Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures.
Iran's social and economic infrastructure has been improving steadily in many important aspects over the past two decades:
Although petroleum plays a central part in Iran's exports, Iran's non-oil exports hit the $12 Billion mark in 2005, as Iran continues to diversify its economy.
Iran's former president Khatami followed the market reform plans of former President Rafsanjani and indicated that he would pursue diversification of Iran's oil-reliant economy although he made little progress toward that goal. The strong oil market in 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iran's financial situation tightened in 1997 and deteriorated further in 1998 because of lower oil prices. The subsequent zoom 1999 afforded Iran fiscal breathing room but does not solve Iran's structural economic problems. Iran's current president Ahmadinejad has promised sweeping economic reform, including widespread social services and the elimination of corruption within all Ministries and State owned enterprises.
The Iranian government is attempting to diversify by investing revenues in other areas, including, car manufacturing, aerospace industries, consumer electronics, petrochemicals and nuclear technology.
Iran is expected to attract billions of dollars worth of foreign investment while creating a more favorable investment climate, such as reduced restrictions and duties on imports and the creation of free-trade zones like in Chabahar and the Island of Kish. Modern Iran has a solid middle class and a growing economy but continues to be affected by inflation and unemployment.
Iran's social and economic infrastructure has been improving steadily in many important aspects over the past two decades:
Although petroleum plays a central part in Iran's exports, Iran's non-oil exports hit the $12 Billion mark in 2005, as Iran continues to diversify its economy.
Iran's former president Khatami followed the market reform plans of former President Rafsanjani and indicated that he would pursue diversification of Iran's oil-reliant economy although he made little progress toward that goal. The strong oil market in 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iran's financial situation tightened in 1997 and deteriorated further in 1998 because of lower oil prices. The subsequent zoom 1999 afforded Iran fiscal breathing room but does not solve Iran's structural economic problems. Iran's current president Ahmadinejad has promised sweeping economic reform, including widespread social services and the elimination of corruption within all Ministries and State owned enterprises.
The Iranian government is attempting to diversify by investing revenues in other areas, including, car manufacturing, aerospace industries, consumer electronics, petrochemicals and nuclear technology.
Iran is expected to attract billions of dollars worth of foreign investment while creating a more favorable investment climate, such as reduced restrictions and duties on imports and the creation of free-trade zones like in Chabahar and the Island of Kish. Modern Iran has a solid middle class and a growing economy but continues to be affected by inflation and unemployment.

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