Over the course of a decade, 11 million people (about twice the population of Arizona) have been added to the population of the impoverished in Iran.
Iran has fallen behind countries with incomes lower than the global average, according to data presented by the Research Center of the Majlis (Parliament). This is despite the fact that even during the 1980s Iran-Iraq war Iran was among the countries with incomes above the global average.
The Majlis Research Center, in a report focusing on poverty and the status quo of the country’s poor population, from 2011 to 2021, described the lack of insured employment, illiteracy, lower educational attainment, having children, and living as a tenant as the main reasons for poverty in Iran.
The report states that in the mentioned years poverty in Iran “increased” and “deepened”, adding that ”the average national poverty (from March 2021 to March 2022) was 16,800,000 rials (around $31.37 per capita). This means the percentage of the population below the absolute poverty line (during the mentioned 12 months) was 30.04 percent.”
Rising expenses, falling calorie intake
Another significant issue mentioned in this report pertains to three events in the period of 2011 to 2021 concerning household food consumption in Iran. The Research Center reports that during these ten years the share of food expenses from the total household expenditure increased. Meanwhile, the overall food intake of Iranian households, as well as the quantity and quality of their food actually decreased. During the same period, housing expenses accounted for four percent of the total household expenditure.
Deeper poverty in rural areas
According to the data, the poverty rate in Iran’s rural areas has consistently been higher than in urban areas since 2014. The report states that from March 2021 –to March 2022, the poverty rate in rural areas was 35.6 percent, while in urban areas the rate was 28.8 percent. Additionally, during this period, the population of the poor increased by approximately 11 million compared to the same period betwee 2011 and 2012.
The Majlis Research Center also added that in addition to the increase in the number of poor people across Iran, the poverty gap, i.e., between the poor and the poverty line, has reached its highest level at around 27 percent in the period between March 2020 and March 2021.
“Having a job is not the solution to poverty”
The factors contributing to poverty at the household level were examined in another section of this report. “During the period between 2001 and around 2015, having a job made a significant difference between the poor and non-poor. However, over time, with the increase in poverty and the importance of specialized occupations, the percentage of households with employed breadwinners among the poor and non-poor became almost equal at around 60 percent,” the report reads.
Furthermore, the percentage of employed and unemployed individuals among the poor and non-poor is roughly equal, with 37 percent of non-poor households having formal employment, while this figure is about 16.5 percent for poor families.
The Research Center report indicates that approximately 11 million people have been added to the impoverished population of Iran between 2011 and 2021.
Based on this new report, state media in Iran were reporting on Wednesday that the poverty rate in Iran has been steadily increasing since 2006 and has reached over 30 percent from 2018 onward.
In the report, the Center mentions the skyrocketing price of housing in Iran, stating that renters are forced to cut back on their other expenses, particularly on food, in order to afford rental payments.
The report also states that Iran has fallen into the category of countries with lower income than the global average. Three years ago, the Center reported a significant decrease in the standard of living for people in the years between 2011 to 2021, noting that the average purchasing power of each Iranian had decreased by about one-third during that period.
The Research Center has announced in its recent report that despite the fact that two government bodies announced the year-on-year inflation rate as 46 percent and 51 percent, respectively, for the July-August 2022 period, the Center’s analysis shows that the on-the-ground inflation rate stood at 86 percent, which is at least 40 percent higher than the official inflation rate announced by the Statistical Center of Iran.
