Cosily nestled in between Persian Gulf and Caspian Sea the two hubs of the World’s energy resources, Iran occupies a most prominent politico-economic position in the Middle East. Iran in the heart of a market with over 400 million consumers, has direct land or sea routes to: Afghanistan, Turkmenistan, the Republic of Armenia, Azerbaijan, Turkey, Iraq, Kuwait, UAE, Qatar, Bahrain, Oman and Pakistan. It provides transit routes linking the northern states - the CIS countries - to waters of Persian Gulf without the necessity of passage through a third country. It also joins the Caspian Sea to the Indian Ocean by road and railway.
With a population of 65 million,
and domestic production as measured by GDP of $115 billion, Iran is the
second-largest economy in the Middle East. It has the distinction of being the
second-largest OPEC oil producer, and has the world’s second-largest reserves
of gas.
Implementing successfully two five-year Social and Economic Development Plans from the year 1993,
the country is now applying its Third five-year Development Plan (2000-2004). Furthermore, the Government outlined
long term Socio-Economic Policies of the country up to year 2015, upon which
Iran shall achieve development in a sustainable way and would regain its
outstanding position in the region.
Beyond planning, several provisions have been foreseen for effective implementation
of economic development agenda. Adoption of a new modern Investment
Law, introduction of several Free and Special
Trade Zones and diversifying its export bases are just very few of the many
steps have been taken so far.
In the year 2002 the average
annual growth of GDP was recorded % 6.3 and the economy is expected to keep the
pace in the years to come. In the same year agriculture, industry and services
enjoyed average annual growth of 6.1, 10.5 and 5.1 percents respectively, while
the rate of total debt to GDP stood at % 6.8.
Fully aware of the importance of human resources in the process of achieving sustainable development, Iran has attached great emphasis on human development, social protection and social justice. From the early 1970s to 2001, life expectancy rose from 56 to 71 years, primary school enrollment rates increased from 60 to 117 percent, and the number of children dying before age one fell from 122 to 30 (per 1,000 live births). The portion of the population living under the poverty line decreased significantly from 47 percent in 1978 to 16 percent in 1999. Moreover, total illiteracy fell from 36 to 15 percent from 1990 to 2002. Of particular note is the closing of the gender gap in education, where enrollment rates for boys and girls show only small disparities - in literacy and representation, and women live up to 72, two years longer than men. In 1975, women's illiteracy in rural areas was 90%, and more than 45% in towns. Now, the nationwide literacy rate for girls aged between 15 and 24 has risen to 97%. In 2002 and 2003 female students in state universities outnumbered male ones.

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