‘Economy of Resistance’ Liberates Iran from Sanctions: Former World Bank Economist

28th July 2016 / Global

The following is part two and the last part of the interview: The Economic Development and Resistance Economy of Iran with Peter Keonig, former World Bank economist.

Whistle-blowers reporting the corruption inside the World Bank have been under pressure for their efforts. How can we believe the Panama Papers “leaks”?

PK: In short, the Panama Papers are a farce, if there ever was one. They are blown out of proportion by western media to point accusing fingers on politicians who are disliked by Washington, to slander them – this is precisely what these ‘leaked’ papers were supposed to do. They were largely successful in meeting their objective.

The Papers were released by the International Coalition of Investigative Journalists (ICIJ), an organization in the hands of western secret services. This is revealed by looking at the parent organization of ICIJ, the Center for Public Integrity (CFPI) which is funded by such eminent establishment figures like the Rockefellers, Carnegie Foundations, the George Soros Foundation, as well as Paul Volker, former chairman of the FED and many other prominent figures from the world of corporate finance with links to the CIA, NSA, Mossad and others. Many of the sponsors are members of such semi-secret organizations as the Trilateral Commission, The Bilderberger Society and the Council on Foreign Relations (CFR).

The Law firm, Mossack Fonseca, which apparently released the so-called Panama Papers to the ICIJ, containing information of off-shore holdings by prominent political figures, may or may not be part of the deal. They claim the information was stolen. In any case, from first sight it is obvious that the powerful western elite who concocted this ‘leak’ had a very specific purpose, namely to mud-racking and slandering politicians disliked by Washington with lie-propaganda.

Prominently appears of course Mr. Putin, even though he is not mentioned personally, he is immediately linked to others who are on the Panama Papers list – thus by implication putting guilt on him. Any clear thinking person would, of course know, that Mr. Putin or his associates – even if they had money to hide for which there has never been proof – they would most certainly not use Panama as an off-shore place for hiding. Panama is Washington’s most watched spot in the US ‘backyard’, as Obama likes to call Latin America, where you can’t even flush a toilette without the White House knowing it.

Besides, none of the figures accused of hiding money is a prominent American. How come? – It is widely known that more US corporate and individual money – amounts can be estimated in trillions – is hidden in the Caribbean than in the rest of the world combined, including Switzerland. – No matter how wrong or distorted, once the information is out on the mainstream propaganda trail – CNN, BBC, CNBC et al – there is no truth that can stop it. This is modern propaganda technique taught at most Ivy League Universities. Once people are impregnated by a lie, it is virtually impossible to replace it by the truth.
What are the counter measures independent countries can adopt to neutralize US dominance over global markets?

PK: As explained in the question above, why does the US dominate the international monetary system? – this trend is gradually reversing. Countries which do not want to bend to US-imposed rules, like Russia, Iran, Venezuela, Syria, North Korea and many others, are at best systematically financially and economically ‘sanctioned’. If that doesn’t do the trick, then ‘regime change’ is of the order – which has many models – direct assassination (the internet is full with leaders that were killed by the CIA and other secret service forces) by Obama’s personally approved drone program which are extra-judiciary killings (of which – hilariously! – Obama just accused North Korea to justify further sanctions), military invasions, bombings, by US and NATO (Europe) forces, or by proxies, like funding and arming Saudi Arabia to wipe out Yemen, killing tens of thousands of civilians, most of them women and children, just to take control of one of the most strategically located Persian Gulf country.

There is no limit of Washington’s imagination to subdue nations and entire populations around the world, always with the ultimate objective of full spectrum dominance. It is estimated that between 10 and 15 million people were killed around the world since 9/11 through US / NATO direct invasions, wars and conflicts carried out by proxy (mercenary) forces and US / Brussels instigated civil wars. No wonder people and sovereign nations want to get out from under this oppressive western bulldozer that not only aims at controlling the world militarily, but also by its US-dollar based western fiat pyramid or Ponzi-style monetary system – to which the euro also belongs, as it was modeled according to the dollar. A pyramid scheme is the creation of money through interest-bearing debt by private banks, with debt repayment through new loans and so on until the system collapses in itself.

Russia and China have already developed their own internal monetary and transfer system, the China International Payment System – CIPS, gradually being extended to the members of the SCO, BRICS (unfortunately for now without the ‘B’) and the Eurasian Economic Union (EEU). Together they are accounting for about half of the world population and one third of the world GDP. If I am not wrong, Iran is currently in the process of being integrated in the SCO. This would certainly be one way out of the US dominated monetary system. As Mr. Putin recently declared, the ‘sanctions’ were one of the best things that happened to Russia since the fall of the Berlin Wall. It allowed a massive development of Russia’s own agriculture and industry, i.e. loosening Russia from western dependence. Russia is rapidly achieving food self-sufficiency.

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In addition, China is promoting the new Silk Road, all the way from Shanghai through Eastern China, Russia, Central Asia, Eastern and Central Europe – and President Xi Jinping offered Madame Merkel in March 2014 to become the western most link of the Silk Road. She had not reacted at that time. But the writing is on the wall, loud and clearly- the economic future for Europe is with the East, Russia, Central and Eastern Asia and China. The potential for joint development investments, trading and research is enormous, by far outweighing the treacherous and deceptive machinations with the west.
Iran’s leader has introduced “Economy of Resistance” as the breakthrough to counter US economic aggression. The “Economy of Resistance” doctrine is intended to make the Iranian economy resistant to all external economic shocks in the long term, including Western sanctions and global financial crises by utilizing the domestic capabilities. What’s your take in this regard?

PK: The ‘Economy of Resistance’, an economy mainly based on self-reliance is an excellent idea. Not only does it help liberate Iran from the foreign imposed sanctions, but it also helps propel own domestic capacities, create labor, added value in the country and ultimately Iran may develop exports far above what they would be in a globalized western and WTO (World Trade Organization) controlled world trade. A resistance economy is what Mr. Putin applies, as I explained before, by intensifying development of local agriculture and industries, depending less on imports and, of course, shedding Russia from the impact of totally illegal sanctions.

Resistance Economy is to a large extent synonymous with a concept called ‘import substitution’, promoting and developing local capacities over imports. Once goods and services formerly imported are available locally, they offer great advantages to national economies, in this case the Iranian economy. For example, instead of exporting crude hydrocarbons, building up a petro-chemical industry, creating jobs, technologies and added value in the country – and perhaps most important, Resistance Economy, substituting imports by local production, is a blow to the nefarious US-corporate driven globalization.

The neoliberal argument that Iran’s economy should be restructured to focus on ‘comparative advantages’ of Iran with imports for everything else, can easily be nullified. This is clearly a neocon argument favoring globalization and making a country vulnerable to economic ‘sanctions’ of all kinds. ‘Comparative advantages’ is hardly anything inherently available in a country, but can be planned and built, especially in times of crisis – as is the case for countries being punished with illegal ‘sanctions’ due to a monetary system totally dominated by the West. This has been proven time and again.

One of the first cases was China; she kept her borders closed until she could declare food, medical and education self-sufficiency – which was the case in the 1980s, when China opened her borders and started exporting food grains. One of the most recent cases, as mentioned before, is Russia, producing for local markets and for export to likeminded countries with whom they are associated, mainly China, the SCO and the BRICS. At the same time de-dollarizing their monetary and international transfer system frees them from illegal and wanton punishments form the west. Iran becoming a member of the SCO is on the right track.

As Ayatollah Khamenei said, “The Resistance Economy is an inspiring pattern of the Islamic economic system and a good chance to make an economic epic.”


Peter Koenig is an economist and geopolitical analyst. As a former World Bank staff member, he has thirty years of global experience in the fields environment and water resources; Koenig has earned several publications on various news websites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed; he is also co-author of The World Order and Revolution! – Essays from the Resistance.

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