Germany's role in modernizing Iranian industry during the first Pahlavi era 1925-1941

Abstract

    Since the nineteenth century, and especially in the second half of it, Iran has witnessed major changes that quickly left their impact on Iranian reality in a series of diverse quantitative and qualitative changes. Due to its connection to the global capitalist market, like other countries connected to that market, Iran became an area of influence and competition for a large number of foreign countries, including Germany. This was reflected in its economic, social, and political conditions, which witnessed significant development. Germany was considered one of the most important economic powers in Iran during the first Pahlavi era, that is, the period of Reza Shah’s rule, and it looked to it as a profitable market for selling its industrial products, in addition to providing raw materials for its factories. Despite the influence and dominance of other powers, Iran welcomed this relationship in order to modernize its traditional industries and advance its economic reality. From Iran’s political point of view, it sought to reduce British and Soviet influence in its lands. Accordingly, Iran purchased a large number of light and heavy factories, including various sectors such as: textiles, steel, communications, metal and food industries, and others, for the government, or for private sector investors alike. In addition, it opened a number of technical schools at the hands of German experts, to transfer experience and skills to Iranian workers and develop them in the use of technology

 and industrial machines. Modern, in general, this pattern enabled the establishment of political and economic relations that revived the economies and industries of the two countries.