Persian Empire 1845

Chapter 54 Economy and Diplomacy

Tehran is gradually returning to order, and market transactions are proceeding normally.

The citizens were discussing the events of the past few days, surprised that the once-powerful Shia clerics had been so easily defeated by the government.

How much do you know about what's been happening in Kum lately?

"I heard that a lot of people have been arrested, and a fire has been set on fire. It looks like it's going to burn everything to the ground."

The more they talked, the more they felt the government was taking more and more actions. Farmers, in particular, who now come to the city to sell their crops are constantly praising the Shah's benevolence.

"This is likely going to be a big change. Everyone's been saying we should learn from the West, but what is there to learn from the West?"

"Never mind all that, just follow the orders from above."

The farmers in Tehran were the first to receive the land, and the landowners also received compensation. Although they lost a considerable amount of land and rent, it was negligible compared to the losses suffered by the religious groups.

Even royalty and nobility exchanged a lot of land for money, preferring to make a quick buck rather than simply collecting rent every year.

The farmers have received their land, but most of it was through loans, meaning they'll have to repay those loans to the government for the next few decades. The thought of being the owners of this land has greatly increased their enthusiasm, and they expect a good harvest next year.

Nasser al-Din already wields absolute power in the court. The Shah's illness is of unknown duration; if he were to suddenly pass away, this would serve as valuable experience. Amir's status has also risen with his position, becoming both Finance Minister and Minister of Industry and Commerce, effectively controlling Iran's economic sector.

"Your Highness, the King of Prussia sends his sincerest blessings to the Shah. He hopes for a speedy recovery."

Hans von Hoffmann, the Prussian ambassador to Iran, saluted Naser al-Din. As the first Prussian ambassador, he came with a mission for Prussia.

Prussia also wanted to gain more market share, and domestic capitalists also wanted to gain more profits. The Persian delegation's visit was a good opportunity to build good relations with them and perhaps gain access to a large market.

After sending representatives to confirm the appointment with the Persian Shah, Prussia officially appointed Hoffmann as its ambassador to Persia, responsible for diplomatic affairs in the region.

"You must be tired from your journey. Why don't you rest for a while?"

"Thank you for your kindness, Your Highness, but I am not tired yet. This is a gift from our King to your Shah. Please accept it."

Meanwhile, in a room at the Ministry of Finance, Amir was meeting with another German who had arrived.

"You must be Mr. Liszt. You are indeed extraordinary. I have read your books and benefited greatly from them."

"So you've read my book too. What are your thoughts?" Friedrich List hadn't expected that he had such a loyal readership in Persia, thousands of kilometers away from Prussia. As the founder of the economic history school, List's advocacy of trade protectionism and the priority of heavy industry was unacceptable to classical economics. He also pushed for the establishment of the German Customs Union, but progress stalled.

He was already disheartened and ready to end his life. But Prussia wanted to send a delegation to Persia, and he was fortunate enough to be chosen to go with them to Tehran.

"Your theory of industrial development is very well explained, and even the Crown Prince loves your book."

Liszt was delighted to hear that his work had won the favor of the Crown Prince; his ideas had finally been affirmed.

"Would you be willing to become an advisor to our country and contribute your wisdom to Iran's economy?"

How could Liszt refuse such an invitation? He accepted immediately. He wanted to realize his ideals here.

Franz List pioneered the theory of stages of economic development. In his book, he wrote: "From an economic perspective, all nations must go through the following stages of development: the primitive, undeveloped stage – the pastoral stage – the agricultural stage – the agricultural and manufacturing stage – the agricultural, manufacturing, and commercial stage." In his view, these five stages of development are sequentially progressive.

Because his concern was how to transform a backward agricultural country into an industrial power, his discussion focused on the latter three stages. He believed that countries in the agricultural stage should strive to transition to the agricultural and manufacturing stage, and then to the agricultural, manufacturing, and commercial stage. In List's view, the fifth stage of development—agriculture, manufacturing, and commerce—represented the ideal state of economic development. At this stage, agriculture, manufacturing, and commerce cooperate harmoniously and develop in equal proportions, and the nation's existing resources are available for manufacturing.

Lister became an economic advisor to the Ministry of Commerce and Industry, and with Moltke training troops in Dabriz, Prussia's influence on Persia was gradually deepening.

----------

The civil war in Persia did not hinder Said's journey in Central Asia. In Bukhara, he signed a treaty of friendship and trade with the Emir of Bukhara, strengthening relations between the two countries. However, he encountered obstacles in Kokand.

After gaining independence from Bukhara, the Khanate of Kokand reached its zenith. Through military campaigns, it conquered Turkestan, the main city of the Kazakh region, forcing the Kazakh and Kyrgyz tribes in the area to submit. Its territory stretched from Lake Balkhash in the north to the Syr Darya River basin in the west, reaching its zenith.

During this period, internal divisions gradually emerged within the ruling class, and rebellions by nomadic tribes such as the Kazakhs and Kyrgyz occurred frequently, making the regime practically unstable. Russia's invasion of the Kazakh steppe from the north directly threatened the Khanate of Kokand's rule in the region. The Khanate attempted to ally with the Ottoman Empire and maintain friendly relations with Britain to contain Russia's southward expansion. However, the Khanate of Kokand, its power greatly diminished, no longer possessed the strength to withstand pressure from Russia.

Nevertheless, Kokand remained wary of Iran. They were only willing to sign a trade treaty, not a treaty of alliance. No matter what Said said, it wouldn't work; he had no choice but to take the treaties back to report.

The situation in Central Asia has been settled. If we can also exert influence over India and Afghanistan, the Shah would probably be very happy.

If Afghanistan is still tolerable, then they should consider whether they've already booked their own graves if India gets involved. Touching the jewel in the British crown is practically suicide.

Moreover, apart from the Mughal Empire, which is now officially recognized, the only independent and autonomous state in India is the Sikh Empire; the rest are British protectorates. If Persia were to make a move here, British troops would simply march in.

“Hmm, let’s go check out Kabul and Herat,” Sayyid said, looking at the map and deciding to go to Afghanistan. India could wait for another chance.

(End of this chapter)