| By: |
Mehrdad Vahabi (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: |
In my studies, I have explored the political economy of Iran and particularly
the relationship between the state and socioeconomic development in this
country. The importance of the oil revenue in economic development of
contemporary Iran has been underlined since the early seventies and a vast
literature on the rentier state and authoritarian modernization has
scrutinized the specificities of the political and economic natural resource
'curse' in Iran. A new critical social history of the oil industry has
recently endeavored to reconsider the spread effects of this industry on the
emergence of new cities and labor activities. In this sense, the impact of oil
revenue on economic development should be mitigated: it has not been only a
'curse' but also a 'blessing'. The precious results of natural resource curse
or blessing notwithstanding, this approach is insufficient to explain why some
predatory states reliant on natural resources could contribute to economic
development while others hinder such development. Two recent examples provide
a salient illustration: why did the Shah's regime which was dependent on oil
revenues enhance economic development during 1962-1974, while Ahmadinjead's
two terms presidency (2005-2013) imped economic growth despite the quadrupling
of oil revenues? In this essay, I will first introduce my theoretical
framework and distinguish two types of predatory states, i.e. inclusive and
exclusive (section 1). I will then apply this framework to explain oil and
economic development (section 2). Section 3 will be devoted to the Shah's
regime as an inclusive predatory state, and section 4 to Ahmadinjead's
presidency as an illustration of an exclusive predatory state. A short
conclusion will follow. |
| Keywords: |
Capital flight,Captive, Intermediary and Fugitive assets,Confiscatory regimes,Inclusive and Exclusive Predatory States,Islamic Republic of Iran,Land Reform,Oil revenues,the Shah regime |
| Date: |
2017–09–07 |
| URL: |
http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01583595&r=cwa |