This growing antagonism towards the United States tracks growing disillusionment with the nuclear deal. For the first time, a majority of Iranians (52 percent) disapprove of the JCPOA, and 59 percent believe Iran should withdraw outright.

To this end, three-in-four Iranians support the government’s new policy of gradually exceeding some JCPOA limits and threatening withdrawal unless other signatories do more to allow Iran to benefit from the deal. This new policy of escalation enjoys much higher levels of support than the policy of “strategic patience” which was in place until May of this year. That policy, which was based on the expectation that Europe, Russia, and China, would step in to mitigate the economic harm of sanctions, was supported by just 53 percent of respondents in May.

Given the failure of “strategic patience” to result in tangible economic support for Iran, a clear majority of respondents—69 percent—lack confidence that the remaining parties in the nuclear deal will uphold their obligations. This proportion has risen 33 points since January 2018. Recent European efforts, such as the establishment of a state-owned trade intermediary called INSTEX, are only looked upon positively by 24 percent of respondents. Nearly half of respondents do not even believe Europe is making a genuine effort to address Iran’s economic hardships.

However, despite the failures of Europe, Russia, and China to come to Iran’s economic aid, pessimism about the economic has not in fact increased among the Iranian public. A notable 68 percent of Iranians have negative views of the economy. But the proportion has fallen from 72 percent in April of last year, when the country was in the grips of an acute currency crisis.

The proportion of Iranians who believe the economy is getting worse has also fallen to 54 percent from 64 percent in April last year, lending credence to reports that an economic recovery is underway. Iranians continue to blame domestic mismanagement and corruption as a greater contributor to economic hardship than sanctions. But the proportion has shifted somewhat, with gap shrinking from 31 to 17 points since January 2018 as sanctions impacts become more pronounced and as the government seeks to address mismanagement more directly.

"One of the main objectives of the Trump administration’s ‘maximum pressure’ campaign is to increase economic and political dissatisfaction until the Iranian government either acquiesces to Secretary of State Pompeo’s twelve demands or is replaced by a form of government more to the United States’ liking,” said Nancy Gallagher, director of the Center for International and Security Studies at Maryland (CISSM), and one of the report’s authors.“Our data, however, indicate that contrary to what US officials anticipated, public dissatisfaction with the economy has gone back to where it was before US withdrawal from the JCPOA. More importantly, public attitudes in Iran are hardening against the types of policy changes that the Trump administration is trying to achieve.”

Those who say the sanctions are negatively impacting Iran’s economy are not more supportive of Iran making major concessions than those who say the sanctions are having little or no negative impact. This may be in part because Iranians believe that “maximum pressure” is maxed-out. A notable 63 percent of Iranians believe the United States has sanctioned Iran to the fullest and “cannot make Iran’s economic conditions more difficult…even if it tries,” while only 35 percent think the United States can “greatly worsen” the economy.

Iranians also continue to believe in the resiliency of their economy. A clear majority see a silver lining to the sanctions. A resounding 81 percent of Iranians agree with the statement: “While it’s unfortunate that some outside powers are still blocking Iran’s participation in the world economy, we can use current circumstances to build up our domestic industries to meet our own needs. This will reduce unemployment and make our society more resilient.”

Troublingly for those hoping for a second chance at diplomacy, 72 percent of Iranians now think that the JCPOA shows “it is not worthwhile for Iran to make concessions” because other powers will not follow through—a five point increase from January of 2018. However, did express support for Iran returning to full compliance with the JCPOA if other parties to the deal—and the United States—were to do the same. Only 45 percent said they would approve of Iran fully complying with all of its JCPOA obligations if European signatories made specific commitments to increase trade and investment, but an additional 24 percent would approve of Iran’s return to full compliance if the United States also allowed Iran’s main customers to resume purchasing oil.

Fifty-three percent would be willing to enter negotiations on a broader deal with the P5+1 signatories of the JCPOA is all parties were to fully honor their side of the original bargain. However, only 18 percent would negotiate with the Europeans on broader issues before the United States had rejoined the JCPOA and lifted all nuclear-related sanctions.

The survey’s first wave was conducted one week after the Trump administration designated the Iranian Revolutionary Guard Corps (IRGC) a terrorist organization. The responses showed extensive public support for the IRGC. Sixty-one percent thought the IRGC “performed very well” in response to the severe spring floods. Three quarters of Iranians said in May 2019 that the IRGC’s activities in the Middle East have made Iran more secure; five months later, as regional tensions approached a fever pitch, the number holding that view rose to 81 percent.

The three new waves were conducted by telephone interview and each included a sample size of over 1000 respondents. The resulting data, and the trends that can be illustrated over years of research, give lie to the Trump administration’s assurances that “maximum pressure” is advancing American interests. Not only has the administration’s policy turned Iranian sentiments towards the United States more negative, but the regional insecurity that has resulted from that policy has improved perceptions of the role of the IRGC.

Photo: IRNA