Adaptation in the Sanctioned Economy
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In Iran, economic output has been sustained by opportunistic firms that took advantage of the conditions created by the sanctions and the kneejerk protectionist policies those sanctions elicited. But these firm-level adaptations have largely reached their limits in Iran’s sanctioned economy, and Iranian policymakers have been thus far unable to put forward a responsive industrial policy. The consequences of these developments for future sanctions negotiations should not be overlooked—a crucial segment of Iran’s business lobby has become the unexpected beneficiary of global economic warfare.