For over 100 years, the domination of Iran has been deeply woven
into the fabric of global imperialism, enforced through covert
intrigues, economic bullying, military assaults, and invasions.
This history provides the backdrop for U.S. hostility toward
Iran today—including the real threat of war.
Part 1 of this
series explored the rivalry between European imperialists up
through World War 1 over which one would control Iran and its
oil. Part 2
exposed the U.S.’s 1953 overthrow of Mohammed Mossadegh’s
secular, nationalist government and its restoration of its
brutal client the Shah to power.
Parts 3
and 4 examine what 25 years of U.S. domination under the Shah’s
reign meant for Iran, and how it paved the way for the 1979
revolution.
During the 1970s, the agrarian reforms of the White Revolution
(see part 3), skyrocketing oil revenues, and Iran’s new role as the
U.S.’s Persian Gulf gendarme combined to bring rapid—and
destabilizing—social, political, and economic change. Oil income
shot up from $22.5 million in 1954 to over $19 billion in 1975-76.
By mid-decade, nearly half of Iran’s people lived in urban areas (up
from 30 percent a decade earlier). Tehran’s population soared by 2.5
million people between 1961 and 1978. Industry and manufacturing
tripled in size compared to the 1950s, and Iran’s middle class was
growing quickly.1
The Shah bragged that Iran would soon have one of the world’s
five biggest economies. The U.S. imperialists saw Iran as a model of
development, an island of stability, and a crucial Middle East
outpost.
Yet billions in oil revenues didn’t lead to balanced,
self-reliant economic growth or a better life for most Iranians. Oil
revenues propped up the Shah’s repressive tyranny. Iran’s oil sector
and a few other more technologically developed industries remained
islands linked to foreign capital, technology, and markets, but
disconnected from most of the rest of Iran’s economy.
Iran’s oil industry was very capital intensive (machine and
technology heavy), employing only 42,000 Iranians out of a 1972
labor force of nearly 10 million.2
Oil technology and equipment were imported, so its development
didn’t lead to either technological development of the economy as a
whole or less dependence on selling oil. Instead, by 1977, over
three-quarters of Iran’s government revenues came from petroleum.3
Most manufacturing was still done in very small, labor intensive
workshops. Traditional goods—like carpets, handicrafts and
agricultural goods—continued to make up more than 80 percent of
Iran’s non-oil exports. Fewer worked in rural areas and on the land,
but feudal and semi-feudal relations remained widespread and per
capita agricultural output stagnated. Newer urban industries were
often concentrated in “import substitution” manufacturing. There,
high-end consumer goods—like cars—were assembled using imported
parts and technology.4
This kind of imperialist-driven economic growth made Iran even
more addicted to imports of technology, up-scale consumer goods,
military hardware, and food. Iran’s imports jumped from $400 million
in 1958-59 to a staggering $18.45 billion in 1975-76, including some
$2.6 billion in food. This giant tab sucked up most of Iran’s oil
income, wiped out many small Iranian businesses, and reinforced
foreign capital’s overall stranglehold.5
These changes also sharpened social divisions. Foreign companies
made huge profits in Iran, ranging from 30% to 200% rate of return
on investments, while the Shah and capitalists and landowners
closest to his regime made immense fortunes. Iran’s small upper
strata and growing professional and technical middle class enjoyed
rising incomes, some becoming quite wealthy.
At the same time, millions were being driven off the land and
pulled into sprawling urban shantytowns without water, sewage, or
electricity. Sixty percent of Iranians remained illiterate, life
expectancy was 50 years, and 139 of every 1,000 children died in
their first year.6
When I visited Iran in 1979, a construction worker told me about
working on a new palace for the Shah’s mother. He made $3 a day,
barely enough to pay cab fare to and from work, and buy a lunch of
bread and cheese. He couldn’t afford Tehran’s skyrocketing rents,
and had to live with his brother’s family to survive.7
Uprooted from the countryside and set adrift in the cities, many
shanty dwellers became a key base of support for Ayatollah Khomeini
and Islamic fundamentalism. Khomeini, a reactionary theocrat, would
emerge as the leader of Iran’s 1979 revolution.
A British magazine captured Iran’s crazy-quilt, lopsided growth:
“Iran is being Westernized in all the wrong places. Modern bottling
plants for Pepsi, Coke, and Canada Dry have sprung up all over the
place, while in the filthy poor quarters of the cities people still
drink from the jubes—open water courses that run down the sides of
the streets, collecting all manner of rubbish. Teheran airport is
one of the finest in the Middle East, yet there is still no adequate
road and rail system. A tall Hilton hotel is being built, while
hundreds of people sleep in the streets.”8
Iran: America's Persian Gulf Gendarme
The Shah’s role heading up a U.S. military outpost in the Persian
Gulf and on the Soviet Union’s southern border also skewed Iran’s
economy and society, and amplified other problems.
U.S. military advisors had been operating in Iran since the early
1940s. But U.S. direct involvement in Iran's military greatly
increased after the 1953 coup. By 1954, three different U.S.
military groups were operating in Iran, directing the expansion of
Iran’s Shah’s army, forming a modern air force and navy, training
Iranian officers, and overseeing weapons purchases.9
Iran was a key member of a sequence of U.S. regional military
alliances.
In the early 1970s, Iran’s importance as a U.S. military ally
took a leap. U.S. President Nixon, then in the throes of the Vietnam
War, announced the U.S. was going to rely more heavily on allies and
clients to police key regions. Iran, along with Saudi Arabia and
Israel, would be one of U.S. imperialism’s “pillars” in the Middle
East.
To fulfill this role, Iran embarked on a massive military buildup
and spending spree. Huge bases were built in the north to monitor
the Soviets and along the southern coast to police the Persian Gulf.
Between 1972 and 1975 alone, Iran spent $35 billion of its $62
billion in oil revenues on the military—mainly on purchases from the
U.S. and other Western powers. By the late 1970s, nearly 8,000 U.S.
military advisers and technicians were stationed in Iran.
In the wake of Israel’s 1967 and 1973 wars seizing Palestinian
and Arab lands, anger and resistance rose across the region. The
Shah stepped in and supplied Israel with 90 percent of its oil. The
Iranian military helped crush an anti-imperialist guerrilla movement
in the Dhofar province of Oman. The Shah conspired with the Nixon
administration to manipulate and then betray Iraq’s Kurds in order
to weaken the Saddam Hussein regime. (In 1975 the unsuspecting Kurds
were decimated by Iraqi forces, with thousands killed and some
200,000 driven into Iran.)
SAVAK: U.S.-Trained Torturers
A decade of breakneck development, fueled by imperialism and oil
revenues, effected rapid economic, political, social, and cultural
changes—in a highly unstable way. The U.S. and the Shah built up
elements of a modern economy and infrastructure, but in a narrow,
lopsided manner. Feudal relations weren’t fully uprooted, and in
many ways were reinforced and incorporated into these
imperialist-driven transformations. Millions of rural labors and
peasants were still locked in poverty, and those driven into the
cities remained largely left out of the more modern segments of
society. These changes also alienated powerful segments of society
whose authority was rooted in regressive, feudal relations and
ideas. These included some merchants and landlords, as well as
significant segments of the Islamic clergy.
The newer middle and upper classes did grow and prosper, but were
denied a political voice. Tens of thousands of students went abroad
as part of the Shah’s modernization. They were radicalized by both
the situation in Iran and the anti-imperialist and revolutionary
movements sweeping the world. They, in turn, brought an open,
seething hatred of the Shah’s regime to countries where they
studied, and often militant anti-imperialism and internationalism.
The Iranian students had a powerful impact on the countries where
they studied. This included the United States, where they made
millions aware of the role the U.S. government played in propping up
the Shah’s tyranny--and what this meant for the Iranian people. And
their revolutionary sentiments and solidarity with people struggling
inside the U.S. brought an internationalist consciousness against a
common enemy. Few who encountered anti-Shah students will ever
forget their marches of unabashed defiance and seemingly boundless
energy, going for miles. Or their booming chants: "The Shah Is a
Fascist Butcher, Down with the Shah!" "The Shah Is a U.S. Puppet,
Down with the Shah!" The Shah dispatched his secret police abroad.
But their efforts to intimidate and suppress the students failed.
All this reverberated profoundly back in Iran, where such open
contempt and opposition was suppressed. And these students would
play a crucial role in the downfall of the Shah in 1979.
Both the more traditionally-minded as well as the newer, more
secular classes were humiliated and outraged by the Shah’s
subservience to the U.S. In the face of widespread deprivation, he
insisted on pursuing America’s imperial objectives, ostentatious
consumption, and grandiose royal displays.
So the Shah’s U.S.-driven politics and economics ended up turning
both traditional and new segments of society against his rule.
To keep the lid on, the Shah increasingly turned to his dreaded
secret police—SAVAK. Founded in 1957 under the CIA’s direction (and
later with assistance from Israel’s intelligence police, Mossad),
SAVAK’s mission was finding and stamping out any and all opposition.
It had the authority to arrest and detain suspects indefinitely and
ran its own prisons. Torture was routine: “electric shock, whipping,
beating, inserting broken glass and pouring boiling water into the
rectum, tying weights to the testicles, and the extraction of teeth
and nails.”10
In 1975, the London Times reported that prisoners were
forced to watch their children “savagely mistreated.” One man
reported, “I found it so unbearable, that that I wished I had a
knife so that I could kill my son myself, rather than see him suffer
like that.”
SAVAK dispatched its agents all over the world to monitor and
punish dissidents, anti-Shah students in particular. Communist,
radical, and secular forces were SAVAK’s main targets. Some clerics
were also jailed, exiled, or suppressed, even as the Shah continued
to reinforce Islam and the clergy. In 1976, Amnesty International
reported that Iran had the “highest rate of death penalties in the
world, no valid system of civilian courts and a history of torture
which is beyond belief. No country in the world has a worse record
in human rights than Iran.”11
The U.S. was directly and deeply involved in SAVAK’s operations.
By the 1970s, an average of 400 SAVAK agents were trained in the
U.S. every year. A former CIA analyst on Iran admitted the agency
instructed SAVAK in torture techniques. “We’re keeping the Shah in
power through our agents,” one intelligence officer stated, “who are
training their agents in Iran.”12
But this too would soon backfire. Underneath a facade of
stability, Iran was heading toward a revolutionary eruption, and the
founding of a reactionary Islamic theocracy.