Non-Subscriber Extract
A case of dual use: Iran's free zones
26 October 2009
The former president of Iran, Ali Akbar Hashemi Rafsanjani, envisioned Iran's Free and Special Economic Zones (F and SEZ) as a means of increasing the country's links to the world economy. However, the Islamic Revolution Guards Corps (IRGC) has used the zones to restrict the movement of goods, build relationships with ideologically sympathetic regimes, and distribute patronage to regime stalwarts.
While 'mis-used' relative to their original purpose, and underperforming their potential, the free zones may yet prove a Trojan Horse of sorts for the Islamic Republic, to the extent they promote increased trade, motivate spending on internal infrastructure, and serve as rallying points for those who favour economic decentralisation.