The Impact of Centeralization on Political Economics in the Pahlavi the First

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