ABSTRACT
This chapter looks at trends in military expenditures in Iran during, approximately, the three decades preceding the Islamic revolution of 1979 and their impact on economic growth and development. In 1980, the Swedish Agency for Research Cooperation with Developing Countries agreed to support a project that would investigate the economic impact of military spending on developing countries. From the standpoint of relevance to military security and economic policy, the often hostile relations between the rulers and the ruled is one of the most salient characteristics of Iranian political history. The chapter focuses on political observations because such factors are likely to come into play in the relationship between military expenditures and growth: political instability, conflict among various economic actors, and specific military security situations. The chapter also presents an overview of the key concepts discussed in this book.
