World Bank expects an ‘economic windfall’ for Iran post-sanctions
The World Bank said the lifting of sanctions will create a rush of resources for the country. (AFP/File)
The World Bank says it expects the lifting of sanctions against Iran to create an economic windfall for the country.
Shantayanan Devarajan, World Bank’s chief economist for the Middle East and North Africa, has been quoted by the media as saying that the windfall could provide Iran with sustainable growth. That, however, depends on a proper planning on the part of Iran, Devarajan said.
"[We are] calling it an economic windfall, that’s a technical term in economics, which is a one-time increase in resources accruing to a country, and that’s what this is," he has been quoted as saying by Sputnik news agency.
Devarajan added that there are some "political ramifications" for the process, "which is why we [World Bank] very carefully called it an economic windfall."
In an August report on the impact of Iranian sanction relief, the World Bank advised Iran to invest its economic windfall in domestic infrastructure, and upgrading telecommunications in support of high technological, non-oil industries, Sputnik added.
In a speech at the Carnegie Endowment for International Peace, Devarajan argued that the amount of money is less consequential than how Iran decides to use it.
“It really matters how you [Iran] manage this windfall, if it will create sustainable growth,” he said.
Iran and the P5+1 group of countries agreed after marathon talks that ended in Vienna last month over a set of measures to end years of disputes over the Iranian nuclear energy program. Based on what was agreed by both sides, the P5+1 will move to remove economic sanctions against Iran in return for certain measures by the country to restrict certain aspects of its nuclear energy activities.
- Nip, tuck: Dubai's grand plans for being a major player in medical tourism
- Zain, UNHCR, Facebook to bring free internet access to urban refugees in Jordan
- Yemen Central Bank headquarters to relocate from Sanaa to Aden
- IMF report details the crippling economic effects of conflict in MENA
- Start Up Lebanon entrepreneurs head to Silicon Valley Roadshow
- World Bank estimates a surge in Iran’s economic growth after sanctions removed
- What markets will open for Iran in a post-sanctions economy?
- Oil windfall boosts Gulf spending
- In the right direction: Egypt's economic growth expected to go 'easily north of 4 percent'
- Dubai at forefront of exploring Iran's new market potential