Iran Democracy Monitor: No. 80

Related Categories: Democracy and Governance; International Economics and Trade; Iran; Iraq

IRAN'S PRECONDITIONS FOR DIALOGUE
For years, the Bush administration has predicated its willingness to negotiate with Iran over its controversial nuclear program on the Islamic Republic's agreement to temporarily suspend its enrichment of uranium. In the process, it has come in for substantial criticism from the international community, domestic political opponents and even Iranian policymakers – all of whom have argued in favor of unconditional "dialogue" with Tehran. But it turns out the White House is not the only one with demands that need to be met before it will come to the negotiating table. Mahdi Kalhor, a key advisor to Iranian president Mahmoud Ahmadinejad for media and cultural affairs, has announced that the regime in Tehran will not be willing to enter into negotiations with Washington until two things happen: American forces leave the Middle East, and the United States ends its support for the state of Israel. (Tehran Fars, October 14, 2008)

WOOING SISTANI
Iran is continuing its attempts to solidify its ideological influence in Iraq. In early October, Ayatollah Mohammad Taqi Mesbah-Yazdi – the radical Qom cleric who serves as Iranian president Mahmoud Ahmadinejad's spiritual mentor – traveled to neighboring Iraq to meet with Ayatollah Ali Sistani, one of Shi'a Islam's most revered religious authorities. The objective of Mesbah-Yazdi's visit? A very public spiritual bridge-building effort with one of the Islamic Republic's fiercest ideological critics, who has publicly broken with Iran's expansionist, activist brand of political Islam and called for a clear separation between mosque and state. (Rajanews.com, October 7, 2008)

FISCAL FIXES, AND THEIR DISCONTENTS
Back in September, in an effort to offset his government's runaway economic spending, Iranian president Mahmoud Ahmadinejad took the controversial step of imposing a value-added tax (VAT) of three percent on all goods sold within the Islamic Republic. The measure ignited a domestic firestorm, prompting a disruption of business in Tehran's sprawling market and precipitating a strike by merchants from Iran's powerful bazaari class – the first of its kind since the late 1970s. These disruptions appear to have spooked regime officials, who have now "suspended" the economic measure pending governmental review. “With the talks that we had with the president, it was decided to postpone it until further notice," one Iranian economic official has confirmed.

At least some, however, see the Iranian government's latest economic initiative – and the pushback against it – as a portent of things to come. “Inflation of around 30 per cent has to manifest itself in one way or another," Iranian economist Saeed Leylaz has told the Agence France Presse news agency. "This strike is a sign of the dissatisfaction of the middle class with the economic policies of Ahmadinejad.” (Doha Al-Jazeera, October 14, 2008)

AHMADINEJAD'S CHALLENGERS BEGIN TO EMERGE
With Iran's presidential elections eight months away, the first official candidate to challenge Mahmoud Ahmadinejad for the Islamic Republic's top elected office has emerged. Mehdi Karoubi, a two-time former parliamentary speaker who now heads the country's Etemad-e Melli party, announced on October 12th that he has officially thrown his hat into the ring. “After a lot of negotiations and consultations, I announce my readiness to compete in the election,” Karoubi has been quoted by the ISNA news agency as saying. Another potential contender could be Mohammad Khatami. Just weeks after reportedly telling associates that he will not run in next year's presidential elections, the "reformist" former president appears to be toying with the possibility of reentering the political fray. (Reuters, October 12, 2008)