International E-Conference on Economy under Sanction

22 September 2013

Ecomonic Sanctions and Political Cultures: the Relationship between the Sanction and Variables such as Human Rights, Consume

Freedom and Political Life of the Host

(the Case Study is Iran)

Carmen Bizzarri

European University of Rome

Sanctions: a tie for development of Iran ?

Sanctions: a mode for the UN to control the economy, technologies and society

The economies so far with this government are selling all of their energy resources and have in surplus exports, but once the resources are missing?

Economic Problems in Countries with Sanctions

In the tourism sector the hotel chains do not invest for the loss of international competitiveness of the country and the political instability and the difficult relations with policy makers(trade diversion)

The hand-made enterprises and small businesses fail to emerge because of the difficulty of obtaining raw materials, except that petroleum and its derivatives, are very expensive due to the high import taxes (import substitution)

FOREIGN TRADE BALANCE  in IRAN  (mln USD)

1380 1381 1382 1383 1384*

 Trade balance

5775 6201 4430 5653 19043

 Exports 23904 28237 33991 43852 60012

Oil & gas 19339 22966 27355 36315 48823

Non-oil exports

4565 5271 6636 7537 11189

Imports (F.O.B.)

18129 22036 29561 38199 40969

Source: Central Bank of the Islamic Republic of Iran

Balance of Payments and Tourist Development

In Iran, the balance of payments is upset towards exports of oil products, the expenditure of the tourists is diverted for hand-made products, low-tech and non-competitive.

The exchange rate may facilitate the exchange of currency and facilitate trade, but you need the stability of the value of the currency that is not made so by political events.

The Expense of the Tourists and Local Development

To start a local development derived from tourism activities is required the expenditure of tourists

The tourist spends on goods from local crafts and in any case, so that the foreign tourist fulfilled on site are a real export.

NUMBER OF PASSENGERS CARRIED BY DOMESTIC AND INTERNATIONAL FLIGHTS in IRAN (1000 persons)

Year Departure

Arrival

Total Domestic International

Total Domestic International

1381 -2001 10159 8384 1775 10116 8384 1732

1382-2002. 11110 8942 2168 11111 8942 2169

1383-2003 11761 9355 2406 11758 9355 2403

1384-2004 13091 10508 2583 13031 10508 2523

1385 -2005 15286 12423 2862 15245 12423 2822

Source: Central Bank of the Islamic Republic of Iran

Security: Economic Problems

This lower investment capacity is associated with the problem of security of international tourists who want to have when they are abroad convenience that they have in their countries.

Although the adventure is a reason to get out of their habits, it is also true that the tourist anyway certainty, convenience and does not want to be denied and among these safety is the first.

Iran: a Future in Tourism?

From the premises does not seem easy development of international tourism in Iran, a country to which sanctions have taken away the ability of investment.

The local community is not a Party of policy decisions, and especially of tourism planning

The local craftsman is little known and poorly developed

The network infrastructure and transport is very poor and unsafe.

Policy of Tourist Development

The potential to develop tourism products for international markets (diving, winter sports, hiking) exists in terms of resources but is inhibited by cultural and political barriers as well as a lack of investment in facilities and transport infrastructure.

Indigenous communities have little awareness of tourism and little control over much potential development or access to tourism markets.

Is it Possible to Think Sanctions an Opportuny for Tourist Sector?

Iran receives a large pilgrimage market based on these Shiite shrines, as well as pilgrims travelling through Iran on their way to and from Mecca in Saudi Arabia and Karbala in Iraq.

Incentive to produce on its own, and to produce all the goods within internally, prompting a search for new technologies within the country - import sostitution for tourist sovernirs and innovation.

  Incentive to develop tourism niche and luxury to mantain high quality of environmental resouces.