Oil versus agriculture a case of dual resource depletion in Iran

Abstract

This paper discusses the performance and prospects of the rural sector in the ‘agricultural’ oil economies in general, and in Iran, in particular. It proposes an analytical framework within which the damaging effects of the oil revenues for the political economy — its structure and its relation — and their specific impact on agriculture and the rural society may be studied. It produces empirical evidence for the rapid destruction of Iranian agriculture in the past fifteen years and it demonstrates that the plight of the Iranian peasantry is a direct consequence of the increase in the oil revenues, and the adoption of public expenditure strategies which they have encouraged. It concludes that unless a radical change in public policy is effected, the Iranians will experience a depletion of both their oil and their agricultural resources within the foreseeable future.∗∗

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