Economic history of Iran

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History of Iran
Prehistoric period BCE / BC Baradostian culture c. 36,000–18,000 Zarzian culture c. 20,000–10,000 Shulaveri–Shomu culture c. 6000–5000 Zayandeh River Culture c. 6th millennium Dalma culture c. 5th millennium
Ancient period Kura–Araxes culture 3400–2000 Proto-Elamite 3200–2700 Jiroft culture c. 3100–2200 Lullubi Kingdom/Zamua c. 3100-675 Elam 2700–539 Marhaši c. 2550-2020 Oxus Civilization c. 2400–1700 Akkadian Empire 2400–2150 Kassites c. 1500–1155 Avestan period c. 1500–500 Neo-Assyrian Empire 911–609 Urartu 860–590 Mannaea 850–616 Zikirti 750-521 Saparda 720-670
Imperial period Median Empire 678–550 BC Scythian Kingdom 652–625 BC Anshanite Kingdom 635 BC–550 BC Neo-Babylonian Empire 626 BC–539 BC Sogdia c. 6th century BC–11th century AD Achaemenid Empire 550 BC–330 BC Kingdom of Armenia 331 BC–428 AD Atropatene c. 323 BC–226 AD Kingdom of Cappadocia 320s BC–17 AD Seleucid Empire 312 BC–63 BC Kingdom of Pontus 281 BC–62 BC Fratarakas 3rd-century BC–132 BC Parthian Empire 247 BC–224 AD Elymais 147 BC–224 AD Characene 141 BC–222 AD Kings of Persis 132 BC–224 AD Indo-Parthian Kingdom 19 AD–224/5 Paratarajas 125–300 Sasanian Empire 224–651 Zarmihrids 6th century–785 Qarinvandids 550s–11th century
Medieval period CE / AD Rashidun Caliphate 632-661 Umayyad Caliphate 661–750 Abbasid Caliphate 750–1258 Dabuyids 642–760 Bavandids 651–1349 Masmughans of Damavand 651–760 Baduspanids 665–1598 Justanids 791 – 11th century Alid dynasties 864 – 14th century Tahirid dynasty 821–873 Samanid Empire 819–999 Saffarid dynasty 861–1003 Ghurid dynasty pre-879 – 1215 Sajid dynasty 889–929 Sallarid dynasty 919–1062 Ziyarid dynasty 930–1090 Ilyasids 932–968 Buyid dynasty 934–1062 Rawadid dynasty 955–1070 Hasanwayhids 959–1095 Ghaznavid dynasty 977–1186 Annazids 990/1–1117 Kakuyids 1008–1141 Nasrid dynasty 1029–1236 Shabankara 1030–1355 Seljuk Empire 1037–1194 Khwarazmian dynasty 1077–1231 Eldiguzids 1135–1225 Atabegs of Yazd 1141–1319 Salghurids 1148–1282 Hazaraspids 1155–1424 Pishkinid dynasty 1155–1231 Khorshidi dynasty 1184-1597 Qutlugh-Khanids 1223-1306 Mihrabanids 1236–1537 Kurt dynasty 1244–1396 Ilkhanate Empire 1256–1335 Chobanid dynasty 1335–1357 Muzaffarid dynasty 1335–1393 Jalayirid Sultanate 1337–1376 Sarbadars 1337–1376 Injuids 1335–1357 Afrasiyab dynasty 1349–1504 Mar'ashis 1359–1596 Timurid Empire 1370–1507 Kar-Kiya dynasty 1370s–1592 Qara Qoyunlu 1406–1468 Aq Qoyunlu 1468–1508
Early modern period Safavid Iran 1501–1736 (Hotak dynasty) 1722–1729 Afsharid Iran 1736–1796 Zand dynasty 1751–1794
Modern period Qajar Iran 1789–1925 Pahlavi Iran 1925–1979
Contemporary period Iranian Revolution 1979 Interim Government 1979 Islamic Republic 1979–present
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Prior to 1979, Iran's economic development was rapid. Traditionally an agrarian society, by the 1970s the country had undergone significant industrialization and economic modernization.^[1][2] This pace of growth had slowed dramatically by 1978 as capital flight reached $30 to $40 billion 1980 US dollars just before the revolution.^[3]

After the Revolution of 1979, Iran's government proceeded with 4 reforms:

1. First they nationalized all industry, including the NIOC, and all Iranian banks.
2. The new Constitution divided the economy in 3 different sectors, namely "State", "Cooperative" and "Private", with the majority being state-owned businesses.
3. The Government started using central planning to control the economy, having the Supreme Leader, the President and Majlis creating 5-year socio-economic plans.
4. The State took control of setting prices and subsidies.

The government's long-term objectives since the revolution have been economic independence, full employment, and a comfortable standard of living for citizens, but at the end of the 20th century, the country's economy faced many obstacles.^[4] Iran's population more than doubled between 1980 and 2000 and grew increasingly younger. Although a relatively large number of Iranians are farmers, agricultural production has consistently fallen since the 1960s. By the late 1990s, Iran had become a major importer of food. At that time, economic hardship in the countryside resulted in vast numbers of people moving to cities.^[3]

The eight-year war with Iraq claimed at least 300,000 Iranian lives and injured more than 500,000. The cost of the war to the country's economy was some $500 billion.^[5][6] After hostilities with Iraq ceased in 1988, the government tried to develop the country's communication, transportation, manufacturing, health care, education and energy sectors (including its prospective nuclear power facilities), and began the process of integrating its communication and transportation infrastructure with that of neighboring states.^[7]

Since 2004, Supreme Leader Khamenei and President Ahmadinejad have tried to implement reforms that will lead to the privatization of Iran but they haven't worked out yet, making Iran a command economy in transition towards a market economy.