Iran's Guard builds a fiscal empire

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LONDON -- Iran's Revolutionary Guard has quietly become one of the most significant political and economic powers in the Islamic Republic, with ties to more than 100 companies, which by some estimates control more than $12 billion in business and construction, economists and Iranian political analysts say.

The Guard was created in 1979 as a military and intelligence force to protect the ideals of Iran's Islamic Revolution. But the 125,000-strong force has used the massive military engineering capability it developed rebuilding the country after the 1980-88 war with Iraq to take over the strategic highlands of the Iranian economy.

The legendary people's army now has its hand in a broad and diverse variety of activities, such as dentistry and travel, and has become the dominant player in public construction projects across the country, say businessmen and economists in Tehran and analysts abroad.

Under the leadership of President Mahmoud Ahmadinejad, a former Revolutionary Guard commander, the force also has extended its reach in the Cabinet: 14 of 21 members are former Guard commanders. Former officers also hold 80 of the 290 seats in the parliament and a host of local mayorships and local council seats. Iran's chief nuclear negotiator, Ali Larijani, is a former Guardsman.

Full article: http://www.latimes.com/news/nationworld/world/la-fg-guards26aug26,0,4717796.story?coll=la-home-center