Effect Of Corruption In The Economy And Government Of Iran

The industrialization and oil in Iran has majorly added to its economy making it one of the largest in the world. Due to this, most of the country’s population is much reliant on the public sector.This Has resulted in most people being employed by the government as it is enormous.For Having a large number of people in the government, the pay is thus low and therefore most engage in corrupt behaviors. Therefore, such greedy behaviors have made the Iranian Government be among the most corrupt globally.Corruption in Iran has many effects on their economy, and they are highlighted below.

Among the effects of corruption in Iran is the emergence of terrorism. There have been terror groups formed as a result of high corruption in the Government of Iran. This has affected the economy both directly and indirectly. Due to instability in the country, tourist fear to travel there and also investors keep away from setting businesses hence affecting the economy. Some powerful people in the government fund some of these terror groups. Some of the reported terror attacks include suicide bombers, mass killings, and demolition of buildings using bombs.

The corruption state of Iran has promoted poverty in Iran. For some individuals being greedy, they come up with new ways to be corrupt so that they can achieve more than the rest.This has made some people poor in the process across the country. Public funds are vandalized, and no justice is done leaving others with nothing. Hence, poverty has prevailed in Iran due to the government being corrupt.

In addition, the land administration has been affected by the prevailing corruption in Iran. Due to corruption in the country, the Iranian land administration has been greatly affected. When purchasing or selling real estates, there is protection on the property rights and is usually not a problem.But, It becomes hectic when selling large properties as the process involved is large. Thus, this makes people choose to offer bribes to officials to have a way around the long process and get permits illegally.Similarly, For industries and companies setting up new structures, they obtain financial support via corruption and connections. To register a company takes less time than the expected through corruption.

The other affected sector in Iran due to corruption is the administration of taxes. There is tax evasion among influential people and some organization in Iran through corrupt means. Revenue is lost as some people bribe tax officials to avoid paying huge amounts of taxes. By using such methods, Businesses can operate without remitting taxes to the government. The taxation department has so far become unreliable in Iran due to rising cases of corruption.

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