Journal of history of Iran)

Document Type : review paper


In the wake of the First World War, Iranian Government was forced by specific political conditions to regard centralization policy as its main objective. To achieve this end, the government had to establish a set of new orgnizations, modernize military, bureaucratic, and educational institutions, and expand transportation networks. However, this programmes cold only be materialized on the basis of reliable financial sources. Therfore, in pursuing the path of the centeralization, the Governmment gained the control of economic resources and appeared as the country’s major economic coordinator. The autocratic nature of political regime facilitated such an endeavour. The Governmment’s economic policy was, relatively speaking, successful so far as it attempted to obtain financial support. Yet, Iran’s dependence on the capitalist world market and the vulnerability to its alterations inhibited the government from becoming the sole economic decision maker. The process of industrialization during the reign of Reza Shah could be studied through the prism of the inter- relationship of these factors.