ABSTRACT
In the 1970s, the West saw Iran as an island of stability in a volatile region. In reality, it was a classic case for revolution and it has remained a revolutionary state since 1979 when it became an Islamic Republic. Near the end of the 19th century, the Mohammad Reza Shah, close to bankruptcy, tried to raise cash by selling the British company Imperial Tobacco the monopoly rights to the tobacco harvest; the country's leading Ayatollah launched a non-smoking protest and the Shah reversed his decision. After the 1953 coup, the Shah centralized power and built up the state's repressive apparatus. Shah sought consent through economic development and reforms, but his efforts were hampered by corruption, inefficiency and his own unpopularity. Iran promised to spread Islamic revolution. It sent Revolutionary Guards to Lebanon to fight and from 1982 sponsored the new Hizbollah group. In Tehran, students backed by the government took US diplomats hostage, breaking the laws of inter-state relations.
