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Iran
The Bazaar
Opposing the political elite through much of the twentieth century
has been the bazaar, an important political, economic, and social
force in Iran since at least the time of the Qajar dynasty. The
Pahlavi shahs viewed the bazaar as an impediment to the modern
society that they wished to create and sought to enact policies
that would erode the bazaar's importance. They were aware that
the alliance of the mercantile and artisan forces of the bazaar
with the Shia clergy posed a serious threat to royal government,
as occurred in 1890 and again during the Constitutional Revolution
of 1905-07. The emergence of such an alliance in the period from
1923 to 1924 is believed by many scholars to have convinced Reza
Shah not to establish a republic, as Atatürk had done in Turkey,
but to establish a new dynasty based upon his family.
Reza Shah recognized the potential power of the bazaar, and he
was apparently determined to control it. As his secularization
programs had adversely affected the clergy, many of his economic
reforms hurt the bazaar. His son also sought to control the influence
of the bazaar. As a consequence, the bazaar remained a locus of
opposition to both Pahlavi shahs. During 1978 the bazaar spearheaded
the strikes that paralyzed some sectors of the economy and provided
support for the political actions of the Shia clergy. In essence,
the feared alliance of the bazaar and clergy had once again come
to play a pivotal role in effecting political change in Iran.
The Republic has been much more solicitous of the bazaar than
was the Pahlavi dynasty. Several of the early economic programs
implemented by the governments of the Republic have benefited
the interests of the bazaar; nevertheless, the complexities of
managing an economy under the impact of a total war have also
forced the central government to adopt economic policies that
the bazaar has opposed. Generally, the government leaders have
favored varying degrees of state regulation over such economic
issues as the pricing of basic commodities and foreign trade,
while entrepreneurs, bazaar merchants, and some prominent clergy
have opposed such restrictions. These economic issues have been
among the main reasons for the emergence of two contentious factions
among the political elite (see The Consolidation of Theocracy
, ch. 4).
Data as of December 1987
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