According to the International Monetary Fund, Iran ranks first in brain drain among developing countries, with roughly 150,000 Iranians leaving Iran every year, and with about 25% of all Iranians with post-secondary education now living abroad in developed countries. It has been estimated that brain drain is costing Iran about $40 billion per year.
Happened in the USSR, is happening in Iran and in the UK.
In 1970, Iran’s gross domestic product (GDP) was US$10.6 billion (ranking 27 among all countries), while the commensurate figure for South Korea was $8.9 billion (32nd). Ten years on, Iran’s GDP was $90 billion (19th) and Korea’s $63 billion (28th); and in 2005, Iran had sunk to 31st in GDP ranking at $190 billion and Korea had climbed to 13th, with $791 billion.
Ho hum … and of course:
In the aftermath of the revolution in 1979, the regime nationalized much of the private sector. Nationalization increased the role of the government even further and stifled the nascent private sector that it had inherited from the previous regime. Nationalized industries were handed to newly created foundations run by political cronies.
Import substitution policies were continued by the revolutionary government, but more forcefully than ever before because political cronies were inept managers and needed more protection from foreign competition to survive. Thus nationalization increased structural inefficiencies further and impaired economic growth.
And you can guess the rest. Statism produces inefficiency, stagnant growth, a surveillance society and debt. Back home, no Labour government ever in power has succeeded – it’s always gone backwards.