President Barack Obama and Secretary of State John Kerry seem intent on reaching a deal with Iran at any price. Not only did Obama authorize the release of $11.9 billion just to have Iranian representatives sit at the same table as Kerry and his team, but the Wall Street Journal now reports that the Islamic Republic of Iran could receive perhaps $50 billion as a “signing bonus.” That’s right: faced with pushback from the leading state sponsor of terrorism on Obama’s previous insistence that sanctions relief would be calibrated to Iranian compliance with its commitments, Obama has surrendered once again: the pay-out will be immediate.
Acting State Department Spokesman Marie Harf insists that Iran will use that money, and perhaps the total $100 billion in sanction relief it expects, to rebuild its economy. While risible, Harf’s claim seems to reflect thinking by everyone from Jake Sullivan, Hillary Clinton’s presumptive national security advisor who initiated the Iran talks in the first place, to John Kerry, to Barack Obama himself. Unfortunately, it also reflects true ignorance of recent Iranian history.
Between 2000 and 2005, the European Union more than doubled its trade with Iran on the philosophy that the “China model” might work. That is, trade and economic liberalization might lead to political liberalization. At the same time, the price of oil—and therefore Iran’s income—nearly quintupled.
That cash infusion, alas, coincided with the collapse of the reform movement under President Mohammad Khatami—reformism more or less ran out of steam by 2000—and it also coincided with a massive infusion of cash into Iran’s ballistic missile and nuclear programs and the construction of the then-covert enrichment plant at Natanz. Indeed, this is the whole reason why those claiming to be reformists (Hassan Rouhani, for example, who as secretary of the Supreme National Security Council supervised the build-up of the nuclear program) claim credit for advancing the nuclear program.
It is true that the Islamic Revolutionary Guard Corps (IRGC) does profit to some extent off of sanctions; after all, they control most of the black market. But the logic that an end to sanctions would disadvantage the IRGC and regime hardliners is disingenuous. After all, Khatam al-Anbia, the economic wing of the IRGC, alongside the revolutionary foundations control perhaps 40 percent of the Iranian economy. Any oil deal or serious import-export contracts would disproportionately empower the Revolutionary Guards and the Iranian regime over ordinary Iranian people or so-called “moderates” or “pragmatists.”
To suggest infusing cash into the Iranian economy will repair that economy rather than enable Iranian hardliners to further support and sponsor terrorism throughout the region is simply ignorant. It is ignorant of Iran’s ideology, ignorant of the outcome of past episodes where similar strategies were tried, and ignorant of the economic and political structure of the Islamic Republic of Iran. To infuse such money into Iran’s economy is, effectively, to sponsor a state sponsor of terrorism.