IRAN

Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and the shah was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority vested in a learned religious scholar referred to commonly as the Supreme Leader who, according to the constitution, is accountable only to the Assembly of Experts. Iranian-US relations have been strained since a group of Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Persian Gulf and led to clashes between US Navy and Iranian military forces between 1987 and 1988. Iran has been designated a state sponsor of terrorism for its activities in Lebanon and elsewhere in the world and remains subject to US economic sanctions and export controls because of its continued involvement. Following the election of the reformist Hojjat ol-Eslam Mohammad KHATAMI as president in 1997 and similarly a reformist Majles (parliament) in 2000, a campaign to foster political reform in response to popular dissatisfaction was initiated. The movement floundered as conservative politicians prevented reform measures from being enacted, increased repressive measures, and made electoral gains against reformers. Starting with nationwide municipal elections in 2003 and continuing through Majles elections in 2004, conservatives reestablished control over Iran's elected government institutions, which culminated with the August 2005 inauguration of an ultra-conservative layman as president.

Middle East, bordering the Gulf of Oman, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan. slightly larger than Alaska.

65,397,521 (July 2007 est.) 68,688,433 (July 2006 est.)Shi'a Muslim 89%, Sunni Muslim 9%, Zoroastrian, Jewish, Christian, and Baha'i 2%. refugees (country of origin): 662,355 (Afghanistan), 54,000 (Iraq) (2006)

Petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur.

Periodic droughts, floods; dust storms, sandstorms; earthquakes. Air pollution, especially in urban areas, from vehicle emissions, refinery operations, and industrial effluents; deforestation; overgrazing; desertification; oil pollution in the Persian Gulf; wetland losses from drought; soil degradation (salination); inadequate supplies of potable water; water pollution from raw sewage and industrial waste; urbanization

30 provinces (ostanha, singular - ostan); Ardabil, Azarbayjan-e Gharbi, Azarbayjan-e Sharqi, Bushehr, Chahar Mahall va Bakhtiari, Esfahan, Fars, Gilan, Golestan, Hamadan, Hormozgan, Ilam, Kerman, Kermanshah, Khorasan-e Janubi, Khorasan-e Razavi, Khorasan-e Shemali, Khuzestan, Kohgiluyeh va Buyer Ahmad, Kordestan, Lorestan, Markazi, Mazandaran, Qazvin, Qom, Semnan, Sistan va Baluchestan, Tehran, Yazd, Zanjan

Republic Day, 1 April (1979)
note: additional holidays celebrated widely in Iran include Revolution Day, 11 February (1979); Noruz (New Year's Day), 21 March; Constitutional Monarchy Day, 5 August (1925); and various Islamic observances which change in accordance with the lunar-based hejira calendar

2-3 December 1979; revised 1989 to expand powers of the presidency and eliminate the prime ministership

chief of state: Supreme Leader Ali Hoseini-KHAMENEI (since 4 June 1989)
head of government: President Mahmud AHMADI-NEJAD (since 3 August 2005); First Vice President Parviz DAVUDI (since 11 September 2005)
cabinet: Council of Ministers selected by the president with legislative approval; the Supreme Leader has some control over appointments to the more sensitive ministries
note: also considered part of the Executive branch of government are three oversight bodies: 1) Assembly of Experts, a popularly elected body of 86 religious scholars constitutionally charged with determining the succession of the Supreme Leader - based on his qualifications in the field of jurisprudence and commitment to the principles of the revolution, reviewing his performance, and deposing him if deemed necessary; 2) Expediency Council or the Council for the Discernment of Expediency, is a policy advisory and implementation board consisting of permanent members, who number over 40 and represent all major government factions and include the heads of the three branches of government, and the clerical members of the Council of Guardians (see next); permanent members are appointed by the Supreme Leader for five-year terms; temporary members, including Cabinet members and Majles committee chairmen, are selected when issues under their jurisdiction come before the Expediency Council; the Expediency Council exerts supervisory authority over the executive, judicial, and legislative branches and resolves legislative issues on which the Majles and the Council of Guardians disagree and since 1989 has been used to advise national religious leaders on matters of national policy; in 2005 the Council's powers were expanded, at least on paper, to act as a supervisory body for the government; 3) Council of Guardians of the Constitution or Council of Guardians or Guardians Council is a 12-member board made up of six clerics chosen by the Supreme Leader and six jurists selected by the Majles from a list of candidates recommended by the judiciary (which in turn is controlled by the Supreme Leader) for six-year terms; this Council determines whether proposed legislation is both constitutional and faithful to Islamic law, vets candidates for suitability, and supervises national elections
elections: Supreme Leader appointed for life by the Assembly of Experts; Assembly of Experts elected by popular vote for an eight-year term; last election held 15 December 2006 concurrently with municipal elections; president elected by popular vote for a four-year term (eligible for a second term and third nonconsecutive term); last held 17 June 2005 with a two-candidate runoff on 24 June 2005 (next presidential election slated for 2009)
election results: Mahmud AHMADI-NEJAD elected president; percent of vote - Mahmud AHMADI-NEJAD 62%, Ali Akbar Hashemi-RAFSANJANI 36%

Unicameral Islamic Consultative Assembly or Majles-e-Shura-ye-Eslami (290 seats - formerly 270 seats; members elected by popular vote to serve four-year terms)
elections: last held 20 February 2004 with a runoff held 7 in May 2004 (next to be held in February 2008)
election results: percent of vote - NA; seats by party - conservatives/Islamists 190, reformers 50, independents 43, religious minorities 5, and 2 seats unaccounted for.

The Supreme Court and the four-member High Council of the Judiciary have a single head and overlapping responsibilities; together they supervise the enforcement of all laws and establish judicial and legal policies; lower courts include a special clerical court, a revolutionary court, and a special administrative court

Formal political parties are a relatively new phenomenon in Iran and most conservatives still prefer to work through political pressure groups rather than parties, and often political parties or groups are formed prior to elections and disbanded soon thereafter; a loose pro-reform coalition called the 2nd Khordad Front, which includes political parties as well as less formal pressure groups and organizations, achieved considerable success at elections to the sixth Majles in early 2000; groups in the coalition include: Islamic Iran Participation Front (IIPF), Executives of Construction Party (Kargozaran), Solidarity Party, Islamic Labor Party, Mardom Salari, Mojahedin of the Islamic Revolution Organization (MIRO), and Militant Clerics Society (Ruhaniyun); the coalition participated in the seventh Majles elections in early 2004; following his defeat in the 2005 presidential elections, former MCS Secretary General Mehdi KARUBI formed the National Trust Party; a new apparently conservative group, the Builders of Islamic Iran, took a leading position in the new Majles after winning a majority of the seats in February 2004

2006political pressure groups conduct most of Iran's political activities; groups that generally support the Islamic Republic include Ansar-e Hizballah, Muslim Students Following the Line of the Imam, Tehran Militant Clergy Association (Ruhaniyat), Islamic Coalition Party (Motalefeh), and Islamic Engineers Society; active pro-reform student groups include the Organization for Strengthening Unity; opposition groups include Freedom Movement of Iran, the National Front, Marz-e Por Gohar, and various ethnic and Monarchist organizations; armed political groups that have been almost completely repressed by the government include Mujahidin-e Khalq Organization (MEK), People's Fedayeen, Democratic Party of Iranian Kurdistan, and Komala

The Islamic Revolutionary Party (IRP) was Iran's sole political party until its dissolution in 1987; Iran now has a variety of groups engaged in political activity; some are oriented along political lines or based on an identity group; others are more akin to professional political parties seeking members and recommending candidates for office; some are active participants in the Revolution's political life while others reject the state; political pressure groups conduct most of Iran's political activities; groups that generally support the Islamic Republic include Ansar-e Hizballah, Muslim Students Following the Line of the Imam, Tehran Militant Clergy Association (Ruhaniyat), Islamic Coalition Party (Motalefeh), and Islamic Engineers Society; active pro-reform student groups include the Office of Strengthening Unity (OSU); opposition groups include Freedom Movement of Iran, the National Front, Marz-e Por Gohar, and various ethnic and Monarchist organizations; armed political groups that have been repressed by the government include Mujahidin-e Khalq Organization (MEK or MKO), People's Fedayeen, Democratic Party of Iranian Kurdistan (KDPI), and Komala

Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale workshops, farming, and services. President Mahmud AHMADI-NEJAD has continued to follow the market reform plans of former President RAFSANJANI, with limited progress. Relatively high oil prices in recent years have enabled Iran to amass nearly $60 billion in foreign exchange reserves, but have not eased economic hardships such as high unemployment and inflation. The proportion of the economy devoted to the development of weapons of mass destruction remains a contentious issue with leading Western nations.

Revenues: $40.38 billion
Expenditures: $40.29 billion, including capital expenditures of $7.6 billion (2004 est.

Revenues: $104.6 billion
Expenditures: $100.6 billion; including capital expenditures of $7.6 billion (2006 est.)

Wheat, rice, other grains, sugar beets, fruits, nuts, cotton; dairy products, wool; caviar

INDUSTRY
Petroleum, petrochemicals, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), metal fabricating, armaments

Natural gas - consumption:
65.59 billion cu m (2001 est.) 79 billion cu m (2003 est.)

Natural gas - proved reserves:
24.8 trillion cu m (2004) 26.62 trillion cu m (2005)

Islamic Republic of Iran Regular Forces (Artesh): Ground Forces, Navy, Air Force (includes air defense); Islamic Revolutionary Guard Corps (Sepah-e Pasdaran-e Enqelab-e Eslami, IRGC): Ground Forces, Navy, Air Force, Qods Force (special operations), and Basij Force (Popular Mobilization Army); Law Enforcement Forces (2005)

Islamic Republic of Iran Regular Forces (Artesh): Ground Forces, Navy, Air Force of the Military of the Islamic Republic of Iran (Niru-ye Hava'i-ye Artesh-e Jomhuri-ye Eslami-ye Iran; includes air defense); Islamic Revolutionary Guard Corps (Sepah-e Pasdaran-e Enqelab-e Eslami, IRGC): Ground Forces, Navy, Air Force, Qods Force (special operations), and Basij Force (Popular Mobilization Army); Law Enforcement Forces (2007)

18 years of age for compulsory military service; 16 years of age for volunteers; soldiers as young as 9 were recruited extensively during the Iran-Iraq War; conscript service obligation - 18 months (2004)

Iran protests Afghanistan's limiting flow of dammed tributaries to the Helmand River in periods of drought; Iraq's lack of a maritime boundary with Iran prompts jurisdiction disputes beyond the mouth of the Shatt al Arab in the Persian Gulf; Iran and UAE dispute Tunb Islands and Abu Musa Island, which are occupied by Iran; Iran stands alone among littoral states in insisting upon a division of the Caspian Sea into five equal sectors.

current situation: Iran is a source, transit, and destination country for women and girls trafficked for the purposes of sexual exploitation and involuntary servitude; according to foreign observers, women and girls are trafficked to Pakistan, Turkey, the Persian Gulf, and Europe for sexual exploitation, while boys from Bangladesh, Pakistan, and Afghanistan are trafficked through Iran en route to Persian Gulf states where they are ultimately forced to work as camel jockeys, beggars, or laborers; Afghan women and girls are trafficked to the country for forced marriages and sexual exploitation; women and children are also trafficked internally for the purposes of forced marriage, sexual exploitation, and involuntary servitude .
tier rating: Tier 3 - Iran is downgraded to Tier 3 after persistent, credible reports of Iranian authorities punishing victims of trafficking with beatings, imprisonment, and execution.

despite substantial interdiction efforts, Iran remains a key transshipment point for Southwest Asian heroin to Europe; highest percentage of the population in the world using opiates; lacks anti-money-laundering laws