THE IMPACT OF OIL PRICE VOLATILITY ON GOVERNMENT AND COMMUNITY RELATIONS

Document Type : Research Paper

Authors

1 Associate Professor, University of Economic Sciences

2 M.A. of Political Sciences of Islamic Azad Univdrsity

Abstract

Fluctuation of oil price during ex-president Khatami and President
Ahmadinejad's presidency have had many effects and consequences in various
political, economics and social fields. Somehow lower cost of oil in 1st period of expresident
Khatimi's presidency caused a kind of micro-orientation in decision of
government and had conclusions such as creating exchange reserve account,
acceleration in privatization plan, … etc. But unfortunately in 2nd period of
Khatami's presidency by increase in oil price, we were witnessed of evolutions in
policies and return to procedure of rantier government and somehow even we can
know the failure of Reformers in 2005 related to this matter. This procedure
continued by increasing the price of oil during Ahmadinejad's presidency and caused
to taking distributive and supportive policies which with regard to international
situation these policies appeared in the form of inflation, none-satisfactions,… et. In
second period of Ahamadinejad's presidency decrease of oil price similar to first
period of Khatami's presidency imposed a kind of micro-orientation to decisions of
government and its conclusion was Plan of Economic Evolution, Purposivism of
Subsidies, … etc. Generally, in spite of this research policies and general effects
entered into economics, politics and society during this period (1997-2013) are
influenced very much and were parallel to fluctuation of oil price and its results is
evident in the scale of inflation, increasing of cash flow, exchange reserve account,
quota, Plan of Economic Evolution, Purposivism of subsidies, … etc.

Keywords


Volume 43, Issue 3 - Serial Number 3
November 2013
Pages 199-217
  • Receive Date: 27 January 2012
  • Revise Date: 19 March 2014
  • Accept Date: 17 June 2012
  • First Publish Date: 23 October 2013