Persian Empire 1845

Chapter 295 Ten-Year Economic Report
For Iran, 1860 marked a new beginning. After a turbulent 1850s, Iran entered a period of rapid development in the 1860s. The country exhibited vigorous vitality in all aspects, including the economy, society, and culture. Particularly in the economic sphere, the Iranian government was driving the transformation from a traditional agricultural economy to a modern industrial economy. This economic transformation not only laid the foundation for Iran's future development but also profoundly changed the country's social structure and the lifestyles of its people.

Iran's infrastructure development has entered a phase of rapid growth, with the expansion of its railway network being the most notable example. The construction of the Persian Gulf Railway has become one of the core projects for the country's economic development. This railway connects Iran's major cities and ports, traversing the Mesopotamian plain and reaching the Persian Gulf coast. Its construction is not only to meet domestic transportation needs but also to strengthen Iran's economic ties with neighboring countries, particularly trade with Europe and Asia.

Railway construction spurred the development of related industries. Tens of thousands of railway workers participated in this massive project, their labor ensuring the rapid progress of the railways. Simultaneously, railway construction generated substantial demand for raw materials such as steel, timber, and machinery, thus propelling the rise of related domestic industries.

Furthermore, the development of Mesopotamia has made railway construction even more urgent. Currently, three large-scale construction projects are underway in the region, with countless other smaller projects, all thanks to the Iranian army's recapture of the area.

In 1860, Iran was not only building railways. The government had also begun construction on more than a dozen projects in six industries, including steel and shipbuilding, at the sites that had already been selected. A large number of people worked hard for these projects.

The steel industry is the cornerstone of industrialization. During this period, Iran built several large steel plants, which not only met the needs of domestic infrastructure construction but also provided raw materials for other manufacturing industries. The development of the steel industry spurred the prosperity of the mining industry, and Iran's rich mineral resources were effectively developed, with a significant increase in the extraction of resources such as iron ore and coal.

Shipbuilding is another key industry for development. With the improvement of port facilities in the Persian Gulf, the Iranian government recognized the importance of developing maritime transport and naval power. Newly built shipyards began producing ships and warships, which not only enhanced Iran's maritime trade capabilities but also strengthened the country's defense. The development of the shipbuilding industry has also spurred the rise of related supporting industries, such as ship equipment manufacturing and nautical instrument production.

The government provided substantial financial support to the shipbuilding industry, used for the construction of modern shipyards and the purchase of advanced production equipment. At the same time, it imported new technologies from France, as Britain prohibited the export of shipbuilding technology.

In addition, the government provided preferential policies such as tax breaks and low-interest loans to shipbuilding companies, encouraging private capital to enter the shipbuilding industry. Coupled with increased trade, shipbuilding flourished.

At this time, Iran's important ports included Bandar Abbas, Bushehr, and Chabahar in the Persian Gulf, and Enzeli in the Caspian Sea. As the most important port in the Persian Gulf, Bandar Abbas underwent infrastructure upgrades in 1860, enabling it to accommodate large ocean-going freighters. The port was equipped with warehousing facilities and customs offices, becoming a hub for Iran's foreign trade.

In terms of inland waterway transportation, the Karun River in southwestern Iran is one of the few navigable inland waterways. The government has dredged the river and built wharves, making it an important transportation route connecting the agricultural areas of Khuzestan Province with the Persian Gulf.

Cruise services also emerged, with the first Iranian-built cruise ship, the Bushehr, carrying 300 Iranian tourists and businessmen to Saigon. In addition, a mixed passenger and cargo route operated between Enzeli and Baku was established. Bandar Abbas and Bushehr developed into commercial centers due to their thriving shipping industry, attracting foreign trading companies and banks. The integration of rail and shipping reduced logistics costs and promoted the unification of the national market.

The textile and machinery manufacturing industries also experienced rapid development during this period. The Iranian government encouraged domestic enterprises to adopt advanced production technologies to improve product quality and competitiveness. The newly built textile and machinery manufacturing plants provided numerous job opportunities for the people, while also reducing dependence on foreign goods and promoting the implementation of import substitution strategies.

Iran's trade with the world is becoming increasingly close, with frequent trade with Mumbai and Karachi in India and Zanzibar in East Africa. Its main exports are carpets and dried fruits, while its imports include tea and spices. Iranian kerosene is sold to the Far East and Japan via Singapore and Hong Kong, while silk and porcelain are imported. Kerosene and carpets are shipped across the Black Sea to Liverpool in England and Marseille in France, and on the return journey, industrial machinery and luxury goods are loaded onto the cargo.

To adapt to the needs of economic development, the Iranian government implemented financial reforms. The newly established banking system is more stable, boosting the confidence of domestic and foreign investors in the Iranian economy and providing more convenient financing channels for businesses and individuals.

Although industrialization is a key focus of Iran's economic development, agriculture remains an important component of the national economy. In 1860, the Iranian government began implementing a policy of agricultural modernization aimed at improving agricultural productivity and the living conditions of farmers.

Technological advancements are also a significant driving force behind agricultural modernization. The Iranian government has introduced advanced agricultural machinery and irrigation technologies, improving farmland productivity. Newly constructed water conservancy facilities have improved irrigation conditions, particularly in arid regions, transforming vast tracts of barren land into arable fields. Furthermore, the government has promoted scientific planting methods, such as crop rotation and fertilization techniques, further increasing crop yields.

Rapid economic development has brought about profound social changes. Iran's urbanization process has accelerated, with a large influx of rural residents into cities in search of employment opportunities. Major cities such as Tehran, Isfahan, and Shiraz have experienced rapid population growth and continuous expansion. To address the challenges of urbanization, the government has invested in urban infrastructure, such as water supply systems, drainage systems, and public health facilities, improving the living conditions of urban residents.

The popularization of education was also a crucial aspect of social change during this period. The Iranian government recognized that sustainable economic development required a large pool of educated talent. Therefore, it increased investment in education, establishing numerous new schools and colleges and promoting a modern education system. The curriculum expanded beyond traditional religious and cultural knowledge to include modern disciplines such as science, technology, engineering, and mathematics. This widespread education cultivated a large number of professionals for Iran, providing intellectual support for the country's industrialization process.

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