Who We Are
The Islamic Republic of Iran is a transition economy. It is one of the largest countries in Asia and the Pacific and has vast natural resources and an educated population. Iran has made rapid progress in several spheres of development and today ranks 88 out of 173 countries on the Human Development Index (HDI) [UNDP Human Development Report, 2011], which measures progress on three development indices – education, life expectancy and income. Despite such positive progress, Iran strives to meet a range of development challenges such as poverty, inequality, environmental degradation and disaster preparedness. UNDP has had a representative office in Iran since 1966. UNDP has worked closely with the government and other development partners, such as local councils, civil society, academic institutions and the private sector, by providing technical assistance and knowledge for more than 40 years. During this time many UNDP-funded projects have been successfully implemented throughout the country in areas as diverse as governance, trade, poverty reduction, disaster mitigation and recovery, conservation of the environment and wildlife and rural development.
Iran has achieved some economic success over the last three decades. The Islamic Republic managed to pay off its various loans to American banks within two years of the 1979 revolution. The government used oil revenues to build highways, railways, factories, power plants, airports and other infrastructure.
In 2010, President Mahmoud Ahmadinejad launched a phased reform plan designed to cut back government subsidies of basic commodities dating back to the 1980s. It was the most extensive economic reform since the 2007 gas rationing plan. Subsidies have been a constant drain on the economy-accounting for about 25 percent of Iran's gross domestic product (GDP). The government reportedly reformed 30 percent of subsidies before parliament suspended the second phase of reforms in November 2012.
Despite declines in oil exports and tightened international sanctions, Iran ranked 18th worldwide by GDP (purchasing power parity adjusted) in 2012.
Not Free
​Human rights violations continued to be committed during 2011 against political and social activists, human rights defenders, ethnic and religious minorities, journalists, students, and women. Freedoms of expression and assembly remained curtailed, and a growing number of prisoners, including juvenile offenders, were executed. The authorities placed the two most prominent opposition leaders, Mir Hussein Mousavi and Mehdi Karroubi, under house arrest and refused to allow the newly appointed UN special rapporteur on the human rights situation in Iran to visit the country.
​Strengthens and Weaknesses
Members of the expanded middle class are now disillusioned with the regime that helped them progress. Tehran succeeded in pursuing an independent foreign policy. But stubborn behavior costs it opportunities to improve its relationships with other nations, including the United States.
Iran's military strength is partly rooted in the development of its nuclear program, which could be used for military purposes.
Tehran's success in the nuclear field is not only due to enriching uranium to 20 percent, but also to burying its nuclear facility at Fordo.The Islamic Republic has also succeeded in creating efficient security forces to clamp down on domestic unrest. In 2005, the Islamic Revolutionary Guards Corps (IRGC) was restructured into 31 separate commands - one for each province and one for Tehran.