Development of Iran’s agricultural sector in the context of economic sanctions

Abstract

The agricultural sector plays a fundamental role in the economy, providing food security, employment and income of the population, the exchange of the country’s currency through the import of agricultural and food products. In addition, this sector of the economy has flexibility and viability in relation to external shocks and threats, so it is important to analyze the impact of sanctions on it and assess its ability to adapt to them. The study showed that the multilateral economic sanctions against Iran had a significant negative impact on the economy in general and the agricultural sector in particular. The impact of sanctions is as follows: reduction of fi nancial revenues due to the oil embargo, falling GDP, investment in fi xed assets, rising prices and unemployment, disruption of supply chains on which imports and domestic food production depend, reduction of subsidies, high infl ation combined with population growth, urbanization and limited resources for agricultural production. This has led to a deterioration of the food security situation. In such conditions, representatives of the legislative power develop strategic planning directions to ensure sufficient agricultural production in the face of external threats, which have been called the "economy of resistance". The following measures to off set the negative impact of sanctions on Iranian households have shown their effectiveness: the creation of food aid programs, food banks with the assistance of charitable and non-governmental organizations; implementation of educational programs on nutrition, including trainings on food selection in accordance with the budget.