OSU Economics Worksheet
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Lesson 13.1 Iran: the
struggle for a new
traditional economy
Introduction
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Iran as a symbol
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Core elements in Iran of an Islamic economy
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Most Iranians young (under 30)
Introduction
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Revolutionary tradition in Shia Islam
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Shia vs Sunni origins
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Battle of Karbala
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Imam – Spiritual leader became head of Shia
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Direct descendent of prophet
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12 Imams in history (actual historical figures)
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Imam had right to update Hadith
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12th Imam forced into hiding, will come back eventually
Introduction
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Shia is more Hierarchical
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Ulama is the institution of hierarchy
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Means scholars
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Ranks in Ulama
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Grand Ayatollah
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Lesser Ayatollah
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Hojjat al-Islam
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Zakat is voluntary but Khums is a mandatory tax going to church
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Share cropping, land rent, insurance all OK in Shia
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Khomeini pro market and many SOEs privatized under him and given to religious
people and groups
Lesson 13.2 Iran: the
struggle for a new
traditional economy
Evolutionary history of current
institutions
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Persia 2500 years ago, founded by Cyrus, conquered by Alexander
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1501 AD Ismail Founded Safavid dynasty
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Converted all Persia to Shia
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Claimed to be hidden 12th imam
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Established Ulama institution
Evolutionary history of current
institutions
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1785 AD Qajar Dynasty
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UK and Russia contested Qajar control
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Lost war with Russia in 1828
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Reuter concession in 1872
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Coal, Banks, Railroad
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Ulama contested and it failed
D’Arcy Oil concession 1901
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Ulama supported and it succeeded
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1906 Ulama with western oriented intellectuals remove Qajar Shah and installed a
constitution based on Belgium
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1911 Russia coup reinstalled Qajar Shah
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1925 Pahlavi Coup created the last Shah Dynasties
Lesson 13.3 Iran: the
struggle for a new
traditional economy
Evolutionary history of current
institutions
?
Pahlavi dynasty (Father and son)
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Secular nationalists
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Western clothes
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Forbid women wearing traditional dress
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1932 Stripped Ulama of control of courts and (1934) Ulamas control of wealthy
endowments
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Built a strong military German advisors changed from Persia to Iran (Arians)
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1941 UK and USSR deposed father for the son and occupied parts during WWII
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1946 US politically pressured USSR out
Evolutionary history of current
institutions
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Pahlavi dynasty continued
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1951 Mossadegh became PM (member of 1906 revolution)
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Nationalized oil, ran a democracy
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1953 Sha flees Iran Ulama sided with Mossadegh
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1956 CIA and MI6 restored Shah in a Coup
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Restored oil to BP and US firms
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Shah opened Iran to outside firms
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Put people in power who opposed traditionalist
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Massive secret police
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Obeyed US and UK
Evolutionary history of current
institutions
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Pahlavi dynasty continued
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1963 White Revolution land reform to poor (taken from Ulama)
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Khomeini opposed and exiled
1973 Shah supported OPEC embargo
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Money went to Shahs cronies
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Money increased prices -> to unrest
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Unrest -> increased secret police -> protests
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Hated by landless peasants (inflation
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Ulama
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Merchants
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Gov workers
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Educated
Police fired on innocent students and unrest exploded. Shah forced out Jan 16 1979
Lesson 13.4 Iran: the
struggle for a new
traditional economy
Modern institution
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February 1 Khomeini returned
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Two years power struggle between differing groups after Shah leaves
?
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Ulama called other groups who they opposed corrupters of the earth
November 1979 revolutionary guards seize US embassy held US citizens hostage
until Jan 20 1981
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December 79 current constitution adopted
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September 1980 Iraq invades Iran: US sells arms to both sides
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During war many changes to economic policy most moving towards more
markets but anti land reform
Modern institutions
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State controlled heavy industries but manufacturing and light industry
private
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Public: Iron, Steel, Machine tools, Aluminum, Petrochemicals
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Private: Finished metals, Specialty steel, Synthetic fibers, Auto assembly, Sugar
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Revolution didnt change much in the economy but did give Shaw and his
cronys possessions to people loyal to new order. Also made sure land
owned by Ulama stayed owned by Ulama. Shah owned land given to
peasants
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Nationalized banks (Islamic law), insurance, oil
Modern institutions
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Labor unions ruled un-Islamic but there are many worker protections
including protections that make it hard to fire people
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Income distribution has actually gotten much worse which was a main
reason for the 79 revolution
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2011 sanctions making everything even harder (and the return to sanctions
under President Trump)
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Recession and inflation
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Popular unrest
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With loosening of sanctions under Obama you saw a loosening of social
restrictions
Is Iran the Islamic model?
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Yes and no
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Served as a beacon for other countries
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But ultimately Shia are the minority most places.
Lesson 12.1 India: The
Elephant Walks
Introduction
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A system of self-sufficient villages
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India grows enough food for its over 1 billion people on a land size about
1/3 of the US
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It is the largest functioning democracy in the world
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Two major parties: Congress and BJP
More religions and languages then Europe
The evolution of the institutions
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Religions of India
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Buddhism
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Jainism
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Sikhism
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Islam
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Christianity
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Zoroastrianism
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Jewish
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Hindu
The evolution of the institutions
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Hinduisms five castes
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Brahmins Priests
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Kshatriyas Warriors
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Vaisyas Traders
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Sudras Peasants
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Dalits Untouchables or Casteless
Most spoken language Hindi but English is used for business
Lesson 12.2 India: The
Elephant Walks
The evolution of the institutions
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Political and economic history up until British conquest
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2500 BCE Pakistan had the first city with a function working sewer system
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Massive trade and wealth throughout the ancient times, 2 crops per year
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Constant invasions from the northwest (where Pakistan is)
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Invaders: Arians, Persians, Greeks, White Huns, and Arabians
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Each invasion left its mark
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Arians were the foundation of the caste system
Trade in the ancient world
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Rome had a direct trade route
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Center for textiles
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Spices from Indonesia could be bought in India
The British Raj
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Battle of Plessey in 1757: fight against one small state. Won some
concessions
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1764 right to tax
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Late 1700s courts
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1800s education system (by 1830)
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1858 final end to Mogul rulers and total UK domination
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1800s building of railways
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1880s rise of Congress movement
Outcome the deindustrialization of India, unskilled wages and farm pay
plummeted. Commercial and peasant classes way worse off.
Lesson 12.3 India: The
Elephant Walks
British Raj
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Good and bad outcomes from Raj
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Railroads (But built to move troops)
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Courts (But Indians always below British in court rulings)
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Democracy (Yet massive illiteracy)
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Bureaucracy (Corruption of the Bureaucracy)
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Unified political structure and language for the first time but unified under
invasion and the language was English
Economic policy since independence
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Move towards indicative planning and socialism
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India as a third world country as expressed at the UN
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Indicative planning an extension of WWII planning
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Infant industry protections
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License and permit Raj
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1947 until 1990 many government takeovers of industries
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1990s a move away from indicative planning
Lesson 12.4 India: The
Elephant Walks
Economic policy since independence
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Reforms in India
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Debt to foreigners triggered a crisis
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India devalued the Rupee
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Reduced Tariffs and opened to the world
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Huge trade boom
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Still major subsidies at SOEs
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Banking privatization
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Still strict labor policies and it is hard to fire people
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Still big corruption
Economic policy since independence
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Remaining development problems
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Population and social problems
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Double GDP per person since independence and tripled the literacy rate
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Need to increase literacy further
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Control population growth
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Build new infrastructure (sewers, water, roads, power)
Economic policy since independence
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Hindu Nationalism as a new alternative
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BJP party has been on the rise
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BJP was an independence movement before the Congress movement
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Based upon the belief that all of Indian culture is Hindu at base
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Burning of mosques, attempts to remove many Muslims citizenship
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Wants to end anti-caste affirmative action
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Also building schools, roads, power, water in rural areas
Lesson 14.1 Mexico:
traditional land tenure
and the economy
Introduction
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Developing mid income country with pockets of old communal towns and
undeveloped countryside
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Traditional component Race/descendancy (Spanish vs Native)
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Top is Spanish descendants
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Bottom is straight native descendants.
Crisis 82 and 92 over foreign debt
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Austerity enforced by US and IMF
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Zapatista insurgency 94-2001
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PRI and PAN main political parties
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Drug war of Calderon
Evolutionary history of current
institutions
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Origins to independence
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1st farmers in Americas 6000 years ago
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1325 Aztecs conquered Mexican valley
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Mass human sacrifice and rule by tear; hated by most of the people
1521 conquest by Spanish
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Few hundred with horses, guns and Armor: Extension of unification of Spain
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Extension of feudal order for non first born.
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Used Aztec tax system and land tenure system
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Natives as slaves then peasants
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Encomienda to Hacienda and debt peonage
Lesson 14.2 Mexico:
traditional land tenure
and the economy
Evolutionary history of current
institutions
?
Independence to revolution.
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Napoleon conquered Spain in 1810
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In Mexico a priest named Miguel Hidalgo led revolts
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Hacienda families not support hidalgos call for land reforms, so revolts failed
1821 independence from Spain achieved
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Stagnation followed
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Lands for soldiers after service
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1830 40 ½ of Mexican land taken by US
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1857 Juarez and the Zapotec constitution
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Took catholic lands
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Allowed for the sale of Ejido lands
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Juarez stayed in power until 1872. (note the French attempt to install Maximillian in 1860)
Evolutionary history of current
institutions
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Independence to revolution continued
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1876 Porfirio Diaz came to power
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Stepped aside in 1880
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Returned in 1884 forbade opposition after this
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Started industrialization in Mexico city and on the boarder of US
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Opened to trade
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Economy grew but so did landlessness
3 types of land structures
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Hacienda, Ejido, and Rancho
Current institutions
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Revolution
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1910 Diaz jailed northern opposition candidate Poncho Villa, people revolted
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Southern Indian peons revolted at same time under Emiliano Zapata
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Diaz resigned in 1911
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Constitution of 1917 arose
Lesson 14.3 Mexico:
traditional land tenure
and the economy
Current institutions
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Constitution of 1917
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Denied right of absolute private property (Similar to eminent domain)
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Oil nationalized
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Redistribution of many Hacienda lands to Ejidos
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Guaranteed right to unionize
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Right to workers compensation
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Eight-hour workday
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No child labor
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Eliminate debt peonage
After 1946 there was a push to move to push private farms rather than Ejidos.
Irrigation to private farms, aid to private farms
Current institutions
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1960 investment incentives in north expanded industrialization and began
the Maquiladora plants factories
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1940-1970s strong growth and economic stability
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1980s foreign finance dried up and a banking crisis hit
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1990s NAFTA pushed more private farming (push against Ejido)
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Example coffee
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Finance examples (oil price driven)
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Push to privatization
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Explanation & Answer:
700 Words
Tags:
economics
caste system
India
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