Iran 's Impact On The Economy Of Iran

The reformation of the country of Iran toward Islam caused turmoil among the people because the drastic changes forced on the people were not easily accepted. One of the major changes is that

Iran was faced with high unemployment rates and immense property, as workers had low wages and protection, and the country was underdeveloped. Iranians lost hope for a better future, as the promises of a prosperous Iran made by the Shah were not coming true. For example, the Shah believed that developing an industrial base with multiple foreign contractors and corporations would be economically beneficial for the country. Due to these investments made, Iran's oil market was flourishing in the late 1970's. However, an increase in oil profits resulted in problems with absorbing funds, leading to an increase in spending. Iran was therefore hit with effects such as inflation and corruption. Another example is that the Shah hoped for a modernization program for Iran. With this, the hope was to limit the land one could hold, decreasing the financial gap between the wealthy and poor. The result was that wealthy families continued to be as wealthy and the economic status of peasants generally worsened. Modernization also negatively affected religious institutions relying on a network of exchange, as limited land made it harder for trade. A final consequence of land reform was that peasants were forced to move to cities, begging to Westerners in order to feed themselves. These peasants began to see the negative impact western culture had made in society. They found inner peace through

Various factors influenced the 1979 Iranian revolution, but at the core of this significant event was Islamic fundamentalism. The Iranian religious leader, Ayatollah Khomeini, led this movement to end the thirty-seven-year reign of Mohammad Reza Shah Pahlavi, also known as the Shah of Iran (Diller 1991, p.152). The revolution was a combination of mounting social, economic, political and religious strains. The nation of Iran was never colonized, unlike some of its bordering countries, making its people intolerant of external influences. The Shah had gradually westernized and secularized his country, creating a strong American presence that was being felt

Iran was now unprotected, and a new power came into being. The Arabs invaded and the quality of life changed. “People fell into poverty as the greedy court imposed ever-increasing taxes. Tyranny tore apart the social contract between ruler and ruled that Zoroastrian doctrine holds to be the basis of organized life” (21). The Iranian people couldn’t survive with a ruler who had no sympathy or respect for them. Their life was being over run by foreigners.

The complexity of America’s relationship with Iran increased steadily beginning in 1908, when Iran struck oil. The Shah, the king or emperor of Iran, after taking the place of his young predecessor Reza Shah Pahlavi with the help of the CIA, led Iran into a period of extreme wealth and prosperity, the likes of which the Iranian people had never experienced. However, with the growth of wealth in Iran came the growth of Iranian resentment towards the West, specifically the United States. The Iranian’s resented the uneven distribution of wealth that they felt existed and the United State’s influence in “westernizing” their society. In 1963, this growing hatred led to a conflict with the Islamic clergy. The conflict was quickly settled by the Shah, but he was unaware that this dispute was the beginning

The Iranian Revolution was an uprising by the common people of Iran who were upset about the doings of their Shah and his government. The Shah’s treatment of his own people can be characterized as unjust and cruel. After all, he severely limited the rights of groups whom he felt threatened his power to rule. He opposed the political rights of religious Shiite groups, which especially enraged Iranians, and led to the rise of Ayatollah Khomeini. The Ayatollah was a religious leader who would overthrow the Shah and establish a proper Islamic State in the nation. Ever since, the so called Islamic Revolution has raised concern over the dangers that Iran may pose to the Western world. Nevertheless, the Iranian Revolution was a progressive movement that reflected the major concerns of Iranians towards corruption in government, all with the intention of removing injustices and enforcing rightful liberties and common needs.

During his presidency, the Iran Hostage Crisis started when the Shah of Iran was overthrown from power and left Iran in January 1979. The United States supported the Shah as an ally of the United States from 1953 to 1979, even though he was excessive with punishments to the Iranian people. A radical leader named Ayatollah Ruhollah Khomeini came to power in Iran when Shah returned in February 1979. Khomeini started major problems against the United States, known as the “Great Satan”. This group gave young Iranian students a reason to storm the U.S. Embassy and take 66 people hostage. The Iran Hostage Crisis, which lasted from 1979 to 1981, was the first time the United States was forced to deal with Islamic

This fact shattered the hopes of millions of Iranians who thought the revolution would bring more freedom, not less. Women lost many of the social gains they had made under the Shah, and were forced to wear head coverings and full-body cloaks called chadors. Opponents were imprisoned and tortured as harshly and cruel as was done under the Shah. A parliamentary democracy existed mostly on paper, with true authority residing with the mullahs. With the Shah in exile, Khomeini identified the U.S. as 'the Great Satan' and an 'enemy of Islam.' Subsequent to this Khomeini regime, under the Shah dissent was also ruthlessly suppressed, and he jailed and tortured his political opponents. Moreover, under the Shah, Iran became a police state, monitored by the hated SAVAK secret police. Furthermore, the Shah's reforms, particularly those concerning the rights of women, angered Shia clerics such as the Ayatollah Khomeini, who fled into exile in Iraq and later France beginning in 1964. The US was intent on keeping the Shah in place in Iran in the 1970s, for many reasons, especially as a deterring buffer against Soviet expansionism ("Iranian Civil

Following his exile, the Shah was a guest of a number of world leaders including the premiers of Egypt, Morocco, the Bahamas, and Mexico. In October of 1979 the Shah required urgent medical attention and was allowed into the United States for treatment despite warnings from the State Department that allowing the Shah into the country could inflame tensions in Iran. Their warnings proved prescient as Iranian revolutionaries used his admission as propaganda against the United States. Revolutionary leader and autocrat of the new theocratic Islamic state Ayatollah Ruhollah Khomeini, who had taken control of the revolutionary government, used

“Because his American-supplied army and his American-trained secret police kept the shah in power, his opponents hated the United States almost as much as they hated their autocratic ruler. The shah’s rule was not one of constant decency” (Carnes and Garraty). From 1977 to 1979, Iran grew more and more unstable, as the Iranian people’s hatred of the shah further intensified. 1977 saw numerous riots, along with both the wounding and even killing of large numbers of the Iranian people. The Iranian people finally rose up against the shah in 1978, by January of the next year the shah was forced to flee. “A revolutionary government headed by a religious leader, the Ayatollah Ruhollah Khomeini, assumed power. He that freedom was an enemy of Islam, as well as that Islam condoned terror. Khomeini denounced the United States as the “Great Satan” whose support of the shah, he said, had caused the Iranian people untold suffering” (Carnes and Garraty). Upon his exile, the shah was dying of cancer, after seeking refuge in numerous countries he was finally given refuge in the United States. The Iranian people wouldn’t have it, and began protesting outside the U.S. Embassy demanding the shah be returned, tried, and hanged. The Iranian Hostage Crisis was quickly approaching.

In addition to the complications with the oil, The Shah’s reputation began to deteriorate. The Shah was scrutinized as a puppet of the Western nations, particularly the United States. Citizens of Iran began to have aversion towards the actions of the monarchy. The Shah altered the Iranian solar calendar inducing outrage amongst many Iranian Muslims. Another issue was the Shah’s distribution of money. The Shah spent over 300 million dollars in extravagant luxuries during a three-day celebration; rather than using the money for the needs of Iran. Citizens of Iran suffered greatly from The Shah’s regime. He was considered a dictator and used harsh punishments for rebellions. The Shah was a corrupt leader who oppressed the Iranian people. Citizens of Iran finally had enough with the Shah and decided to overthrow him.

Mossadegh completely altered Iran by letting the Iranian people experience freedom within a democracy.9 In 1951, he was named Time Magazine’s man of the year and was referred to as the “Iranian George Washington,” as he gave them the gift of democracy.10 The people loved him because as soon as he took power, he set about making reforms; he granted women more rights than they had ever received in Iran and permitted religious freedom.11 Mossadegh also appealed to the Iranian people as he, unlike prior Shahs, was neutral in foreign policy. He made negotiations with foreigners illegal, which was controversial in Iran because it would destroy its economy. In 1952, Mossadegh appointed a new chief of war and head of staff. This granted him control of Iran’s entire military, which Pahlavi had been building up.12 He also tended to the requests of the people by nationalizing the AIOC, at the expense of the British. This initially made the Iranian people happy because they would get more jobs and revenue for Iran. However, there were no trained professionals to work the oil machines because

Before the revolution, Shah Reza Pahlavi was the ruler of Iran. Under his leadership power was clustered and concentrated among his close allies and networks of friends and others with whom he had close relations. By 1970s, the gap between the poor and the rich was widening and huge distrust about his economic policies grew. Resentment towards his autocratic leadership grew fuelling people to dissent his regime further. Shah now was considered an authoritarian who took full control of the Iran government preventing the Iranians from expressing their opinion. The government has transformed from the traditional monarchial form of government to authoritarian with absolute authority replacing individual freedom of the Iranians. This transformation to Iranian was unacceptable because they needed to control their own affairs. They wanted self-government where they could take control as opposed to what Shah was doing. Shah was seen as a western puppet for embracing authoritarian form of government (Axworthy, 2016).

Reza Shah Pahlavi’s ability to transform Iranian identity to a primarily secular mentality was entirely reflective throughout Iranian life. The widespread diffusion of Western thought was felt everywhere in society. The remarks of an Iranian magazine editor at the time are symbolic: “Salvation from long lasting misery is only possible by

Once the Pahlavi dynasty was overthrown and the country perceived to be taken over by Islamic extremists, the West began researching the development process to make sure the wrong weapons would not fall into the wrong hands, but the capital Tehran encouraged the fact that it was strictly for peaceful purposes. Lies and deceit possessed the rest of the negotiations as both sides tried to get straight answers to understand what was actually going on in the nuclear program, but nevertheless those answers were never found as they were clouded by a long standing hatred between certain Islamic groups and the Western world(). More recently, ten years ago the International Atomic Energy Agency sent agents to inspect Iran’s nuclear facilities and they found trace amounts of enriched uranium at a factory in Natanz, which led to a three-year halt on Iran’s uranium enrichment. After those three years, the enrichment process resumed and the U.N. Security Council responded in 2006 by placing sanctions upon the country’s economy in an effort to curb any further nuclear development. These sanctions, which include a ban on purchasing Iranian oil, a ban on certain Iranians from traveling outside of the country, and a ban on deals with financial institutions from the country, severely crippled Iran’s economy forcing their oil revenue to collapse and creating an almost absurd amount of inflation. Despite this, uranium enrichment has not slowed down for the Iranians as the