World Bank to fund $3.4bn of projects in Iran

Iran will sign an agreement with the World Bank in September that will see the body fund around $3-4 billion worth of projects over the coming years in an effort to boost the country's economic prospects.

The head of the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI) told the country's Mehr News Agency (MNA) on Tuesday that the deal is aimed at helping Iran pinpoint and overcome issues holding back the country's development.

Under the agreement, known as a Country Assistance Strategy (CAS), the World Bank will work with government authorities to make a diagnosis of the development challenges facing Iran, and will determine where assistance can have the biggest impact in areas such as poverty reduction.

Around 12% of Iran's population lives under the poverty line, according to official government reports, however some believe the actual figure to be much higher.

Iranian President Mahmoud Ahmadinejad, who came to power in 2005, won support after promising to boost economic conditions for Iranian citizens by eradicating poverty and tackling unemployment.

However, two years later many critics say the pledge is far from being achieved.

In a meeting last month a panel of 57 Iranian economists told the president that his economic policies were "inexpert" and lacking "any basis in science", and were wasting the country's oil wealth.

In a letter read in public during the meeting, the economists told Ahmadinejad his government was ignoring academic findings, wasting huge oil revenues and enforcing policies that have provoked greater inflation and worsening economic conditions.

Ahmadinejad's presidency has led to a sharp increase in the inflation rate, which the government says is between 12-13% but which Iran's Parliament Research Centre indicates is around 20%, Radio Farda reported.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM