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A resistance economy, also known as a resistive economy ( fa, اقتصاد مقاومتی) is an economy that tries to circumvent sanctions imposed on the country or region. This can involve increasing resilience by substituting local inputs for imported inputs, the
smuggling Smuggling is the illegal transportation of objects, substances, information or people, such as out of a house or buildings, into a prison, or across an international border, in violation of applicable laws or other regulations. There are variou ...
of goods and an increase in
barter trade In trade, barter (derived from ''baretor'') is a system of exchange in which participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money. Economists dist ...
. A country may even attempt to turn these pressures into opportunities. In some ways sanctioned economies bear some resemblance to an economy on a war or emergency footing. Measuring economic activity in nations under sanctions requires different techniques than those used for other countries.


Terminology

This phrase first used by
Ayatollah Khamenei Sayyid Ali Hosseini Khamenei ( fa, سید علی حسینی خامنه‌ای, ; born 19 April 1939) is a Twelver Shia ''marja and the second and current Supreme Leader of Iran, in office since 1989. He was previously the third presiden ...
Supreme Leader of Iran during a meeting with Iranian entrepreneurs as a response to the Western sanctions and subversion policies against Iran in 2011.


History


Gaza

The term was used in relation to the
Gaza strip The Gaza Strip (;The New Oxford Dictionary of English (1998) – p.761 "Gaza Strip /'gɑːzə/ a strip of territory under the control of the Palestinian National Authority and Hamas, on the SE Mediterranean coast including the town of Gaza.. ...
. In September 2007,
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
and
Egypt Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a List of transcontinental countries, transcontinental country spanning the North Africa, northeast corner of Africa and Western Asia, southwest corner of Asia via a land bridg ...
imposed a
blockade A blockade is the act of actively preventing a country or region from receiving or sending out food, supplies, weapons, or communications, and sometimes people, by military force. A blockade differs from an embargo or sanction, which are leg ...
on Gaza, focused on weapons and construction materials that could be used for terrorist purposes. At its height, the blockade also limited agricultural imports and exports via Israel. Imports and exports via
Egypt Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a List of transcontinental countries, transcontinental country spanning the North Africa, northeast corner of Africa and Western Asia, southwest corner of Asia via a land bridg ...
have been subject to varying Egyptian policies, with Egypt at times also greatly restricting traffic as an "anti-terrorist" measure. One 2011 conference paper by Salah R. Agha of the
Islamic University of Gaza The Islamic University of Gaza ( ar, الجامعة الإسلامية بغزة), also known as IUG and IU Gaza, is an independent Palestinian university established in 1978 in Gaza City. It was the first higher education institution to be establ ...
used the term "resistive economy" to describe the situation.


Iran

Iran Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...
has been under increasing sanctions owing to its disputed nuclear program. The response has emphasized reliance on domestic capacities, reducing dependence on oil exports and developing
barter trade In trade, barter (derived from ''baretor'') is a system of exchange in which participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money. Economists dist ...
and an
import substitution industrialization Import substitution industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production.''A Comprehensive Dictionary of Economics'' p.88, ed. Nelson Brian 2009. It is based on the premise that ...
. As much as 70% of Iran’s imports could be substituted by domestically produced products. In detail, it encourages increased exports of electricity, gas, petrochemicals, and oil byproducts instead of crude oil and other raw materials, expansion of the production and exportation of knowledge-based products, increase in domestic production of strategic goods, development of markets in neighboring countries, reforming consumption patterns and fighting
corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
.


Policies of resistance economy

The “Resistance Economy” is a concept defined by the
Supreme Leader of Iran The Supreme Leader of Iran ( fa, رهبر ایران, rahbar-e irān) is the head of state of the Islamic Republic of Iran. The Supreme Leader directs the executive system and judicial system of the Islamic theocratic government and is the co ...
Ali Khamenei Sayyid Ali Hosseini Khamenei ( fa, سید علی حسینی خامنه‌ای, ; born 19 April 1939) is a Twelver Shia '' marja and the second and current Supreme Leader of Iran, in office since 1989. He was previously the third presiden ...
, an idea which he proposed in 2007. According to Khamenei, that resistance economy aims to promote economic self-reliance, a strategy that would defeat the US-led efforts against Iran via economic and trade sanctions while discouraging extravagant consumption, noting that “the resistance economy is an inspiring pattern of the Islamic economic system and a good chance to make an economic epic.” Ali Khamenei specified the main aims of the economy of resistance as: 1. Creating dynamism 2. Resistance against threatening elements 3. Reliance on domestic capacities 4. Adopting a jihadi outlook 5. Making people the pivot 6. Security for strategic and fundamental goods 7. Reducing oil dependence 8. Reforming the norms of consumption (no decadence and waste) 9. Combating corruption 10. Promoting a knowledge-based economy According to the Center for Preserving and Publishing the Works of the Supreme Leader, Ayatollah Khamenei stressed, "Following an indigenous scientific pattern, rooted in the revolutionary and Islamic culture, will lead to the defeat of enemies and their withdrawal from an imposed economic war against the Iranian nation". “The Resistance Economy will also present an inspiring pattern of the Islamic economic system for the growing international crises and can prepare the ground for creating an economic epic.” The 24-point general policies of Iran’s Resistance Economy were set based on the Article 110 of the Constitution and after consulting with the Expediency Council. The ideology of the Resistance Economy, with its core concepts of self-sufficiency, proclaims that the Islamic Republic can survive — and indeed flourish — despite the US-led sanctions.


See also

{{portal, economy *
Sanctions against Iran There have been a number of sanctions against Iran imposed by a number of countries, especially the United States, and international entities. Iran was the most sanctioned country in the world until it was surpassed by Russia following its inva ...
*
Protectionism Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulation ...
*
Mercantilism Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce ...


References

Foreign relations of Iran Economy of Iran Gaza Strip Protectionism