Presented by: Johanna MurphyHoly Oil & Water: The Economics of a Theocratic Nation

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The Troubles in Northern IrelandDecades of conflict between Pakistan & IndiaThe Taliban rule in AfghanistanConflict between Israel & HezbollahThe ProblemA theocratic nation will not hold a strong position in a liberal international political economyWhat is Theocracy? Theocracy as a mode of governance prioritizing a religious conception of the good that is strict and comprehensive in its range of teachings. Liberal Economic SystemPurpose of economic activity is to enrich individuals & the state should play a very small role in the economic systemIslamic Republic of Iran

Strong Position in Global Economy

Organization whose role includes administering trade agreements, providing a forum for trade negotiations, helping governments settle trade disputes, & reviewing national trade policies.

Relationship between oil demand and Iranian GDP I. Individual LevelIf a developing nations leader places adherence to religious practice above all other goals including prosperity

Ayatollah KhomeiniII. Domestic LevelIf a developing nations economy is state controlled

Iranian Economic SectorsState SectorPrivate SectorAll large-scale & mother industriesForeign tradeMajor mineralsBankingInsurancePower generationDams & large-scale irrigation networksRadio & televisionPostTelegraph & telephone servicesAviationShipping RoadsrailroadsAgricultureAnimal husbandryIndustry Trade

All these will be publicly owned & administered by the state

Services that supplement the economic activities of the stateIII. International LevelIf a developing nation is a radical theocracy operating in an open, global market environment

Conclusion