In the 1960s, a bright idea emerged: "Communism spreads because of poverty!" The thinking went that agricultural societies would remain stuck in poverty until they industrialized. So, America's grand strategy to combat communism? Poverty eradication through industrializing the world's farmers.
To achieve this, they pushed land reform programs and modernized agriculture. The mastermind behind it all? Walter Rostow, a famed economist with a book called The Stages of Economic Growth. The U.S. even pressured its allies, like Iran, into land reforms, thinking this would do the trick.
But this whole plan was a classic misreading of institutional economics. They believed that by breaking up landowner control and pushing through land reforms, they'd magically create a modern, industrial economy.
And the cherry on top? The most extreme version of this mindset was exporting democracy—something we've painfully witnessed over the last two decades. Under the guise of "institution-building," the U.S. left a trail of disastrous results in its wake.
Now, let's talk about Iran’s land reforms. Taking lands from the landowners was a massive blunder. First, it was an outright invasion of private property. Second, it made the landowners powerful enemies of the Shah. And third, the farmers, unable to manage their newfound land, flocked to the big cities over the following years. They eventually became a driving force behind the Islamic Revolution of 1978!
#grownostr #history #libertarianism #Iran #privateproperty #revolution #economics #state #institutionaleconomics #institutions #democracy
