Iran is one of the world’s most closely watched nations as a historical entity, about 2.500 years ago, of the Achaemenids Dynasty (559 to 330 BC) period. The Islamic Republic of Iran (denomination after the revolution in 1979), also know as Persia territory, as historical entity and despite political, religious, and historic dimensions of the society, Iranians maintain a deep connection to their past. The Iran’s economy is a mirror of the International Community nowadays. Economic policies and decision-making process in economic terms are guests from the international sanctions, particularly the unilateral sanctions from United States of America, which accuse Iran of supporting international terrorism and maintain the nuclear programme as global weapons. Kinzer et al. (2005: 61) wrote about the impact of sanctions against countries, he said “this isolation has hampered the short and long term growth of its markets, restricted the country´s access to high technology, and impeded foreign investment”. A form of foreign pressure, sanctions are typically meant to alter the policies of other countries. There is much pessimism on whether they ever work. The main question, related with this working paper, and we should do is how Iran can trade in the economic global arena, in the contemporary global markets in the sanctions context? Can we found true economic policies in this context and with the contemporary conservative politicians, with the leadership of Mahmoud Ahmadinejad, since 2005? Can the economic sanctions destabilize the Iran government, the target of the International Community? Understand the political economy, especially the foreign trade and the impact of the international sanctions in the economy of Iran is the purpose of this paper, with special focus on the United States sanctions, in the line of Marinov (2005). We using the electronic database of The World Factbook published by Central Intelligence Agency (CIA), The Statistical Centre of Iran, World Trade Organization, United Nations and European Union, and a qualitative research based in published academic work until 2003. Key-words: International community; International sanctions; Impacts; Foreign trade; Iran;

1. my report is about one country in the world…

2. … .one country with an ancient history… The Elamite Empire, 2500 - 644 Before Christ (BC) 332BC The Achaemenian Dynasty & the Great Persian Empire which was the dominant world power for over two centur.ies… 550BC Cyrus the Great established the First World Empire 525BC Persia conquers Egypt 332 BC Alexander the Great conquers Egypt and Persia 323 BC The Seleucid Dynasty was established by one of generals of Alexander the Great 247 BC The Parthians conquered the Seleucids 224 AD The Sasanian Dynasty 570 The Prophet Mohammad was born 632 The Prophet Mohammad died and his teachings were compiled into the Koran, the name of the holy book of Islam 642 The Arab Caliphate

3. … history and powerful geography… Achaemenian Dynasty & the Great Persian Empire (559 - 332BC)

4. one country where the history made changes… … After Christ -> The Islamic Revolution (1979) 1220 Mongol Era when Persia conquered by Gangis Khan 1271 The explorer Marco Polo journeyed through Persia en route to China 1295 Ghazan Khan becomes the first Mongol leader to convert to Islam 1501 (1501-1524) Safavid Dynasty founded by Shah Ismail I who united all of Persia under Iranian leadership 1795 Qajar Dynasty 1851 (1851-1906 )- The Qajars lost central Asian provinces to the Russians and were forced to give up all claims on Afghanistan to Great Britain 1925 1925-1940 - Pahlavi Dynasty 1979 The Shah was overthrown by the Islamic Revolution ending 2,500 years of monarchy 1980 July 29: The Islamic Revolution

6. … geography and one rich land…

7. … changes in the world, because of the strategic position…

8. … change, the world saw… … Tehran

9. … one country… … in 1979… … in 2005 ->

10. … one country and the international relations

11. … what the world can see now…

12. Foreign trade and its importance in the economy of Iran in the international sanctions context Eduardo Oliveira October 2010 University of Minho School of Economics and Management

14. Demography (brief) July 2010 the population of Iran was of 67.037.517 people (71.481.577 according with Encyclopedia Britannica).

15. Main sectors and trade partners Main sectors and trade partners Iran’s economy -- Main sectors and trade partners Petroleum Natural Gas Germany Switzerland Agriculture products Manufacturing International Trade Japan China France

16. Economy (brief) Table 1 - Oil production in 2009 (top 10 and Malaysia position). bbl/day 1 Russia 9,932,000 2 Saudi Arabia 9,764,000 3 United States 9,056,000 4 Iran 4,172,000 5 China 3,991,000 6 Canada 3,289,000 7 Mexico 3,001,000 8 United Arab Emirates 2,798,000 9 Brazil 2,572,000 10 Kuwait 2,494,000 27 Malaysia 693,700 Source : CIA, 2010

17. Economy (brief II) Table 2 - Oil export in 2009 (top 10 and Malaysia position). bbl/day 1 Saudi Arabia 8,728,000 2 Russia 4,930,000 3 United Arab Emirates 2,700,000 4 Canada 2,421,000 5 Norway 2,383,000 6 Kuwait 2,349,000 7 Nigeria 2,327,000 8 Iran 2,210,000 9 European Union 2,196,000 10 Venezuela 2,182,000 30 Malaysia 511,900 Source : CIA, 2010

18. The role of the oil industry Source of Illustration 1 : Rehaman (2008: 40). Adapted. Source of Illustration 1 : Rehaman (2008: 40). Adapted. High oil and gas income Government surpluses and private wealth Capital deployment International investment International spending Increase importance in global markets Local investment Local government spending Local consumption Stimulate local economy and promote additional private sector investment

19. The trade, the sanctions and the players The economic sanctions on Iran were originally started by US President Jimmy Carter in 1979 and have been more or less in effect in various forms until the present time.

21. Now: the main reasons -> Nuclear programme

27. Sanctions impact: US - Iran

28. Torbat, 2005 Iran’s Oil Buyback

29. Torbat, 2005 Adverse Impact

32. Credits I am Eduardo Oliveira, from Portugal. I’m doing a MSc. in Marketing and Strategic Management, in the School of Economics and Management, University of Minho, final year. My dissertation is about “Networks and Place Branding: Minho as International Brand”. Until December, I will stay in Malaysia as exchange student in University Sains Malaysia (USM) with a scholarship from the European Union. In USM, I attend courses in International Political Economy and Political and Decision Making in European Union and also courses in Marketing. I reserved my free time to do some research in destination marketing and place branding, my favorite topics and improve my skills in global issues, like climate change, sustainable development and explore the most controversial topics in the international political economy context. My main goal is to understand the economic and local markets, the consumers’ needs in the global economy and search for new ways to achieve a sustainable world. Email address : [email_address] URL: http://www.eduardoo.pt.vu In Malaysia: +601 25 792 867 In Portugal: +351 91 70 60 153