Newsweek: In Iran, Inflation Could Threaten Regime Iranian President Mahmoud Ahmadinejad continues to face protests at home and the possibility of international sanctions abroad, but the biggest threat to his rule is something more banal: inflation. Iran’s official inflation rate has now reached 13.5 percent, but the actual rate could be twice as high. And it looks likely to get worse. Come spring, the government plans to stop subsidizing basic goods and will instead give cash directly to poor families. That plan, as well as Ahmadinejad’s push to give out more loans, will expand the cash supply and likely drive inflation higher still. Efforts to combat rising prices have so far failed. Two weeks ago the Finance Ministry capped daily bank withdrawals at $15,000. According to reports on opposition Web sites, several banks in Tehran and Isfahan were subsequently swamped by desperate customers, and in at least one case police had to be called in.  Political protesters plan a large rally on Feb. 11, the anniversary of the 1979 revolution. If they’re joined by ordinary Iranians fed up with the dismal economy, it may be a case of history repeating itself.

Rooz: Economic Failure of Imports from China As criticism mounts in Iran over the country’s policy of importing non-essential goods from China, and the government’s response has been the announcement that it has curtailed such imports by 40 percent, without giving any detailed statistics, the commander of the para-military Basij force said during a Basij seminar that unemployment remained the most serious problem of the government, adding, “We must not allow our markets to be filled with foreign goods, particularly products from Chinese companies that have hurt our economy.”

Street Journalist: Statement by Italian Trade Unions against executions in Iran CGIL CISL UIL [Italy's 3 major trade union federations] support the struggle of the thousands of workers who have been harshly repressed for having dared to set up independent workers’ unions in the transport, agriculture and education sectors. CGIL CISL UIL invite workers, peace and human rights activists to mobilize immediately on 5th February at 10.30 in front of the Embassy of the Islamic Republic of Iran in Rome, at Via Nomentana 363. During the demonstration signatures will be collected against the death penalty.  Why don’t the American trade unions do the same here?

BW: A Modern B-School—in Tehran Iranian executives figure their homeland needs some good MBAs.  Iran’s existing business schools can’t meet all the country’s needs. They have room for only 500 students, which means too many top applicants get turned away. Many of those who do get MBAs end up leaving the country, contributing to Iran’s brain drain. The curriculum of the existing B-schools doesn’t offer the latest thinking in such subjects as strategy, finance, career development, and succession planning.

AEI: Economy

• Ahmadinejad on live television:

o “The people follow us because they are the best people in history, in the   entire history of man no people as good as the Iranian people have populated planet earth…”
o “This plan [is an economic] reform plan. We must advance all together and we will do so God willing and everyone will see that it is not as they thought…”
o “If we wanted to eradicate the subsidies, [concerns about the reforms] would have be justified but no one speaks about doing away with the subsidies. That will all return to the people, but will do so in a correct way and will be directed into the pockets of the people for the sake of specific projects or for securing welfare of the people, for the sake of production and export, economic and cultural services…”
o “In our country, investment has been restricted because one of the greatest restrictions to investment is the issue of subsidies. If one sector manages to attract subsidies other sectors will remain underdeveloped and no one will invest there. Therefore, in the electricity sector demand is higher than supply, but in other sectors there is either no demand or demand can’t be stimulated even with the greatest stimulants…”
o “We desire to hand out subsidies to everyone with the exception of those who do not volunteer, or are so well off that they do not need subsidies and don’t ask for it. There are indeed eight million people who have not applied for it…”
o “Those with stable salaries such as laborers, public servants, small shopkeepers, peasants and the like will be covered by support and will certainly receive subsidies and there is no reason for concern…”
o “Those who misinform the state about their income level have to return the subsidies…”

• Basij Chief Mohammad-Reza Naghdi: “Our big problem today is unemployment. Jobs must be created. We should not allow our market to retail foreign goods, especially Chinese products which have dealt a blow to our economy.”
• Fresh red meat will be distributed at heavily subsidized prices to labor and public servant cooperatives prior to the March 21st New Year eve.