Regulatory Quality - Governance score_

Event_Log

1. ··1928Capitulations abolishedCorrelationExpected causation

   Iran unilaterally ends the 19th-century capitulations regime under which foreign nationals held extraterritorial legal immunity from Iranian courts, asserting full Iranian judicial sovereignty over foreign nationals.

   Why this link: Ending extraterritorial legal immunity for foreign nationals was a foundational assertion of judicial sovereignty, part of the broader legal-modernization program later loosely reflected in rule-of-law governance scoring.

   Caveat: No continuous rule-of-law measure exists for the intervening seven decades (WGI data begins only in 1996); link is illustrative context only.

   Lag: Not measurableSource: Encyclopaedia Iranica (Commerce vii. In the Pahlavi and post-Pahlavi periods)
2. ··1979Nationalization of banks and major industriesCorrelationExpected causation

   Revolutionary Council nationalizes the banking system and large private industrial/commercial conglomerates, restructuring much of the economy under state and bonyad control.

   Why this link: Replacing private ownership with state control across banking and large industry set a long-running pattern of heavy state involvement that later regulatory-quality assessments reflect.

   Caveat: Regulatory Quality data begins only in 1996, long after the event, and reflects many later policy choices as well.

   Lag: Multi-decade, structuralSource: Encyclopaedia Iranica (Economy x. Under the Islamic Republic)
3. ··2006Article 44 privatization policy issuedCorrelationExpected causation

   Supreme Leader Khamenei issues the 'General Policies of Article 44,' ordering transfer of up to 80% of shares in large state-owned enterprises (excluding core sectors such as upstream oil) to the private and cooperative sectors via public share offerings, reviving a stalled privatization program.

   Why this link: A national-scale shift toward private ownership of major enterprises is the kind of structural reform that regulatory-quality assessments are designed to capture.

   Caveat: In practice much of Article 44 transferred ownership to quasi-state bonyads and pension funds rather than improving genuine market regulation.

   Lag: Multi-yearSource: Iran Data Portal (Syracuse University) -- General Policies of Article 44

Related_Laws

Laws related to this measure. Correlation = how closely this law tracks this measure's story. Expected causation = how strongly we would expect it to have moved the line. Neither is a claim of proof.

1. 2008CorrelationExpected causationAnti-Money Laundering Act

   Passed in 1387 (2008), the Anti-Money Laundering Act obliges banks, financial institutions, and other regulated entities to identify customers, report suspicious transactions, and establish internal controls to prevent the laundering of illicit proceeds through Iran's financial system.

   Why this link: The 2008 Anti-Money Laundering Law created Iran's formal AML/CFT legal framework, a real channel affecting international perceptions of regulatory quality and corruption control, both of which also interact with Iran's sanctions and FATF listing history.

   Caveat: Governance scores for Iran are dominated by broader political and sanctions dynamics; the law's specific contribution to these composite indices is not separable from those larger forces.