“Rich Fields in Persia”: Parsi Capital and the Origins of Economic Development in Pahlavi Iran, 1925–1941

Abstract

AbstractThis article investigates the history of economic relations between Iran and the Parsi community of India during the Reza Shah period. Encouraged by the policies of the new Pahlavi state, Parsi entrepreneurs began a serious effort to investigate the possibilities of economic investment in Iran. The article details three Parsi economic missions that were conducted in Iran during this period, and analyzes their assessments of Iran's potential for development in fields such as energy, textile manufacturing, commercial agriculture, and modern transportation systems. As the article argues, while these Parsi-led initiatives were part of a larger history of renewed engagement between Parsis and Iranians, for a variety of political and economic reasons, by the outbreak of World War II few of the Parsi plans for investment in Iran had come to fruition. While remaining largely forestalled in the interwar period, the article also suggests that Parsi economic assessments foreshadowed many of the planning strategies carried out in Iran's post–World War II history of economic development.