Monday, June 22, 2020

US Sanctions versus Iran’s fight against COVID-19 pandemic

This article is by

Share this article

Article Contributor(s)

Aditi Mohta

Article Title

US Sanctions versus Iran’s fight against COVID-19 pandemic

Publisher

Global Views 360

Publication Date

June 22, 2020

URL

Coronavirus patients at Imam Khomeini Hospital, Tehran

Coronavirus patients at Imam Khomeini Hospital, Tehran | Source: Mohsen Atayi via Wikimedia

Iran is the hardest-hit country by the coronavirus pandemic in the middle east. The contagion was first detected on 19 February 2020 in the holy city of Qom, and thereafter spread quickly across the country. As of 18th June 2020, it had over 9000 coronavirus related fatalities. The virus attacked all the 31 provinces of the country not discriminating between the common man and the people at high places including the members of the Parliament, religious leaders and senior ministers. The crisis touched most parts of the country, but it most severely impacted working and the poor class. 

The Iranian government has been criticized for its response towards the pandemic. The health care policy, which has been politicized, has preferred denial and misinformation as a response to the crisis the pandemic brought with it. Questions have also been raised about the role of US sanctions in crippling Iran’s economy, public health facilities and public health facilities. All these factors, when combined, have disabled Tehran (the capital of Iran) from providing the best response to the pandemic. 

What do the sanction laws say?

According to the Office of Foreign Assets Control, the US has “consistently maintained broad exceptions and authorizations to support humanitarian transactions with Iran.” The first significant sanctions were imposed in 1995 by Bill Clinton, and in 2001 exemptions for medical goods and medicine first came into effect. These sanctions have periodically widened the scope of products for exemption, and by 2012, the exclusions included agricultural products and most foods. After the world powers, including the US, reached a deal with Iran on its nuclear programme in 2015, the sanctions were lowered against Iran. This approach was abandoned after Trump withdrew the US from the deal and sought to force Iran’s leaders to change their anti-US policy. .

The US sanctions are enforced through a wide array of instruments. Financial sanctions prohibit US banks from transacting with Iran, which limits Iran’s access to dollar-denominated transactions. Secondary sanctions measures also target non-US entities that have dealings with Iran, thus at a risk of facing prosecution in the US. These sanctions make transactions with Iran lengthy and complicated, and even impossible in some cases

There are some exemptions from sanctions for humanitarian assistance (sale of agricultural commodities, food, medicine and agricultural services). Despite these exemptions, sanctions have severely impaired Iran’s ability to be able to finance humanitarian imports. Given the volume of complexity and due diligence involved, most banks are reluctant to deal with Iran. This makes it difficult to find a way to pay for purchases difficult for Iran. Also many items require additional authorization because the US considers them as “dual-use” (the things might also be used for defence- for example, the sort of oxygen generators that are needed in life support machines used to treat coronavirus cases). Lastly, the sanctions on Iran’s oil exports led to a decline in revenue, further weakening Iran’s currency, which has left the country vulnerable and with fewer resources to pay for non-sanctioned items as well. 

All these put together have directly caused shortages of medical equipment and impacted Iran’s health sector negatively. This has also impacted the capability of Iranian healthcare sector to effectively manage the COVID-19 situation.

Support us to bring the world closer

To keep our content accessible we don't charge anything from our readers and rely on donations to continue working. Your support is critical in keeping Global Views 360 independent and helps us to present a well-rounded world view on different international issues for you. Every contribution, however big or small, is valuable for us to keep on delivering in future as well.

Support Us

Share this article

Read More

February 4, 2021 4:52 PM

Late Sultan Qaboos’s Legacy And What’s Next For Oman

On the morning of January 11, 2020, the citizens of Oman awoke to the news that Sultan Qaboos Bin Said, the monarch of the small Gulf nation, had passed away the previous day after a 49-year rule.

The late Sultan Qaboos came to power in 1970, after he overthrew his conservative father in a palace coup with the help of the British. He then set about modernising his impoverished country, using Oman’s newfound oil wealth to fund its infrastructure. When he took over the throne, Oman had only three schools and harsh laws banning electricity, radios, eyeglasses and even umbrellas. By the time he left, Oman developed a good education system, a robust economy, and has become a tourist destination.

Apart from bringing about this ‘renaissance,’ Qaboos also gained worldwide fame for championing neutrality and constructive diplomacy. Despite being located in the Strait of Hormuz in the turbulent Middle East, he maintained relations with countries ranging from Saudi Arabia, Qatar, Iran, Israel, and Palestine, and also with the Houthi rebels in Yemen. Perhaps the greatest result of this long-standing policy was enabling backchannel talks between the US and Iran which led to an international nuclear deal.

Sultan Qaboos also introduced democratic institutions in Oman, issuing the country’s first constitution, granting universal suffrage to all citizens above 21, and allowing the country’s first municipal elections in December 2012. However, he also suppressed dissent to the extent of shutting down news outlets and arresting protestors, journalists and activists, sometimes for opinions expressed on social media.

Oman experienced ripple effects of the Arab Spring in the form of months of protests against corruption and unemployment; and eventually Sultan Qaboos relented by giving more legislative powers to the Council of Oman and promising to increase wages and create jobs. While this satisfied the protestors, it did not mean life under ‘Baba Qaboos’ was all roses and no thorns for everyone. As detailed in this 2020 Periodic Review by Human Rights Watch, Sultan Qaboos revised Oman’s penal code in January 2018, which included “increasing punishments for offenses that relate to the peaceful exercise of freedom of expression.

The last few years of Qaboos’ rule saw economic stagnation and a crash in global oil prices which resulted in high youth unemployment rates  in a country where a significant portion of the population is under the age of 25. The large budget deficits and high debt have prompted the rating agencies such as Moody’s to downgrade Oman’s credit rating to ‘junk’ status. In an attempt to reduce the dependence on oil, Sultan Qaboos launched ‘Vision 2020’ to encourage innovation in other areas. This initiative failed to meet the objective and got renamed as ‘Vision 2040.’

This was the scene laid out for the new Sultan Haitham Bin Tarik, who was designated the new ruler of Oman as per a secret envelope containing late Sultan Qaboos’ choices for his successor.

Haitham bin Tarik was the Minister of Heritage and Culture before his accession to the throne, and also happens to have been the Chairman of the ‘Vision 2040’ committee, among other posts. In his first royal speech, he vowed to continue in the footsteps of his predecessor, especially in regards to the state’s foreign policy. In another royal speech in February, he charted a ‘future roadmap’ for Oman and claimed that he will prioritize education and youth employment. He has been active in these past six months, having issued 70 Royal Decrees concerning appointments, amendments, and new laws, among others.

Sultan Haitham is already being put to the test as Oman battles the COVID-19 along with the rest of the world. Omanis are looking at a new vision with renewed hope, one of the new sultan who brings with him great promises and perhaps a renaissance of its own kind. Will Oman be able to maintain its tradition of neutrality? Will the fight for a progressive and inclusive Oman find its voice? Will Oman be able to save itself from the consequences of a glut in crude oil economy? The citizens of Oman hope and wish that their new sultan will get the right answer and steer the country towards a more secure and prosperous future.

Read More