Economic History of Iran
Iran's vast oil reserves, which are among the world's largest, ensure its global economic significance. Many people in Iran prospered under the leadership of the shah, only to see their fortunes reversed in the years after the Islamic revolution of 1979. Iran continues to command large amounts of oil, but its strained relations with Western powers threaten its economic potential.
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History
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In ancient times, the land that would become Iran controlled vast amounts of territory and wealth as the center of the Persian Empire.
Significance
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Modern-day Iran came into existence in the 20th century, and the discovery of oil there by British Petroleum in 1908 gave the country geopolitical and economic importance.
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Identification
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In the early 1950s, Iranian Prime Minister Mohammed Mossadeq sought to nationalize Iran's oil industry, threatening Western interests. In 1953, a British- and U.S.-backed coup ousted Mossadeq and brought Shah Mohammed Reza Pahlavi to power.
Effects
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During his rule, the shah sought to develop Iran's industry and infrastructure. During the 1960s and 1970s, Iran's gross domestic product grew, and oil revenues financed public investment.
Islamic Republic
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An Islamic revolution led by Ayatollah Ruhollah Khomeini ousted the shah in 1979. As an Islamic republic, Iran saw some socioeconomic gains in the 1980s, such as improved education, but also saw a decline in industrial investment and in living standards.
21st Century
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Going into the 21st century, Iran has remained economically troubled, with its vast oil reserves its only strength. Iran's ties to terrorism and its nuclear activities have made the country a pariah in the eyes of many Western governments.
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