The industrialization and oil in Iran has majorly added to its economy making it one of the largest in the world.For this reason, a large part of the population rely mostly on the public sector.This Has resulted in most people being employed by the government as it is enormous. Having many people working for the government, the wages are consequently reduced making some of the employees to participate in unethical practices to gain more.Due To this greed, the country and the government has been termed as among the most corrupt government in the world.Corruption in Iran has many effects on their economy, and they are highlighted below.
Terrorism is one of the problems promulgated by corruption in Iran. Due to high rising corruption in Iran, there have been terror groups being formed. Due to this, the economy is affected both directly and indirectly. The economy experience low growth as tourists and investors keep away from Iran due to fear of insecurity.Also, these terror groups are funded by people in the government to cause fear among people. The bombing of the buildings, mass killings and suicide bombers are among the reported cases of terrorism in Iran.
Another effect of corruption in Iran is an increase in poverty.Due To the greed of some individuals to gain more than the others, they have devolved corrupt ways to better themselves.This has made some people poor in the process across the country.Some Steal public resources leaving some with nothing. Thus, the corrupt government of Iran has made poverty to be high in the country.
The prevalence of corruption in Iran has jeopardized the land administration massively.In Iran, the land administration is highly affected by the corruption in the country. There is usually no problem when acquiring or selling real estate as there are properties protection rights.But, It becomes hectic when selling large properties as the process involved is large. Due to this, most people prefer giving bribes to officials to make the process short and acquire licenses in illegal means.Similarly, For industries and companies setting up new structures, they obtain financial support via corruption and connections. Through such methods, the process of registering a company takes a shorter time than the expected.
The admiration of tax is also affected by the Iranian corruption in government. Some organizations and influential people evade tax In Iran via corrupt means. They bribe tax officials to evade high taxation which results in revenue loss. From such behaviors they can do businesses legally without paying taxes. The taxation department has so far become unreliable in Iran due to rising cases of corruption.