Report on Governance Reform and Sustainable Development in Post-Conflict Iran

Executive Summary

This report analyzes recent governance developments in Iran following the June 2025 conflict with Israel. It examines the administration’s push for administrative decentralization, contrasting it with the concept of federalism. The analysis is framed within the context of the United Nations Sustainable Development Goals (SDGs), with a particular focus on SDG 16 (Peace, Justice and Strong Institutions), SDG 10 (Reduced Inequalities), and SDG 11 (Sustainable Cities and Communities). The report assesses whether the current reforms represent a substantive move towards building more effective, accountable, and inclusive institutions or a pragmatic strategy for regime stability amid internal and external pressures.

The Drive for Decentralization in a Centralized State

Historical Context and the Taboo of Federalism

Federalism has historically been a sensitive topic within Iran’s highly centralized political structure, established in 1979. The state has consistently viewed the devolution of significant power to provinces with suspicion, fearing it could encourage separatism. Past considerations of federalism, such as those during Mohammad Khatami’s presidency, were dismissed as constitutionally unfeasible. This resistance to structural change has hindered the development of inclusive and participatory decision-making at local levels, a key target of SDG 16.7. However, recent pressures, including economic challenges and the aftermath of conflict, have compelled the government to reconsider its approach to governance.

President Pezeshkian’s Devolution Initiative

In response to ongoing crises, President Masoud Pezeshkian’s administration has initiated a policy of delegating greater authority to provincial governors. The stated goal is to enhance administrative efficiency, cut bureaucracy, and enable local challenges, such as post-war reconstruction and water shortages (related to SDG 6), to be addressed more effectively. President Pezeshkian has advocated for each governor to act as the “president of their own province,” empowering them to guide affairs with greater agility. This initiative is presented as a crucial step towards modernizing governance and achieving the “balanced development” necessary for creating sustainable communities, in line with SDG 11. The administration has committed to this process, framing it as a correct and effective method for improving service delivery and local governance.

Decentralization and its Alignment with SDG 16

Administrative Devolution vs. Political Federalism

A significant debate has emerged regarding whether the government’s initiative constitutes federalism. Critics have used the term to imply the administration is undermining national unity. However, government officials have explicitly rejected this characterization, clarifying the policy as administrative decentralization within the existing constitutional framework. The key distinction is as follows:

• Centralized Policy: National policy and strategic planning remain the purview of the central government in Tehran.
• Localized Implementation: Provincial governors are granted more operational flexibility to carry out these national programs.
• No Legislative Autonomy: The reforms do not include the creation of provincial parliaments or grant regions independent legislative or financial control.

This model aims to make governors more powerful and effective agents of the central government, rather than independent political actors. While it may improve the effectiveness of institutions (SDG 16.6), it stops short of establishing the fully participatory and representative decision-making structures envisioned by SDG 16.7.

Accountability and the Existing Legal Framework

The Pezeshkian administration emphasizes that increased authority will be accompanied by robust accountability mechanisms. The goal is to prevent chaos and ensure that governors work towards national objectives. Proponents argue that this delegation of power is permissible under Iran’s constitution and that the failure to do so previously was a matter of political will, not legal barriers. By empowering local officials, the government hopes to foster innovation and progress, contributing to more resilient and effective governance. This aligns with the objective of SDG 16.6 to develop effective, accountable, and transparent institutions at all levels.

Implications for SDG 10: Reducing Inequalities

Nationalist Rhetoric and Ethnic Minority Concerns

The push for decentralization is occurring alongside a surge in nationalist rhetoric aimed at fostering unity after the war. President Pezeshkian has promoted an inclusive vision, stating, “Iran is for all of us, whether we are black, white, man, woman… whatever our ethnic group and religion.” This rhetoric verbally supports the enforcement of non-discriminatory policies (SDG 16.b) and the promotion of social inclusion (SDG 10.2). However, ethnic minorities, who constitute over half of Iran’s population, remain skeptical. Activists argue that such rhetoric, if not matched by substantive action, risks alienating non-Persian groups by overlooking their unique identities and long-standing grievances.

The Gap Between Symbolic Gestures and Structural Reform

While the appointment of President Pezeshkian, an Iranian Azerbaijani, is symbolically significant, minority rights advocates contend that the current reforms fail to address their fundamental demands. These core issues directly relate to the targets of SDG 10 (Reduced Inequalities):

1. Political Inclusion: A lack of meaningful political representation and autonomy for ethnic regions (violates SDG 16.7).
2. Economic Equality: The desire for a fair share of economic resources from their native regions (relates to SDG 10.3).
3. Cultural Rights: Demands for local control over education and the right to schooling in minority languages.

Critics, such as the Azerbaijani outlet Araz News, argue that delegating administrative tasks without establishing a federal structure that recognizes these rights is merely “propaganda.” They maintain that the initiative does not redress the systemic inequalities that have marginalized their communities, thus failing to advance the core mission of SDG 10.

Conclusion and Outlook

A Pragmatic Strategy for Stability

The evidence suggests that Iran is not moving towards federalism. The current policy is a controlled, administrative decentralization designed as a pragmatic strategy to ensure regime survival and stability. It is a response to multiple pressures: the 2022 protests, persistent economic malaise in the provinces, and the vulnerabilities exposed by the recent war. The reforms are intended to improve governance efficiency and quell popular frustration without ceding fundamental control, thereby strengthening the state’s resilience.

Prospects for Sustainable Development

While falling short of a federal system, the decentralization initiative could yield limited progress towards certain SDGs. Enhanced local administrative capacity may lead to better management of resources like water (SDG 6), improved infrastructure, and more responsive local services, contributing to more sustainable communities (SDG 11). However, the initiative’s primary limitation is its failure to address the structural issues of political exclusion and inequality that are central to SDG 10 and SDG 16. Without fundamental reforms that grant ethnic minorities a genuine stake in their governance, the rhetoric of “national unity” may prove fragile, and the state will likely continue to face cyclical legitimacy crises.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 16: Peace, Justice and Strong Institutions

• The article extensively discusses Iran’s system of governance, focusing on the debate between a highly centralized state and proposals for decentralization or federalism. This directly relates to building effective, accountable, and inclusive institutions at all levels. The efforts by President Pezeshkian to “delegate greater authority to provincial governors” and create a more “effective” and “agile” system of governance are central to this goal. The discussion also touches on the need for constitutional reform and the rule of law, as the current constitution is cited as a barrier to “real federalism.”

SDG 10: Reduced Inequalities

• The article highlights the concerns and grievances of Iran’s ethnic minorities, who constitute over 60% of the population. It mentions groups like “South Azerbaijanis, Kurds, Arabs, Baluch, Turkmen” and their feelings of “marginalization of their culture and politics.” The discussion revolves around whether the government’s new policies will enhance “inclusion for ethnic minorities” and address their demands for political representation, cultural rights (like schooling in their first language), and equitable economic resources. President Pezeshkian’s call for an “ideal of inclusive patriotism” where “Iran is for all of us, whether we are black, white, man, woman, speak this language or that” directly addresses the theme of reducing inequality based on ethnicity.

SDG 11: Sustainable Cities and Communities

• The push for decentralization is framed as a way to achieve more “balanced development in all regions” and allow “local problems to be solved ‘from within’ the provinces.” This connects to strengthening national and regional development planning. The article mentions that “decades of over-centralization have hindered development” and that giving provinces more authority could “unleash competition and innovation at the local level,” which is relevant to making human settlements inclusive, safe, resilient, and sustainable.

SDG 6: Clean Water and Sanitation

• The article explicitly mentions that empowering local officials is a “crucial need as Iran struggles with issues ranging from post-war reconstruction to water shortages.” The mention of “water shortages” as a key challenge facing the country directly links the discussion to the goal of ensuring the availability and sustainable management of water.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 16: Peace, Justice and Strong Institutions

1. Target 16.6: Develop effective, accountable and transparent institutions at all levels. The article’s core theme is the government’s effort to improve governance by delegating authority to provincial governors. President Pezeshkian’s goal is to “cut through bureaucracy,” “speed up decision-making and service delivery,” and make governance “correct and effective.” The article also notes that this devolution will be “accompanied by accountability,” as governors “must still work toward national goals and be held responsible for outcomes.”
2. Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels. The article questions whether the new decentralization moves will “enhance inclusion for ethnic minorities” and give them a “meaningful say in how the local population is governed.” The symbolic significance of President Pezeshkian, an Iranian Azerbaijani, is noted as a potential gesture of inclusion. The demands of minority groups for “political representation or autonomy” are a clear call for more representative decision-making.
3. Target 16.b: Promote and enforce non-discriminatory laws and policies for sustainable development. The grievances of ethnic minorities about “marginalization” and the skepticism of activists that the new policies will redress these issues relate to this target. President Pezeshkian’s statement urging fairness “without attention to race [or] religion” in governance is a direct reference to the principle of non-discrimination.

SDG 10: Reduced Inequalities

1. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… race, ethnicity, origin, religion or other status. This target is central to the discussion on Iran’s multi-ethnic population. The article explores whether the government’s rhetoric of “national unity” and “inclusive patriotism” will translate into substantive inclusion for its non-Persian population. The desire of minorities for “local control over cultural and educational matters” and “political representation” is a direct call for social and political inclusion.
2. Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory… policies and practices. The article highlights the “simmering grievances” of ethnic minorities and their perception that the current system concentrates power and resources in Tehran, leading to unequal outcomes. The skepticism from outlets like Araz News, which argues the government’s plan offers “no sign of recognizing the rights of [Iran’s] nationalities,” points to the need to address discriminatory practices and ensure equal opportunity.

SDG 11: Sustainable Cities and Communities

1. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. The Iranian government’s stated goal to bring about “more balanced development in all regions” and the argument that “over-centralization have hindered development” directly align with this target. The initiative to empower provincial governors is presented as a method to improve local development planning and solve local problems, thereby strengthening regional development.

SDG 6: Clean Water and Sanitation

1. Target 6.1: By 2030, achieve universal and equitable access to safe and affordable drinking water for all. The article explicitly identifies “water shortages” as one of the critical issues Iran is struggling with, alongside post-war reconstruction. This directly connects the country’s challenges to the goal of ensuring access to water.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

SDG 16: Peace, Justice and Strong Institutions

• Implied Indicator for Target 16.6: The degree of executive and financial authority formally delegated from the central government to provincial governors. The article discusses this as the primary mechanism for reform, distinguishing between administrative decentralization and “real federalism.”
• Implied Indicator for Target 16.7: The proportion of public offices held by members of ethnic minority groups. The article points to the presidency of Masoud Pezeshkian, an Iranian Azerbaijani, as a “symbolically significant” sign of inclusion.
• Implied Indicator for Target 16.b: Existence and enforcement of laws protecting minority rights, particularly cultural and linguistic rights. The article mentions the demand for “the right to schooling in the first language of students” as a key issue for minorities.

SDG 10: Reduced Inequalities

• Implied Indicator for Target 10.2: The level of political autonomy and control over local resources granted to ethnic regions. The article states that what minorities want is “local control over cultural and educational matters” and a “reasonable portion of economic resources from the regions where they live.”
• Implied Indicator for Target 10.3: Perceptions of discrimination among ethnic minority populations. The article cites the deep skepticism of “ethnic minority activists” and news outlets like Araz News as evidence that promises of decentralization are not seen as sufficient to ensure equality.

SDG 11: Sustainable Cities and Communities

• Implied Indicator for Target 11.a: The implementation of a national policy for “balanced development” that addresses regional disparities. The article mentions this as a key promise of the Pezeshkian administration.

SDG 6: Clean Water and Sanitation

• Explicit Indicator for Target 6.1: The prevalence of “water shortages” and “infrastructural collapses” like “electricity blackouts.” The article mentions these as ongoing, daily hardships that contrast with government promises.

4. Table of SDGs, Targets, and Indicators

Source: e-ir.info