‘What They Need is Management’: American NGOs, the Second Seven Year Plan and Economic Development in Iran, 1954–1963

Abstract

ABSTRACTFollowing the August 1953 coup d'etat, the government of Mohammed Reza Pahlavi in Iran embarked upon an economic development program. While financial backing for the program came from the Anglo-American oil companies running Iran's oil industry, Iran's semi-independent Plan Organization and its administrator Abu'l-Ḥasan Ebtehāj turned to American non-governmental organizations for administrative expertise, in order to turn Iran's oil power into economic improvements and a basis for the regime's lasting stability. The work of these organizations was hampered by internal disagreements and divisions, discontent among Iranians over the foreign infiltration of their development program, and skepticism from the US government regarding the capacity of Iran to accomplish an integrated development effort on such a scale. Such feelings were influenced by cultural prejudices and perceptions of Iranians as corrupt and incompetent. Ultimately American non-government organizations were pushed out by the shah who seized control over Iran's development during the 1963 White Revolution. The course of Iran's Second Seven Year Plan illustrate how Western technical and administrative ‘know-how’ were tied to the efforts harnessing new oil wealth, and how the relationship between American and Iranian developmentalists was undone by politics, prejudice and opposing view of how progress could come from petroleum.