How Iran squandered social capital

The Islamic Republic of Iran has been a state based on the revolutionary ideals of social justice, freedom and independence since it ascended to power in 1979. Throughout the first two decades of its existence, the regime managed to generate considerable social capital by lifting the lower-income classes out of poverty and urbanizing a large section of the country’s rural areas, that it is failing now to sustain.

Data shows that the social capital for Iran's urban population that was below 55% in the mid-1980s reached 76% in 2021. There were a number of socio-economic indicators such as life expectancy, access to health services, literacy and higher education that generated widespread legitimacy for the Islamic Republic among the more conservative segments of the population. Also, the application of a subsidy system that would empower the lower social classes was designed to increase the regime’s legitimacy among the mentioned target groups. Consequently, one argument in assessing the survivability of the regime was the fact that it could rely on a strong minority for its support.