An analysis of the impact of American arms transfers on political stability in Iran.

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Author
Gates, Gregory Francis
Date
1980-09Advisor
Laurance, E.J.
Looney, Rob E.
Metadata
Show full item recordAbstract
During the decade of the 1970s, the United States sold more arms to
Iran than to any other country. In spite of Iran's vast oil wealth, the
billions of dollars spent by the Shah on arms aquisitions had a measurable
impact on both the country's economy and its ability to maintain a steady
rate of developmental growth. Iran has traditionally been regarded as a
non-resource constrained nation. However, in the latter half of the 1970s
Iran's trade surpluses dwindled, its foreign exchange reserves shrank, and
government expenditures outran revenues. All of which indicated that Iran
was becoming resource constrained. As such, the nation's tremendous defense
budget proved to be an economic burden. Spiralling inflation, failing
development plans and rising unemployment were the result. The people's
rising expectations, brought on by the oil boom of 1973, were quickly replaced
by a perception of relative deprivation. This prompted a linkage of
various disenchanted groups within Iranian society who together formed
the basis for Iran's civil strife in 1977-78, and the eventual downfall
of the Shah.