Transnational Institutions in Developing Countries: The Case of Iranian Civil Aviation

Abstract

The proliferation of transnational institutions in the form of protocols, conventions, regimes and standards is a growing influence on organizational practice. Recent work on the origins and impact of transnational institutions focuses upon processes in ‘core’ states, but their influence in developing countries has not received much attention. In this paper we narrate a case study of the diffusion of two institutional regimes represented by the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA) in Iranian civil aviation. The case study describes a seemingly frictionless and uncontested embedding of the emergent international aviation regime in post-World War II Iran and a severe challenge to those institutions in the years following Iran's Islamic revolution. We characterize the rise and decline of these regimes as a double process of institutionalization and de-institutionalization, and identify political and technical factors that drive institutional change. We discuss several theoretical and policy implications stemming from the experience of transnational aviation institutions in Iran.