Abstract
In the Deutscher Volkswirt (1928), Nikolaus Basseches has described in four parts, how Persia developed from an ancient state to a modern market economy. Next to the developments in trade and industry, Basseches has analyzed the development of the agricultural sector. He has observed that in Persia, the developmental process was reversed, from a beginning industrialized stage back to the stage of handicraft and agriculture. In his articles, he looks for the reasons and finds them in the political environment, property structure, and legal infrastructure of the country. For instance, through concessions in banking and infrastructure, the English and Russians gained influence on the economic development in Persia, leaving little room for own Iranian impulses of development. What remains puzzling is the choice of the title of the four essays: “Europeanization,” a term, which requires an explanation.
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Notes
- 1.
. “Die Europäisierung der persischen Volkswirtschaft. Die Landwirtschaft”, (Europeanization of the Persian Economy. On Agriculture), Der Deutsche Volkswirt, Nr. 25, pp. 822–824. 1928a. “Die Europäisierung der persischen Volkswirtschaft. Handel, Industrie und Kapital”, (Europeanization of the Persian Economy. On Trade, Industry, and Capital), Part 2, Der Deutsche Volkswirt, Nr. 28, pp. 937–939. 1928b. “Die Europäisierung der persischen Volkswirtschaft. Zwischen Russland und England”, (Europeanization of the Persian Economy. In between Russia and England). Part 3, Der Deutsche Volkswirt, Nr. 30, pp. 1012–1014. 1928c. “Die Europäisierung der persischen Volkswirtschaft. Der Kampf um den persischen Markt”, (Europeanization of the Persian Economy. The Struggle for the Persian Market). Part 4, Der Deutsche Volkswirt, Nr. 31, pp. 1052–1054. Basseches articles on Iran appeared in 1928d. In 1935, upon the request of the government, the name of Persia was changed to Iran.
- 2.
Compare, for instance, Schumpeter, Joseph A. 1912. “Das Gesamtbild der Volkswirtschaft.” (The Economy as a Whole). Theorie der wirtschaftlichen Entwicklung. (The Theory of Economic Development). Leipzig: Duncker & Humblot, pp. 463–546. English translation by Ursula Backhaus. 2002. “The Economy as a Whole. Seventh Chapter of Schumpeter’s The Theory of Economic Development. Joseph A. Schumpeter.” Industry and Innovation. Vol. 9, nrs. 1/2, pp. 93–145.
- 3.
“Europeanization” was a phenomenon Basseches witnessed in his time. For instance, in 1925, Ataturk changed the alphabet of the Turkish language from Arabic to Latin characters as part of the “Europeanization” movement. Today, similar demands meet the opposition of Iranian linguists, who fear a loss in culture. “A global community should be one in which differences are accepted, not shunned. For instance, was Japan unable to develop economically while maintaining its national language and alphabet?” Saba Ghadrboland, “No Thanks. Changing Persian Script Would be Harmful.” The Iranian, January 15, 1999.
- 4.
Full private property includes uses, abusus, and usus fructus, which is the right of residual claimancy. In Islamic law, the Shari’a, abusus is critical. Compare Alchian, Armen A., and Harold Demsetz. 1972. “Production, Information Costs, and Economic Organization.” American Economic Review, 62, no. 5: 777–795.
- 5.
In order to determine the amount of labour supplied, the farmer equals marginal revenue and marginal costs. If he receives only one-fifth, he will work less than if he would receive the full amount of the harvest proceeds.
- 6.
The problems resulting from the coexistence between nomads and settled farmers have been analyzed by Douglass C. North. 1981. Structure and Change in Economic History. W. W. Norton & Company.
- 7.
Reza Shah was the father of the deposed Emperor on the peacocks’ throne.
- 8.
Compare Mahmoud A. El-Gamal. 2006. Islamic Finance. Law, Economics, and Practice. Cambridge: Cambridge University Press.
- 9.
Friedrich List held that an industry must be protected before it can be established.
- 10.
Since transit through Russia was prohibited, Germans used parcel post for its trade with Persia. In 1912/1913, the value of German exports to Persia by way of parcels was roughly one million; in 1914, it was about 1.5 million US$ (compare Basseches, 4. 5. 1928, p. 1054).
References
Alchian, Armen A. and Demsetz, Harold. 1972. “Production, Information Costs, and Economic Organization.” American Economic Review. 62, (5), pp. 777–95.
Nikolaus Basseches, 1928a. “Die Europäisierung der persischen Volkswirtschaft. Die Landwirtschaft”, (Europeanization of the Persian Economy. On Agriculture), Der Deutsche Volkswirt, Nr. 25, pp. 822–824.
Nikolaus Basseches, 1928b. “Die Europäisierung der persischen Volkswirtschaft. Handel, Industrie und Kapital”, (Europeanization of the Persian Economy. On Trade, Industry, and Capital), Part 2, Der Deutsche Volkswirt, Nr. 28, pp. 937–939.
Nikolaus Basseches, 1928c. “Die Europäisierung der persischen Volkswirtschaft. Zwischen Russland und England”, (Europeanization of the Persian Economy. In between Russia and England). Part 3, Der Deutsche Volkswirt, Nr. 30, pp. 1012–1014.
Nikolaus Basseches, 1928d. “Die Europäisierung der persischen Volkswirtschaft. Der Kampf um den persischen Markt”, (Europeanization of the Persian Economy. The Struggle for the Persian Market). Part 4, Der Deutsche Volkswirt, Nr. 31, pp. 1052–1054.
El-Gamal, Mahmoud A. 2006. Islamic Finance. Law, Economics, and Practice. Cambridge: Cambridge University Press.
Ghadrboland, Saba. 1999. “No Thanks. Changing Persian Script Would be Harmful.” The Iranian, 1-15-1999.
North, Douglass C. 1981. Structure and Change in Economic History. W. W. Norton & Company.
Schumpeter, Joseph A. 1912. “Das Gesamtbild der Volkswirtschaft.” (The Economy as a Whole). Theorie der wirtschaftlichen Entwicklung. (The Theory of Economic Development). Leipzig: Duncker & Humblot, pp. 463–546. English translation by Ursula Backhaus. 2002. “The Economy as a Whole. Seventh Chapter of Schumpeter’s The Theory of Economic Development. Joseph A. Schumpeter.” Industry and Innovation. Vol. 9, nrs. 1/2, pp. 93–145.
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Backhaus, U. (2011). On “The Europeanization of Persia” by N. Basseches. In: Backhaus, J. (eds) The Beginnings of Scholarly Economic Journalism. The European Heritage in Economics and the Social Sciences. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0079-0_6
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