One of the Shah’s most ambitious and controversial moves was the nationalization of Iran’s natural resources, particularly oil. By bringing these resources under national control, the regime sought to ensure that Iran could retain more of the wealth generated by its oil exports, rather than allowing foreign companies to dominate the sector. This move was seen as a way to assert Iran’s sovereignty and reduce dependence on foreign powers, particularly Britain and the United States, which had significant interests in Iranian oil. Alongside nationalization, the Shah introduced economic policies that included tariffs on foreign goods and preferential loans to Iranian businesses. These measures were designed to protect and promote domestic industries, helping to create an independent national economy.
The results of these reforms were mixed. On one hand, the production of automobiles, household appliances, and other consumer goods in Iran increased significantly, contributing to the rise of a new industrial class. This new class, bolstered by the regime’s policies, was considered relatively insulated from foreign competition, particularly from Western countries that had previously dominated the Iranian market. As a result, Iran experienced a period of sustained economic growth that positioned the country as one of the fastest-growing economies in the world, both among developed and developing nations. For a time, Iran’s growth rates exceeded those of many Western countries, including the United States, Britain, and France.