Nuclear Issues

Trump's strategy appears to be one of brinkmanship—rocking the boat in hopes that the other party is less risk-tolerant and will give in before the boat capsizes.

What can we expect from Rouhani’s second term? The large majority with which he won does not change the basic fact that the number one decision-maker in Iran remains Supreme Leader Khamenei. Ephraim Kam writes to Iran Matters that it is doubtful that Rouhani’s large majority will translate into greater power vis-à-vis Khamenei and the regime’s radical wing, as the president will likely continue to depend on them.

Despite its flaws, the May 19 presidential election offered Iranian voters a real choice between the moderate incumbent President Hassan Rohani and a hard-line rival, Ayatollah Ebrahim Raeisi. Djavad Salehi-Isfahani writes to The Arab Weekly that Rohani’s decisive win with 57% of the vote, combined with a sweep by reformist candidates in the city council elections in Tehran and several other major cities, gives him a strong mandate to move for­ward with his program of eco­nomic reform.

Although Rouhani has an incumbent’s advantage, his promised economic revival is seen by many as having fallen short of his stated goals, and he has been the target of unceasing and strong allegations of corruption. Despite the fact that every Iranian president in the post-Khomeini period has served two terms, why is Rouhani in a precarious position? And what are the factors that anti-Rouhani forces are trying to use to their advantage? In an article to The National Interest, Payam Mohseni, Director of the Belfer Center's Iran Project, shows that recalling the lessons of the 2005 election, which brought Mahmoud Ahmadinejad to power, serves as a useful model in understanding this year’s contest and the challenges Rouhani faces in maintaining power.

Djavad Salehi-Isfahani, visiting scholar at the Belfer Center's Iran Project, sheds light on some of the most important economic topics relevant to the 2017 Iranian presidential election. 

For a “managed democracy,” Iran holds remarkably unpredictable presidential elections. And the upcoming election on May 19 is no exception, given that the incumbent, Hassan Rouhani, is facing a tough conservative challenger, Ebrahim Raesi. In this column to Project Syndicate, Djavad Salehi-Isfahani, visiting scholar at the Belfer Center's Iran Project, writes about Rouhani's economic weaknesses and the challenges he faces for reelection. 

Iran has entered uncharted territory following the landmark nuclear deal between Tehran and six world powers. I recently came back from a six-week trip to Iran where I had the opportunity to observe first-hand the changes, developments, and uncertainty in the country. The widespread optimism that initially surrounded the deal, and the expectations that it would bring an economic windfall, have been significantly diminished since, and there were many questions: Should Iran integrate into the global economy? How much will the economy improve with the lifting of sanctions? What will the policies of the next US president be, and what will this mean for Iran? With the recent victory of Donald Trump, these questions have become all the more important to Iranians.

This chapter explores the complexity of political processes in Iran and assesses the degree of change and continuity in the Iranian political system in light of the tumultuous events unfolding since 2009. Why have elite power relations in Iran been unsettled, and what is the impact of these factional fluctuations of power and processes of change on the institutional structure of the Iranian regime itself? It is critical to ask whether the manner by which institutional alteration occurs within the regime was conducive to the long-term monopolization of power by a single political faction. If so, has the multifactional and competitive nature of the regime been replaced by one of dictatorship, as may have appeared to be the case? Or, is the regime’s system of elite conflict management and institutional restraint a durable feature that will persist in the foreseeable future?

Aaron Arnold, Associate of the Project on Managing the Atom at the Belfer Center, writes in The Diplomat that a key threat to the ongoing implementation of the Iran nuclear deal is the risky nature of the Iranian financial sector. While Iran is banking on receiving greater foreign investment, continued problems with the Iranian financial sector, including lack of sufficient regulatory controls and the potential ties to terrorist financing, have made companies cautious about investing in Iran. He suggests that the United States work with Iran to bring its banking system up to the same standard as the global economy, and to consider closer integration of Iran into the world economy in order to preserve the effects of the nuclear agreement.