Persian Economies
An economic history of Persia, or Iran.
Economics of Ancient Persia
The first empire of Persia, the Achaemenids, introduced a number of economic innovations to the ancient world. After conquering the Lydians, the Persians quickly spread their use of coins through the gold daric and silver siglos. They recognized the value of a centralized economy unified by an official currency. The Achaemenids organized their empire through provinces under a Persian governor. Each province, or satrapy, paid taxes in silver or gold based on their agricultural wealth. Others brought annual tributes of goods like grain crops, livestock, and spices to the Persian kings. Satrapes were connected by an extensive network of roads, with caravansary trading posts maintained along the way. The Royal Road stretched from Susa to Sardis, a distance of 1,667 miles. A series of mounted courier stations could make the journey in about a week.
Persia and the Silk Road
The Achaemenid Royal Road was a precursor to the later Silk Road that connected China to the Mediterranean and Middle East. Persia lay directly along this route, which formed during the 2nd century BCE. Sasanian Persia grew to be a major trading power, dealing in silver and silks in particular. Its artisans purchased bolts of raw silk from China to be embellished and sewn into clothing. They then moved their wares westward to feed hungry Greek, Roman, and European markets.
Under Islamic and Mongol rule, trade continued to flow through Persia. Its artisans never lost their cultural identity and were renowned for their craftsmanship. Tabriz and Baghdad rose to prominence as the major trade cities under Iranian influence. Covered bazaar markets, originally a Persian term, spread across the Islamic world. The Silk Road also proved pivotal for the Mongol Empire, connecting its distinct khanates across vast distances. The Persian Ilkhanate enjoyed particularly close ties to China’s Yuan dynasty.
The Economy of the Safavids
The next major Iranian dynasty, the Safavids, emerged into a world that was slowly moving past the Silk Road. Booming European markets, fueled by wealth from the New World, remained eager for Persian silks, carpets, and jewelry. Illuminated manuscripts also proved popular within Islamic trade. Caravansaries and bazaars continued to shelter traders as they passed to and fro. At this time, international trade in Persia was mainly conducted through Armenian merchants, who carried Persian goods as far as Europe, India, and China.
The majority of the populace, however, continued their ancient farming practices in rural areas. The Safavids launched a drive to renew infrastructure in both urban and agrarian provinces. Because Iran is not fed by regular rainfall or mountain streams, irrigation is of critical importance to its agriculture. Poorer farmers raised sustenance crops and livestock, primarily poultry. Those closer to the cities might instead focus on cash crops like fruits, spices, cotton, and tobacco. Agricultural taxes remained the major source of income for the Safavids.
Modern Economics of Iran
Modern Iran has swung between periods of rapid industrialization and nationalization. Oil, while a lucrative industry, brought with it the complicated global politics of the Middle East. Today, Iran is home to a young and educated workforce. Since the Iranian Revolution in 1979, the nation has struggled to cope with foreign sanctions, black markets, and general civil corruption. The majority of its industries are now state-run. Rising inflation and dropping wages have spurred political unrest within the country.
References
Amanat, Abbas. Iran: A Modern History. Yale University Press. 2017.
André-Salvini, Béatrice. Forgotten Empire: The World of Ancient Persia. University of California Press. 2005.
Archibald, Zofia H., John Davies, Vincent Gabrielsen, and Graham Oliver, Eds. Hellenistic Economies. Routledge. 2006.
Axworthy, Michael. A History of Iran: Empire of the Mind. Basic Books. 2016.
Dandamayev, Muhammad A. Iranians in Achaemenid Babylonia. Mazda Publishers. 1992.
Lemon, Jason. “Iran's President Faces Political Backlash as Protests Rock Major Cities.” Newsweek, Newsweek, 1 Aug. 2018, www.newsweek.com/iran-president-faces-political-backlash-protests-rock-major-cities-1053360.
Newman, Andrew. Safavid Iran: Rebirth of a Persian Empire. I.B. Tauris. 2012.
Savory, Roger. Iran Under the Safavids. Cambridge University Press. 2007.
Strassler, Robert. The Landmark Herodotus: The Histories. Anchor Books. 2009.
“The World Factbook: Iran.” Central Intelligence Agency, Central Intelligence Agency, 12 July 2018, www.cia.gov/library/publications/the-world-factbook/geos/ir.html.
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