The Imperial State of Iran: Corruption during the Pahlavi Dynasty (1925–1979)
Introduction
The Imperial State of Iran, which lasted from 1925 to 1979, was marked by significant corruption, particularly within the ruling Pahlavi dynasty. This period saw Iran transform from a largely feudal society into a modernized state, but with this progress came widespread bribery, embezzlement, and other forms of corruption. The problem was so severe that it contributed to the Iranian Revolution in 1979, which overthrew the monarchy and established the Islamic Republic of Iran. This article will explore the extent of corruption during the Pahlavi dynasty, its impact on the Iranian people, and how it played a role in the downfall of the regime.
Corruption under Reza Shah Pahlavi (1925–1941)
Reza Shah, who founded the Pahlavi dynasty in 1925, was known for his large-scale corruption. According to Stephanie Cronin of the Oriental Institute at Oxford, Reza Shah developed an “unholy interest in land” and jailed families until they agreed to sell their properties. A 1932 report by the British Embassy in Tehran revealed that Reza Shah had amassed a fortune through forced sales and confiscations of estates, making him “the richest man in Iran”.
Corruption under Mohammad Reza Shah Pahlavi (1941–1979)
Mohammad Reza Shah Pahlavi, who succeeded his father in 1941, continued the trend of corruption within the ruling class. The Pahlavi Foundation, which he founded in the 1950s, was a significant source of corruption, with Bostock and Jones describing it as a “nominally charitable foundation [that] fostered official corruption”. The foundation, which penetrated nearly every aspect of Iran’s economy, became a tax haven for the Shah’s holdings and was only the “tip of the iceberg of official and dynastical corruption”.
The royal family itself was also heavily involved in corrupt practices. Prime Minister Amir Abbas Hoveyda, who served from 1965 to 1977, had no choice but to condone and facilitate the corruption of the Pahlavi clan. Princess Ashraf, the Shah’s twin sister, was rumored to be involved in drug trafficking, while Prince Hamid Reza, the Shah’s half-brother, was ostracized from the royal family due to his involvement in scandals related to promiscuity, addiction, and drug trade.
As oil prices rose in 1973, the scale of corruption in Iran increased, particularly among the royal family and their associates. The Shah himself was not sensitive to the issue, dismissing reports on high-level corruption as “false rumors and fabrications”. By 1977, the sheer scale of corruption had reached a boiling point, with even conservative estimates suggesting that bureaucratic corruption involved at least a billion dollars between 1973 and 1976.
Michel Foucault’s view on corruption in Iran
French philosopher Michel Foucault viewed corruption as the “glue” that held the Pahlavi regime, despotism, and modernization together. The widespread corruption within the government and royal family created a culture of patronage and influence peddling, which allowed the regime to maintain power despite growing public dissatisfaction.
The impact of corruption on the 1979 Iranian Revolution
The rampant corruption within the Pahlavi dynasty played a significant role in the Iranian Revolution of 1979. Many scholars argue that the widespread corruption among officials and the royal court led to public dissatisfaction and contributed to the revolution. The Pahlavi dynasty serves as an example of a government that lost legitimacy due to corruption, resulting in a public service crisis.
Fakhreddin Azimi, a Professor of History at the University of Connecticut, notes that “the unbridled misconduct of the Pahlavi clan undermined the Shah’s proclaimed commitment to combating corruption and seriously damaged his credibility and stature”. This loss of credibility ultimately weakened the Shah’s authority and paved the way for the revolution.
In a desperate attempt to address the public’s concerns, the Shah made a national TV appeal in 1978, pledging to rectify past mistakes, lawlessness, injustice, and corruption. However, this promise fell on deaf ears, as the Iranian people had grown disillusioned with the regime’s pervasive corruption.
Ayatollah Khomeini, the leader of the Iranian Revolution, consistently argued that the only way to eliminate corruption was through a revolution. This message resonated with the Iranian people, who were increasingly frustrated with the corruption that had become endemic within the Pahlavi dynasty.
Post-revolutionary revelations
Following the Iranian Revolution, the Central Bank of Iran published a list of 178 prominent individuals who had recently transferred over $2 billion out of the country. This list included high-ranking officials, such as Jafar Sharif-Emami, Gholam Ali Oveisi, Namazi, Nasser Moghadam, and various unnamed ministers, all of whom were implicated in transferring large sums of money abroad, highlighting the extent of corruption within the Pahlavi regime.
Conclusion
The Imperial State of Iran under the Pahlavi dynasty was riddled with corruption, which ultimately contributed to the regime’s downfall in the 1979 Iranian Revolution. The royal family, high-ranking officials, and the Pahlavi Foundation all played a role in fostering a culture of corruption that permeated nearly every aspect of Iranian society.
This widespread corruption led to public dissatisfaction and unrest, as the Iranian people lost faith in the government’s ability to address the issue. The eventual collapse of the Pahlavi dynasty serves as a cautionary tale for governments worldwide, demonstrating the potential consequences of failing to combat corruption and maintain public trust.
