Iran: A Suffering Population and Failing Rulers

In Iran, food prices have skyrocketed by over 100% in a year, exemplified by the soaring cost of potatoes, which has sparked nationwide outrage. Last week, the price per kilo surged within days from 200,000 rials to 750,000, even triggering public discord within various branches of the Iranian government, with officials openly blaming each other. The press has weighed in, with one journalist sarcastically questioning, “How can we expect this government to implement any reforms if it can’t even control the price of potatoes?” This prompted an Iranian economist to reference Milton Friedman’s famous remark: “If you put the government in charge of the desert, it would run out of sand.” Meanwhile, Iranian authorities boast about exporting large quantities of potatoes to Iraq, Turkmenistan, Kazakhstan, and Gulf countries, while their own population suffers from an unprecedented food crisis.

This widespread governance failure extends across Iran’s economy, including the energy sector. On February 11, the vast metropolis of Tehran experienced a total power outage lasting over four hours, causing near-catastrophic disruption. Traffic lights and mobile networks went down, forcing authorities to close schools, universities, and government services. Quick to blame international sanctions to deflect from their mismanagement, Iranian officials fail to acknowledge the country’s deep-rooted tendency to politicize even basic technical and commercial issues. This hyper-politicization has paralyzed decision-making, leading to chronic dysfunctions. While Iran prides itself on exporting electricity to neighboring countries, it—much like with its potato market—fails to regulate its own domestic supply.

Rather than cooperating to resolve this severe crisis, particularly amid the harsh winter conditions, the ministers of oil and energy have engaged in bitter finger-pointing. The press, once again, has stepped in, acknowledging that “the public is paying the price for this mismanagement” and warning that “while people can endure shortages, they will no longer tolerate such disgraceful governance.” Meanwhile, ultra-conservatives have labeled the new administration of President Pezeshkian as “incompetent”, while the government urges citizens to lower their heating by two degrees.

With the national currency, the rial, reaching its lowest historical value, the worst is yet to come for Iranians. They now face even greater anxiety following the “maximum pressure” measures reimposed by Donald Trump on February 4, aimed at crushing Iran’s oil exports completely.