Abstract
This chapter examines how economic imperialism was imposed on Iran by dominating its economy through the concession of exclusive monopolies, loans, foreign trade and investment, and the political means to protect such economic relationships. Britain and Russia were able to establish their mastery over Iran by controlling the Qajar kings who were ruling the country. Using data from various sources, the author shows how the two powers controlled Iran’s economy by obtaining concession monopolies, by using Iran’s sources of income as collateral for their loans, and by arranging low tariff treaties to open Iran’s market to their manufactured products, which resulted in the stagnation of the country’s economy. The two powers converted Iran into an exporter of primary goods and importer of manufactured goods, mostly from Britain and Russia. The low tariffs worsened Iran’s trade deficits and prevented the country from becoming industrialized.
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Notes
- 1.
Roger Owen and Bob Sutcliffe, Studies in the Theory of Imperialism, Longman, 1972, p. 18.
- 2.
Mark Blaug, Economic Theory in Retrospect, Irwin, 1968, pp. 264–273.
- 3.
For example see: The Concept of Dependent Development as a Key to the Political Economy of Qajar Iran (1800–1925) by John Foran, Iranian Studies, Vol. 22, No. 2/3 (1989), pp. 5–56. Also, The Origin and Development of Imperialist Contention in Iran; 1884–1921. A Case Study in Underdevelopment and Dependency, by Younes Parsa Benab, http://www.iranchamber.com/history/articles/origin_development_imperialist_contention_iran1.php.
- 4.
Morgenthau, Hans, Politics Among Nations, p. 56.
- 5.
Austin, Gareth “Economic Imperialism,” in The Oxford Encyclopedia of Economic History, ed. Joel Mokyr. Oxford University Press, Oxford, 2003, pp. 145–155.
- 6.
The text of the agreement is in Mahmud Mahmud, Tarikh-e Ravabet-e Siyasat-e Ingles dar Gharn-e Nouzdahum (The Political Relations of Iran and Britain in the nineteenth Century), Tehran, 1949/1954, 8 volumes, pp. 605–606, Vol. 3.
- 7.
Brain Lapping, End of Empire, 1st ed., St Martin’s Press, 1985, p. 193.
- 8.
Issawi, pp. 152–153.
- 9.
Amirahmadi, Hooshang, The Political Economy of Iran Under the Qajars: Society, Politics, Economics and Foreign Relations 1796–1926, I. B. Tauris, 2012, p. 159.
- 10.
T. Ricks, “Background on the Iranian Revolution: Imperialism, Dictatorship and Nationalism,” in Iran, Essays on a Revolution in the Making, ed. Ahmad Jabbari and Robert Olson. Mazda Pub, 1981. Cited by Amirahmadi p. 159.
- 11.
Rouhollah K. Ramazani, The Foreign Policy of Iran: A Developing Nation in World Affairs, 1500–1941, University Press of Virginia, 1966, pp. 67–69. The text of the contract is in Curzon, pp. 474–480.
- 12.
Charles Issawi, p. 346, pp. 18–19.
- 13.
George Nathaniel Curzon, Persia and the Persian Question, 2 Volume, p. 414.
- 14.
Abol-Hassan Ebtehaj, Khaterat (The Memoirs), Volume 1, Elmi Publisher, Tehran, pp. 17–18.
- 15.
Amirahmadi, The Political Economy of Iran under the Qajars, p. 164.
- 16.
Issawi, p. 396.
- 17.
Firuz Kazemzadeh, Russia and Britain in Persia, 1864–1914: A Study in Imperialism Hardcover, 1968, pp. 272–273, pp. 199–200 and 272–280.
- 18.
Russia and Britain in Persia, Kazemzadeh, p. 451.
- 19.
Kazemzadeh, p. 451.
- 20.
Ahmad Kasravi, Tarikh-e Mashrutah-e Iran (Farsi), 2006, pp. 69 and 74–75, full text of the concession is in History of Iranian Awakening (Tarikh bidari Iranian) by Nazem-al-eslam Kermani, Volume 1, 6th ed., Peykan Publisher, Tehran, 2010, pp. 56–59. Also, Edward G. Browne, The Persian Revolution of 1905–1909, pp. 31–33.
- 21.
Keddie, Nikki, Religion and Rebellion in Iran: The Tobacco Protest of 1891–92. Frank Cass, 1966, p. 3.
- 22.
Firuz Kazemzadeh, p. 252.
- 23.
Nikki R. Keddie, Roots of Revolution: An Interpretive History of Modern Iran, Yale University Press, 1981, pp. 60–61.
- 24.
Edward Browne, p. 58.
- 25.
Kazemzadeh, pp. 249–251.
- 26.
Issawi, pp. 356–361.
- 27.
Kasravi, p. 70.
- 28.
Kazemzadeh, p. 354.
- 29.
Kazemzadeh, p. 357. Darcy’s text of the contract is in Diplomacy in the Near and Middle East, 2 Vol. Edited by J.C. Hurwitz, 1956, pp. 249–51.
- 30.
Elm, p. 7.
- 31.
Hooshang Amirahmadi, The Political Economy of Iran Under the Qajars, p. 164.
- 32.
The Russian bank became more of a political institution and did very little financing to help the Iranian economy, see Potkin Basseer, The Role of Financial Intermediation in Economic Development: The Case of Iran, 1968–1978, Ph.D. Dissertation, George Washington University, 1983. See also Shuster, p. 290.
- 33.
Kazemzadeh, p. 458.
- 34.
Kazemzadeh, p. 466 and p. 488.
- 35.
Razi, Abdolah, Tarikh Kamel Iran (Iran’s Complete History), pp. 421–22, Chapkhaneh Eghbal, p. 536. The sum of the two loans was 32,500 menat equal to 343,000 sterling lira.
- 36.
Kasravi, p. 81 and Razi, p. 536.
- 37.
Ramazani, Foreign Policy of Iran, p. 72.
- 38.
Ramazani, Foreign Policy of Iran, p. 73.
- 39.
Browne, p. 108.
- 40.
Kazemzadeh, p. 473, at the time 15,000,000 rubles = 40,000,000 francs = 1,586,250 pounds, see p. 318.
- 41.
Charles Issawi, pp. 370–371.
- 42.
For Iran’s balance of payment before World War I, see Charles Issawi, p. 128.
- 43.
Mikhail Sergeevich Ivanov, Tarikh Novin Iran (Iran’s Modern History). Translated to Farsi by Hushang Tizabi and Hassan Gaim-Panah. Stokhol, Tudeh, 1356/1977.
- 44.
Kasravi, p. 249. 1 kror is equal to 500,000.
- 45.
Razi, p. 537. Furthermore, Iran borrowed 314,281 pounds from Bank Shahanshahi, collateral was Caspian Sea fisheries, post and telegraphs, income from customs of Ahwas, Mohamereh (Khorramshahr).
- 46.
Issawi, p. 145, see also Ramazani, Foreign Policy of Iran, p. 74.
- 47.
Ramazani, The Foreign Policy of Iran, p. 63.
- 48.
Ramazani, Foreign Policy of Iran, pp. 64–65. See also Issawi, pp. 144–146, and Lenczowski, p. 91.
- 49.
Issawi, pp. 70 and 142.
- 50.
Ahmad Seyf, The Economy of Iran in 19th Century, Cheshme Publishing House, Tehran, 1994, p. 315.
- 51.
Seyf, p. 314.
- 52.
Charles Issawi, pp. 136–137. See detail of Iran’s foreign trade with Russia from mid-1800 to early 1900, pp. 130–151.
- 53.
Kasravi, p. 91. Kasravi cites Reza Safi Nia, Esteghlal Gomroki Iran, Tehran, 1307. Also see Issawi, pp. 148–149.
- 54.
Kasravi, p. 249 and p. 120.
- 55.
Issawi, pp. 148–151. Also p. 90 Kasravi.
- 56.
Kasravi, p. 120, and p. 90.
- 57.
Kasravi, p. 91.
- 58.
Issawi, p. 148. Also see Browne, p. 106.
- 59.
See transit tax in Ahmad Seyf, pp. 318–319.
- 60.
Issawi, p. 74.
- 61.
Shuster, p. 313.
- 62.
Shuster, p. 314.
- 63.
Issawi, the table on page 150.
- 64.
Ebrahim Razzaghi. Ashnaei ba Eghtesade Iran (Introduction to the Iranian Economy), 3rd ed. Nashre Nei Press, Tehran, 2003, p. 264.
- 65.
Robert Engler, The Oil Politics, p. 204.
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Torbat, A.E. (2020). Economic Imperialism in Iran. In: Politics of Oil and Nuclear Technology in Iran. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-33766-7_3
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DOI: https://doi.org/10.1007/978-3-030-33766-7_3
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