ABSTRACT
In Chapter 4 I gave an analysis of the war destruction. A preliminary assessment of the damage wrecked on the economy by the earthquake was also reported. The final part focused on eight sets of economic imbalances from which the economy suffers the most and explained their complex and interrelated causes. In this chapter I shall give a detailed account of the First Five-Year Economic, Social and Cultural Development Plan of the Islamic Republic of Iran (1989-93). The plan intends to stabilize the economy and structurally adjust its imbalances in the hope of normalizing the war economy and then leading it toward a growth path. An account of policy changes in the wake of the Gulf crisis is also given. The chapter concludes with an assessment of prospects for economic development in Iran.
