Tehran Mayor Sees 'Threat' in Iranians' Dissatisfaction

By Amir Havasi

Iran's low voter turnout reflects a wider malaise in a country long buckling under sanctions and more recently also hit hard by the coronavirus, spelling "a threat for everyone," Tehran's mayor Pirouz Hanachi told AFP.

"The turnout at the ballot box is a sign of people's satisfaction level," said Hanachi, mayor of Iran's political and business centre and largest city, with more than eight million people.

"When there is dissatisfaction with the government or the state, it then reaches everyone and that includes the municipality too," he said in an interview on Tuesday.

Iran has suffered the double blow of a sharp economic downturn caused by US economic sanctions over its contested nuclear program, and the region's most deadly COVID-19 outbreak.

Reformists allied with moderate President Hassan Rouhani lost their parliamentary majority in a landslide conservative victory in February, in a major setback ahead of presidential elections next year.

Voter turnout hit a historic low of less than 43 percent in the February polls after thousands of reformist candidates were barred from running by the Islamic republic's powerful Guardian Council.

Such voter fatigue "can be a threat for everyone, not just reformists or conservatives," warned the mayor, a veteran public servant with a background in urban development who is tied to the reformist camp.

The conservative resurgence reflects dissatisfaction with the Rouhani camp that had sought reengagement with the west and the reward of economic benefits—hopes that were dashed when US President Donald Trump in 2018 pulled out of a landmark nuclear deal and reimposed crippling sanctions.

The International Monetary Fund predicts Iran's economy will shrink by six percent this year.

"We're doing our best, but our situation is not a normal one," Hanachi said. "We are under sanctions and in a tough economic situation."

As he spoke in his town hall office, the shouts of angry garbage truck drivers echoed from the street outside, complaining they had not received pay or pensions for months.

The mayor downplayed the small rally as the kind of event that could happen in "a municipality in any other country", adding that the men were employed not by the city itself but by contractors.

Shrinking Economy

Iran's fragile economy, increasingly cut off from international trade and deprived of crucial oil revenues, took another major blow when the novel coronavirus pandemic hit in late February.

Since then the outbreak has killed more than 12,000 people and infected over 248,000, with daily fatalities reaching a record of 200 early this week, according to official figures.

A temporary shutdown of the economy in recent months and closed borders sharply reduced non-oil exports, Iran's increasingly important lifeline.

This accelerated the plunge of the Iranian rial against the US dollar, threatening to further stoke an already high inflation rate.

In just one impact, said Hanachi, the Teheran municipality lost two trillion rial ($9 million) because of sharply reduced demand for public transport in recent months.

As many Tehran residents got back into their cars to avoid tightly-packed subways and buses, this has done nothing to help solve Tehran's long standing air pollution issue.

Tehran has had only 15 "clean" air quality days since the March 20 Persian New Year, according to the municipality.

One of Hanachi's tasks is to fight both the virus and air pollution—a tough juggling act as car travel is safer for individuals but also worsens the smog that often cloaks the capital.

The mayor said he worried that, after restrictions on car travel were reimposed in May to reduce air pollution, subways are once again packed during peak hours, as is the bustling city centre.

Tehran's Grand Bazaar, which is now crowded with shoppers, warned Hanachi, "can become a focal point for the epidemic." 

Photo: IRNA

Iranians Feel Strain of Turmoil and Sanctions

By Lucie Peytermann

On a crisp winter's day the snow glistens on the mountains above Tehran, but the mood is as heavy as the pall of pollution that often shrouds Iran's capital.

In a country weighed down by sanctions, shaken by protests and stressed by military tensions with the United States, many Tehranis struggle to hide their pessimism.

"Life is really hard right now. The situation here is unpredictable," said Rana, a 20-year-old biology student walking in the upmarket district of Tajrish.

It is a part of the city where young women subtly thwart the Islamic republic's conservative dress codes, opting for short coats, stylish make-up and scarves revealing ever more hair.

But, despite such relative liberties, Rana said she feels trapped.

"The quality of life isn't good at all—we have pollution, angry people, high prices," she said, pointing also to a "huge class gap" and Iran's deepening "isolation".

Iran's economy has been battered since US President Donald Trump in 2018 abandoned an international nuclear deal and reimposed sanctions and a "maximum pressure" campaign.

When Iran hiked petrol prices in November, nationwide protests erupted and turned violent before security forces put them down amid a near-total internet blackout.

Tensions with Washington escalated in early January when a US drone strike killed powerful Iranian general Qassem Soleimani in Baghdad.

Iran retaliated by targeting US forces but then accidentally shot down a Ukrainian airliner, killing all 176 people on board, in a tragedy that sparked anger at home and abroad.

Rana said she still feels "sad" about the disaster that claimed the lives of many young people who had left Iran to study abroad.

‘Angry with Trump'

One young Iranian who has chosen to stay in her country is Pegah Golami, a 25-year-old engineer who was shopping three days ahead of her wedding.

"The country's economic condition is now really difficult, especially for youths," she said, dressed in a chic coat and suede boots.

"I feel very bad... my friends have decided to leave. But I, as an Iranian, decided to stay and build my country."

The strains of a violin filled the air as a busker tried to make himself heard above the noise of the heavy traffic.

It is increasingly difficult to make a living, said Bahram Sobhani, a 47-year-old electrician who was unshaven, nervous and almost completely toothless.

"It's a little difficult to find work these days, but it is out there," he said.

"The sanctions have of course affected us, but we have to tolerate it because we can't do anything else. We live in Iran, not somewhere else."

The economic situation is also hurting Mohammadreza Khademi, vice-president of the Delham Tabesh company that sells smart technology devices from Italy for luxury homes.

His company took a hit after the renewed sanctions trippled costs, forcing it to lay off 20 of its 30 employees.

"The end of 2018 was awful and all of 2019 was not good at all," said Mohammadreza.

"I will continue to run my business. I will try to have that line of production in Iran locally, but it is super difficult to change," he said, adding that "I am angry with Mr Trump".

'We Feel Hopeless'

If the mood is glum in Tehran's middle and upper class districts, it's even worse in the poorer areas of the sprawling city of eight million people.

In the southern district of Molavi, a melange of architectural styles gives way to a maze of alleyways and shops where craftsmen practice time-honoured trades.

Only a few women are seen on the streets, most of them dressed in chadors and many carrying freshly baked flatbread.

Mehdi Golzadeh, a businessman who imports goods from Asia, looked exhausted as he walked out of a grocery store.

"Living in Iran has become very hard. With this economic situation, one can't import anything, and Iran doesn't have the materials" needed to make such products, he said.

"I am single... One can't start a family on this meagre income. We feel hopeless."

Akbar Gharibvand, a 50-year-old shop-owner and father of five, said his income is "just enough to eat and survive".

"These sanctions of course do affect things... It's the lower class that has come under pressure."

But, despite the hardships, he said Iran "is not a bad country" and that he considers himself lucky compared with people living in strife-torn neighboring nations.

"We aren't like Iraq, Afghanistan or Pakistan, or other countries where there are killings every day," he said.

"We are better off because we have security."

Photo: IRNA

IMF Sees Risk of 50% Iran Inflation on More U.S. Sanctions

Tighter U.S. sanctions against Iran could fuel inflation to the highest level since 1980, according to the International Monetary Fund, as the Islamic Republic’s economy grapples with a weakening currency and tighter U.S. sanctions on oil exports.

Consumer prices could average 50 percent higher this year after the U.S. moved last week to end sanctions waivers granted to a handful of countries buying Iranian oil, said Jihad Azour, head of the IMF Middle East and Central Asia department. Before the announcement, the Washington-based lender had expected inflation to average 37 percent.

The U.S. decision aims to slash Iranian oil exports to zero, starving the government of essential revenue as Trump seeks to curb the Islamic Republic’s political influence in the Middle East. The grim outlook would put Iran’s inflation on par with crisis-hit Sudan and only behind Venezuela and Zimbabwe, two countries caught up in political turmoil, IMF data show.

Even before the removal of the waivers, the exchange rate had lost two-thirds of its value and “the economy was expected to go into a second year of recession,” Azour said in an interview on Sunday in Dubai. While it’s hard to tell how high prices could surge, “it’s clear that the situation is expected to deteriorate,” he said.

Forecasts released before the U.S. decision show Iran’s gross domestic product set to contract 6 percent this year from 4 percent in 2018 before a marginal recovery in 2020. The oil price needed to help the country balance its budget was forecast to rise to $125.6 a barrel from $113.8 in 2018 and $64.8 the previous year. Brent crude prices closed at $72.15 a barrel on Friday.

European powers that signed the 2015 nuclear accord with the Islamic Republic have criticized the U.S. actions. Officials in Tehran said reducing oil exports to zero was impossible.

Azour said Iranian authorities should take steps to alleviate the economic pain in the short term, including bringing the official exchange rate in line with market forces and address weaknesses in the financial system by complying with anti-money laundering and terrorism financing laws.

Authorities also need to “fix or expand their social protection mechanisms to address the additional vulnerabilities” for the poor, he said.

Photo: Bloomberg

Iran Judicial Chief Warns Over Worker Unrest

The head of Iran's judicial authority on Monday warned restive workers against creating "disorder", while calling on the government to address their problems.

Ayatollah Sadegh Larijani spoke amid efforts to resolve a weeks-long strike at a major sugar factory in western Iran and popular discontent over rising prices.

"Workers should not allow their demands to become an excuse and an instrument for the enemy and creation of disorder in the country," Larijani said, quoted by the judiciary's news agency Mizan Online.

Acknowledging that many workers are struggling to make ends meet, he said the government must address workers' problems "immediately", according to Mizan.

"The demands of dear workers must be met in a rational atmosphere... with the involvement of the government and the judiciary branch," he said.

But "demands will never be met by turmoil, crisis and actions contrary to public order", he said.

A strike by workers at the Haft Tapeh sugar factory in Shush, a city in Khuzestan province, on Monday entered its 22nd day, according to the reformist ILNA news agency.

Workers are protesting against salary arrears and alleged criminal activity by managers.

The business has around 4,000 workers and was privatized in 2016.

The workers said on Monday that they have been paid their salaries for the period August 23 to 22 September, ILNA said.

ILNA said three out of four workers that it had reported arrested on November 18 have subsequently been freed.

Iran has been hit by strikes over working conditions in several key sectors this year, including education, mines, transport and the steel industry, mainly outside Tehran.

Inflation stands at 36.9 percent, according to the latest monthly data published by the central bank.

Photo Credit: IRNA

Europe Support Against US 'Rare Victory' for Iran: Rouhani

President Hassan Rouhani said Saturday that the divisions between the US and Europe over renewed sanctions on Iran were a "rare historical victory" for the Islamic republic.

"If this time last year, we had stated that America would stand against the great nation of Iran... and Europe would stand with Iran and against America, the overwhelming majority of us... would have said that this was pure optimism," Rouhani told lawmakers in a televised address. 

"The political victory of the great nation of Iran over the past months is a rare victory in history."

EU countries have fiercely opposed the decision by US President Donald Trump to abandon their landmark 2015 nuclear deal with Iran and reimpose sanctions—the last of which will return on November 5. 

Rouhani was addressing parliament for a special session to approve four new ministers covering the portfolios of economy, transport, labour and industry.

He acknowledged Iranians were feeling the economic strain, saying: "All of us understand people are suffering and under pressure. People's lives, in particular those on a fixed income, are very difficult."

But he insisted there were sufficient reserves of basic commodities and foreign currency to weather the storm, even after a record-breaking plunge in the rial over the summer and imminent sanctions on its crucial oil industry. 

"We cannot tell our people that because of America's pressure, we cannot do anything. This answer is not acceptable. We cannot tell people that because there are problems with selling our oil, we are unable to manage the country," he said.

He criticized foreign media reports that costs were soaring, despite Iran's own central bank showing food and drink prices had risen 46.5 percent in the year to September. 

"Foreign media lie to people of Iran and say that Iran is the most expensive country people live in," Rouhani said.

Lawmakers later approved the four names put forward by Rouhani: Farhad Dejpasand as economy minister, Mohammad Eslami for transport, Reza Rahmani for industry and Mohammad Shariatmadari for labour. 

The previous economy and labour ministers were impeached by parliament in August, while the other two resigned last week. 

Photo Credit: IRNA