Monday, August 3, 2015

Blinded by Hate, he expresses wishful Thinking

When someone is blinded by hate, he develops the tendency to stack one mistake on top of the other, thus builds a monument of errors which he then uses as a guide to foretell the future. Based on shaky predictions of this kind, he constructs strategies that, needless to say, turn out to be useless if not damaging to the causes he set out to promote in the first place.

That's what comes out from reading the article that was written by Reuel Marc Gerecht under the title: “History Contradicts the Dream of Iranian Moderation” and the subtitle: “Repression lifted slightly in the 1990s but the economy did not, and state-sponsored terrorism abroad continued.” It was published in the Wall Street Journal on April 1, 2015.

Gerecht joins the debate relating to the recently negotiated Iran nuclear deal, on the side of those who oppose it. And so, he sets out to demonstrate that those who agree with it are making a mistake. To do this, he uses the economic argument and starts out by harking back to a time when Iran was demographically, economically and politically in a different place from where it is today.

His point is that the leaders of Iran mismanaged the economy in the 1990s, and will not do better this time even though the sanctions will be lifted; the country will immediately get an infusion of cash, and will see a flood of foreign investments pour in. So you look forward to a discussion that's really an economic discussion, but regrettably find nothing of the sort. Instead, you encounter this: “President Rafsanjani produced little economic dynamism. Enterprise in Iran is corrupt, nepotistic, constrained and usually guided as much by politics as profit … As a result, when capital flowed into the country the ruling elite got richer, but average Iranians did not.”

This said, Gerecht asks: “How will so-called moderation this time around, led by President Rouhani, be any different?” And he answers: “If anything, life in Iran after the nuclear accord is likely to become more harsh and politically convulsive.” Here too, he fails to advance a discussion that is really an economic discussion. And here too, you encounter a set of propositions that mean nothing. Here is a sample: “Lifting sanctions will release a windfall certain to unleash the appetites of the clerics and the technocrats. We will see a feeding frenzy.”

Having made a non-economic economic argument, Reuel Marc Gerecht builds on top of it a layer of wisdom, and on top of that a layer of predictions. His wisdom goes like this: “Failed expectations are always dangerous, and Mr. Rouhani has oversold what the nuclear deal will do economically for the average Iranian.” As to his predictions, they go like this: “The lower and middle classes in the cities could begin to find common ground with the college educated.”

To argue that the Iranians have no hope of escaping the fate he has imagined for them, Gerecht throws in this comment: “Iran will need to generate more money than it has since 1979 to have any chance of improving the lot of unconnected Iranians … The Iranian president believes he's negotiated a deal in which he can have it all. But the cash infusion will only stress the fault lines of Iranian society.” He sees no break for these people.

But really, what's wrong with any of that? What's wrong is that the author did not consider for a minute the saying: “Necessity is the mother of invention.” living under a brutal regime of sanctions, the Iranians found themselves in need of things they used to take for granted, but were no longer available to them. And so, they invented their way out of their predicament. In this case, 'invent' does not mean re-invent the wheel, for example. It means reconfigure the economy to locally produce the necessities of life before anything else, and produce them with maximum efficiency. All those who suffered sanctions of one form or another – Egypt included – did just that, and came out of the experience better off than when they entered it.

Secure in the knowledge that they have the wherewithal to produce what is necessary to sustain life, the Iranians will consider what will accrue to them when the sanctions are lifted to be surplus that can go into investment projects whose result will improve the lives of the citizens without asking them to sacrifice anything in return. And those of us who studied these things, know that surplus has always been the fuel that powered the engine of industrial and political progress. Expect nothing less than that to happen in Iran.

There is no doubt in my mind this is the fate of Iran; a fate that the country will not escape no matter how much Reuel Marc Gerecht and his likes wish it were different.