Climate and Agribusiness in Western Asia

Western Asia is a sub-region of Asia, also known as the Middle East or the Near East. Even though Western Asia usually includes Turkey, it does not include Egypt or any African country. Western Asia has approximately 15 countries, depending on the geographic delimitations, and it is also known for the historic cities of its ancient civilizations in the Mesopotamian valley. Throughout history, Western Asia has been home to a host of empires and nations, from Rome and Greece to Persia and the Islamic empires. Though Western Asia was a fertile land for many centuries in the past, some of its greatest challenges today are agricultural production and water scarcity, which make many of these countries overly dependent on their extractive industries, mainly fossil fuels. This article explores the macroeconomics of one of the most controversial countries in the region, Iran.

Climate and Agribusiness in Western Asia

Iran became an Islamic Republic after a revolution in 1979. Beforehand, the country was ruled by a Shah, who was close to both the United States and the United Kingdom. Currently, Iran has a total territory of little over 1.6 million square kilometers, which is somewhat smaller than Alaska. A mostly mountainous landscape as well as some deserts and plains dominated the country. Similarly, Iran has 2.440 kilometers of coastline along the Persian Gulf as well as 740 kilometers along the Caspian Sea. Likewise, Iran has a total population of little over 82 million, more than 73% of which live in an urban setting, notably the capital city of Tehran with about 8.5 million inhabitants. The national annual gross domestic product (GDP) of Iran is approximately US$1.4 trillion (PPP) and it has experienced positive economic growth in recent years. The Iranian economy is divided into 9% agriculture, 40% manufacturing, and 51% services. Similarly, it is estimated that the agricultural industry employs 17% of the national labor force, while manufacturing employs 35%, and services employ another 48%. Meanwhile, the agriculture industry utilizes 30% of the national territory, while another 7% is forested.

In terms of natural resources, Iran has petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, and sulfur. Within manufacturing, the national industry is focused on petrochemicals, fossil fuels, fertilizer, caustic soda, textiles, cement, construction materials, food processing, metal fabrication, and armaments. Simultaneously, the country’s agricultural industry has as main products wheat, rice, grains, sugar beets, sugarcane, fruits, nuts, cotton, dairy products, wool, caviar, and vegetable oil. During 2015, Iran imported US$43.9 billion worth of goods and exported US$31.8 billion, resulting in a trade deficit of US$12.2 billion. Furthermore, that same year, Iran’s main export, representing 58% or US$18.3 billion of the country’s total, was crude petroleum. Similarly, the country’s main import, representing 3.3% or US$1.5 billion of all international purchases, were cars. In terms of trade, Iran belongs to the fourteen member Organization of Petroleum Exporting Countries (OPEC). Finally, Iran’s main trade partners are China, Turkey, South Korea, India, and Germany.

(Read more about Agriculture and Land Use in the Persian Gulf)