How Ahmadinejad Changed Iran’s Economy

Mahmoud Ahmadinejad won the 2005 presidential election promising economic justice and fairness. Throughout his eight-year presidency, he adopted several populist financial and fiscal policies intended to fulfill his promise. Initially he froze the privatization program but later reactivated it after substantial changes that set aside a portion of shares for the poor. Ahmadinejad brought many commanders of the Revolutionary Guards and Basij militia into his cabinet and facilitated the sale of a large number of privatized firms to these institutions and their economic units. As a result, the Revolutionary Guards are now actively involved in all types of economic and financial activities in Iran. His most important economic reform was the reduction of price subsidies on energy and fuel products. With the active support of the Supreme Leader and the Revolutionary Guards, Ahmadinejad implemented the price subsidies reform in December 2010.