Arthur Millspaugh and reconstruction of financial and administrative systems of Iran

Dr Arthur Chester Millspaugh (1883–1955), a former adviser at the U.S. State Department’s Office of the Foreign Trade, who was hired to re-organize the nation's financial and administrative system. In the first term (1922-1927) the Iranian Parliament granted him vast authorities for change. He utilized the opportunity provided by world's post-war conditions and Russian Revolution, as well as the support of Reza Shah (who had brought order and security to the nation) and commenced his reforms. In his second term (1942-1945), Millspaugh the Parliament again granted a wide range of authorities to carry out his mandate. This paper examines his services to the country during both terms. Method/Research approach: Events are analyzed using library and archival materials. Findings and Millspaugh succeeded to base financial and administrative structures on scientific principles. The annual budget he prepared brought balance to the government's income and expenditure. However, Reza Shah didnt tolerate his initiatives and forced him to leave Iran. In the second term, Millspaugh's plans to control inflation and supply people's basic needs during occupation of the country by Allied forces didnt achieve goals. His insufficient understanding of the developments underway in the Iranian society at the time, caused public complaints. He couldnt be responsive to critics made in the press and parliament to his performance. He left Iran after the Parliament terminated his contract.