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Holy Oil & Water: The Economics of a Theocratic Nation. Presented by: Johanna Murphy. “The Troubles” in Northern Ireland. Decades of conflict between Pakistan & India. Conflict between Israel & Hezbollah. The Taliban rule in Afghanistan. The Problem.

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Holy Oil & Water: The Economics of a Theocratic Nation

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Holy Oil & Water: The Economics of a Theocratic Nation

Presented by: Johanna Murphy


“The Troubles” in Northern Ireland

Decades of conflict between Pakistan & India

Conflict between Israel & Hezbollah

The Taliban rule in Afghanistan


The Problem

A theocratic nation will not hold a strong position in a liberal international political economy


What is Theocracy?

  • Theocracy as “a mode of governance prioritizing a religious conception of the good that is strict and comprehensive in its range of teachings.”


Liberal Economic System

  • Purpose of economic activity is to enrich individuals & the state should play a very small role in the economic system


Islamic Republic of Iran


Strong Position in Global Economy

Organization whose role includes administering trade agreements, providing a forum for trade negotiations, helping governments settle trade disputes, & reviewing national trade policies.

Relationship between oil demand

and Iranian GDP


I. Individual Level

  • If a developing nation’s leader places adherence to religious practice above all other goals including prosperity…

Ayatollah Khomeini


II. Domestic Level

  • If a developing nation’s economy is state controlled…


Iranian Economic Sectors

State Sector

Private Sector

All large-scale & mother industries

Foreign trade

Major minerals

Banking

Insurance

Power generation

Dams & large-scale irrigation networks

Radio & television

Post

Telegraph & telephone services

Aviation

Shipping

Roads

railroads

Agriculture

Animal husbandry

Industry

Trade

All these will be publicly owned & administered

by the state

Services that supplement the economic activities

of the state


III. International Level

  • If a developing nation is a radical theocracy operating in an open, global market environment…


Conclusion


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