Demographics:

Location: Iran is a In-between Eastern Country, surrounding the Gulf of Oman, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan ( Fig. 1 )

Currency: Persian Rial

Area: 1,648,195 sq kilometer

Population: 67,037,517 ( July 2010 est. ) , 19th in the universe

Important Cities: Capital: Teheran

Others: Esfahan, Tabriz, Mashhad and Shiraz

Religion: The official province faith of Iran is Islam, Muslims representing approximately 98 % of the population. Numerous non-Muslim minorities make up the staying 2 % . Out of these, Zoroastrians, Jews, and Christians are officially recognized and protected and seats are reserved for the same in the Persian Parliament.

Prevalent Political System:

Iran ‘s complex and unusual political system combines elements of a modern Islamic theocracy with democracy.It ‘s political construction possibly viewed in two separate parts as ( Fig. 2 ) : The Persian Government, which works on the footing of the Constitution of Iran and Islam ; and the myriad other political entities. The Persian Government comprises two chief organic structures – The Parliament besides called as Majlis, which is supervised by the President and a figure of establishments like the Head of Judiciary and the Expediency Council, controlled by a conservative Supreme Leader. The President and the Parliament are both elected by the people. The Assembly of Experts along with the President ‘s blessing so elect the Supreme Leader and people who constitute the other political organic structures. That of the Supreme Leader balances the President ‘s power. However, for all intents of statement the Supreme Leader retains much of the power as he controls the armed forces and all the authorization to take all determinations with respect to security, defence and all major foreign policy issues. The authorization of the churchmans and conservative In Iran ‘s power construction restricts the President ‘s power. Iran ‘s current President is Mr. MahmoudAhmadinejad, while the Supreme Leader is Ayatollah Khamenei. The fluctuating tensenesss between the President ‘s office and that of the Supreme Leader ‘s are mirrored by the deeper dissensions between by the democratic aspirations of many Iranians and those backing the spiritual regulation.

A cardinal facet of the political construction of Iran is the Iran Guardian Council dwelling of 6 members. This influential organic structure is formed by assignment of the Supreme Leader and the Head of Judiciary. The Parliament and the President, who may do their ain add-ons, so O.K. the appointive members. The Council has the authorization to O.K. measures passed by the Parliament and the power to blackball them on the footing of incompatibility with the fundamental law and Islamic Law. The Council besides has the power to saloon people from standing in the elections for the President, Parliament and the Assembly of Experts.

Economy:

Iran ‘s estimated GDP ( PPP ) as of 2009 was $ 876 billion. Its growing in 2009 slowed due to the diminution in international oil monetary values in late 2008, domestic economic misdirection and limited oil gross nest eggs. Realized one-year rate in 2010 stood around 2.6 % . Double-digit rising prices rates have hampered Iran ‘s growing in the past twosome of old ages. As of Feb 2010, one-year rising prices decreased to 11.5 % from an norm of 14 % in the old old ages harmonizing to Central Bank of Iran. The planetary disappointment in 2008 did non impact Iran ‘s economic system straight. One of the major factors hindering development is the important deficiency of denationalization with most of the industry still staying province owned.

Factors of Production:

Land: This refers to the of course occurring resources and other trade goods, which are used in assorted countries of production.

Oil and Natural Gas and other Mining Industries: 10 % of the universe ‘s proved oil militias along with universe ‘s 15 % natural gas militias are held by Iran which ranks it 3rd in the universe ( Fig. 3 ) . The province ownership of oil industries and small town agribusiness are two of the major factors In the Persian Economy. In 2010, oil and gas contributed 60 % to the authorities gross. About 20 % of Iran ‘s land is cultivable. However, obstructions such as crude agriculture methods and scarceness of H2O have hampered the agricultural production of Iran greatly. Agreements with regard to geographic expedition with foreign pool have boosted the sum of resource really available for usage, both domestic and international well. The National Iranian Oil Company ( NIOC ) is responsible for oil and natural gas production and geographic expedition and is supervised by the Ministry of Petroleum. Iran rough oil production capacity in 2009 was estimated around 3.9 billion barrels per twenty-four hours.

Iran is ranked among the 15 major mineral rich states. It contains approx. 68 different type of minerals and 37 billion metric tons of proved militias. Mineral production contributes to around 0.6 % to the state ‘s GDP.

Agribusiness: Iran is traditionally an agricultural society. As of 2009, agribusiness contributed 10.9 % to the state ‘s GDP.Currently, approximately 12 % of the entire land in Iran is under cultivation, out of which merely a 3rd is being irrigated. Dry agriculture is undertaken in the remainder of the land. The diverseness of harvests grown in the state is considerable and can be attributed to its wider scope of temperature degrees throughout the state every bit good as the different existing climatic zones. The state ‘s major harvests include rice, wheat and barley. Iran besides leads the universe in Crocus sativus production representing 93.7 % of the entire universe population.

Fisheries: Entree to major H2O organic structures such as the Caspian Sea, Gulf of Oman and the Persian Gulf and a figure of H2O basins has provided Iran with the possible to develop first-class piscaries. Iran is the largest manufacturer and exporter with regard to caviar in the universe ( around 300 metric tons yearly ) .

Labor: Human attempt employed in production including selling and proficient expertness.

The labour force of Iran by 2009 estimated at 25.02 million, with about 700,000 new occupation searchers come ining the market. However a pronounced deficit of skilled labour is an of import point. A major job is the out-migration of immature skilled Iranians. Statistics show about 200,000 emigres to Europe and North America to seek better employment chances. About 40 % of the on the job age population is economically active.

Agriculture employs the highest sum of work force, around 25 % . The industrial sector representing excavation, fabrication and building employed around 31 % of the work force. Although mineral merchandises viz. crude oil has a major manus in the state ‘s grosss, mining ironically employs less than 1 % of the state ‘s labour force. Persian womenconstitute about 33 % of the net work force in the state.

3. Capital: Refers to human made goods employed in the production industry including machinery, tools and edifices.

Much of Iran ‘s capital is generated from its domestic and international grosss. One of the cardinal ends of the authorities has been in developing the non-oil sectors. This involves increasing the capacity and productiveness of those sectors and increasing intra-regional trade and capital flow. One of the chief jobs Iran faces with regard to capitalis the domestic capital flight abroad, which fundamentally means that investors in the state are taking to put their capital elsewhere in the universe. Eg. belongings investors have found more profitable markets in states such as the UAE and Oman.

Decision and Findingss:

The economic challenges faced by the state, both internally an externally are important. Internal challenges include the authorities disbursement ability ‘s significant dependance on a figure of factors such as:

Oil export grosss

Vulnerability to oil monetary value fluctuations

Dependence on gasolene imports to run into domestic energy demands

High rising prices, unemployment and poorness degrees ;

Domestic economic misdirection and economic inefficiency

Development of non-oil sectors

External challenges include:

Sanctions from UN and other international organic structures

Acceptance into the World Trade Organization ( Current position: Perceiver )

US-led fiscal force per unit area

Fallout due to the recent planetary economic crisis

Example: As of 2010, Iran stands as a net importer of gasolene due to hapless and inefficient domestic refinement coupled with subdued foreign investing involvement. This causes the ingestion curve to be significantly higher than the production curve ( Fig. 4 ) However, in the old ages to come Iran could good go one of the universe ‘s prima manufacturers with geographic expedition being carried out in the South Pars country.

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Fig. 4: