The 1979 Islamic Revolution and its Threats to Economic Security

This paper addresses the rise of the welfare state in the Islamic Republic of Iran and its growing threat to economic security. The paper shows that the political economy of the Islamic regime is driving decisions predicated on the protection and longevity of the regime rather than the growth and economic security of the nation. This paper also shows that the Islamic Republic has the potential for substantial economic growth if it is able to retract from its subversive foreign policy agenda in the Middle East; reduce welfare programs in favor of financial independence; move toward economic liberalism; deregulate domestic industry; and increase human rights practices.