Developmental state and development in Iran

By using a model of Development, called Developmental State, which appeared during a period of time in the history of development in East Asia region, the essay tries to conduct a review on possibility of Iran’s transition to economic development. It is supposed that the ground is prepared for Iran’s transition to development through effective state intervention in economy. Unlimited access of the state in Iran to a very rich material and human resources including oil and natural gas, and also human capital, are among main factors that can support the state to reach its developmental goals. Meanwhile, the possibility to transition to the development in Iran through state intervention in economy is faced with a critical risks and challenges which come from special features of Iran’s economy which are inefficiency of state-owned economy and the way of oil revenues’ expenditure in economy by the state.