Iran is an ancient country, an oil-exporting economy and an Islamic Republic. It experienced two full-scale revolutions in the 20th century, the latter of which had large and important regional and international consequences, including an eight-year war with Saddam Hussein's Iraq. And now in the 21st century, it confronts issues and experiences problems which have important implications for its future development and external relations. In the domestic sphere, the country faces conflicts over national identity and ethnic minorities, democracy and human rights, personal and political freedoms, women's rights, youth culture, full employment, the economy and the use of the oil revenues, and the widening gap between rich and poor. Regarding external affairs, there are more or less severe problems both in regional and in global relations, headed by the ongoing conflict with the west over Iran's nuclear energy programme.