In
the article, "Iran's economy is suffering from corruption" it
discussed many of the problems and conditions existing in Iran today.
Unemployment rates are at extremes and there are almost 8 million people
unemployed.
One thing mentioned
in the article was "To resolve this problem there is a need for over $220 billion
in investment, experts and reviews indicate." Investment would have a big
impact in recharging Iran's economy and raising the standard of living but the
corruption of the government seems so bad that this will not occur. The article
mentioned how there are 3 million retired citizens in Iran and how the
government used their retirement savings to support terrorism and nuclear
projects.
In
addition the current regime has shut down industries that play
a pivotal role in the countries output. With this corruption
there will be little capital flow continuing to cripple Iran's economy.
http://www.ncr-iran.org/en/news/economy/20063-iran-s-economy-is-suffering-from-corruption
I think this is a very bad idea, part of the hotel experience is the interaction with staff especially if they are fun and friendly. Plus the job losses. I don't see a robot completely replacing humans at least here. I don't think it's time yet
ReplyDeleteThis is an interesting article that ties into the information we just recently learned about in class concerning growth and capital in the long run. When looking at this case study in terms of the solow model and also the cobb douglas production function, it is important to recognize the fact that corruption has a huge impact on the growth of a nation. Corruption affects the variable "A," and can cause wealthier nations to refrain from investing into a third world nation (even though there are hypothetically huge returns on capital) since they do not want to take such a risk. It is misfortunate for Iran, however, that this is their reality at this point because clearly they are in need of capital through investment to raise living standards, yet countries do not feel confident enough that their money is going to a safe and trustworthy place.
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