Corruption is a serious problem in Iran, being widespread, mostly in the government. Reformists and conservatives alike – routinely criticize corruption in the government.
Transparency International's 2022 ranking of perceived corruption in 180 countries found Iran somewhat more corrupt than average25 on a scale where 43 is average.
In the Islamic Republic
Transparency International defines corruption as "abuse of entrusted power for personal gain". Its Corruption Perceptions Index evaluates perceived corruption in the public sector of 180 countries on a "combination of at least 3 data sources drawn from 13 different corruption surveys and assessments. ... collected by a variety of reputable institutions, including the World Bank and the World Economic Forum". The 2022 Index scored Iran at 25 on a scale from 0 ("highly corrupt") to 100 ("very clean") where 43 was the global average. The least corrupt country (Denmark) scored 90, and the most corrupt country (Somalia) scored 12.
Problems attributed to
As of 2019, corruption, nepotism, cronyism, (along with mismanagement and lack of "much needed" structural reforms), are blamed for country's economic shortcomings such as the 50 to 70% of workers "in danger of falling into poverty", lack of job creation, poor housing, inflation, stagnating incomes and unacceptable rates of poverty. One of the objectives of the Iranian revolution was to have no social classes in Iran. Yet, Iran's Department of Statistics reports that 10 million Iranians live under the absolute poverty line and 30 million live under the relative poverty line. In 2016, then-president Hassan Rouhani linked social ills, including poverty and homelessness, to corruption. (These problems have often been attributed to the economic sanctions imposed by the U.S., but Hossein Raghfar, an economist at Tehran's Alzahra University, has suggested that they may be responsible for as little as 15% of Iran's economic woes.) A study of income inequality (by Djavad Salehi-Isfahani) found levels as discouragingly high (a Gini coefficient of above 0.40) in 2002, over 20 years after the revolution, as during the Shah's time in 1972, "pointing to the lack of inclusive economic growth". Corruption or the uncovering of corruption has led to unrest in the form of riots, strikes, anti-government demonstrations -- likely connected with the decline in economic growth corruption brings.
Characteristics
Ali Fathollah-Nejad describes the impediment to economic function and justice as a "political economy that favors regime loyalists... 'insiders' (khodi) or those with access to state resources and privileges also enjoy privileged access to jobs."
According to Iran International, the privatization drive that began around 2007 led mainly not to efficiently run private firms competing for business, but "quasi-governmental firms controlled by powerful insiders who earn economic rent from activities such as blocking competition", using public funds to stay afloat, "insider information to benefit from foreign exchange and gold price fluctuations when the government intervenes in the market", and circumventing sanctions to sell sanctioned goods at high prices.
An example of more explicit corruption in Iran (circa 1990s) came from Nobel Peace Prize winner, Shirin Ebadi, who gave up on the practice of commercial law as a waste of time, because in his words, "What was the point of knowing case law and preparing a defense when decisions were decided by bribes?"
The Islamic Revolutionary Guard Corps has often been cited for its great power and privilege. According to Hooshangt Amirahmadi, director of the Center for Middle Eastern Studies at Rutgers University, "A lot of ministers and governors are from the Revolutionary Guard... They are using the money to buy loyalty and create power bases." Among the questionable activities the Corps has engaged in are the operation of an "an illegal airport" near Karaj Citydiscovered in 2005where it imported and exported goods "without any oversight". In 2005, the IRGC forcibly closed the then-new Imam Khomeini International Airport in Tehran, allowing it to reopen under Revolutionary Guard management.