Anfal in Practice and Islamic Political Capitalism

In this chapter, I critically examine the formation of Islamic political capitalism under the Islamic Republic of Iran (IRI) through Anfal’s progression and institutional complementarity since 1979 until the privatization decree in July 2006. In the interregnum between Anfal in Khomeini’s era (1979–1989) and its unprecedented extension in Khamenei’s time (2006 until now), the economic holdings belonging to Anfal and the Sepah took roots and enlarged their fields of activities by actively participating in the post-war economic reconstruction. The two terms presidencies of Hashemi Rafsanjani and Khatami (1989–2005) experienced limited privatization, renegotiation about foreign direct investment and intense factional political rivalries that terminated the exclusion of the so-called ‘reformist’ tendency from power and marginalization of Hashemi Rafsanjani as well as other traditional Shi’I Faqihs. A new coalition of oligarchs emerged that included principally the Imam, the Shi’I clergy loyal to Khamenei and the Sepah. Thus, Anfal in practice can be periodized in three phases: (1) Anfal in Khomeini era (1979–1989); (2) Anfal and the transition period (1989–2005); (3) Anfal under Khamenei (2006–now).