I see a resemblance between Iran and the collapsed Soviet Union: Inventions focused on a single area spread throughout the economy.

Will the sanctions the international community has started to impose on Iran to prevent the country from having atom bombs affect the Iranian economy negatively? They will, and they already are. What is more, these sanctions and the desire of the country to develop atom bombs are causing long-term structural damage to the country’s economy. I feel like these sanctions in some ways are turning Iran into the late Soviet Union. I hope I am wrong. I feel sorry for Iran. Let me tell you why.

Last week, Iran’s religious leader, Ali Hamaney, made remarks about this particular issue. They were romantic: “Your sanctions, we don’t give a damn.” It was highly poetic. I noted it down. Then the populist leader of Venezuela, Hugo Chavez spoke: “Sanctions on Iran hurt our joint venture to develop a domestic auto manufacturing project.” Do not worry; I will not stretch the issue out by talking about the passion of populists leaders for domestic automobiles. But it appears that the sanctions, which, as argued romantically by the religious leader of Iran, do not affect Iran, somehow harm the Iranian-Venezuelan joint automobile venture. Then, either Hamaney is not telling the truth or the sanctions have been devised incorrectly. These were the first impressions I got from the exchange last week.

Yesterday morning, I checked the number of registered patents issued in the neighboring countries. Have you ever done this? If you haven’t, please do. It is enlightening. According to a 2011 report by the World Trade Organization, the numbers of registered patents in Turkey in 2006 and in Iran in 2009 were 648 and 4513, respectively. Iran has surpassed Turkey in terms of patent applications, as well, with 6527 applications against 2397 applications. Iran, therefore, has tripled Turkey in patent applications. Considering this picture, what would you think? At first I thought, “It seems that the passion for making an atom bomb has invigorated scientific studies and the patent applications resulting from those." This was followed by, “Then, the sanctions imposed on the country also are having a positive impact. Focusing intently on the issue, the Iranian economy now has surpassed Turkey concerning the number of patents.” Admit it, you also thought this way at first. Didn’t you? Great minds think alike. But then, I saw more data within the same set and started thinking, “It is not like that at all, then.”

Yes, Iran more than triples Turkey in patent applications. But when it comes to trademark registration, Turkey performs ten times better than Iran. It seems that Iran has been conducting research in one area only. The research brings about useful inventions that need to be patented. These, however, do not gain wide prevalence across the economy. Inventions and patents do not turn into commercial products or give way to the rise of new trademarks, spreading throughout the economy and reproducing themselves.

A while ago, an Iranian friend of mine interrogated me about the liberalization of Turkey. His parting question was, “Can you name any unintended consequence of the economic transformation process?” I replied, “Look who is in power now. The periphery has moved to the center.” This was back in 2004. Political remarks have so far postponed the reform process in Iran. The “atom bomb trick” will delay the process further.

Looking at the issue from this angle, I feel a remarkable resemblance between Iran and the collapsed Soviet Union. Inventions focused on a single area spread around, the number of patents and science advances. However, commercial activities are not gaining importance. Inventions fail to be reproduced, diversification does not take place. Flowers do not blossom, ideas do not compete. A conducive climate is absent. The economy is crippled, lacking a strong private sector.

Iran is becoming a lot like the Soviet Union. Those willing to take Iran as a role model, please hear my words.

This commentary was published in Radikal daily on 07.02.2012