Why Vast Natural Wealth Leads to Mass Poverty

Iran sits atop one of the world’s largest repositories of natural resources, holding a significant percentage of global proven oil and gas reserves, a position that should theoretically guarantee national wealth and robust social welfare for its population of over 80 million. The paradox, however, is stark: despite this enormous natural endowment, the nation is characterized by high inflation, currency devaluation, and an alarming rate of poverty, demonstrating a catastrophic failure of the post-1979 governing structure to translate subterranean wealth into tangible, sustainable, and equitable prosperity for the average Iranian family. The suffering experienced by the poor, and the stark visibility of the new, often politically connected, wealthy elite, points to deeper, systemic flaws in the political economy established after the Islamic Revolution.