Holy Oil & Water: The Economics of a Theocratic Nation

1. Holy Oil & Water: The Economics of a Theocratic Nation Presented by: Johanna Murphy

2. “The Troubles” in Northern Ireland Decades of conflict between Pakistan & India Conflict between Israel & Hezbollah The Taliban rule in Afghanistan

3. The Problem A theocratic nation will not hold a strong position in a liberal international political economy

4. What is Theocracy? • Theocracy as “a mode of governance prioritizing a religious conception of the good that is strict and comprehensive in its range of teachings.”

5. Liberal Economic System • Purpose of economic activity is to enrich individuals & the state should play a very small role in the economic system

6. Islamic Republic of Iran

7. Strong Position in Global Economy Organization whose role includes administering trade agreements, providing a forum for trade negotiations, helping governments settle trade disputes, & reviewing national trade policies. Relationship between oil demand and Iranian GDP

8. I. Individual Level • If a developing nation’s leader places adherence to religious practice above all other goals including prosperity… Ayatollah Khomeini

9. II. Domestic Level • If a developing nation’s economy is state controlled…

10. Iranian Economic Sectors State Sector Private Sector All large-scale & mother industries Foreign trade Major minerals Banking Insurance Power generation Dams & large-scale irrigation networks Radio & television Post Telegraph & telephone services Aviation Shipping Roads railroads Agriculture Animal husbandry Industry Trade All these will be publicly owned & administered by the state Services that supplement the economic activities of the state

11. III. International Level • If a developing nation is a radical theocracy operating in an open, global market environment…

12. Conclusion