The Contest Of Ideal And Reality

The history of modern Iran was divided into two distinct periods by 1979 Islamic Revolution. The economic development model was entirely different from each other as well as politics and culture. Pahalvi dynasty advocated total westernization which was characteristic of industrialization at all cost in the case of economy. In the 60's and 70's, Iran's economy had achieved high growth but also accumulated a great number of problems which became a catalyst to overthrow the dynasty eventually. The new government toppled down the dynasty's policy completely after Islamic Revolution and went to another extreme in fact. Some Iranian intellectuals advocated Islamic economy as early as during Pahalvi period and the success of revolution laid the foundation for building Islamic economic system. However, the battle of ideal and reality began since then.This study focuses on:First, the root cause, different genres and practice of modem Iran's Islamic economic thought. Second, the formation of Iran's economic plight in the initial 10 years after Islamic Revolution, including a series of factors hindering economic development, economic guiding ideology, the main economic policies and macro-economic performance. Third, economic reconstruction and deepening of reform after Iran-Iraq war. Comparing with the preceding stage, a series of factors conductive to economic reform emerged during this period. Meantime the economic guiding ideology changed, many reform policies initiated, and macro-economic performance improved. However, Iranian economy still faced many unfavorable factors and the economic development has a lot of deficits which limited the effects of economic reform ultimately. Fourth, the development of each industrial sector since revolution, including agriculture, hydrocarbon sector, the secondary sector (non-oil manufacturing, mining, power sector) and service sector. Compared with the pre-revolution, there was great change in the industrial structure, especially the reversing phenomenon prominent. Fifth, the study of Iranian economic inequality after revolution, including the gap between rich and poor, poverty and women's economic status change.The paper's main viewpoints include:First, Iranian long-term economic plight is rooted in its government and politics. Factionalism has been the main feature of Islamic regime which led the government not form a unified national will and then produced strong impediment to formulate and implement rational economic policy. Second, in the context of economic globalization, inward-looking development strategy is bound to stumble. This point has been proved by Iranian reformation from seeking self-sufficiency in the initial 10 years after the revolution to liberalization, market-orientation and opening to the outside world. Third, the rational economic policy is essential to economic development. Therefore, the government must take full account of all the practical factors to ensure its actual results. Fourth, economic justice must be premised on economic development, otherwise no ground under it. Meanwhile, economic development should take into account of the interests of the majority. Fifth, Iranian economic guiding ideology and development mode has been gradually in line with the dynasty after Iran-Iraq war.All in all, the Iranian economy is characteristic of backward, stagnation and slow growth in the latter period accompanied by volatility since revolution. It is not a very successful practice of modernization.