Changes

The Council of Guardians consists of 12 persons. The Supreme Leader appoints the six religious members of the Council of Guardians while the Iranian parliament, the Majles, selects the six lay members from candidates recommended by the judiciary, which is in turn selected by the Supreme Leader. The latter group plays a role only in determining whether legislation before the Majles conforms to Iran’s constitution. The religious members, on the other hand, take part in all deliberations, considering all bills for conformity to Islamic principles. The Council of Guardians can veto any law. This body also certifies the competence of candidates for the presidency, local government councils, the Assembly of Experts and the Majles.

The Council of Guardians consists of 12 persons. The Supreme Leader appoints the six religious members of the Council of Guardians while the Iranian parliament, the Majles, selects the six lay members from candidates recommended by the judiciary, which is in turn selected by the Supreme Leader. The latter group plays a role only in determining whether legislation before the Majles conforms to Iran’s constitution. The religious members, on the other hand, take part in all deliberations, considering all bills for conformity to Islamic principles. The Council of Guardians can veto any law. This body also certifies the competence of candidates for the presidency, local government councils, the Assembly of Experts and the Majles.

The president of the Islamic Republic of Iran is elected by universal suffrage to a four-year term. If no candidate receives a simply majority during elections, the top two vote-getters compete in a run-off. Voter turn-out was quite low, but Mahmoud Ahmadinejad won 62% in the elections in 2005, while former president Akbar Hashemi Rafsanjani received only 36% of the vote.

The president of the Islamic Republic of Iran is elected by universal suffrage to a four-year term. If no candidate receives a simply majority during elections, the top two vote-getters compete in a run-off. Voter turn-out was quite low, but Mahmud Ahmadinejad won 62% in the elections in 2005, while former president Akbar Hashemi Rafsanjani received only 36% of the vote.

The president supervises the affairs of the executive branch, appointing and supervising the Council of Ministers (members of the cabinet), coordinating government decisions, and selecting government policies to be placed before the National Assembly.

The president supervises the affairs of the executive branch, appointing and supervising the Council of Ministers (members of the cabinet), coordinating government decisions, and selecting government policies to be placed before the National Assembly.

== ECONOMY ==

== ECONOMY ==

Pre-revolutionary Iran's economic development was rapid. Traditionally an agricultural society, by the 1970s Iran had achieved significant industrialization and economic modernization. However, the pace of growth had slowed dramatically by 1978, just before the Islamic revolution. Since the fall of the shah, economic recovery has proven elusive thanks to a combination of factors, including fluctuations in the global energy market. Economic activity was severely disrupted additionally by years of upheaval and uncertainty surrounding the revolution and the introduction of statist economic policies. These conditions were worsened by the war with Iraq and the decline in world oil prices beginning in late 1985. After the war with Iraq ended, the situation began to improve: Iran's GDP grew for two years running, partly from an oil windfall in 1990, and there was a substantial increase in imports. However, Iran had suffered a braindrain throughout the previous decade and wartime policies had resulted in a demographic explosion.

Pre-revolutionary Iran's economic development was rapid. Traditionally an agricultural society, by the 1970s Iran had achieved significant industrialization and economic modernization. However, the pace of growth had slowed dramatically by 1978, just before the Islamic revolution. Since the fall of the shah, economic recovery has proven elusive thanks to a combination of factors, including fluctuations in the global energy market. Economic activity was severely disrupted additionally by years of upheaval and uncertainty surrounding the revolution and the introduction of statist economic policies. These conditions were worsened by the war with Iraq and the decline in world oil prices beginning in late 1985. After the war with Iraq ended, the situation began to improve: Iran's GDP grew for two years running, partly from an oil windfall in 1990, and there was a substantial increase in imports. However, Iran had suffered a brain drain throughout the previous decade and wartime policies had resulted in a demographic explosion.

A decrease in oil revenues in 1991 and growing external debt dampened optimism for recovery. In March 1989, the government instituted a new five-year plan for economic development, which loosened state control and allowed Iran to seek greater latitude in accessing foreign capital. Mismanagement and inefficient bureaucracy, as well as political and ideological infighting, hampered the formulation and execution of a consolidated economic policy, and the Iran fell short of the plan’s goals while economic inequality was aggravated. Today, Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. Former President Khatami followed the market reform plans of his predecessor, President Rafsanjani, and indicated that he would pursue diversification of Iran's oil-reliant economy, although he made little progress toward that goal. High inflation and expansive public transfer programs, as well as powerful economic-political vested interests created obstacles for rapid reform.

A decrease in oil revenues in 1991 and growing external debt dampened optimism for recovery. In March 1989, the government instituted a new five-year plan for economic development, which loosened state control and allowed Iran to seek greater latitude in accessing foreign capital. Mismanagement and inefficient bureaucracy, as well as political and ideological infighting, hampered the formulation and execution of a consolidated economic policy, and the Iran fell short of the plan’s goals while economic inequality was aggravated. Today, Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. Former President Khatami followed the market reform plans of his predecessor, President Rafsanjani, and indicated that he would pursue diversification of Iran's oil-reliant economy, although he made little progress toward that goal. High inflation and expansive public transfer programs, as well as powerful economic-political vested interests created obstacles for rapid reform.

Iran maintains regular diplomatic and commercial relations with Russia and the former Soviet republics. Both Iran and Russia believe they have important national interests at stake in developments in Central Asia and the Transcaucasus, particularly regarding energy resources from the Caspian Sea. Russian and other sales of military equipment and technology to Iran concern Iran's neighbors and the United States. Washington is also concerned about Russian assistance in building at nuclear facility at Bushehr.

Iran maintains regular diplomatic and commercial relations with Russia and the former Soviet republics. Both Iran and Russia believe they have important national interests at stake in developments in Central Asia and the Transcaucasus, particularly regarding energy resources from the Caspian Sea. Russian and other sales of military equipment and technology to Iran concern Iran's neighbors and the United States. Washington is also concerned about Russian assistance in building at nuclear facility at Bushehr.

Iran spends about 3.3% of its GDP on its military. Iran’s military consists of both a national military held over from the shah’s government and the Revolutionary Guard Corps, each with its own ground, naval and air braches. The Iran-Iraq war took a heavy toll on these military forces. Iran is trying to modernize its military, including ballistic missile programs, and acquire weapons of mass destruction; it does not yet have, but continues to seek, nuclear capabilities.

Iran spends about 3.3% of its GDP on its military. Iran’s military consists of both a national military held over from the shah’s government and the Revolutionary Guard Corps, each with its own ground, naval and air branches. The Iran-Iraq war took a heavy toll on these military forces. Iran is trying to modernize its military, including ballistic missile programs, and acquire weapons of mass destruction; it does not yet have, but continues to seek, nuclear capabilities.