[Valin]

The economy bears more than a little resemblance to the crony capitalism that sprouted from the wreck of the Soviet Union. The 1979 revolution expropriated the assets of foreign investors and the nation's wealthiest families; oil had long been nationalized, but the mullahs seized virtually everything else of value--banks, hotels, car and chemical companies, makers of drugs and consumer goods. What distinguishes Iran is that many of these assets were given to Islamic charitable foundations, controlled by the clerics. According to businessmen and former foundation executives, the charities now serve as slush funds for the mullahs and their supporters.

Well heck these guys are nothing more than a bunch of mafia thugs in long robes and turbans.

[jriemer]

The economy bears more than a little resemblance to the crony capitalism that sprouted from the wreck of the Soviet Union. The 1979 revolution expropriated the assets of foreign investors and the nation's wealthiest families; oil had long been nationalized, but the mullahs seized virtually everything else of value--banks, hotels, car and chemical companies, makers of drugs and consumer goods. What distinguishes Iran is that many of these assets were given to Islamic charitable foundations, controlled by the clerics. According to businessmen and former foundation executives, the charities now serve as slush funds for the mullahs and their supporters.

Actually, Iran has, under the guise of Islam, bridged the gap between Facism and Socialism. On the low end of the economic scale, companies operate amongst themselves and the government. On the other end of the economic scale, the government owns all the high-end corporate assets.

Currently, A middle class can exist in Iran if they choose to have a small enough business that is below where the government isn't interested in nationalizing / extorting their businesses. The alternative is to become de-facto partners with the mullahs and have an opportunity to grow.