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Background: Known as Persia until , Iran became an Islamic republic in after the ruling monarchy was overthrown and the shah was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority nominally vested in a learned religious scholar. Iranian-US relations have been strained since a group of Iranian students seized the US Embassy in Tehran on 4 november and held it until 20 january During , Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Persian Gulf and led to clashes between US Navy and Iranian military forces between Iran has been designated a state sponsor of terrorism for its activities in Lebanon and elsewhere in the world and remains subject to US economic sanctions and export controls because of its continued involvement.
Following the elections of a reformist president and Majlis in the late s, attempts to foster political reform in response to popular dissatisfaction have floundered as conservative politicians have prevented reform measures from being enacted, increased repressive measures, and consolidated their control over the government. Natural hazards: periodic droughts, floods; dust storms, sandstorms; earthquakes Environment-current issues: air pollution, especially in urban areas, from vehicle emissions, refinery operations, and industrial effluents; deforestation; overgrazing; desertification; oil pollution in the Persian Gulf; wetland losses from drought; soil degradation salination ; inadequate supplies of potable water; water pollution from raw sewage and industrial waste; urbanization Environment-international agreements: Party to: Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Marine Dumping, Ozone Layer Protection, Wetlands Signed, but not ratified: Environmental Modification, Law of the Sea, Marine Life Conservation Geography-note: strategic location on the Persian Gulf and Strait of Hormuz, which are vital maritime pathways for crude oil transport.
Population: 68,, july est. Age structure: years: Median age: Population growth rate: 0. Birth rate: Death rate: 5. Net migration rate: Sex ratio: At birth: 1. Infant mortality rate: Total: Life expectancy at birth: Total fertility rate: 1.
Economy-overview: Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale - workshops, farming, and services. President Khatami has continued to follow the market reform plans of former President Rafsanjani, with limited progress.
The proportion of the economy devoted to the development of weapons of mass destruction remains a contentious issue with leading Western nations. GDP-real growth rate: 6. GDP-composition by sector: Agriculture: Investment gross fixed : Labor force: 23 million Note: shortage of skilled labor est.