There were 5 economically isolated countries in the 20th century that experienced a huge economical boost and development in all regards after opening up. All of them had experienced some adventurous shifts in history and eventually, their economy. They are all great examples of how a country can develop at a very fast pace once it has the chance to open up to the world, and stay stable. Iran has recently followed up in this fashion and will experience an economical jump. Though as mentioned in a previous post, Iran’s situation for such a country about to open up is rather special (a high education rate easily comparable to Europe, sizable GDP of USD 415 billion, big demand for European brands, several very profitable markets/industries etc.). Therefore, Iran’s case will be the most promising and unchallenged yet. Eventually, this should in fact not serve as a comparison, but in order to show what a game-changing impact economic freedom can have on a country:
The first country to experience such a shift was the Ivory Coast, West Africa. Initially being home to several states in the 19th century, it has become a French colony as part of the European scramble for Africa. Colonized in 1893 into a French colony, it has stayed so until its liberation in 1960. This made the country experience an annual GDP growth of 7.7 %. Its GDP 2013: USD 1.5 Million. Two other African countries joined, Ghana after reaching financial aid and South Africa after the apartheid regime ended, kudos to Nelson Mandela.
Ghana (opened 1983) GDP growth: 5.9 % annual. 2013 GDP: USD 1,8 Million.
South Africa (opened 1993) GDP growth: 2.7 % annual. 2013 GDP: USD 350 billion.
The people’s republic of china experienced a very rough history of war in its time as a communist nation through its leader and creator, Mao Zedong. His death gave way to a power struggle between his widowed wife Mao Jiang Qing and Deng Xiaoping, both communist. As a country being victim to Soviet nuclear attacks, the frightening number of its decimated population and cities though nuclear missiles speaks for itself. Highly damaged in all aspects, it reached a point of history and rebuilding in 1976 where it could finally open up its economy, starting with an annual rise in its GDP of 8%.
GDP 2013: USD 9.24 trillion.
Maybe the most interesting one though is also the historically most recent one:
After the second World War, Germany got divided by the allied forces and the Soviet Union into east and West Germany. Additionally, Berlin got divided after the same principle, the city itself being halved by the historical Berlin Wall. West Germany was called the federal republic of Germany BRD), based on a democratic constitution. East Germany became the German Democratic Republic, though it actually was a Marxist-Leninist government. In 1989, east and west united with the fall of the Berlin Wall, called the Federal Republic of Germany in its entirety until today, celebrated annually with the national holiday “Day of German Unification”. GDP growth starting 1990: 9.0 %.
2013 GDP: USD 3.73 trillion
The IAEA just confirmed that Iran has fulfilled all of its duties from the JCPOA, along with the recent prisoner swap between the US and Iran; Implementation Day has been successfully reached. There will be a huge growth in nearly all Iranian Industries and Iran will join the international community. Modern Industries like Digital Marketing, branding and business development in Iran, along with International trade will be Iranian key areas that are able to accelerate the entire process because of their B2B nature and market knowledge. The country has a very high internet penetration rate, so if a non-Iranian business likes to make a business venture to Iran and wants its brand to reach its audience, working with a digital agency will prove to be invaluable. The joint-comprehensive plan of action is being a success, sanctions on Iran have been removed. Hopefully we, along with our world leaders have looked back at history in all its dangers, notorieties,, beauties, developments, lessons and reminders. If the JCPOA is broken or reversed, the consequences could be devastating for both Iranians, Americans and other nations. This is the time to put effort into this great opportunity in order to make Iranian and global economy and businesses thrive.