Presented by: Johanna Murphy Holy Oil & Water: The Economics of a Theocratic Nation

“The Troubles” in Northern IrelandDecades of conflict between Pakistan & India The Taliban rule in AfghanistanConflict between Israel & Hezbollah

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