Examining Institutional Barriers to Transition from a Natural State in Iran During 1941–1979

The development theorists and thinkers have put forward various ideas about the lack of convergence of the development path in different societies. In this regard, as one of the new institutionalists, North discussed the transition from limited access order (natural state) to open access order with an emphasis on the issue of violence. In this chapter, attempts have been made to examine the institutional barriers to transition from the natural state of Iran during 1941–1979. The results of this research indicate that during this era, synergies between extractive political and economic institutions created a vicious cycle. Competition and struggles in this era for gaining benefits were merely enclosed in the hands of a certain group; thus, the political atmosphere was closed so that their interests be supported. Disturbances in this era were in order to achieve economic rents under the control of other groups. Under such circumstances, the long-term balance between political and economic institutions was not made possible which led Iran to experience an era of basic limited access order and then to move toward a fragile limited access order and eventually the chaos instead of moving toward an open access order.