Mr. Ahmadinejad has encountered a double-pronged crisis. There was the legitimacy crisis that ensued from the presidential election. … The second part of the political crisis for Mr. Ahmadinejad’s administration comes from his own base: the conservative camp. … The conservative technocrats … see Mr. Ahmadinejad as unruly, egocentric, and unenlightened— a man who, by chance, won the favor of the supreme leader of Iran. …
The second challenge for Mr. Ahmadinejad is the worsening economic situation. … During the first two years of Mr. Ahmadinejad’s presidency, surges in the oil price allowed him to distribute the petrodollars among the low-income families, pensioners, teachers, factory workers and government employees. However, as oil prices now decline, Iran’s foreign currency reserves are drying up. …
Despite low interest rates, thousands of small businesses have closed. After 45 successful years, the auto industry (the country’s most prosperous industry) is facing bankruptcy. The unemployment rate has increased substantially: 1 in 4 four young Iranians are unemployed. … Adding to that are high inflation and a huge budget deficit resulting from the drop in oil prices. The dilapidated economy will prove to be the regime’s Achilles’ heel. Access the full article>>
