On April 15-16, Iranian President Hassan Rouhani and an accompanying delegation paid a visit to Sistan-Baluchestan, Iran’s southeasternmost province, bordering on Pakistan and Afghanistan. Sistan-Baluchestan has suffered over the years as a result of various historical, ethnic and geostrategic issues, leading to it becoming the country’s most deprived region in modern history. One of the first statements by Rouhani during his visit underlines the related sensitivities: “We don't have second-class citizens. All Iranians are equal.”

The people of Sistan-Baluchestan have a number of reasons to feel like second-class citizens. The region is currently in the midst of a deep economic crisis, with unemployment at 50%, according to the Ministry of Cooperatives, Labor and Social Welfare, and the majority of the province’s rural population ranks among the lowest 30% of national income groups. The province’s official annual household expenditure levels — 84 million rials (approximately $3,600) in urban areas and 46 million rials (around $1,900) in rural areas — are additional indicators of the poverty in the region. This degree of underdevelopment is attributable to four factors.

First, Iran’s southeastern region has never been included in the country’s comprehensive development strategies. Prior to the Iran-Iraq War (1980-88), the country’s planners had identified the western region as the main development axis, which represents the shortest route connecting the northern population centers to the Persian Gulf’s oil- and gas-rich regions and ports. The Iraqi invasion of Iran and the subsequent infrastructure damage, however, compelled Iranian planners to shift key infrastructure projects. The beneficiaries of this transition were the central regions of Esfahan, Yazd and Kerman, thus perpetuating the trend of the southeastern province featuring as a marginal region in regard to major infrastructure projects.

Second, Sistan-Baluchestan’s proximity to Pakistan and Afghanistan has turned it into a route for drug smuggling activities. The security implications of this situation have contributed to the region’s economic difficulties. Because of security concerns, even the government’s policy of offering tax holidays and inexpensive loans to companies that invested in the region failed to lead to large inflows of capital. In other words, the province was never a preferred location for industrial investment, hence the lack of jobs.