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Iran (, //?), officially the Islamic Republic of Iran (, ), formerly known internationally as Persia until 1935, is a country in Central Eurasia, located on the northeastern shore of the Persian Gulf. The name Iran is a cognate of Aryan, and means "Land of the Aryans".^[1][2][3]

The 18th largest country in the world in terms of area at 1,648,195 km², Iran has a population of over seventy million. It is a country of special geostrategic significance due to its central location in Eurasia. Iran is bordered on the north by Armenia, Azerbaijan, Turkmenistan, and the Caspian Sea; on the east by Afghanistan and Pakistan; on the south by the Persian Gulf and the Gulf of Oman; and on the west by Turkey and Iraq. Tehran is the capital, largest city and the political, cultural, commercial, and industrial center of the nation. Iran is a regional power,^[4][5] and occupies an important position in international energy security and world economy as a result of its large reserves of petroleum and natural gas.

Iran is home to one of the world's oldest continuous major civilizations, with historical and urban settlements dating back to 4000 BC.^[6][7][8] The Medes unified Iran into a kingdom in 625 BC^[9]. They were succeeded by three Iranian dynasties, the Achaemenids, Parthians and Sassanids, which governed Iran for more than 1000 years. After centuries of foreign occupation and short-lived native dynasties, Iran was once again reunified as an independent state in 1551 by the Safavid dynasty?who promoted Shi'a Islam^[10] as the official religion of their empire, marking one of the most important turning points in the history of Islam.^[11] Iran had been a monarchy ruled by a Shah, or emperor, almost without interruption from 1501 until the 1979 Iranian revolution, when Iran officially became an Islamic Republic on 1 April, 1979.^[12][13]

Iran is a founding member of the UN, NAM, OIC, and OPEC. The political system of Iran, based on the 1979 Constitution, comprises several intricately connected governing bodies. The highest state authority is the Supreme Leader. Shi'a Islam is the official religion, and Persian is the official language.^[14]

Etymology

The term Iran (?????) in modern Persian derives from the Proto-Iranian term Ary?n?m first attested in Zoroastrianism's Avesta tradition.^[15] Ariya- and Airiia- are also attested as an ethnic designator in Achaemenid inscriptions. The term ?r?n from Middle Persian ?r?n, Pahlavi ?yr?n, is found at the inscription that accompanies the investiture relief of Ardashir I at Naqsh-e Rustam.^[16] In this inscription, the king's appellation in Middle Persian contains the term ?r?n (Pahlavi: ?ry?n), while in the Parthian language inscription that accompanies it, Iran is mentioned as ary?n. In Ardashir's time ?r?n retained this meaning, denoting the people rather than the state.

Notwithstanding this inscriptional use of ?r?n to refer to the Iranian peoples, the use of ?r?n to refer to the geographical empire is also attested in the early Sassanid period. An inscription of Shapur I, Ardashir's son and immediate successor, apparently "includes in ?r?n regions such as Armenia and the Caucasus which were not inhabited predominantly by Iranians."^[17] In Kartir's inscriptions the high priest includes the same regions in his list of provinces of the antonymic An?r?n.^[17] Both ?r?n and ary?n comes from the Proto-Iranian term Ary?n?m, (Land) of the (Iranian) Aryas. The word and concept of Airyanem Vaejah is present in the name of the country Iran (Lit. Land of the Aryans) inasmuch as Iran (?r?n) is the modern Persian form of the word Ary?n?.

In the outside world, the official name of Iran from 6th century BC until 1935 was Persia or similar foreign language translations (La Perse, Das Persien, Perzie, etc.). In that year Reza Shah asked the international community to call the country by the name "Iran". A few years later some Persian scholars protested to the government that changing the name had separated the country from its past, so in 1959 Mohammad Reza Shah announced that both terms could officially be used interchangeably. Now both terms are common, but "Iran" is used mostly in the modern political context and "Persia" in a cultural and historical context. Since the Iranian Revolution of 1979, the official name of the country has been the "Islamic Republic of Iran."

Geography and climate

Satellite image of Iran

Eurasian Lynx

Iran's Northern Jungles, Gilan

Mount Damavand, Iran's highest point located in Mazanderan.

Iran is the eighteenth largest country in the world after Libya and before Mongolia.^[18] Its area roughly equals that of the United Kingdom, France, Spain, and Germany combined, or slightly less than the state of Alaska.^[19][20] Its borders are with Azerbaijan (432 km/268 mi) and Armenia (35 km/22 mi) to the north-west; the Caspian Sea to the north; Turkmenistan (992 km/616 mi) to the north-east; Pakistan (909 km/565 mi) and Afghanistan (936 km/582 mi) to the east; Turkey (499 km/310 mi) and Iraq (1,458 km/906 mi) to the west; and finally the waters of the Persian Gulf and the Gulf of Oman to the south. Iran's area is 1,648,000 km² (approximately 636,300 sq mi).^[21]

Iran consists of the Iranian Plateau with the exception of the coasts of the Caspian Sea and Khuzestan. It is one of the world's most mountainous countries, its landscape dominated by rugged mountain ranges that separate various basins or plateaux from one another. The populous western part is the most mountainous, with ranges such as the Caucasus, Zagros and Alborz Mountains; the latter contains Iran's highest point, Mount Damavand at 5,604 m (18,386 ft), which is not only the country's highest peak but also the highest mountain on the Eurasian landmass west of the Hindu Kush.^[22] The Northern part of Iran is covered under thick rain forests called Shomal or the Jungles of Iran. The eastern part consists mostly of desert basins like the saline Dasht-e Kavir, Iran's largest desert, in the north-central portion of the country, and the Dasht-e Lut, in the east, as well as some salt lakes. This is because the mountain ranges are too high for rain clouds to reach these regions. The only large plains are found along the coast of the Caspian Sea and at the northern end of the Persian Gulf, where Iran borders the mouth of the Shatt al-Arab (or the Arvand R?d) river. Smaller, discontinuous plains are found along the remaining coast of the Persian Gulf, the Strait of Hormuz and the Sea of Oman.

Iran's climate is mostly arid or semiarid, to subtropical along the Caspian coast and the northern forests. On the northern edge of the country (the Caspian coastal plain) temperatures nearly fall below freezing and it remains humid for the rest of the year. Summer temperatures rarely exceed 29 °C (85 °F).^[23][24] Annual precipitation is 680 mm (27 in) in the eastern part of the plain and more than 1,700 mm (67 in) in the western part. To the west, settlements in the Zagros basin experience lower temperatures, severe winters with below zero average daily temperatures and heavy snowfall. The eastern and central basins are arid, with less than 200 mm (eight in) of rain, and have occasional deserts.^[24] Average summer temperatures exceed 38 °C (100 °F). The coastal plains of the Persian Gulf and Gulf of Oman in southern Iran have mild winters, and very humid and hot summers. The annual precipitation ranges from 135 to 355 mm (five to fourteen inches).^[24]

Iran's wildlife is composed of several animal species including bears, gazelles, wild pigs, wolves, jackals, panthers, Eurasian lynx, and foxes. Other domestic animals include, sheeps, goats, cattle, horses, water buffalo, donkeys, and camels. The pheasant, partridge, stork, eagles and falcon are also native to Iran.

Provinces and Cities

After the revolution, Shahyad Tower was renamed Freedom Tower

Iran has one of the highest urban-growth rates in the world. From 1950 to 2002 the urban proportion of the population increased from 27% to 60%.^[25] The United Nations predicts that by 2030 80% of the population will be urban.^[26] Most internal migrants have settled near the cities of Tehran, Isfahan, Ahvaz, and Qom. The listed populations are from the 2006/07 (1385 AP) census.^[27] Tehran, with population of 7,705,036, is the largest city in Iran and is the Capital city. Tehran is home to around 11% of Iran's population. Tehran, like many big cities, suffers from severe air pollution. It is the hub of the country's communication and transport network.

Mashhad with a population of 2.8 million is the second largest Iranian city and the centre of the province of Razavi Khorasan. Mashahd is one of the holiest Shi'a cities in the world as it is the site of the Imam Reza shrine. It is the centre of tourism in Iran and between 15 and 20 million pilgrims go to the Imam Reza's shrine every year.^[28][29] Another major Iranian city is Isfahan (population 1,986,542). Isfahan is the capital of Isfahan Province. The Naghsh-e Jahan Square in Isfahan has been designated by UNESCO as a World Heritage Site. The city contains a wide variety of Islamic architectural sites ranging from the eleventh to the 19th century. The growth of suburb area around the city has turned Isfahan to the second most populous metropolitan area (3,430,353).^[30] The other major Iranian cities are Karaj (population 1,732,275), Tabriz (population 1,597,312) and Shiraz (population 1,227,331). Tabriz is situated north of the volcanic cone of Sahand south of the Eynali mountain. Tabriz is the largest city in north-western Iran and is the capital of East Azarbaijan Province. Karaj is located in Tehran province and is situated 20 km west of Tehran, at the foot of Alborz mountains, however the city is increasingly becoming an extension of the metropolitan Tehran.

History

Early history (3200 BC–625 BC)

19th century reconstruction of a map of the world by Eratosthenes, c.200 BC. The name Ariana (Aryânâ) was used to describe the region where the Iranian Plateau is found.

Pre-Islamic Statehood (625 BC–651 AD)

The Cyrus Cylinder is considered the first recorded declaration of human rights in history.

The Medes are credited with the unification^[9] of Iran as a nation and empire (625^[9]?559  BC), the largest of its day, until Cyrus the Great established a unified empire of the Medes and Persians leading to the Achaemenid Empire (559?330  BC), and further unification between peoples and cultures. After Cyrus's death, his son Cambyses continued his father's work of conquest, making significant gains in Egypt. Following a power struggle after Cambyses' death Darius I was declared king (ruled 522?486 BC). Under Cyrus the Great and Darius the Great, the Persian Empire eventually became the largest and most powerful empire in human history up until that point.^[33] The borders of the Persian empire stretched from the Indus and Oxus Rivers in the east to the Mediterranean Sea in the west, extending through Anatolia (modern day Turkey) and Egypt.

Achaemenid empire at its greatest extent about 500 BC.

The rules and ethics emanating from Zoroaster's teachings were strictly followed by the Achaemenids who introduced and adopted policies based on human rights, equality and banning of slavery. Zoroastrianism spread unimposed during the time of the Achaemenids and through contacts with the exiled Jewish people in Babylon freed by Cyrus, Zoroastrian concepts further propagated and influenced into other Abrahamic religions. The Golden Age of Athens marked by Aristotle, Plato and Socrates also came about during the Achaemenid period while their contacts with Persia and the Near East abounded. The peace, tranquillity, security and prosperity that were afforded to the people of the Near East and Southeastern Europe proved to be a rare historical occurrence, an unparalleled period where commerce prospered, and the standard of living for all people of the region improved.^[34]

A bust from the National Museum of Iran of Queen Musa

Parthia was led by the Arsacid Dynasty (???????? Ashkâniân), who reunited and ruled over the Iranian plateau, after defeating the Greek Seleucid Empire, beginning in the late 3rd century BC, and intermittently controlled Mesopotamia between ca. 150  BC and 224 AD. These were the third native dynasty of ancient Iran and lasted five centuries. After the conquests of Media, Assyria, Babylonia and Elam, the Parthians had to organize their empire. The former elites of these countries were Greek, and the new rulers had to adapt to their customs if they wanted their rule to last. As a result, the cities retained their ancient rights and civil administrations remained more or less undisturbed.

Parthia was the arch-enemy of the Roman Empire in the east, limiting Rome's expansion beyond Cappadocia (central Anatolia). By using a heavily-armed and armoured cataphract cavalry, and lightly armed but highly-mobile mounted archers, the Parthians "held their own against Rome for almost 300 years".^[35] Rome's acclaimed general Mark Antony led a disastrous campaign against the Parthians in 36 BC in which he lost 32,000 men. By the time of Roman emperor Augustus, Rome and Parthia were settling some of their differences through diplomacy. By this time, Parthia had acquired an assortment of golden eagles, the cherished standards of Rome's legions, captured from Mark Antony, and Crassus, who suffered a defeat at Carrhae in 53 BC.^[36]

Sassanid relief of Ardashir I

In 632 raiders from the Arab peninsula began attacking the Sassanid Empire. Iran was defeated in the Battle of al-Qâdisiyah, paving way for the Islamic conquest of Persia.

During Parthian, and later Sassanid era, trade on the Silk Road was a significant factor in the development of the great civilizations of China, Egypt, Mesopotamia, Persia, Indian subcontinent, and Rome, and helped to lay the foundations for the modern world. Parthian remains display classically Greek influences in some instances and retain their oriental mode in others, a clear expression of the cultural diversity that characterized Parthian art and life.^[40] The Parthians were innovators of many architecture designs such as that of Ctesiphon, which later influenced European Romanesque architecture.^[41][42] Under the Sassanids, Iran expanded relations with China. The arts, music, and architecture greatly flourished, and centres such as the School of Nisibis and Academy of Gundishapur became world renowned centres of science and scholarship.

Middle Ages (652–1501)

Map of Iranian Dynasties c. 1000

Abu Moslem, an Iranian general, expelled the Umayyads from Damascus and helped the Abbasid caliphs to conquer Baghdad. The Abbasid caliphs frequently chose their "wazirs" (viziers) among Iranians, and Iranian governors acquired a certain amount of local autonomy. Thus in 822, the governor of Khorasan, Tahir, proclaimed his independence and founded a new Persian dynasty of Tahirids. And by the Samanid era, Iran's efforts to regain its independence had been well solidified.^[44]

Illustration from J?m?'s "Rose Garden of the Pious", dated 1553. The image blends Persian poetry and Persian miniature into one, as is the norm for many works of the Timurid era.

After an interval of silence Iran re-emerged as a separate, different and distinctive element within Islam. Iranian philosophy after the Islamic conquest, is characterized by different interactions with the Old Iranian philosophy, the Greek philosophy and with the development of Islamic philosophy. The Illumination School and the Transcendent Philosophy are regarded as two of the main philosophical traditions of that era in Persia.

The movement continued well into the 11th century, when Mahmud-a Ghaznavi founded a vast empire, with its capital at Isfahan and Ghazna. Their successors, the Seljuks, asserted their domination from the Mediterranean Sea to Central Asia. As with their predecessors, the divan of the empire was in the hands of Iranian viziers, who founded the Nizamiyya. During this period, hundreds of scholars and scientists vastly contributed to technology, science and medicine, later influencing the rise of European science during the Renaissance.^[45]

In 1218, the eastern Khwarazmid provinces of Transoxiana and Khorasan suffered a devastating invasion by Genghis Khan. During this period more than half of Iran's population were killed,^[46] turning the streets of Persian cities like Neishabur into "rivers of blood", as the severed heads of men, women, and children were "neatly stacked into carefully constructed pyramids around which the carcasses of the city's dogs and cats were placed".^[47] Between 1220 and 1260, the total population of Iran had dropped from 2,500,000 to 250,000 as a result of mass extermination and famine.^[48] In a letter to King Louis IX of France, Holaku, one of the Genghis Khan's grandsons, alone took responsibility for 200,000 deaths in his raids of Iran and the Caliphate.^[49] He was followed by yet another conqueror, Tamerlane, who established his capital in Samarkand.^[50] The waves of devastation prevented many cities such as Neishabur from reaching their pre-invasion population levels until the 20th century, eight centuries later.^[51] But both Hulagu, Timur, and their successors soon came to adopt the ways and customs of that which they had conquered, choosing to surround themselves with a culture that was distinctively Persian.^[52]

Early Modern Era (1501–1921)

Sattar Khan was a key figure in the Iranian Constitutional Revolution.

Shah Ismail I, the founder of the Safavid Dynasty (1501 to 1736)

The Zand dynasty lasted three generations, until Aga Muhammad Khan executed Lotf Ali Khan, and founded his new capital in Tehran, marking the dawn of the Qajar Dynasty in 1794. The capable Qajar chancellor Amir Kabir established Iran's first modern college system, among other modernizing reforms. Iran suffered several wars with Imperial Russia during the Qajar era, resulting in Iran losing almost half of its territories to Imperial Russia and the British Empire, via the treaties of Gulistan, Turkmenchay and Akhal. In spite of The Great Game Iran managed to maintain her sovereignty and was never colonized, unlike neighbouring states in the region. Repeated foreign intervention and a corrupt and weakened Qajar rule led to various protests, which by the end of the Qajar period resulted in Persia's constitutional revolution establishing the nation's first parliament in 1906, within a constitutional monarchy.

Late Modern Era (1921–)

Former Iranian prime minister, Dr. Mohammad Mossadegh.

In 1951 Dr. Mohammed Mossadegh was elected prime minister. As prime minister, Mossadegh became enormously popular in Iran after he nationalized Iran's oil reserves. In response Britain embargoed Iranian oil and invited the United States to join in a plot to depose Mossadegh, and in 1953 President Dwight D. Eisenhower authorized Operation Ajax. The operation was successful, and Mossadegh was arrested on 19 August, 1953.

Mohammad Reza Pahlavi and Queen Farah about to depart after a visit to the United States.

The Iranian Revolution, also known as the Islamic Revolution,^[53][54][55] began in January 1978 with the first major demonstrations against the Shah.^[56] After strikes and demonstrations paralysed the country and its economy, the Shah fled the country in January 1979 and Ayatollah Khomeini soon returned from exile to Tehran, enthusiastically greeted by millions of Iranians.^[57] The Pahlavi Dynasty collapsed ten days later on 11 February when Iran's military declared itself "neutral" after guerrillas and rebel troops overwhelmed troops loyal to the Shah in armed street fighting. Iran officially became an Islamic Republic on 1 April, 1979 when Iranians overwhelmingly approved a national referendum to make it so.^[12][13] In December 1979 the country approved a theocratic constitution, whereby Khomeini became Supreme Leader of the country. The speed and success of the revolution surprised many throughout the world,^[58] as it had not been precipitated by a military defeat, a financial crisis, or a peasant rebellion.^[59] Although both nationalists and Marxists joined with Islamic traditionalists to overthrow the Shah, tens of thousands were killed and executed by the Islamic regime afterward, the revolution ultimately resulted in an Islamic Republic under Ayatollah Ruhollah Khomeini.^[60]

Arrival of Ayatollah Khomeini on 1 February, 1979 from France.

Iraqi leader Saddam Hussein decided to take advantage of what he perceived to be disorder in the wake of the Iranian Revolution and its unpopularity with Western governments. The once-strong Iranian military had been disbanded during the revolution. Saddam sought to expand Iraq's access to the Persian Gulf by acquiring territories that Iraq had claimed earlier from Iran during the Shah's rule. Of chief importance to Iraq was Khuzestan which not only has a substantial Arab population, but boasted rich oil fields as well. On the unilateral behalf of the United Arab Emirates, the islands of Abu Musa and the Greater and Lesser Tunbs became objectives as well. With these ambitions in mind, Hussein planned a full-scale assault on Iran, boasting that his forces could reach the capital within three days. On 22 September, 1980 the Iraqi army invaded Iran at Khuzestan, precipitating the Iran-Iraq War.

Donald Rumsfeld meets Saddam Hussein on 19?20 December 1983. Rumsfeld visited again on 24 March 1984, the day the UN reported that Iraq had used mustard gas and tabun nerve agent against Iranian troops. The New York Times reported from Baghdad on 29 March 1984, that "American diplomats pronounce themselves satisfied with Iraq and the US, and suggest that normal diplomatic ties have been established in all but name."^[63]

Following the Iran-Iraq War President Akbar Hashemi Rafsanjani and his administration concentrated on a pragmatic pro-business policy of rebuilding and strengthening the economy without making any dramatic break with the ideology of the revolution. During the 1991 Persian Gulf War Iran remained neutral despite the close proximity of American military. Rafsanjani served until 1997 when he was succeeded by the moderate reformist Mohammad Khatami who promised supporters "Islamic democracy". This presidency was soon marked by tensions between the Khatami administration and an increasingly conservative and vocal clergy. In July 1999 massive, week-long anti-government protests were dispersed with police and vigilantes. Khatami also was re-elected and served for eight years, but his administration's reform efforts to allow more freedom of expression and democracy were blocked by the conservative Guardian Council and the conservative judiciary and security forces that banned liberal newspapers and disqualifying reformist candidates for parliamentary elections. His administration ended with widespread disillusionment among supporters with him and with reform politics.^[68]

In the 2005 presidential elections Iran made yet another change in political direction when conservative populist candidate Mahmoud Ahmadinejad, was elected over Akbar Hashemi Rafsanjani.^[69] A loyal supporter of conservative Supreme Leader Khamenei, Ahmadinejad kissed the leader's hand during his authorization ceremony.^[70][71]

Ahmadinejad's term has been noted for his insistent calls for the dissolution of the state of Israel and its government,^[72] vigorous pursuit of nuclear power and uranium enrichment in the face of Western opposition^[73], and generous spending on government subsidies.^[74][75]

Government and politics

Political institutions of Iran

After the Supreme Leader, the Constitution defines the President of Iran as the highest state authority.^[76][78] The President is elected by universal suffrage for a term of four years and can only be re-elected for one term.^[78] Presidential candidates must be approved by the Council of Guardians prior to running in order to ensure their allegiance to the ideals of the Islamic revolution.^[79] The President is responsible for the implementation of the Constitution and for the exercise of executive powers, except for matters directly related to the Supreme Leader, who has the final say in all matters.^[76] The President appoints and supervises the Council of Ministers, coordinates government decisions, and selects government policies to be placed before the legislature.^[80] Eight Vice-Presidents serve under the President, as well as a cabinet of twenty two ministers, who must all be approved by the legislature.^[81] Unlike many other states, the executive branch in Iran does not control the armed forces. Although the President appoints the Ministers of Intelligence and Defense, it is customary for the President to obtain explicit approval from the Supreme Leader for these two ministers before presenting them to the legislature for a vote of confidence. Iran's current president, Mahmoud Ahmadinejad, was elected in a run-off poll in the 2005 presidential elections. His term expires in 2009.^[82]

Ali Khamenei, Supreme Leader of Iran

Shirin Ebadi, a long-time pro-democracy activist, was awarded 2003 Nobel Peace Prize.

The Assembly of Experts, which meets for one week annually, comprises 86 "virtuous and learned" clerics elected by adult suffrage for eight-year terms. As with the presidential and parliamentary elections, the Council of Guardians determines candidates' eligibility.^[87] The Assembly elects the Supreme Leader and has the constitutional authority to remove the Supreme Leader from power at any time.^[87] As all of their meetings and notes are strictly confidential, the Assembly has never been publicly known to challenge any of the Supreme Leader's decisions.^[87]

Local City Councils are elected by public vote to four-year terms in all cities and villages of Iran. According to article seven of Iran's Constitution, these local councils together with the Parliament are "decision-making and administrative organs of the State". This section of the constitution was not implemented until 1999 when the first local council elections were held across the country. Councils have many different responsibilities including electing mayors, supervising the activities of municipalities; studying the social, cultural, educational, health, economic, and welfare requirements of their constituencies; planning and co-ordinating national participation in the implementation of social, economic, constructive, cultural, educational and other welfare affairs.

Foreign relations and military

One of Iran's 6 SSK Kilo class submarines

The Islamic Republic of Iran has two kinds of armed forces: the regular forces Islamic Republic of Iran Army, Islamic Republic of Iran Air Force, Islamic Republic of Iran Navy and the Islamic Revolutionary Guards Corps (IRGC), totalling about 545,000 active troops. Iran also has around 350,000 Reserve Force totalling around 900,000 trained troops.^[89]Iran has not invaded any country over the past two centuries.^[90]

Iran has a paramilitary, volunteer militia force within the IRGC, called the Basij, which includes about 90,000 full-time, active-duty uniformed members. Up to 11 million men and women are members of the Basij who could potentially be called up for service; GlobalSecurity.org estimates Iran could mobilize "up to one million men". This would be among the largest troop mobilizations in the world.^[91] In 2005, Iran's military spending represented 3.3% of the GDP or $91 per capita, the lowest figure of the Persian Gulf nations.^[92] Iran's military doctrine is based on deterrence.^[93]

Since the Iranian revolution, to overcome foreign embargo, Iran has developed its own military industry, produced its own tanks, armored personnel carriers, guided missiles, submarines, and fighter planes.^[94] In recent years, official announcements have highlighted the development of weapons such as the Fajr-3 (MIRV), Hoot, Kowsar, Zelzal, Fateh-110, Shahab-3 missiles, and a variety of unmanned aerial vehicles (UAVs).

The Fajr-3 (MIRV) is currently Iran's most advanced ballistic missile. It is a domestically-developed and produced liquid fuel missile with an unknown range. The IRIS solid-fuelled missile is Iran's first missile to bring satellites into orbit.

Economy

The rial is Iran's official currency.

Tehran was one of the first cities in Iran which was modernized in the Pahlavi era.

Close to 1.8% of national employment is generated in the tourism sector which is slated to increase to 10% in the next five years.^[100] About 1,659,000 foreign tourists visited Iran in 2004; most came from Asian countries, including the republics of Central Asia, while a small share came from the countries of the European Union and North America. Iran currently ranks 89th in tourist income, but is rated among the 10 most touristic countries in the world.^[101] Weak advertising, unstable regional conditions, a poor public image in some parts of the world, and absence of efficient planning schemes in the tourism sector have all hindered the growth of tourism.

The administration continues to follow the market reform plans of the previous one and indicated that it will diversify Iran's oil-reliant economy. Iran has also developed a biotechnology, nanotechnology, and pharmaceuticals industry.^[102] The strong oil market since 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iranian budget deficits have been a chronic problem, mostly due to large-scale state subsidies, that include foodstuffs and especially gasoline, totaling more than $84 billion in 2008 for the energy sector alone.^[103][104]

Samand is Iran's national car, manufactured by Iran Khodro

Globally, Iran has leading manufacture industry in the fields of car-manufacture and transportations, construction materials, home appliances, food and agricultural goods, armaments, pharmaceuticals, information technology, power and petrochemicals.^[105]

Energy

Iran ranks second in the world in natural gas reserves and third in oil reserves.^[106] It is OPEC's 2nd largest oil exporter. In 2005, Iran spent US$4 billion dollars on fuel imports, because of contraband and inefficient domestic use.^[107] Oil industry output averaged in 2005, compared with the peak of six million barrels per day reached in 1974. In the early 2000s, industry infrastructure was increasingly inefficient because of technological lags. Few exploratory wells were drilled in 2005.

In 2004, a large share of Iran?s natural gas reserves were untapped. The addition of new hydroelectric stations and the streamlining of conventional coal and oil-fired stations increased installed capacity to 33,000 megawatts. Of that amount, about 75% was based on natural gas, 18% on oil, and 7% on hydroelectric power. In 2004, Iran opened its first wind-powered and geothermal plants, and the first solar thermal plant is to come online in 2009. Demographic trends and intensified industrialization have caused electric power demand to grow by 8% per year. The government?s goal of 53,000 megawatts of installed capacity by 2010 is to be reached by bringing on line new gas-fired plants and by adding hydroelectric, and nuclear power generating capacity. Iran?s first nuclear power plant at Bushehr was not online by 2007.^[108]

Demography

Ethnic diversity of Iran

Iran's population increased dramatically during the latter half of the 20th century, reaching about 70 million by 2006. In recent years, however, Iran's birth rate has dropped significantly. Currently the population is almost 72 million^[109] Studies show that Iran's rate of population growth will continue to slow until it stabilizes above 90 million by 2050.^[110][111] More than two-thirds of the population is under the age of 30, and the literacy rate is 82%.^[21] Women today compose more than half of the incoming classes for universities around the country and increasingly continue to play pivotal roles in society.

Iran hosts one of the largest refugee populations in the world, with more than one million refugees, mostly from Afghanistan and Iraq. Since 2006, Iranian officials have been working with the UNHCR and Afghan officials for their repatriation.^[112]

Population of Iran

Most Iranians are Muslims; 89% belong to the Twelver Shi'a branch of Islam, the official state religion, and about 9% belong to the Sunni branch, mainly Kurds and Iran's Balochi Sunni. The remaining 2% are non-Muslim religious minorities, including Bahá'ís, Mandeans, Hindus, Yezidis, Yarsanis, Zoroastrians, Jews, and Christians.^[21] The latter three minority religions are officially recognized and protected, and have reserved seats in the Majlis (Parliament). However the Bahá'í Faith, Iran's largest religious minority, is not officially recognized, and has been persecuted during its existence in Iran. Since the 1979 revolution the persecution of Bahá'ís has increased with executions, the denial of civil rights and liberties, and the denial of access to higher education and employment.^[113][114] Currently, the Islamic Republic of Iran is noted for significant human rights violations, despite efforts by human right activists, writers, NGOs and some political parties. Human rights violations include governmental impunity, restricted freedom of speech, gender inequality, treatment of homosexuals, execution of minors, and in some cases torture.

According to the Iranian Constitution, the government is required to provide every citizen of the country with access to social security that covers retirement, unemployment, old age, disability, accidents, calamities, health and medical treatment and care services. This is covered by public revenues and income derived from public contributions. The World Health Organization in the last report on health systems ranks Iran's performance on health level 58th, and its overall health system performance 93rd among the world's nations.^[115]

Culture