PESTLE ANALYSIS

Political Factors
 Government and Administration
The politics of Iran take place in a framework that officially combines
elements of theocracy (Guardianship of the Islamic Jurist) and presidential
democracy. Iran is an Islamic republic in which the supreme
leader, president, parliament (Majles) and judicial system share powers reserved
to the national government, according to its Constitution.
The December 1979 constitution, and its 1989 amendment, define the political,
economic, and social order of the Islamic Republic of Iran, declaring that Shia
Islam is Iran's official religion where around 90–95% of Iranians associate
themselves with the Shia branch of Islam.
 Supreme leader
The Supreme Leader of Iran is the head of state and highest ranking political
and religious authority (above the President). The armed forces, judicial
system, state television, and other key governmental organizations such as
the Guardian Council and Expediency Discernment Council are under the
control of the Supreme Leader. There have been only two Supreme Leaders
since the founding of the Islamic Republic, and the current leader (Ali
Khamenei), has been in power since 1989. His powers extend to
issuing decrees and making final decisions on the economy,
environment, foreign policy, education, national planning of population
growth, the amount of transparency in elections in Iran, and who is to be fired
and reinstated in the Presidential cabinet.
Economic factors
 Mixed Economy
The economy of Iran is a mixed economy with a large state-owned sector. It is
the world's 23rd largest by purchasing power parity (PPP). Some 60% of Iran's
economy is centrally planned. It is dominated by oil and gas production,
although over 40 industries are directly involved in the Tehran Stock Exchange.
The stock exchange has been one of the best performing exchanges in the world
over the past decade. With 10% of the world's proven oil reserves and 15% of
its gas reserves, Iran is considered an "energy superpower". A unique feature of
Iran's economy is the presence of large religious foundations called bonyads,
whose combined budgets represent more than 30 percent of central government
spending.
Price controls and subsidies, particularly on food and energy, are heavily
prominent in the economy. Contraband, administrative controls, widespread
corruption, and other restrictive factors undermine private sector-led
growth. The government's 20-year vision (as of 2020), involves market-based
reforms reflected in the government's, with a five year development plan
(FY 2016 to FY 2021) focusing on "a resilient economy" and "progress in
science and technology"
 Monetary Policy
Iran had an estimated $110 billion in foreign reserves in 2011 and balances
its external payments by pricing oil at approximately $75 per barrel. As of 2013,
only $30 to $50 billion of those reserves are accessible because of current
sanctions. Iranian media has questioned the reason behind Iran's government
non-repatriation of its foreign reserves before the imposition of the latest round
of sanctions and its failure to convert into gold. As a consequence, the Iranian
rial lost more than 40% of its value between December 2011 and April
2012. Iran's external and fiscal accounts reflect falling oil prices in FY 2012, but
remain in surplus. The current account was expected to reach a surplus of 2.1%
of GDP in FY 2012, and the net fiscal balance (after payments to Iran's National
Development Fund) will register a surplus of 0.3% of GDP. In 2013 the external
debts stood at $7.2 billion down from $17.3 billion in 2012. Overall fiscal
deficit is expected to deteriorate to 2.7% of GDP in FY 2016 from 1.7% in
2015.
Social Factors
 Cultural

Iran is one of the most influential cultures in the world. Iran (Persia) is

considered one of the cradles of civilization, and due to its dominant geo-
political position and culture in the world, Iran has heavily influenced cultures
and peoples as far away as Southern Europe to the West, Russia, Eastern
Europe, and Central Asia to the North, the Arabian Peninsula to the
South, South Asia, Southeast Asia and East Asia to the East. Iran's rich history
has had a significant impact on the world through art, architecture, poetry,
science and technology, medicine, philosophy and engineering.

 Language
Several languages are spoken throughout Iran. Languages from
the Iranian, Turkic, and Semitic language families are spoken across Iran.
According to the CIA Factbook, 78% of Iranians speaks an Iranian language as
their native tongue, 18% speak a Turkic language as their native tongue and 2%
speak a Semitic language as their native tongue while the remaining 2% speak
languages from various other groups. Although the Azerbaijanis speak a Turkic
language, due to their culture, history and genetics, they are often associated
with the Iranian peoples.
The predominant language and national language of Iran is Persian, which is
spoken fluently across the country. Azerbaijani is spoken primarily and widely
in the northwest, Kurdish and Luri are spoken primarily in the
west, Mazandarani and Gilaki spoken in the regions along the Caspian
Sea, Arabic primarily in the Persian Gulf coastal regions, Balochi primarily in
the southeast, and Turkmen primarily in northern border regions. Smaller
languages spread in other regions notably
include Talysh, Georgian, Armenian, Assyrian, and Circassian, amongst others.

 Literature

The literature of Iran is one of the world's oldest and most celebrated literatures,
spanning over 2500 years from the many Achaemenid inscriptions, such as
the Behistun inscription, to the celebrated Iranian poets of the Islamic Golden
Age and Modern Iran. Iranian literature has been described as one of the great
literatures of humanity and one of the four main bodies of world.
 Technology

Iran's government has devoted huge amounts of funds for research on high
technologies such as nanotechnology, biotechnology, stem cell research and
information technology (2008) Iranian Research Organization for Science and
Technology and the National Research Institute for Science Policy are two of
the main institutions for research in iran. o According to UNESCO science
report 2010, most of the research in Iran is government funded with the Iranian
government providing almost 75% of all research fundings. o As per the plan by
year 2030, Iran's research and development spending is to be increased to 4% of
GDP from 0.59% of 2006, so future of technological factor of Iran is bright.

 Government spending on research and development:

 
Iran’s nuclear program is a subset of a larger government portfolio of
scientific spending. Despite sanctions, research and development (R&D)
expenditure has been effective in building national capabilities in areas
such as nanotechnology, biotechnology, stem cell research, genetics,
chemical engineering, aerospace research, agronomy, laser
communication systems, computer science and electronics among others.
The government has singled out technological development among three
top national priorities between 2016 and 2021. As sanctions unravel and
the government’s fiscal space expands, R&D budgets have been marked
for a 400% increase by 2030 reaching 4% of GDP. If these figures
materialize, Iran could very well become a regional leader in the
development of commercial technology across sectors.
 
 Creating an alternative narrative for technological
development
 
There is a vast difference between connecting people and empowering
them yet the two often go hand in hand. Both moderates and reformists in
Iran have realized the importance of creating a regime-friendly-narrative
for technological development. It’s clear that Iran’s technology sector has
all the necessary ingredients to become world leading. But it is up to the
Iranian people and their leaders to decide how they choose to walk the
line between tradition and scientific excellence.