Monday, June 22, 2020

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

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Aditi Mohta

Article Title

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

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Global Views 360

Publication Date

June 22, 2020

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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.

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February 4, 2021 4:54 PM

Relaxed Immigration: The key to rejuvenate aging workforce of Japan

Late in 2018, a bill was passed in Japan to widen the entry of immigrant workers. The bill was to mitigate severe shortage of labor amidst an aging population and falling birth-rates. Prime Minister Shinzo Abe described the bill as a much-needed reform to ensure the smooth functioning of Japanese  economy. The bill makes it easier for immigrants to work for longer duration in Japan.

More than 20% of Japan’s population is over 65 years old which is the highest proportion in the world. It is projected that by 2030, one in every three people will be above 65 years or older and one in every five will be 75 years or older.

The fertility rate has fallen to 1.4 children per woman in Japan which has been attributed to a host of factors including changing lifestyles, people marrying late, not marrying at all, and the economic insecurity of the younger generation. It is projected that by 2050, Japan’s population will decline by twenty million while the world population is expected to increase by two billion.

Japan has traditionally been quite homogenous with  very little diversity to show. This trend now appears to be changing as today nearly three million migrants live in Japan which is three times more than the figures of 1990. As the country struggles with a rapidly aging population and severely declining domestic labor, the number in all likelihood is only going to increase.

Conservative Prime Minister Shinzo Abe based his support for the reforms in immigration policy on demographic arguments.The conservative section of the parliament has been a staunch supporter but the left opposition has been critical of the bill citing concerns about a lack of regulation on the employers which could lead to over-exploitation of the workers. Prime Minister Shinzo Abe’s government promised to set up a hundred consultation centers nationwide for dealing with issues related to workplace abuse specifically for the migrant workers.

However, that’s as far as those resisting the bill have gone. Nationalist and xenophobic voices protesting the bill have failed to gather steam. In fact, according to a survey by Nikkei in January 2020, almost 70 percent of Japanese said it is “good” to see more foreigners in the country.

Japan’s aging population has made it difficult to find the workers and some companies have more than 120 job openings for every 100 job seekers nationwide. Quite evidently, immigration now appears to be the most feasible solution for Japan- a country that has traditionally been restrictive with its borders when it comes to ethnic diversity.

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