 |
| A new capital markets regulator should boost trading on the Tehran Stock Exchange |
IRAN HAS BEEN at the forefront of international politics for years. Because of the importance of its oil and gas reserves, it plays a key role in energy circles. However, Iran's economic development as a whole and the strengthening of domestic institutions including the financial and capital markets have gone largely unnoticed. A country that had undergone an Islamic Revolution in 1979 was in the midst of realigning its economic policies to introduce reforms to equalize redistribution of wealth and correct the injustice of the past when it fell victim to an eight-year war with Iraq instigated by Saddam Hussein. In effect, the new revolutionary leaders were robbed of the opportunity to concentrate their efforts on economic reforms. With the end of the Iran-Iraq war in 1989, Iran faced another problem. After nearly a decade of allocating most of its resources to fending off the enemy, it was now necessary to reconstruct a country torn by war and destruction.
After the war Iran's leaders had the chance to resume economic reforms.