Why Vast Natural Wealth Leads to Mass Poverty

Another critical factor is the prioritization of ideological and geopolitical objectives over domestic economic stability. Substantial national resources are continuously allocated to funding regional allies, supporting proxy groups, and developing expensive, often sanctioned, military and nuclear programs. While the regime views these expenditures as vital to its security and revolutionary identity, these commitments divert vast sums of capital and human expertise away from pressing domestic needs like modernizing the oil industry, improving water management, and rebuilding crumbling social infrastructure.