By Danielle Rowe.
How President Hassan Rouhani’s Re-Election Can Affect Global Politics and Economy
The re-installation of President Hassan Rouhani as the president of Iran seems to indicate the citizens’ continued choice of building ties with the international community.
Despite his reputation for international relations, many skeptics are wondering how Iran will affect global politics and economy, considering recent events.
The elections saw the defeat of cleric Ebrahim Raisi against President Rouhani. The results of the elections revealed that more citizens are now open to creating and strengthening international ties, rather than the more conservative approach pushed forward by Raisi, who promoted a more closed-in Iran.
An article on The Diplomat states that the majority of the 80 million citizens in Iran support engagement and moderation, and this was reflected in the results of the elections. It also proved that the majority of Iranians were not ready to return to a more conservative frame of mind, despite the trends in global politics of electing populist leaders.
President Rouhani was instrumental in brokering the 2015 nuclear deal, which saw Iran and six other countries, including the USA, limiting the nuclear program in exchange for the removal of economic sanctions in the country. While this was then viewed as a landmark achievement by the Western world, then-presidential candidate and now US President Donald Trump described this as “the worst deal in history,” according to an article published by The Independent.
He was further quoted by the publication as saying he will “dismantle this disastrous mistake” during his campaign, although there seems to be no clear steps taken towards this direction ever since Trump started his term. Nonetheless, he has sent mixed signals to the country, not just about the nuclear deal, but also in terms of the US policies in relation to Iran.
The Atlantic postulated, however, that President Rouhani’s victory will make it less likely for Trump to rally international support against Iran, considering that he has built a reputation for pragmatism.
The nuclear deal stands to produce a major economic impact in Iran. CNBC suggest it allowed the country to produce at least a million barrels of oil per day, allowing it to overtake Venezuela, Nigeria, and Libya in terms of oil production.
This led to European and Asian companies investing in Iran’s energy industry. FXCM revealed opening up foreign investments could lead to more than US$200 billion in revenue for the country.
Nonetheless, Iran is still currently at an economic disadvantage, as it is still reeling from recession and high unemployment rates. Only time will tell if President Rouhani will be able to address these issues as well.