What appears to be a simple choice of words, however, masks a deeper reality of economic mismanagement and crisis. The term “imbalance,” borrowed from accounting and now applied to Iran’s macroeconomic situation, is used to explain away a range of economic issues, from budget deficits to bank embezzlements and the dysfunction of financial systems.
This linguistic sleight of hand, employed by regime-aligned experts and economists, offers a sanitized view of the economic crises devastating the country. Yet, this narrative requires a critical examination to grasp the true extent of Iran’s economic distress.
A closer look reveals that “imbalance” is a euphemism employed by the government to obscure systemic failures. For example, in the gas sector, the government faces a daily deficit of 250 to 300 million cubic meters of gas. Rather than admitting to a deficit, officials opt for the term “imbalance,” thereby downplaying the severity of the situation.
This rebranding of economic failure is not limited to energy resources. The banking sector, too, exhibits signs of distress, with the Journal of Management, Economics, and Entrepreneurship Studies (December 13, 2023) reporting that banks’ asset growth lags behind deposit interest rates, indicating a critical state of “imbalance.”
Beyond these sectors, hidden expenses contribute further to the budgetary woes. Reports by Farday-e Eghtesad (December 5) highlight substantial off-the-radar expenditures by the regime and the Revolutionary Guards, exacerbating the fiscal deficit.
The magnitude of the economic disparity is staggering. Economist Vahid Shaghaghi, quoted by ILNA news agency on January 14, estimated Iran’s economic crisis at approximately 250 quadrillion rials, considering the prevailing exchange rate.
Political mismanagement is at the core of these economic discrepancies. Etemad newspaper (January 14) highlighted the disconnect between the qualifications of Iranian managers and the gravity of national issues. This political imbalance, characterized by unclear plans, inefficiency, and lack of public support, is seen as the root cause of the economic turmoil.
The consequences of this mismanagement have been dire. The nation’s economic growth has stagnated over the past 12 years, with money supply increasing twenty-two-fold since 2011.
An insider quoted by Ebtekar newspaper on January 15 summed up the situation succinctly: “We are rapidly moving towards the comprehensive deterioration of the economy.” This statement encapsulates the grim reality of Iran’s economic condition – a situation far more severe than what the term “imbalance” might suggest.
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