The influence of external approach on political economy in the era of Pahlavi II (1961-1941)

The history of Iran witnessed a conflict between two approaches related to the way of the country’s economic management in the contemporary era. One approach considers the way out of trouble in relying on foreign powers and using the power of mighty states in order to promote the administration of the country; and the other prospect places the main reliance on the optimal use of internal capacities and grounding for their growth by taking a reasonable advantage of the experiences of the strangers. The public space of policy making has mainly been at the disposal of the first category since the beginning of the emergence of developmental concern in our country. By examining the outcomes of the dominance of external thoughts in political economy related to the era of Pahlavi II, this article shows how this viewpoint has led to a higher level of backwardness and dependence in the country. Based on such approach, the economic experience of implementing “Truman’s point four” plan, which was performed from the end of 20s until late 30s, removed the agricultural economy as well as causing heavy burdens such as massive migration, marginalization and the political dependence of Pahlavi regime and ultimately its downfall.