Reintegrating Iran with the West: Challenges and Opportunities: Volume 31

Cover of Reintegrating Iran with the West: Challenges and Opportunities
Subject:

Table of contents

(20 chapters)

Part I: Iran in the Global Economy

Abstract

Iran’s influence on a number of cultural, political, and economic areas including religion and philosophy, literature, science and education, as well as statecraft is surveyed. The chapter also discusses how successive Iranian empires contributed to the growth of world trade and commerce. It is shown that Iran has had a great impact on the world throughout its long history and that its prominent role in contributing to the human heritage stands in sharp contrast to its isolation today, which is construed as a historical anomaly.

Abstract

Iran’s potential to expand its natural gas exports has received a great deal of attention since Hassan Rouhani’s election in 2013. Rouhani’s presidency centered around adopting a foreign policy approach to actively promote a constructive engagement and dialogue with the West, as well as seriously pursuing diplomatic and prudent interactions with Iran’s immediate neighbors and beyond on an equal footing with a view toward advancing mutual accommodation, respect, and shared interests. This chapter’s central argument is that Iran’s ability to export natural gas to Europe depends largely upon maintaining stable and strong trade ties with Turkey. The cooperation between these two countries, despite competition and occasional frictions, could arguably foster a balance of power at middle-power level countries that will be necessary for an enduring stability in the region.

Abstract

Iran’s non-oil export has shown noticeable growth in recent years. The gap between the oil export and non-oil export revenue has closed considerably, partly as a result of decline in the oil revenue, but mainly due to the rise in non-oil export. There are certain interesting developments in Iran’s foreign trade. One is the direction of Iran’s trade and its trading partners that has shifted from the West to the East. Another is the composition of Iran’s non-oil export from primary and agricultural products to more processed goods particularly petrochemical and other industrial products. This chapter explores Iran’s trade policies and strategies. It also focuses on the obstacles and challenges that the country still faces for further expansion of its export.

Abstract

This chapter explores the opportunities and challenges for Western firms that wish to engage in manufacturing operations in Iran, and particularly in the automotive industry. Although Iran has a long and fruitful history of embracing foreign investment, collaboration with foreign firms suffered in the aftermath of the Islamic Revolution in 1979. The imposition of UN sanctions in 2012, following the disagreements between Iran and leading Western powers over Iran’s nuclear policy, has resulted in a further exodus of foreign manufacturers from Iran, hurting the production quality, adoption of up-to-date technology and alignment to international standards for manufacturing, such as vehicle safety and engine emissions in Iran.

The removal of sanctions, contingent on the success of nuclear negotiations between Iran and leading world powers, could provide Iran with an opportunity to recommence manufacturing collaboration with Western firms. The case of the automotive industry discussed in this chapter indicates some of the challenges that Iran is likely to face if it once again wants to become a player in international markets.

Abstract

This chapter seeks to highlight the important role that the Iranian diaspora will have in a post-sanctions Iranian economy by mapping its political economy. In a 10-year period of analysis, I show that Iran remained a mostly patrimonial state that also became slightly less statist over, yet showed the potential for liberal economic reform. Thus, even though Iran may seek to incorporate liberal economic policies, patrimonial and statist elements will remain quite strong within Iran’s economy for years to come. The key asset of the Iranian diaspora then will be its integration with Western societies. This depth will allow expatriates to bridge the information gaps that will undoubtedly develop as foreign direct investment increases. Most foreign firms will find this expert guidance quite valuable when attempting to navigate the Iranian political economy.

Part II: Nuclear Negotiations and Aftermath

Abstract

Economic opportunities can be nimble tools of bargaining. When denied, they can be potent tools of coercion. When showcased they can serve as powerful incentives to reach agreement. If skillfully used to simultaneously pressure and entice, economic prospects can improve the chances of agreement within the respective negotiation teams in order for them to reach a deal across the table. This chapter critically analyzes the role of economic incentives and pressure in the nuclear negotiations between the international community and Iran. It discusses how an economic coercion and inducements campaign can help shape the internal consensus in Tehran in favor of a deal. In particular, a concerted effort to understand the opposing side’s negotiation band — the environment of “behind the table” constraints that shape the resulting bargaining strategy — can increase the chances of success in negotiation. Understanding a negotiator’s negotiation band requires a careful analysis of domestic political dynamics during the preparatory stage, active listening during negotiation, and outreach to deal advocates throughout the process to help them shift the domestic balance in favor of a deal.

Abstract

The tumultuous relations between the Islamic Republic of Iran and the West, in particular the United States, since the 1979 revolution is climaxing in the dispute over Iran’s nuclear development. However, if as expected, a settlement is reached, mainly by Iran backing down, an important question would loom on the horizon: Can the West, and principally Washington, live happily and peacefully with a theocracy that is ideologically radical in character and anti-American in orientation? This essay deals with that question and explores pathways that may lead to some answers. In so doing it will point out the root causes of the hostility of the clerical establishment towards the United States and why despite various attempts and strong incentives a thaw in relations has eluded both capitals. Significant internal and external factors will be highlighted in this regard and how they may perceivably give (or not give) way to the resumption of diplomatic ties between Iran and the United States will be investigated.

Part III: Iran and Key Global Players

Abstract

India and Iran historically share centuries-old strong socio-cultural and trade relations since ancient times. The chapter explores emerging opportunities and challenges in trade and investment in the present era. While Iran is one of the leading producers and exporters of oil, India, a major market for hydrocarbons, is heavily dependent on imports to meet its domestic requirements. This offers trade complementarities between the two countries as India is a secure market for Iran’s oil whereas Iran facilitates India to decrease its over-dependence for oil on Saudi Arabia. This chapter discusses the mutually beneficial trade relationship as well as potential for further deepening the existing economic ties between these two ancient civilizations that could offer a win-win situation for both countries.

Abstract

This chapter describes the historic ties between two ancient civilizations — Iran and China and how this relationship has evolved over the past few decades. The current state of trade and investment relationship between the two countries is discussed, followed by an analysis of the geopolitical implications of the evolving relationship between Iran and China. The chapter concludes by showing how ties with Iran can give China access to the greater Middle East.

Abstract

This chapter traces the history of animosity between the United States and Iran that characterizes the current relationship between the two countries which were once close diplomatic, economic, and political allies. The chapter identifies the various cultural, economic, and political factors that have contributed to the hostility between these two countries and focuses particularly on the UN and US sanctions that have been imposed on Iran because of its overt and covert nuclear programs. The chapter concludes with a discussion on how the lifting of sanctions might allow the United States and Iran to rebuild a strategic partnership.

Cover of Reintegrating Iran with the West: Challenges and Opportunities
DOI
10.1108/S1876-066X201531
Publication date
2015-06-09
Book series
International Business and Management
Editors
Series copyright holder
Emerald Publishing Limited
ISBN
978-1-78441-742-0
eISBN
978-1-78441-741-3
Book series ISSN
1876-066X