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• Title: Iran's Economic Considerations After the war and Its Role in Renewing of Iran-Saudi Diplomatic Relations/Considerations Economiques de L'iran Apres la Guerre Et son Role Dans Le Renouvellement des Relations Diplomatiques Entre L'iran Et L'arabie Saoudite (Report)
• Author : Cross-Cultural Communication
• Release Date : January 30, 2010
• Genre: Social Science,Books,Nonfiction,
• Pages : * pages
• Size : 274 KB

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1. IRAN'S ECONOMIC SITUATION RESULTED FROM IRAN-IRAQ WAR IN 1980S Iran-Iraq eight-year war (1980-88) caused many damages for Iran's economy. The war impacted on different sections of economic and spoiled life of Iranian people by its heavy devastations and expenditures. According to Sadowski (1993) Iran spent $644 billion, almost ten times the value of the 1978 gross national product (GNP) during the war regardless of matters such as inflation, war casualties and etc. The author added that these problems "pushed Iran's real gross domestic product down from $ 6,052 per capita in 1977 to $ 2,944 in 1988." (p.62) Moreover, as the writer indicates, Iran also owed $6 billion in foreign debts during the war. Likewise, many buildings and industries were ruined completely or damaged seriously in that period. For instance, around 87 cities and 2676 villages damaged severely during the war and also, as Keddie & Richard (2006) argue, Khorramshahr port, Abadan refinery, and the Kharg loading facilities were destroyed during the war. According to the writers, further, " ... many wartime shortages continued and problems like inflation, unemployment, deficit spending, overwhelming dependence on oil, and declining agricultural self-sufficiency were worse than ever" (p.264). Based on Statistics Center of Iran (SCI), there were 8.29 million home units available in 1986 while there were 9.67 million families. It showed that 1.38 million families did not have domicile. It was at the time when the rate of population growth had increased from 2.7 in 1976 to 3.9 in 1986 (Momeni, 1998).It was natural that, therefore, increase of population would sophisticate existing dwelling problem. In the last years of the war also lots of home units destroyed or damaged by expanding of the war to residential area which inherently worsened the situation.

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