Reza Shah’s Modernization of Iran: Reforms and Impact
While the removal of Islamic courts did help modernize the country, Reza Shah’s other methods had a more significant effect. In 1925, Reza Shah deposed the remnants of the Qajar dynasty in Tehran and had himself appointed as Shah, thus resurrecting the ancient monarchical custom in Iran. He began his mission of modernization by reorganizing and updating the army and subduing the local tribes, ensuring that the central government held the sole monopoly over the legitimate use of coercion. Reza also attempted to break traditional bonds of local loyalties to the national government.
Centralization of Power and Economic Reforms
From 1930 onwards, Reza Shah continued to centralize power in the monarchy and the bureaucracy by creating a Minister of Finance, a National Bank, and a state monopoly over foreign trade. The government of Reza Shah was the first modern absolute government in Iran with important features such as concentration and monopoly over the use of resources and government power, the formation of a modern army, nationalism, and emphasis on public interest. With the National Bank established, Reza Shah introduced the modern fiscal technique of deficit financing, with government expenditures exceeding government revenues.
Developmental Strategies
As well as his secularization and centralization ventures, Reza Shah engaged in numerous developmental strategies to stimulate the economy.
- He began improving irrigation methods in agriculture.
- Introduced light mechanization on state lands.
- Improved the transport system of grain.
- Textile factories were established.
- Other light industry was introduced to improve the economic situation in the country.
Infrastructure and Education
Reza Shah also modernized the country in terms of infrastructure development. Reza Shah tended to prefer large and elaborate industrial projects, a practice his son would adopt as Shah in the 1950s and later. He also pushed the development of highways and roads to encourage the transport of goods and to facilitate the continued centralization of his power. More than fourteen thousand miles of roads and highways, which he constructed, enabled the rapid transportation of government forces across the country to deal swiftly with potential tribal separatist tendencies and revolts. These tribes seemed to understand this strategy, as numerous road crews and organizers were attacked or bombed in the construction process.
Educational Reforms
The education system was also reformed and secularized with the establishment of state-run primary and secondary schools and universities. Thus, in addition to the army, the modern education system played a major role in social mobilization and caused the emergence of a new generation of intellectuals and bureaucrats which played a crucial role in the process of modernization.
Legacy
Despite these reforms, Shah did not attempt to alter land and agrarian relations as his son would after him. The reign of his son would witness rapid and widespread urbanization, the accelerated expansion of higher education, and also speedy rates of industrial development and secularization of society. Although Mohammad Reza would accelerate the modernization of Iran as well as fuel reactionary tendencies towards this transformation, it was Reza Shah who set the initial process of modernization in motion.