Figure 1.--The Iranian oil industry which came on line after World War II provided the Shah the money to finance what became called the White Revolution a program of economic and social modernization some of which aliented the country's conservative Islamic society. Here we see a new hospital at Masjid-i-Suleiman, an oil field. It was built by the Anglo-Iranian Oil Company in 1951. The children are the family of Compsny employees. The Company and the country's oil resource became a major issue in Iranian domestic politics.

The British replaced Reza Shah with his young son--Mohammad Reza Pahlavi (September 1941). This permitted the Allies to use Iran to tranport huge quantities of war material to the Soviet Union. With the departure of Reza Kahn, Iran's political system began to become more open. Political parties were developed. The first Majlis (parlimentary) elections elections were held (1944). These were the first genuinely democratic elections in more than 20 years. The Western Allies withdrew their troops from Iran as required under the Tripartite Treaty. The Soiviets who had been supporing independence movements refused to remove their troops or provide a time table for doing so. The Soviets under international pressure finally evsacuated their troops (May 1946). Tensions continued for several months. The episode was one of the opening shots in the developing Cold War. And Mohammad Reza Shah would become a staunch Americam ally in that struggle. The British-owned Angelo-Iranian Oil Company (AIOC) continued to produce and market Iranian oil. Some Iranians had begun to advocate the nationalization of the AIOC. With the deoparture of the British this began to become a major politicsal issue. The young Shah wanted to continue his father's reform policies, but he was left with a more open political system than tolerated by t\his fathers. A struggle developed between the Shah and an older and more experienced politician--the fervent nationalist Mohammad Mosaddeq. The Shah had pledged to act as a constitutional monarch who would defer to the Majlis. The Shah despite this vow, however, began to involve himself in governmental affairs, often to oppose prime ministers. Historians tend to describe the young Shah as indescisive. He focused his efforts on strengthening the Army and to make sure it remained under royal control. This would be the monarchy's main power base. Tragically he did not focus on the rising middle-class created by his modernization effort. An attempted assasination, probasbly carried out by the Tudeh Party, failed (1949). The Government as a result, banned the party. Laws were also passed expanding the Shah's constitutional powers. Iran rapidly developed its oil industry after the War, generating huge income to finance an ambitious development program. The United States supported the Shah in the Cold War. The Shah used the oil income to begin the modernization of the country. This was not the beginning of the modernizatin effort in Iran. The firt priod included Abbas Mirza, Qaem Maqam, Amir Kabir, and Sepahsalar. The second period was the Reformist movements in Constitutional Revolution. It was during the Pahlavi era after World War II, however, that really important progress was made, largely because if the vast oil revenue that became available. The Shah did not, however, allow for the development of democratic institutions. This led to growing popular resistance. Aspects of the modernization program offened conservatibe Muslim elements. The Shah's secret police suppressed democratic reforners and Islamic fundamentalists alike creating an alliance that surely would not have developed had the Shah attempted to bring the middle-class into his reform efforts.

World War II

Iran declared neutrality in World War II, but there were leanings toward the NAZIs. The country's change of name from Persian to Iran was in part to emphasize Aryan ethnicity. The British with Soviet assistance during World War II replaced Reza Shah with his young son--Mohammad Reza Pahlavi (September 1941). Reza Shah had been plsuing the dangerous game of courting the NAZIs to help balance British and Soviet encrochments. Brutish and Soviet intervention permitted the Allies to use Iran to tranport huge quantities of American Lend Lease war material to the Soviet Union. As part of this process, the United States significantly expanded and modernized the country's transport system. Iran at the time was still a very poor country with a limited infrastructure and poorly educated population. The fighting did not reach Iran, but had a significsant impact because it was the country's first contact with the modern world.

Political Developments

With the departure of Reza Kahn, Iran's political system began to become more open. Political parties were developed. The first Majlis (parlimentary) elections elections were held (1944). These were the first genuinely democratic elections in more than 20 years.

Allied-Soviet Withdrawl

The Western Allies withdrew their troops from Iran as required under the Tripartite Treaty. The Soviets who had been supporing independence movements refused to remove their troops or provide a time table for doing so. The Soviets under international pressure finally evsacuated their troops (May 1946). Tensions continued for several months. The episode was one of the opening shots in the developing Cold War.

Cold War

Mohammad Reza Shah became a staunch Americam ally in that struggle. The Shah established himself as an indispensable ally of the West.

Anglo-Iranian Oil Company (AIOC)

The Anglo-Iranian Oil Company (AIOC), originally the Anglo-Persian Oil Company, was a British company founded in 1908 following the discovery of a large oil field in Masjed Soleiman. Coal had dominated European industry in the 19th century. Oil was beginning to become important at the time and Britain had no importanht oil fields. It was getting most of its oil from America. The AIOC was the first company to find and extract oil from Iran. The original concession was striongly in the British favor as gthe Iranians duid not fully appreciate yjhe vvalue of oil. This led to a long term diuspute bettween Iran and Britain which was not settled for years. Adeal was finalkkly negotiated (1933). The Depression and falling oil prices were a factor. until 1933. The Shgah was criticitixed for not striking a better deal. Under the 1933 agreement, AIOC promised to increase the pay of Iranian workers and provide more opportunities for advancement as well as to build schools, hospitals, roads, and a telephone system. The Iranians claimed that AIOC did not subsequently fulfill these commitments. [Kinzer, p. 67.] The company became the Anglo-Iranian Oil Company (AIOC) as Persian changed its name to Iran (1935). AIOC continued to produce and market Iranian oil. Oil became a major domestic issue. Iranians increasingly began to advocate the nationalization of AIOC. The Iranian Government nationalised the company's assetts in Iran and created the National Iranian Oil Company (1954). The companny's non Iranian assetts became the British Petroleum Company (BP).

Constitution

The young Shah wanted to continue his father's reform policies, but he was left with a more open political system than tolerated by his fathers. A struggle developed between the Shah and an older and more experienced politician--the fervent nationalist Mohammad Mosaddeq. The Shah had pledged to act as a constitutional monarch who would defer to the Majlis. The Shah despite this vow, however, began to involve himself in governmental affairs, often to oppose prime ministers. Historians tend to describe the young Shah as indescisive. He focused his efforts on strengthening the Army and to make sure it remained under royal control. This would be the monarchy's main power base. Tragically he did not focus on the rising middle-class created by his modernization effort. An attempted assasination, probasbly carried out by the Tudeh Party, failed (1949). The Government as a result, banned the party. Laws were also passed expanding the Shah's constitutional powers.

Modernization and Reform: White Revolution

The Shah domestically pursued reform policies. This culminating in the 1963 program which became known as the White Revolution. The Shah's father, Reza Shah had ambitions for modernizing his country. They included founding industries, important infrastructure projects (especially railroads), a public education system, judicial reform, and a modern health care system. Some limited progress was achieved, but the money did niot exist for what he wanted, but the creation of a modern country began. He did send hundreds of Iranians to Europe for training. The Germand priovided many technical adbisers, creating friction with the Bruitish. The new Shah had much more money to fund projects because of the rising oil revenue. He continued his father's projects and the Americans during Workld War created a modern transport system that Reza Shah could have only dreamed of. The new Shah pursued land reform, the extension of voting rights to women, and the elimination of illiteracy. Substantial investments were made in both education and health care. These developments projects transformed Iran into the most industrial and urbanized country in the Mideast. Public education and ecomnomic development created a substantial new middle-class as well as competent professionals and an industrial urban working class. The White Revolution reforms and changes provoked religious leaders, most with rurak bsckgroundsand limired educations. A major objection was education and rights for women. Voting was one matter, but female dress, education, and social status were all maters that concerned conservative Islamic religious leaders. They also began to fear losing their traditional authority. They began to criticize the Shah which led to some civil unrest.

Oil Income

Iran rapidly developed its oil industry after the War, generating huge income to finance an ambitious development program. The United States supported the Shah in the Cold War. The Shah used the oil income to begin the modernization of the country. This was not the beginning of the modernizatin effort in Iran. The firt priod included Abbas Mirza, Qaem Maqam, Amir Kabir, and Sepahsalar. The second period was the Reformist movements in Constitutional Revolution. It was during the Pahlavi era after World War II, however, that really important progress was made, largely because if the vast oil revenue that became available.

Rising Opposition

While the Shah was modernizing Iran in many waus. He did not, however, allow for the development of democratic institutions. This led to growing popular resistance. Aspects of the modernization program offened conservative Muslim elements. Resistance grew, however, and not just among conservarive Islamicists. Increasing arbitrariness caused disent among intellectuals who wanted democratic reforms. Opponents criticized the Shah for what they charged was subservience to the United States. They also charged violation of the constitution which limited royal power and provided for a representative democratic government. The Shah had a different vision. The White Revolution was an effort to modernize Iran economically abnd sicially, but democracy wasnot part of that vision. He saw himself and the monarchy as heir to the kings of ancient Persia. He famously Iran held an extravagant Hollywood style celebration of 2,500 years of Persian monarchy (1971). He replaced the Islamic calendar with wjat was widely seen as an 'imperial' calendar, which began with the foundation of the Persian Empire more than 25 centuries earlier. These actions were perceived as anti-Islamic. The Persian monarchy arose two millenia before Islam. The Shah was basing hisauthority on the country's pre-Islamic history. This only increased religious opposition. This was not just the case among the ultra-religious, but among many Iranians who respected Islamic clerics. The Shah turned to his secret police force--Savak (The Organization of National Intelligence and Security). Savak brutally supressed the growing domestic resistance. The Shah probably could not have molified the relgious opposition, but democratic reformers probabkly could have been brought onboard given the oil money available to him. But Savak targeted not only Islamicists, but democratic reformers as well. The result was creating an alliance that surely would not have developed had the Shah attempted to bring the middle-class into his reform efforts. The Shah relied icreasingly on Savak to suppress and marginalize his opponents.

Arab Oil Embargo

Egypt invased Israel in the surprise Yom Kipur War (1973). Israels victory again shocked the Arabs who responded with an oil embargo. The embargo failed to force the United States to adopt abti-Israeli policies, but it did result in massive increases in oil prices. Iran was a huge beneficerary. Oil revenue sky-ricketed as part of a huge transfer of wealth to Iran and other oil exporters, inclkuding several Arab countries. Relying on the increased oil revenues, the Shah pursued his goal of developing Iran as an important regional power pursuing social reform and economic development. He continued to refuse to make democratic reforms including power sharing concessioins. He refused to respond to public opinion and rejected the need fir basic political liberties.

Islamic Revolution (1978-79)

Mohammad Reza Pahlavi proved to be the last shah. The Islamic Revolution led by the Ayatollah Khomeini forced the Shah to flee the country. The Shah reigned as a result of widespread popular discontent (1979). The repressiveness of his regime, perceuved un-Islamic policies, rusing income disparities, and corruption were all factors n the Shah's demise. Islamic leaders were the most vocal and effective critics of the Shah. Ayatollah Khomeini who the Shah had exiled struck a cord with the Iranian people, many of whom had deeply held religigious views. Khomeini and the Islamidsts manage to fuse Islamic conservatism with a populist ideology. The Shah's regime collapsed following widespread demostrations (1978 and early-1979). The Islamic Revolution abolished the monarchy and created a theocratic republic.

Sources

Kinzer, Stephen. All the Shah's Men: An American Coup and the Roots of Middle East Terror (Hoboken, NJ: John Wiley & Sons, 2003).

Created: 4:19 AM 5/10/2018
Last updated: 4:20 AM 5/10/2018