How Iran Could Have Been the Next South Korea and Why It Didn't

When people think about Iran today, instability, autocracy, and hostility towards women often come to mind. Ali Khamenei, often mispronounced as "Khomeini," has been the supreme leader of Iran for almost four decades. However, before his era, there was the era of Reza Shah Pahlavi, a revolutionary who integrated industrialism in Iran. Despite Iran's higher per capita income than South Korea and Taiwan in the 1970s, the country has slipped into economic degradation and policy failures. This essay explores how Iran could have been the next South Korea and why it didn't achieve that potential.

The Onset of the 20th Century

At the beginning of the 20th century, Iran was under significant foreign influence, particularly from Russia. The Russians imposed development and industrialization on the Iranian people, often clashing with their cultural and religious values. This tension lasted until 1917, when the Bolshevik Revolution forced Russian withdrawal. In 1921, Reza Shah overthrew the Qajar dynasty, which had neglected development and modernization. Under his regime, Iran began to explore its potential, particularly with oil.

The Reza Shah Regime

Reza Shah, formerly known as Reza Khan, is viewed by historians as a necessary evil. His policies, though controversial, catalysed Iran's development. He reformed the legal and economic structures, consolidating assets and becoming the richest man in Iran. His economic reforms propelled the country forward, and his modernization efforts included changing marriage laws and banning the hijab in 1935. His son, Mohammed Reza Pahlavi, later modified this policy, making the hijab optional from 1935 to 1979—an unimaginable concept in today's Iran.

Relations with Western Powers

Reza Shah fostered strong relationships with Western powers, initially with Germany and later with Britain, Europe, and the United States after World War II. Trade between Iran and these countries flourished, transforming the private sector and expanding credit markets. The establishment of specialized banks and government incentives encouraged investment in new industries by both Iranian and foreign businesses. This period saw significant economic growth and industrialization.

The White Revolution

The White Revolution, initiated by Reza Shah, was a major period of Westernization in Iran. Traditional beliefs and systems were dismantled, and agricultural workers began receiving shares from agricultural output. By the 1970s, Iran's per capita income had soared to $2,400, surpassing South Korea's $1,700 and Vietnam's $514. Iran's gross national product grew at an annual rate of 13.2 percent between 1964 and 1978, with significant expansions in oil, gas, and construction industries. Women's participation in the labour force grew exponentially, contributing to the economy's dynamism.

Iran's Slow Downfall

Despite these advancements, Reza Shah's measures faced significant opposition from religious scholars and mullahs, particularly Ayatollah Khomeini. Khomeini steadily rallied people in the name of Islam, gaining foreign assistance, notably from the Americans. They believed that supporting Khomeini would maintain good relations with the United States. This led to Reza Shah's exile and Khomeini's rise to power in 1979. Khomeini ruled for ten years, using Islam to influence the masses and justifying his actions as acts of God. His successor, Ali Khamenei, continued this approach, abandoning Western allies and establishing absolute control over Iran and Iraq.

Waste of Human Resources

Iran's population of approximately 80 million has been wasted for decades. High unemployment and a lack of opportunities have led to widespread drug use, with the youth being particularly affected. American sanctions have exacerbated these issues, giving rise to mafia and black market syndicates. Corruption among policymakers has further hindered the country's development, leaving the masses in a state of despair.

Discrimination Towards Women

Women played a crucial role in bringing Ayatollah Khomeini to power, but they were subsequently marginalized. After gaining power, Khomeini enforced home-bearing as the only life choice for women. Despite protests, including those in 2022, the ground reality remains that only 18% of Iran's workforce comprises women. Discriminatory rules and regulations persist, making significant change unlikely in the near future.

Learnings from Iran

Iran's experience offers several lessons. Embracing religion blindly can be detrimental to a country's progress. While religion is an integral part of human culture, it should not be used to regress a nation, as Khomeini and Khamenei have done. The 1979 revolution pushed Iran back in time, halting its development and industrialization. Had Iran continued on its path of modernization, it could have been a major economic hub in Asia. Instead, following leaders with their hearts rather than their minds has led to Iran's decline.

Conclusion

Iran's journey from a potential economic powerhouse to a nation grappling with economic degradation and social issues is a complex story. The country's early 20th-century developments under Reza Shah showed promise, with significant advancements in industrialization and modernization. However, the rise of Ayatollah Khomeini and the subsequent shift towards a theocratic regime halted this progress. The focus on religious governance and the alienation of Western allies led to economic and social challenges that persist today. Had Iran maintained its trajectory of development, it might have become the next South Korea. Instead, it remains a cautionary tale of how political and religious shifts can dramatically alter a nation's course.