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This week on Professionals in Enterprise (PIE), Arman, an Iranian-American businessman, joins John Tulac for a discussion on the Iran regime, the ongoing Mideast conflict, and implications for U.S. businesses.
The historical and cultural identity of Iran is deeply rooted in the distinction between Persian and Arab cultures. Despite the Arab conquest and subsequent forced conversion to Islam approximately 1300 years ago, Iranians have successfully maintained their unique identity, language (Persian), and cultural heritage. This transition to Shi’ism took around 400 years, reflecting their desire to remain independent from Arab states. Historically, Iranians practiced Zoroastrianism, recognized as the first monotheism, which significantly influenced both Western Judeo-Christianity and Eastern philosophies like Buddhism.
In the context of Iran’s modern state, it remains the only majority Shia Islamic country, with neighboring Iraq also housing a significant Shia population. The Iranian state actively promotes this faith, sending paid missionaries to regions such as West Africa, particularly Nigeria, and Indonesia. During the Shah’s reign, Iran experienced a booming economy, characterized by families sending children to elite boarding schools and universities in Europe and the United States. Following the 1979 revolution, the Shah left the country, which led to a shift from a westernizing monarchy to an Islamic theocracy, driven by Khomeini and his followers. The new regime was rooted in an evangelical, revolutionary doctrine aimed at “liberating” the world according to its ideology.
Iran possesses a governance structure that includes a parliament and a senate, which, under non-theocratic circumstances, could function democratically. However, the current theocracy operates primarily as a military regime focused on its survival. Additionally, Iran maintains a unique dual military system, comprising the regular military inherited from the Shah’s era and the Islamic Revolutionary Guard Corps (IRGC), which was established due to distrust in the regular military’s loyalty.
The IRGC operates more powerfully, particularly in the Persian Gulf, where it engages in hostilities against foreign naval forces using fast boats. The regime also employs suppression tactics against its population, perceiving them as distinct from the regime itself. The importation of foreign Shia militias, including Iraqi and Afghan groups, has been a strategy to control potential uprisings, as these mercenaries often do not speak Persian, thus reducing potential local sympathy.
Economically, Iran is facing severe crises, with current inflation rates exceeding 45% and many government employees unpaid for 4–5 months. The nation has suffered approximately $30 trillion in losses since the 1979 revolution, a stark contrast to its economic standing at that time compared to South Korea. The “brain drain” remains significant, as many Iranian experts now hold high positions in prominent organizations like NASA and Boeing. Extreme corruption is also evident, with officials allegedly facilitating the sale of petroleum on the black market to circumvent international sanctions, leading to wealth fleeing the country.
On a global scale, the regime’s ideological survival complicates the negotiation of stable agreements, as any deviation from core tenets risks its existence as the Islamic Republic. Concepts such as Tarkey and Kitman are manipulated to justify deceptive practices in defense of their interpretation of Islam, which considerably affects international relations. The regime’s approach to asymmetrical warfare, wherein expensive U.S. missiles are utilized to counter low-cost Iranian drones, exemplifies its strategy to inflict financial strain on adversaries.
The ongoing instability in the Middle East not only drives up gasoline prices for U.S. consumers but also limits agricultural exports to American farmers. The U.S. defense industry must adapt to changing circumstances, emphasizing innovative technologies. Public sentiment in Iran, contrary to government rhetoric, leans toward Western familiarity, with urbanized populations often exhibiting hospitable attitudes toward travelers. Misleading narratives perpetuated by the regime serve to fuel anti-Western sentiment, while broader regional support exists for preventing an Iranian nuclear threat. The conclusion drawn from historical conflicts is that lasting change necessitates a combination of internal uprisings and strategic external pressures, as famously noted by Winston Churchill regarding America’s eventual pursuit of the right course after exhausting alternatives.
The PIE podcast aims to showcase Inland Empire professional talent, foster local economic development, and highlight the Provisors networking community. Catch the full show on YouTube @ProfessionalsofInlandEmpire.
