Iran joined the IMF in 1945. It has, since then, passed through four phases since its membership

1) post-WW2: a reduction in foreign trade, lower oil income, and the economic problems after the war as well as food shortages that together made it eligible for the fund
2) began after after oil prices went up in 1974, creating a surplus in the balance of payments for oil exporting countries. The effect of oil prices going up has had ultimately a negative effect on the political institutions of Iran, and in turn for Iran’s international position. With more oil wealth comes less democracy for a state’s citizens (as our article by Friedman. 
3) The Islamic Revolution: a huge turning point for Iran’s relationship with the IMF. The relations consisted of the trade of obtaining information or economic reports for participation of the Central Bank personnel in the training courses offered by the IMF. 
4) In 1990 a group of economic experts for economic counseling was sent to Iran. 

Today, Iran has managed to keep a pretty stable and constant relationship with the IMF, despite major Western powers’ harsh stance against Iran for its political and ideological affiliations.           

 

 

 The World Bank is another financial institution that plays a key role in Iran.  After a seven-year hiatus from lending to Iran, the World Bank resumed its position in 2000 with two operations for health and sewerage.  The overall goal in the Country Assistance Strategy (CAS) is to facilitate the nation’s economic transition and structural reform to a more open economy. Currently, there are six projects in action: Tehran Sewerage Project, Second Primary Health Care and Nutrition Project, Environmental Management, Earthquake Emergency Project, the Ahwaz and Shiraz Water Supply and Sanitation Project, and the Urban Upgrading and Housing Reform Project.  In total, these projects add up to a total financial commitment of $791 million.  Iran aims to achieve its goals of growth and social justice, and the World Bank will assist Iran by altering the “oversized, inefficient, and untargeted” subsidies system.  The CAS plans to support water resources and sanitation, improving agricultural and environmental infrastructure, and a package than targets public transportation in urban areas, energy efficiency, and reform.  The economy is the main focus; the World Bank is formulating new economic and sector policies, their organization, and execution including economic management, public finance, improving the situation for investments, and developing human capital.