Political and economic institutions and their impact on economic development with emphasizing on historical institutionalims

Countries face with different historical critical junctures through their historical countries.. One of the most important critical junctures in the contemporary history of Iran is the removal of Reza Shah from power and substituting of Mohammad Reza Shah.by foreign forces. After the overthrowing of Reza Shah, however, power was distributed among various factors, the interventions of foreign forces and political chaos marginalized the path of economic development. The main objective of this historical-economic research, refers to the role of governments and superiors as well as the underdeveloped of Iran. The result shows while the existence of a powerful parliament eventually led to the nationalization of the oil industry, due to political and social chaos, economic development did not occur. In addition, during 1940s by the decrease of the power of the parliament against the prime minister’s authority, an exclusive institutional change took place and took into account as a legacy for the shah rule. Through this institutional change, the shah was able to protect the prime minister’s legacy well and by increasing monopolized economic resources kept the power for himself and his relatives.