Nobel Prize Nominee: Lifting of Sanctions Insufficient for Iran’s Economic Revival

“Reduction or removal of sanctions is not enough to revive Iran’s economy,” Mohammad Hashem Pesaran, one of the world's authorities on econometrics, and a nominee to win the 2013 Nobel prize in economic sciences, told Tasnim News Agency.

The lifting of sanctions can only have important effects on the country's economy in the mid-term, argued Pesaran.

“Diplomacy and negotiations can help create a better economic atmosphere, whose positive effects will emerge at least for a short term, but reduction or removal of sanctions is not enough,” Pesaran noted.

The prominent expert also added that Iran’s economy needs to be managed on the basis of economic principles rather than through decrees.

The populist policies of the previous government, wrong implementation of the subsidy reform plan and the western sanctions contributed to the stagflation in Iran, he said.

"Non-oil exports should be encouraged and measures need to be taken to boost them. This is vital to rid the economy of depending on oil revenues and to broaden the economic base. Also, a hike in non-oil exports can reduce the negative effects of the sanctions."

According to the emeritus professor of Cambridge University , the results of diplomatic negotiations, if any, will help promote Iran’s economic relations with other countries, not necessarily with the US, and is expected to increase productivity level in Iran's economy.

“Removal of sanctions will enable Iran to expand its trade ties with the region in a more effective manner,” he added.