His decision-making helped steer Iran through the prolonged and devastating war, though not without criticism. By 1988, Rafsanjani had convinced Khomeini to accept a United Nations ceasefire resolution, leading to the end of the conflict. This controversial decision, described by Khomeini as “drinking the poison chalice,” saved the country from further devastation and allowed for post-war reconstruction.
Presidency and the Era of Reconstruction
After the death of Khomeini in 1989 and the elevation of Ali Khamenei as Supreme Leader, Rafsanjani was elected as the fourth President of Iran. He served two terms from 1989 to 1997. His presidency marked a distinct shift in Iran’s policy approach—from revolutionary fervor to pragmatic reconstruction. This period is often referred to as the “era of construction.”
Rafsanjani’s first major task was rebuilding the war-torn country. His administration emphasized economic development, infrastructure restoration, and industrial expansion. Under his leadership, the first five-year development plan (1989–1993) was implemented. It achieved remarkable GDP growth rates, averaging over 7 percent annually—a feat unmatched by subsequent development plans.
His government prioritized large-scale projects, including dam construction, road expansion, steel plants, and factory openings. The establishment of universities in underdeveloped areas and an expansion of the Islamic Azad University system, which he chaired, broadened access to higher education.
On foreign policy, Rafsanjani sought to normalize Iran’s relations with neighboring countries and the international community. While maintaining a firm anti-Western stance publicly, his government opened cautious diplomatic channels with European and Asian nations to attract investment and technology. His outreach to China, Russia, and the Persian Gulf states laid the groundwork for a more globally integrated Iran.