Evaluation the impact of US sanctions on food security in Iranian households

Document Type : Original Article

Author

director of commerce domestic in Institute for trade studies and research

Abstract

Economies are always subjected to different shocks and disturbances. Economic shocks may come in a variety of forms and can be endogenous or exogenous. But some of the shocks are not economic, however they might have adverse economic effects, for example, natural disasters, severe climate change, terrorist attacks, etcetera, as well as sanctions.
In terms of economic welfare, the impact of shocks on household welfare is typically important; such as food security, poverty and inequality. While macroeconomic perspectives usually )))affect shock((( effects on economic growth and macro variables (Mirjalili, 1395). Economists who are interested in welfare issues are trying to estimate the effects of various policies implemented by governments on the level of welfare with different indicators. For example, the outcome of policies adopted with per capita income is evaluated. However, just knowing the amount of income per capita in each country is not enough to estimate the level of welfare. Therefore, welfare economists consider some indicators such as the amount of poverty and inequality, the household's calorie intake, ​​and the food security indices. As a result, it is necessary to estimate the indicators to determine the effects of political and exogenous shocks such as sanctions.  Since the US has reimposed sanctions against Iran from the beginning of this year, one of the challenging issues is whether these sanctions, despite the claims of sanctions, have negative effects on the Iranian households’ welfare, especially on food security?
In order to answer to this question, a retrospective study could be used (((. in response to the imposed sanctions on Iran by the United States and its allies, the United Nations, on the Iranian economy, along with the victory of the Islamic Revolution in 1977.)))
 
To investigate the effects of sanctions on the food security and health in Iranian households, some important keys must be considered; first of all, the mechanism of impact of sanctions on well-being should be identified, Then, the level of household food security should be estimated, finally, the impacts of sanctions should be evaluated. Hence, after presenting the mechanism of the impacts of sanctions on food security, the history of sanctions in Iran is briefly reviewed. In the next step, the calories intake by urban and rural households are estimated and compared with standard values. In addition, the aggregate Iranian household food security index is calculated, the process is examined and the impact of sanctions on it is evaluated and analyzed. At the end, the conclusions are presented and possible implementations will be given.
 this article is an attempt to assess the effects of the sanctions shocks that imposed by the United States on the welfare, especially food security of Iranian households.
 Although the results of various studies show that the sanctions, which were imposed to change the behavior of the country, certainly undermined the economy of the country.
The results of this study show that due to the sanctions in 2010, the level of food security in the country was declined and the calorie intake was lower than the standard level for the first decade, while sanctions have been reached fourth decade.
 But according to the aggregate household food security index, which also addresses the intensity, depth, and inequality of food intakes, the sanctions cannot be finalized, especially as the policy of criticizing subsidies coincided with the start of sanctions and part of the inequality of households over the years.
The initial implementation of this policy has declined. The results of this study are in line with the results of other studies, which show that sanctions have reduced the level of Iranian households’ welfare.
s However, it should not be ignored that, despite the US emphasis on the severity of recent sanctions, European countries, Russia and China have announced that they will not be compliant with these sanctions. Although, in practice, these countries have not yet succeeded in compiling alternative financial instruments. On the other hand, other domestic shocks, such as foreign currency shocks in 2018, may increase the impact of sanctions on households’ food security. direct or indirect support and compensation packages for households are needed. Particularly to support domestic production, it is recommended that compensation be indirect. 

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