The Reasons for Millspaugh's Failure in Reforming Iran's Financial Affairs (1943- 1945)

Arthur Millspaugh came to Iran twice as a financial counselor to solve the macroeconomic problems of the country by carrying out reforms in the financial and administrative structures. In his first mission (1301-1306 AH), he was able to achieve relative success and make changes in the financial and tax systems, but in the second mission (1321-1323 AH), according to the supporters and opponents, he was not very successful and finally, she left Iran with frustration and sadness. Many opinions have been raised about the reasons for Millspaugh's failure triggered by his supporters and opponents. The current research tried to investigate the reasons for Millspaugh's failure in reforming Iran's financial affairs in his second mission by relying on documentary and library sources and using a descriptive-analytical method. The results of the research showed that there were traces of truth in the views of both supporters and opponents and various factors, such as Millspaugh's dictatorial ethics, his complete lack of knowledge and understanding of the political, social, and cultural structures of the Iranian society, preference for personal and American interests over the interests of the Iranian nation and government, existence of corruption and disorder in the administrative and economic structures of Iran, instability and discord in the political system of Iran, disruption and obstruction caused by oppositions, critical conditions caused by the World War and the Soviet domination of the northern provinces, and prevention of the transfer of products from these regions to the central parts had an effect on Millspaugh’s failure.