Odd Lots · Thursday, July 30, 2026
Jegenah Torbodi and Bozorgmehr Sharafedin describe the Islamic Republic of Iran's economy as evolving into a 'mafia state.' They explain this means a layered society where loyalty to the government dictates access to resources, with loyalists benefiting more than critics. This system extends to foreign policy, where proxies in the region are prioritized over domestic academics.
“I think maybe it's good to define what do we mean by a mafia state. What's the difference between a mafia state and a normal totalitarian government. I think in a normal society, all citizens are equal and they benefit the same from the government and the wealth of a nation. But in a mafia state, you should imagine a layered society and citizens are rewarded based on their loyalty to the system. So the more loyal you are to the government and the state, the more you will benefit from the resources.”
“So that's how the Islamic Republic was from the beginning, and it excluded its critics and it rewarded people who were loyal and it was an ideological government. People who believed in the values of the Islamic Republic were rewarded. But as we move forward, we see that this trend was reflected more and more in the economy.”
“So in the eyes of Iranian state, maybe a Hegebolagh member in Lebanon, or who the militia in Yemen, they are more loyal to the Islamic Republic than let's say a professor at Tehran University, so they should benefit more from the wealth of the nation.”