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Religion
Iran is described as a pluralistic society. The largest ethnic group in this country is the Persians, although several of them are of amalgamated ancestry. The Iran-Iraq war which took place in the 1980s, together with the Islamic Revolution in 1979 changed Iran’s class structure economically, politically, and socially. Most individuals in Iran are Muslims. Therefore, their religion has affected their cost of doing business since some products cannot be traded or imported into the country. For instance, Iranian leaders say that equipment such as nuclear weapons is against their religion (un-Islamic). Hence, according to religion, it is significant to differentiate between weaponizing and enrichment capability. Iran is dogged to obtain enrichment ability, an objective that is widely promoted publicly by the Iranians (Tannenwald para. 1).
The effect of religion on GDP (Gross Domestic Product) or economic development necessitates a nuanced viewpoint that incorporates economic theory within a comprehensive manner of socio-political structures, acknowledging the econometric factors which result from quantifying religious processes. Religion in Iran affects economic development because of the faith-grounded welfare programs or beliefs which hinder the country from dealing with certain commodities since there are un-Islamic.
Education
The cost of doing business in Iran is affected by education. This is because the illiteracy level is very high thus; the number of unemployed individuals is very high. Therefore, the cost of doing business is affected by the fact that those who are employed most of them are less skilled thus; there are not effective in their performance. In addition, the fact that most of the individuals are not employed leads to risks where individuals engage in crimes issues to survive.
The quality of education is determined by what individuals know and it has a great impact on the people’s earnings, on the allocation of income, and generally on economic development. Similarly, education affects the economic development of Iran because the small group of people who are employed contributes a little amount of money to the government in form of taxes. Moreover, people with low skills earn low income; hence, there are not in a position to provide everything that their family members might need to live a high standard form of life.
Language
For people to run a business effectively, they need to understand the business terms which are not defined in the dictionary. Therefore, the language of the Iranian affects the cost of doing business because of their illiteracy level. Thus, most individuals cannot be able to carry out international businesses. Therefore, there are only interested in business where they can only communicate with their people in a common language. The economic development of Iran is affected by language because most of them can only carry out local businesses and few international businesses; hence the GDP is low and thus, the development of business is slow.
Political and economic philosophies
The political and economic philosophies of Iran affect the cost of doing business and economic development by having few leaders within the above sectors who have adequate information regarding the running of businesses. In addition, the economies of Iran are based on Islamic Law thus; everything is conducted as per the laws which prohibit the trading of some commodities within the country.
Similarly, the economic development of Iran has been affected by the continuous war between Iran and Iraq. This has contributed to the intricacy in the Islamic Republic of the post-Revolution, causing internal political and economic mayhem which consequently led to turmoil and conflicts.
Social Structure
Finally, the social structure of Iran has affected the cost of doing business and economic development especially during the Iraq-Iran war which led to baby rooms that left the country with a huge, unemployment and underemployed youth population up to date (Bereau of Near Eastern Affairs para. 15-19). Consequently, the country is undergoing a brain drain as its skilled personnel seek greener pastures in foreign countries. Similarly, a mixture of subsidies and price controls persists to lower the Iran’s economy, while the widespread corruption and administrative controls hinders the possibilities for private-area-led development.
Works Cited
Bereau of Near Eastern Affairs. Economy. Islamic Republic of Iran. 2009. Web.
Tannenwald, Nina. Could Religion Constrain? Can Sanctions Work Against Iran? 2009. Web.
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