Iran's Free Trade Zones: Back Doors to the International Economy?

Since the late 1980s, Iran has pursued a policy of attracting foreign investment and fostering regional trade by granting favored status to the so-called “Free Trade-Industrial Zones” (FTZs) and “Special Economic Zones” (SEZs). To date six FTZs and sixteen SEZs have been set up throughout Iran. The FTZs are strategically positioned for their potential international links and have their eyes on markets beyond Iran, and the SEZs for their value in serving main industries and for improving the country's distribution system and supply network. This paper examines the experience of these zones in Iran in the context of Iran's contradictory and ambivalent approach to international economic integration in general. It is shown that liberal policies pursued in the free zones have been in marked contrast to the approach in the mainland, which has been generally inward-looking in much of the post-revolutionary period. We examine first the rise of free zones as a global phenomenon followed by an overview of Iran's zones and their characteristics. It is argued that serving mainly as “back doors” to the international economy, Iran's free zones have stalled mainly because their promotion has been decoupled from, if not at odds with, official attitudes to the international economy at large. As a result, the zones' ability to attract investment has been limited by both adverse external perceptions of Iran as an investment destination and internal complexities discouraging such investment.     

Nuclear proliferation: The Islamic Republic of Iran

Since the mid-1980s, Israel, thGawdat Bahgate United States, and other Western powers have accused Iran of pursuing nuclear weapons capability. Iranian officials have categorically denied these accusations and claimed that their nuclear program is designed for civilian purposes. This essay examines the history of Iran's nuclear program since the late 1950s and analyzes the forces that shape the country's nuclear policy. These forces include perception of security threats from Pakistan, Iraq, Israel, and the United States; domestic economic and political dynamics; and national pride. The following section will discuss the European and Russian stance on Iran's nuclear ambition as well as the International Atomic Energy Agency's efforts to reach a compromise that would satisfy the international community's concerns and Tehran's demands. The essay concludes with some predictions on how Iran's nuclear program is likely to evolve in the next few decades.     

Incentives for the Iranian Chemical Boom: A Strategic Motivation or Applied Needs?

Iran's scientific impact has suffered hard from decades of imposed and self‐elected isolation from Western influences and international collaboration. Lately, however, the world has witnessed a remarkable increase in scientific publications from Iranian scientists in fields like nanotechnology; material science; and, perhaps most pronounced, chemistry. In this article, the factors behind this “publication boom” are discussed and examined together with an analysis of the coherence between the country's long‐term research strategies and short‐term needs in relation to present organic chemical research conducted at various Iranian universities and institutes. Organic chemistry is a keystone in important Iranian industrial sectors like the petroleum and agricultural industries, and also in the growing field of life science and pharmacology. The development of the petroleum industry and further refinement of raw oil into value‐added fine chemicals holds a key position in the reinforcement of the Iranian economy and labor market, thus motivating a governmental investment in chemical science and research. Taking an approach to find a reasonable balance with the impact from Western and Far Eastern scientific communities, Iran's own scientific roots and Islamic ideology could well be the success factor in becoming a worthy player on the international scientific arena.     

Iran's “Twenty-Year Vision Document”: An Outlook on Science and Technology

In 2005, Iran outlined its goals in economic, science and technology for the next twenty years, Sanad-e- Cheshm Andaz-e Bist Saleh (The Twenty-Year Vision Document), a working plan to raise the country's ranking to that of the first in the region. This article aims to map Iran's scientific and technological performance over five years since the ratification of the plan. Three main areas of science and technology—the percentage of GDP invested in knowledge, scientific performance and technological performance—were used to compare Iran's scientific output with a set of regional countries. The study revealed that Iran's investment in science to inspire technology (the linear model) has been able to nourish scientific performance in the form of rising publication, whereas the neighboring countries followed a more diversified pathway and inspired science from technological advances. Thus, the number of countries in the region capable of competing with and even outstripping Iran in terms of technological and hence scientific performance has increased.     

The Intersection of Citizenship Status,STEM Education,and Expected Labor Market Participation in Gulf Cooperation Council Countries

Citizenship status influences the impact of science, technology, engineering, and mathematics (STEM) education on the youth labor market participation in the Arabian Gulf. This research examines the relationship between citizenship status, STEM education, and expected labor market participation in Gulf Cooperation Council (GCC) countries, and examines the intervening effects of information and communication technology (ICT) based instruction, specifically. The 2011 Trends in International Mathematics and Science Study (TIMSS) provides both labor market expectations and STEM education data from all participating GCC countries, including Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates. Results suggest that ICT‐enhanced STEM education differently influences the human capital development of Gulf national and expatriate youth. For example, GCC nationals do not emphasize STEM education as an avenue for employment, while expatriate youth do. In particular, as Gulf national youths' parents' education level increases, students are less likely to think they need to do well in science to get the job they want. This is indicative of a broader trend in the Gulf nations to rely more on non‐education‐related factors such as family influence or connections for social, economic, and political mobility. In contrast, results also suggest that while STEM education contributes to potential private sector labor market participation among Gulf national youth, expatriate youth are more likely to expect to need or use STEM in the labor market.     

Greece in the future enlarged European Union

Abstract

For Greece, to be part of the European Communities/European Union, it has always been a constant challenge to the country's international position. Sixteen years of EC membership have had a remarkable political, diplomatic, socio-economic and cultural effect on the country's internal domain. Indeed, EC membership has contributed to the consolidation of democratic internal processes, it has influenced the administrative capacity of the state, it has affected the external political orientation of the country's foreign policy objectives, it has benefited the economy from substantial financial community transfers and it has brought the Greek culture closer to the other western European cultures. Seen from a more critical perspective, BC membership has also produced severe shock effects, as the Greek economy has been increasingly exposed to European trade and the subsequent single market and it keeps on breeding social tensions in the process of economic and monetary integration.     

Iranian Exceptionalism and Twelver Shi‘ism

Homa Katouzian's exceptionally perceptive, influential, and wide-ranging scholarship has been marked by three mutually reinforcing characteristics: a profound and detailed mastery of Iran's multi-civilizational heritage; a comparatively informed focus on the country's distinct historical trajectory; and an existentially grounded pluralist perspective in examining and evaluating the country's major political turning points and actors. These features are already fully displayed in his early magnum opus, The Political Economy of Modern Iran (1981), whose historical and political conclusions have been underlined time and again by the subsequent and often shocking national and international turns. In the intervening period, Katouzian has developed the cyclical theory of Iran's history as an “aridosolatic,” “pickaxe” or “short-termist” society. Of the important questions that his contributions raise or address, this paper examines the long-term continuity of Twelver/Imami Shi‘ism's trajectory which uniquely in the twentieth century Muslim and other worlds produced the leaders of two great revolutions. The result entails the addition of a still unfolding evolutionary-institutional layer within Katouzian's research program which may enhance its explanatory power and reinforce its political vision.     

Debating Belarus: An Economy in Comparative Perspective

A U.S.-based geographer and Belarusian political scientist assess the current economic crisis in Belarus. Although the country's financial situation is serious in the short term, they argue that analysis of basic social and economic indicators provides some evidence of underlying strength and stability, recently bolstered by a number of trade agreements concluded with Russia in late 2011. The authors argue that the most natural and meaningful basis for ascertaining the health of the country's economy is to compare it with those of its two Slavic neighbors, Russia and Ukraine. That comparison reveals that although Belarus ranks lower on most indices of economic reform, it has outperformed them during the post-Soviet period in several important categories (GDP growth, income equality, agricultural productivity, expenditures on education and health care, life expectancy, and per capita agricultural output) and occupied an intermediate position (below Russia but above Ukraine) in others (e.g., GDP per capita, wages and pensions, and labor productivity). The paper's final section discusses the nature of the relationship between Belarus and Russia (dependence vs. complementarity) and that between the Lukashenka regime and the Belarusian people.     

The Global Economic Crisis and Unemployment in China

Two noted academic specialists on labor economics and population statistics of China examine the impacts of the global economic crisis of 2008-2009 on the job security of urban workers, and the ensuing repercussions for the Chinese society and economy. More specifically, they probe and determine the magnitude of urban unemployment in China in 2008 and 2009 as it appears to be reported in different segments of the country's immense labor market. A particular focus of the paper is on differences in unemployment among two groups of workers (those with urban hukou vis-à-vis rural migrant workers) with significantly different sets of rights and privileges, as well as levels of job security. The authors also provide an estimate of the urban unemployment rate in 2009 that differs from the official rate. They argue that measures toward further integration of rural and urban labor markets and reducing natural unemployment are ultimately more beneficial than short-term interventions to adjust cyclical joblessness stemming from the global economic crisis and recession.     

The Rise in Power of Crown Prince Mohammed bin Salman

Crown Prince Mohammed bin Salman is moving across the international stage as the future King of Saudi Arabia. He has the support of his father, Saudi royals, and the oil income of his country. He also has 10‐year plan he agreed upon with the King called Vision 2030. The three components of the Vision are to diversify the oil‐based economy to include technology and tourism, to make the country the heart of Islam and Arab culture and to become the economic and geographic hub of Asia/Europe and Africa. His rise in power will depend upon his skill in expanding the religious tolerance of Saudi people, the current economic structure of the country, and the education of the youth. He is simultaneously addressing all these challenges in order to cement the country's future sustainability. Suggestions for enhancing his multifaceted impact on his country are provided.     

Ukraine's Financial Crisis, 2009

A prominent specialist in the economic affairs of the former Soviet Union relates and analyzes the state of Ukraine's economy in light of a series of discussions and interviews with the country's Prime Minister and leading economic officials in Kyiv in 2008 and April 2009. The author, a former economic advisor to the country's government and co-chair of the UN's Blue Ribbon Commission for Ukraine, devotes this paper to a penetrating analysis of the impact of the global financial crisis of 2008-2009 on Ukraine's budget, banks, exchange rates, money supply, industrial sectors (particularly energy and steel), GDP, and inflationary pressures. Due attention is given to economic relations with the EU and Russia as well as to financial assistance from the IMF.Journal of Economic Literature, Classification Numbers: E500, E600, O520, P200. 1 table, 4 figures, 38 references.     

A Preliminary Scheme for the Economic Regionalization of Cuba

The authors propose a scheme of economic regionalization for Cuba, based on Soviet Marxist principles. These include the idea of objective existence of a region, independently of man's will; the need for considering future developmental prospects; energy supply; the prerequisites for integrated development of the regional economy; the presence of a regional specialization; maximum promotion of a geographical division of labor, and the factor of the country's defense capability. The resulting system of six regions in described.     

Iranian Membership in the World Trade Organization: An Unclear Future

Iran is the largest economy that is not currently included in the World Trade Organization (WTO). This paper addresses why Iran has not yet joined the WTO and whether it is ready to join. Iran's interaction with the General Agreement on Tariffs and Trade (GATT) in 1948 marks the beginning of the relationship between Iran and the WTO. To determine why Iran has not yet entered the WTO, the role and penetration of powerful members of the WTO and Iran's economic position are examined. To determine whether Iran is ready to join the WTO, literature is reviewed concerning the effects of joining for the five most-affected major industries in Iran. The major disadvantages of joining the WTO are described as short-term effects, and the advantages of joining are described as long-term goals. Currently, no clear scheme has been offered to handle the negative effects on the Iranian economy. As the major player, the Iranian government could achieve the long-term goals with a realistic and well-planned strategy or miss the mark through its inattention to the critical economic effects.     

China's Dynamic Industrial Sector: The Internet Industry

A Singapore-based economic geographer explores and analyzes the spatially uneven evolution of the Internet industry in China, arguing that the country's immense regional disparity in the provision of Internet services is best explained by the interplay of place- and path-dependence. The author demonstrates how the highly uneven regional endowments in relevant industrial and entrepreneurial resources have led to the substantial and persistent regional imbalance within China's emerging "new economy." His initial survey of the country's 100 leading Internet content providers (firms), identified from a listing of ca. 11,700 commercial websites, is selectively augmented to reflect an increase of over 70 million Internet users in 2007, reaching a total of 253 million in June 2008, and thus overtaking the United States as the world's largest Internet market. Journal of Economic Literature, Classification Numbers: L10, L86, O30. 6 figures, 1 table, 53 references.     

Land as fictitious commodity: the continuing evolution of women's land rights in Uganda

In sub-Saharan Africa, colonial influences have altered traditional practices as a way to manage that which Polanyi labeled as ‘fictitious commodities’ of land, labor, and money. Land has now become a highly marketable commodity and an intrinsic part of the global economy. Over the past century, Uganda's land rights have evolved from communal rights to that of male-dominated, individual ownership practices that have excluded women. Despite constitutional provisions, which confer title of both a deceased husband's property rights and equal rights to property within a marriage to a wife, postcolonial patriarchal tradition prevails. This article examines historical changes in land rights in Uganda and discusses the impact of shifts in land rights from communal ownership to individual tenure, altering power structures and attempting to create marketable land title. The Ugandan women's movement's opposition to policies and implementation of laws that exclude women has been unable to facilitate the required changes in unbiased access to land rights, despite apparent victories in revisions to the letter of the law. Situated within contemporary interpretations of tradition and pressures of market demand, this article shows that women's access to landownership and use are restricted by misinterpretation of traditional law and a lack of enforcement of contemporary legal rights. To illustrate the impact of a lack of access to land, this article examines an empirical case study of widowed subsistence farmers in southern Uganda. Women in Uganda continue to lose ground, quite literally, decreasing the possibility of gender equity in terms of land.     

Youth aspirations and employment in provincial Indonesia: a view from the lower middle classes

ABSTRACT

Demographically and geographically, lower middle class youth occupy an ambiguous position in Indonesian society, embodying elements of both privilege and marginality. Drawing on interviews and 16 months of ethnographic fieldwork conducted between 2008 and 2013, this article considers how an emerging provincial middle class seeks to make good on the promises of an expanding higher education system and proliferation of globalised youth cultures. I examine the capacity and limits of higher education in facilitating young people’s aspirations for youth lifestyles, jobs and the future in a regional labour market with high levels of youth underemployment and informality. Young people’s aspirations for employment and middle class standards of living are mitigated by their responsibilities towards their families and difficulties to establish the social connections needed to access jobs and opportunities. Faced with limited upward mobility, class as an aspirational category rather than everyday reality underpins young people’s claims about the good life.     

The Impact of State-Controlled Banks on the Russian Banking Sector

A senior Russian economist examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2011. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.     

European Union Constructive Engagement with Iran (2000–2004): An Exercise in Conditional Human Rights Diplomacy

In 2002, the European Union (EU) announced that it would enter a Trade and Cooperation Agreement with Iran. The deepening of economic and diplomatic relations between the EU and Iran was, however, linked by the Commission to progress in four areas: human rights, non-proliferation, terrorism and the Middle East Peace Process. This article argues that the current focus on efforts to find a solution to Iran's nuclear ambitions has overshadowed the dynamics of EU human rights diplomacy towards that country. Unlike diplomatic pressure on the non-proliferation issue, the EU-Iran Human Rights Dialogue did not only enjoy great support by politicians and human rights activists, but did indeed result in changes in legislation and policies aimed at the protection of human rights. Europe's multi-track strategy allowed Iranian activists and members of the legal profession to approach the notion of human rights from within the Shi'a notion of justice and rationality and thus managed to assert Islamic roots for human rights and uncovered the very secular realities of human rights violations in the Islamic Republic. The Dialogue was launched at a critical juncture in Iran's reformist movement and helped likeminded politicians, particularly the executive and parliament, to gain momentum domestically and credibility internationally. While efforts at reform were and still are often impeded by the country's competing centers of power, this article argues that efforts to promote and protect human rights in Iran must not be sacrificed for concerns over the nuclear issue.     

China's Energy Security: Challenges and Priorities

In a companion paper to the essays comparing China's and India's economic rise (Prime, 2009) as well as India's energy security (Dadwal, 2009), two specialists on China's energy industries review the country's challenges posed by the need to dramatically increase energy use in order to support economic growth while coping with pressures to reduce environmental impacts from emissions of greenhouse gases. After reviewing the current mix of fuels in the economy and discussing each major energy resource (in terms of proven reserves, production, consumption, and foreign import requirements), the authors focus on measures undertaken by the Chinese government and corporations to improve access to vital supplies. The paper covers efforts to enhance the country's energy security, which include diversifying sources of oil supply, purchasing oil and gas concessions and financing of energy infrastructure development in African and Central Asian countries, instituting reforms to encourage more efficient energy use, and developing alternative energy sources. Journal of Economic Literature, Classification Numbers: O130, P280, Q400. 7 figures, 2 tables, 82 references.     

Spatial variations and clustering in the rates of youth unemployment and NEET: A comparative analysis of Italy,Spain, and the UK

We investigate the “determinants” of spatial variations in youth unemployment and NEET rates, and the presence of spatial clusters, for Italy, Spain and the UK. We aggregate Labour Force Survey data for the period 1993–2018 to a “regional” level. We find that youths are sensitive to aggregate labor market conditions and a discouraged worker effect. In the UK and Spain, temporary jobs are more likely to be preferred to part-time jobs, whereas in Italy the opposite occurs. There is evidence of spatial clustering of youth unemployment and NEET rates. We discuss the implications for place-based regional and labor market policies.