Travel Reference
In-Depth Information
When coupled with Ahmadinejad's calls for
Zionists to be wiped off the map, the result has
been repeated threats of an Israeli air strike on
nuclear facilties, numerous UN Security Coun-
cil resolutions calling on Iran to suspend urani-
um enrichment, and a swathe of economic
sanctions. In effect, these sanctions have cut
Iran off from the international banking system.
But they are not Iran's greatest challenge.
Since 1979 Iran has subsidised petrol, gas and electricity at a cost of more than US$80 bil-
lion a year. As its own capacity to refine oil dwindled, Iran became a net importer of pet-
rol, paying high market rates then selling it for US$0.10 a litre. The cost of supplying fuel
to a population expecting it for almost nothing was unsustainable.
In recent years the government has embarked on a huge, risky economic restructure.
Fuel was rationed (which also helped lessen Iran's dire air pollution problems a little) and
prices have risen repeatedly (petrol is now US$0.30 to US$0.70 a litre). Not surprisingly,
Iranians are not happy. To mitigate the risk of social upheaval, the government pays about
US$40 a month to almost every man, woman and child. Inevitably, that has pushed an
already high inflation rate beyond 20%. To make matters worse, after years of being kept
artificially strong the Iranian rial lost half its value in a couple of months - the black mar-
ket is thriving.
Iranians are bracing themselves for tough times. So is the government. It knows, as
does the USA and others pushing sanctions, that if things get too bad, the population
might decide a new revolution may be worth it after all.
Economic sanctions mean most Iranian businesses
need to use unorthodox methods to get paid from
abroad. For travellers, if you book a tour you might
find yourself paying to a Turkish or Russian bank
account, or being asked to pay in cash when you ar-
rive.
Dos & Don'ts
»
»Never use the thumbs up sign, which is the equivalent of the middle finger 'up yours'.
»
»Men should not offer to shake a woman's hand unless she offers first.
»
»Take off your shoes when entering a home or a mosque.
»
»When invited to dinner take a tin of the local sweets (eg
gaz
in Esfahan).
Top Books
»
»
Journey of the Magi
(Paul William Roberts) Thought-provoking journey 'in search of
the birth of Jesus'.
