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President Hassan Rouhani, whose government is striving to have international sanctions against Iran lifted, said the nation cant achieve sustainable economic growth while living in isolation.

Gone are the days when it was said if foreign investors come to Iran its independence will suffer, Rouhani said in an address at a Tehran conference on sustainable growth and job creation yesterday. Opening up doesnt mean letting go of the nations ideals and principles, he said, according to the state-run Fars news agency.

Rouhani took office after eight years of rule by Mahmoud Ahmadinejad during which United Nations, European Union and U.S. sanctions over the countrys nuclear program drove it deeper into political and economic isolation. Ahmadinejad said the technological and financial restrictions would help Iran become more self-sufficient.

Our ideals are not linked to centrifuges but to our heart and determination, Rouhani said. If we show more transparency and say, halt some of the enrichment operation we dont need, does it mean we have let go of our ideals?

Elected in 2013, Rouhani pledged to build ties with the world to improve an economy suffering from a weakened currency and an inflation rate at 40 percent. His success is tied to the countrys efforts to strike a comprehensive agreement with world powers, which say Irans nuclear program could be a cover for developing atomic weapons. The Islamic Republic says the program is for peaceful purposes.

Its been the economy that pays for the politics, Rouhani was quoted as saying by the Iranian Students News Agency. It would be good for once to act in reverse and have internal politics and foreign policy pay for the economy.

Sanctions including measures restricting Irans financial transactions and oil exports have starved Iran of investments needed to develop its energy industry, said Maysam Mousaei, a professor in the faculty of social sciences at the University of Tehran. In addition to high unemployment and inflation, Iran also suffers from a brain drain which sees thousands of educated young Iranians leave, he said in an interview from Tehran.

Iran cannot be managed as a closed economy and have these issues solved, said Mousaei, who also heads the Tehran-based Islamic Economics Scientific Association of Iran. We can exist and breathe but without relations with the world and expansive commerce we cant have a developing economy.

There have been some positive signs in the past year. Rouhanis government has stabilized the currency markets and trimmed inflation to 17 percent. Speaking on Dec. 24, Rouhani said the economy expanded four percent in the six months from the start of this Iranian year on March 21, marking economic revival after two years of recession.

Efforts to secure a deal with world powers over the Islamic Republics nuclear program have won Iran some relief from economic sanctions, though negotiations have been extended until July amid major differences. A 48 percent plunge in the price of Brent crude in 2014 is posing an added challenge for Rouhani, cutting oil revenues that account for the bulk of government spending.

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Irans Economy Cant Grow While Nation Isolated, Rouhani Says