Date of Award
Master of Science (MS)
Economics, Finance, & Accounting
Dr. Milburn Little
The industrial revolution of Europe had a great impact on economy of Iran. Iran due to her geographical position for many years served as trade center between East and West and her industries brought wealth and prosperity to the economy of the country. Development of modern industries in Europe which were backed by well-organized banking system, together with aggressive trade policies of those countries, drew Iranian products out of the world markets thus bringing the era of economic prosperity of Iran to an end. Absence of a strong national banking system to supply the necessary capital for any kind of reform and absence of tariff support were the factors in the economic and industrial decline of Iran. These conditions and absence of any restrictive laws against foreign banking institutions helped such firms who were only interested in supporting the industries of their countries to take over the financial and economic affair s of Iran. The haphazard policies of the Iranian government to solve the economic problems of Iran deprived the country of most of the income producing factors. These were the conditions until after World War I, when economic stability, under the guidance of foreign financial advisors, prevailed in the country. This made the establishment of a national banking system possible.
Copyright 1967 Manouchehr Sharifi
Sharifi, Manouchehr, "The Development of National Banking in Iran" (1967). Master's Theses. 1090.