How much of a negative impact do bonyads have on Iran's economy?


Bonyads are charitable trusts that control about 20% of Iran's GDP and have been criticized for being "a major weakness of Iran's economy" and providing inadequate charity to the poor(Mackey, Sandra Iranians, Persia, Islam, and the soul of a nation, New York: Dutton, c1996 (p.370)). How much of a negative impact do bonyads have on Iran's economy?

Tyler Mc

Posted 2020-01-25T12:07:46.310

Reputation: 3 876

2I'm not sure why you think Bonyads are any worse than the 70% of Iran's economy which is state-controlled according to the IMF. (Your link doesn't work for me and it looks like to goes to an UAE website, which I would consider a doubtful source for anything regarding Iran given that they are fighting a proxy war.) – Fizz – 2020-01-25T17:12:11.020

Added different new links that would be better sources. Also, the reason why I think that is because the current sources talk about how bonyads are corrupt and unprofitable since they -according to Wikipedia ( and more reliable sources like the Washington Examiner and the Economist ("Business: A mess; Iranian privatisation", The Economist. London: Jul 21, 2001. Vol. 360, Iss. 8231; pg. 51)- are overstaffed, corrupt, and unprofitable since they control a sizable portion of Iran's economy in spite of these problems.

– Tyler Mc – 2020-01-26T02:06:38.710


Funnily they've been compared with Fannie Mae and Freddie Mac in one (French) paper on the "parastatal sector".

– Fizz – 2020-01-26T04:31:26.497


Keep in mind that Iran follow Islamic banking rules on the immorality of charging interest rates. While bonyads may or may not be a drag on the economy (I'd never heard of them), this needs placing into the context of a financial system that is likely to have other challenges as well. Wikipedia entry, badly outdated :

– Italian Philosophers 4 Monica – 2020-01-26T17:11:18.950

No answers