7 - From Disparity to Planned Development: 1954–1962

Summary

A transformative period in Iran’s oil industry was heralded by the entry of an international oil consortium, initiating a new era in exploration, refining, and global marketing of Iranian oil, characterised by a shift from British to predominantly American leadership. The consortium’s early initiatives included transferring all non-industrial services, such as education, health, and housing – previously managed by the Anglo-Iranian Oil Company – to a newly established department within the National Iranian Oil Company, now known as the Organisation of Non-Industrial Tasks. Additionally, the consortium significantly reduced the industry’s workforce, leading to widespread unemployment among various worker segments in Iran. This economic downturn, where the rising cost of living was unaligned with wages, incited labour protests within the oil industry. The analysis also probes into a significant challenge faced by the Iranian government and its primary supporter, the United States: navigating the substantial hurdles during this era. This examination offers profound insights into the complex interplay between international business interests, local economic conditions, and labour dynamics amid the geopolitical shifts that were reshaping the socio-economic landscape of Iran during this critical juncture.