Persian Empire 1845

Chapter 598 A way out
According to the final proposal discussed, the government will establish a “Wakf Management Committee” directly under the Shah. The committee will consist of nine members: one each from the Ministry of Religious Affairs, the Ministry of Finance, the Supreme Court, and the House of Representatives, and two from local mutual aid associations. The Shah and the Crown Prince will automatically become members of the committee, with the Shah serving as the chairman.

For abandoned, inefficient, or poorly managed Wakov assets, the committee may consult with their current managers to include them in an optimization plan. This plan employs a leasing model: a government-designated trustee will enter into a long-term lease agreement with the Wakov managers. The rent will be based on three percent of the asset's value.

Of the income from leasing and operations, 70% is used for direct relief. Distribution can take the form of cash, food rations, medicine, clothing, etc., and requires committee approval and is subject to supervision by religious representatives. The remaining 30% is used for further investment in other areas to generate income. The Ministry of Finance has established a Mutual Aid Fund Audit Bureau, which audits all accounts of the Mutual Aid Association annually, and the audit report is simultaneously submitted to the Shah, the National Assembly, and the Supreme Court.

The same applies to mutual aid societies, which establish a central council to manage them nationwide. Any adult male citizen engaged in a legitimate profession within the country who agrees to and continuously pays membership dues for at least three months is eligible to apply for membership.

The mutual aid society provides its members with sickness relief, unemployment relief, disability benefits, and funeral assistance. This includes:
Those who temporarily lose their ability to work due to illness are entitled to a fixed living allowance for up to three months and a partial medical expense subsidy; those who are dismissed for reasons other than their own fault are entitled to a fixed living allowance for up to six months upon certification by the association or employer to help them find new jobs; those who suffer permanent disability due to work-related injury are entitled to a one-time death benefit upon verification; and the family of a member who dies is entitled to a funeral allowance.

This proposal will be piloted in ten cities, including Basra, Baghdad, Tabriz, Tehran, and Isfahan. A final decision on whether to implement it nationwide will be made after inspections.

With the full support of Shah, Fakih, and the government, the opposition from the conservatives proved negligible. Four days later, in a parliamentary vote, the lower house passed the bill with 228 votes in favor, 90 against, and 32 abstentions. The upper house also passed it unanimously, and the bill came into effect.

The biggest turmoil has finally come to an end, but for everyone in Parliament, the conflict feels like it happened just yesterday. The result is that the conservatives have lost, at least temporarily.

But for ordinary people, their livelihoods are now secure. Moreover, during this special period, membership fees can be temporarily deferred or offset with goods, and although it hasn't been implemented nationwide, at least there's hope, isn't there?

The global economy will not improve because of Iran's actions. Panic has spread to India and South America, with the Indian rupee depreciating by more than half and the Latin American monetary union dissolving. At the same time, all silver-standard countries have suffered varying degrees of damage.

At the same time, trade protectionism was on the rise. Bismarck took the lead in announcing tariff increases, and subsequently, Britain, France, Russia, the United States, and others enacted high-tariff laws to protect their domestic industries.

The US Congress swiftly passed the Tariff Protection Act, raising the average tariff on imported goods from 38% to 67%, with a focus on blocking the influx of European industrial products. The French government imposed a heavy 30% tariff on imported grain, and Britain offered preferential treatment to textile exports. Free trade was no longer mentioned; it was a return to the era of mercantilism.

Currently, only a few countries, such as Austria, Iran, and Spain, have not raised tariffs. With the free trade agreement with Austria being passed, Iran has become the only remaining standard-bearer of free trade.

Rafsanjani returned to Iran and, as expected, successfully signed better trade agreements with Sweden and Denmark. Although the trade was less than with other countries, it was better than nothing.

Swedish iron ore and timber, and Danish agricultural products are all poised to enter Iran, while Iranian petroleum products are indispensable to both countries. Although the growth rate of oil prices has been halved, overall prices are still rising. This is because with the widespread adoption of kerosene lamps, people have become more fond of this more efficient method of lighting, naturally leading to the withdrawal of candles from most of the market. Only kerosene remains as a primary source of light. Iran is currently negotiating an unprecedented agreement with Spain; if successful, trade between the two countries could increase by 4000 million rials within two years.

Products exempt from tariffs by both sides include olive oil, wine, corks, mercury, lead ingots, Cuban cigars, and Philippine sugar.

Iran's tariffs include Persian carpets, silk and raw silk, dried fruits, Persian Gulf pearls, frankincense and myrrh from the Arabian Peninsula, and petroleum products. Tariffs on other goods remain between 7.5% and 15.5%.

Iran can set up consulates in Barcelona and Havana, and the Spanish government will grant Iranian capital a three-year tax exemption.

Spain is also out of options; they've suffered heavy losses in this economic crisis. Maximilian only managed to borrow 1000 million crowns from Austria, barely enough to make ends meet. Now they have no choice but to turn to their Iranian backers.

Moreover, Spain possesses considerable resources, with abundant reserves of mercury and iron, and numerous investment opportunities. Furthermore, the joint venture between the two countries is investing in textiles and railway transportation across various regions. To further boost the economy, Maximilian has decided to open the door to Iran.

Besides Spain and Austria, Iran is also discussing trade issues with countries such as Siam, Bolivia, and Mexico. The same applies to the Al-Zan Sultanate; Iran needs the local agriculture and can also send some unemployed people there for immigration.

Besides Europe and the Americas, the vast Asian and African regions were also potential markets. Trading companies in the Far East and Japan began to exert all their efforts to promote their goods, and the newly established Japanese government, which had only been in power for two years, also needed a large number of foreign goods. As a result, Iran's exports to the Far East began to rise.

As for Africa, they acquired gold and diamonds through various means, since it would be a waste not to use the diamond craftsmen they obtained from Belgium.

In the 15th century, Venetian merchants introduced Indian diamonds to Europe via the Diamond Route. In 1477, Maximilian I of Austria presented Princess Mary with a diamond ring, establishing the tradition of engagement rings. In the 18th century, the marquise cut commissioned by Louis XV of France marked the beginning of artistic diamond cutting.

If we're talking about where the most diamond mines are, it's definitely Africa, especially South Africa and West Africa. Even just a few diamond mines there are enough to break even.

Furthermore, while Central Africa is home to numerous tribes with limited purchasing power, West Africa contains a number of states that share the same religion as Iran. Developing from there could be a viable option.

(End of this chapter)