Tuesday, December 21, 2010

Iran survives the 'subsidies reduction' ...and remains stable

"...with Iran’s economy in general teetering on the edge of collapse, a problem that has been compounded by severe economic sanctions levied against it by Western countries that believe Iran is pursuing nuclear weapons, and political unrest stemming from the contested elections last year, many thought the subsidy cuts could be the final straw for the Iranian public.
This time, however, the government was prepared. For days, security forces have been patrolling streets and major squares throughout Tehran, many of which were the site of clashes between protestors and police during post-election outrage last December.
Most analysts agree that the subsidies had to be cut to both relieve the significant drain they represented on the country’s budget and to reduce the culture of waste they created throughout the country..."

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