In letter, Iran economists decry Ahmadinejad policy

BEIRUT - A group of 60 Iranian economists yesterday condemned the economic policies of Iranian President Mahmoud Ahmadinejad and contradicted recent boasts by Tehran leaders who said the Islamic Republic has been successfully weathering the global economic crisis.

The economists' 30-page letter, quoted by several newspapers, state-run television and published on the website of the independent Labor News Agency, said Iran had entered dire economic straits and must drastically change course. It said Ahmadinejad's "tension-creating" foreign policy has "scared off foreign investment and inflicted heavy damage" on the economy.

"Meager economic growth, widespread jobless rate, chronic and double-digit inflation, crisis in capital markets, government's expansionary budget, disturbed interaction with the world, inequity and poverty have combined with the global economic downturn to leave undeniably big impacts on exports and imports," the letter said.

Ahmadinejad immediately blasted back, arguing at a seminar yesterday that Iran has been "least affected by this international financial crisis" and urging economists to design "an independent economic system and model based on justice," according to the official Islamic Republic News Agency.

Iran is locked in a dispute with the West over its continued drive toward mastering sensitive nuclear technology, which can be used for either weapons or energy production. Tehran has already incurred three rounds of international economic sanctions for refusing to halt the enrichment of uranium ore. Iran's conservatives have dismissed the restrictions on trade as ineffective. But the letter said sanctions had cost Iran billions of dollars.

The letter and its publication suggest growing discontent with Ahmadinejad and his clique within Tehran's elite political circles in the months leading up to June 2009 presidential elections.

The harsh assessment flies in the face of recent claims about Iran's economy by religious leaders who have described the West's recent economic downturn as God's revenge.