The manifestation of art and wealth in front of the panorama of austerity and poverty

TEHRAN AUCTION: The manifestation of art and wealth in front of the panorama of austerity and poverty

By: Ali A Kiafar, PhD, REFP 

The 17^th artworks auction named Tehran Auction was held at the Persian Azadi hotel in Tehran, Iran, during the last week. The three-day event, dedicated to “Modern and Contemporary Art,” took place from July 19 to July 21 , 2023. There were 110 pieces of art on display, consisting of 86 paintings, 9 sculptors, 4 pictures and 11 lithographic paintings.  Works of several prominent Iranian artists such as Sohrab Sepehri, Masoud Arabshahi, Mohammad Ehsaei, Kazem Chalipa, and Nasrollah Afjeh-ee, as well as of lesser-known artists were offered for sale/purchase at very high prices in the realm of high-end artwork values in Iran. As in the years past and the auctions prior to it, this latest showcasing of art for the affluent broke another record: A total of hundred pieces was sold for 211 billion and 210 million tomans (equivalent of $4,450,000 based on the US dollar to Iranian currency exchange rate on the street). The highest accepted bid went for an untitled work by the late poet-painter Sohrab Sepehri, itself a record-breaking price of 21 billion and 300 million (equal to $4,393,000 at yesterday’s currency exchange rate).

While a luxury apartment in Tehran goes for 300 billion – 400 billion tonnes (roughly more than $6 million to $8 million) and the changing hands of amounts between 2,000 billion to 10,000 billion Tomans ($50 million to $200 million) in business transactions are not uncommon in today’s Iran, at least two points are worth mentioning about this event itself and the values bestowed on the arts offered, most of which tagged for in single to double digit billions of Tomans before the auction started.

The Tehran Auction has been known for quite some time as an easy, even though in the public view, vehicle for money laundry and exchange of dirty money. Like many transactions through and by art galleries and other auctions, even in the shadowy and non-transparent business transactions and trades in Iran these days, the now-famous auction allows the prices to jump very high, in each auction more than the one before, making money of the collection owners, dealers and those who wish to park their questionable wealth. There are perhaps some legitimate offerings and prices at the Tehran Auction. But the common wisdom and proclamations by many observers, especially knowledgeable outsiders, point to this reality.  In a sense, the artwork auctions and price inflation have become an economy by itself – the art economy.

Nonetheless, the more disturbing reality is the ever widening, and proportionally very huge, gap between the haves and have-nots in Iran, particularly in the capital city of Teheran. In addition to the very low incomes and wages for a very large portion of the citizens, particularly in urban areas, today, millions of people are grappling with a housing crisis in which even paying for rent for the smallest size apartments, in the not-so-desirable neighborhoods, is out of reach. The ability to purchase a place to live in has become an unthinkable dream for a vast segment of society. Getting married has become an unachievable dream for millions of the youth who cannot afford a simple life together with their would-be spouses and are forced to stay put with their parents and live in the elderly’s homes. There are many dire situations in the realm of various arts itself. As just one example, theaters are empty and not many shows go on stage as there are no sponsors for theatrical productions. The ability to pay for the ever-increasing costs of theatrical performances has become unachievable for artistic directors, producers and even actors collectively. The difficulty of getting the required permits, arranging for scarce venues and then practically the last-minute cancellation of concerts is another example of other hurdles facing the arts, artists and their audiences.

From another perspective, the offerings of artwork at very high prices and their eventual sales to a few very rich could be looked at in comparison with the economic conditions of millions of others. In this regard, the number of people who are below the poverty line is a clear manifestation of the duality of life and the means available for existence. According to the Iranian official data, more than 38% of the population lives under the declared poverty line. That is more than 33 million people! In comparison to the United States, a country known for a high number of homeless people and people living in poverty, these numbers become more troublesome. In the US currently 11.6% of the population – 37.9 million people– live under the poverty line. In other words, measured against the total population,the people living under the poverty line in Iran, with a population of 89 million, are 3.75 times more than those with similar plights in the US, the country with a population of 334 million people.

I am not against arts, art exhibitions and art galleries.  Quite to the contrary, I am a staunch supporter of meaningful art, and its availability to as many people as possible, especially through museums and public venues. I support the better existence and well-being of artists (their life, economic conditions, even spirits) as much as any admirer of the arts would. If the artists in my birthplace benefited from the attention to their work and the higher values – both financial and moral appreciation – that would be great. Good for them; I am all for it. What I am profoundly against is the use/abuse of art and artwork for illegitimate, unethical purposes and mechanisms through which not the artists and the art itself benefit, but very few others obtain inflated, scrupulous gains. And all of the latter happens in the panorama of millions of people who do not have the means for a simple living.

About Author: Ali A Kiafar, PhD, REFP