In the centuries before this nation, formerly known to the
western world as Persia, the Islamic Republic of Iran served as one of the
world's most influential and powerful civilizations. These days, as a founding
member of the United Nations and OPEC, Iran maintains a stable economy based
largely upon their production of crude oil and natural gas and trade relations
with allies in Asia and Europe. Despite tensions between the United States and
Iran stemming from the nation's revolution in the late 1970s (which ousted the
country's last Shah) and US support of Iraq in the First Gulf War, Iran is
nonetheless ranked in the top twenty among countries with the highest Gross
Domestic Product, and future dependence on oil is likely to keep Iran a strong
global trade player.
As one might expect, the primary resource behind Iran's
nearly $900 billion GDP is oil and natural gas. With demand-and prices-for oil
remaining high, countries in the Middle East tend to hold the bargaining chips,
and Iran maintains ten percent of the planet's oil reserves and fifteen percent
of overall natural gas reserves. Yet, while petroleum accounts for 45% of
Iran's total annual export revenue (nearly $100 billion in 2009), it is not the
only product traded out of the country.
Arts/Handicrafts:
The beautiful, handwoven Persian carpets and textiles, copperware and woodwork,
and other artisan crafts of Iran comprise half a billion dollars' worth of
export profits. While not as lucrative as oil, these unique arts have helped to
stabilize the incomes of Iran's working class. These intricate rugs and pottery
and home décor are found in bazaars and stores around the world, with China,
Japan, and India counted among Iran's greatest export allies.
Fruits and nuts,
gourmet foods: Iran is the world's largest producer of caviar, thanks to
the abundance of fish from the rivers that spill into the Caspian. Saffron,
pistachios, dates, and berberis are also harvested and shipped on a regular
basis.
Cars: It should
come as no surprise that, as one of the largest producers of oil in the world,
Iran also has a hand in automobile manufacturing. The nation is the largest car
maker in the Middle East with companies Iran Khodro and Saipa leading the list
of manufacturers that have exported about a billion dollars' worth of product.
Though Iran seeks to maintain resources for domestic use,
the country does maintain import relationships with the United Arab Emirates,
China, and Germany. With only twenty percent of the nation's land usable for
agriculture, Iran relies on imports for processed foods and other crops that
aren't easily grown domestically. Raw materials for manufacture of automotive
and other equipment is also much sought after, as are household consumer
goods-telecommunications, technology, and various domestic needs. In recent
years, Iran has worked to strengthen trade ties through real estate investment
and assisting the economy of neighboring nations.
With trade income expected only to increase in coming years,
Iran is certain to continue an overall economic growth that forges political as
well as financial relations with the Middle East, Asia, and Europe.
Kathryn Lively
Photo courtesy of Wikipedia