Persian Empire 1845

Chapter 205 Deepening Reform
If he could, Nasser al-Din would not have visited the four Mediterranean countries.

He originally thought that the four countries were only bad at the economy, but he didn't expect that their other places were also strange.

He arrived in Lisbon and met King Pedro V of Portugal, who was known as the King of Hope. Pedro V actively promoted public works such as roads, railways, and telegraphs, as well as improved public health, and was therefore highly popular and deeply loved by the people.

This was the only good monarch he had ever met, far superior to the Spanish Queen beside him. Nasser al-Din felt a chill run down his spine when she had to fumble around to shake his hand.

On the issue of African colonies, Nasser al-Din proposed to purchase Portugal's Mozambican coast. Pedro V, however, was not interested, but suggested selling Cabinda in the Congo region to Iran, a territory Portugal had little interest in.

But Nasserdin wasn't really interested either; he wasn't a tyrant like Leopold II. If he wasn't interested in the Congo region, what would he want it for?

Naserdin proposed another deal: Portugal would sell the region north of the Limpopo River to Iran, and they could retain the southern region in return.
Then, Pedro V blatantly ignored it. He only had the Maputo region left south of the Limpopo River; such an agreement was tantamount to amputation below the eyebrows. How could he even dare to propose it?

In Sardinia and the Two Sicilies, unification movements were erupting one after another. Sardinia, after its defeat in the war of independence, had been waiting for the next opportunity, while the Two Sicilies had no intention of unification; they only wanted to maintain their own status. But unification was already the trend; it was just a matter of who would unify the Apennines.

The Shah met with the Prime Minister of Sardinia and signed a free trade agreement. This is a good start for Iranian industry, as Iranian goods need to access more markets and the tariff increases are a positive step.

Iran quickly emerged from the shadow of the economic crisis, with kerosene becoming a new export product, and trade with Arab tribes and the East securing the development of their agriculture and light industry. This allowed Iran to focus more on modernization.

Iran now has the University of Tehran, the University of Tabriz, and the University of Isfahan, as well as four teacher training colleges. Universities in Baku, Mashhad, and Bushehr are still under preparation. Including the army school in Tabriz and the naval school in Bandar Abbas, Iran currently has 5245 university students, but more than half are military or teacher training students.

Under a newly enacted Iranian law, every child in Iran is obligated to attend primary and secondary school. A single-track school system has also been established, meaning all students learn within the same educational framework.

To promote education, the government allocated a large budget to the newly established Ministry of Education and Culture. The need for skilled workers in industrial development also led to the emergence of vocational schools across the country, with various types of schools being established. Currently, there are hundreds of vocational schools of all kinds, and these graduates have expanded into all sectors of society.

Developing education is actually quite expensive and takes a long time to show results; the effects are not visible in the short term. Therefore, the fact that education is being developed in a comprehensive manner and given such importance truly demonstrates extraordinary courage, boldness, and a fearless spirit of adventure.

Besides education, Iran also places great emphasis on healthcare. Particular attention is being paid to reducing infant mortality rates, as Iran currently needs people to drive economic development, hence the high priority given to children. However, both education and healthcare require substantial funding, which is precisely the economic priority the government needs to develop at present. The stock exchange has been approved and officially began trading on March 1st.

When the exchange was first established, only 15 companies were listed, and even then, it only opened after a series of reforms. Moreover, Iran is indeed facing a severe shortage of funds; the trading volume on the first day was only 200 million rials. However, this was a good way for Iranian industry to raise capital.

Because small companies often run out of capital during the factory construction and equipment purchase phases, they have to take out bank loans to start operations. Therefore, Iranian banks provide substantial loans to businesses in need and encourage them to compete with other countries.

Central Asia was likely less affected, as Russian products were hardly worth considering, making Iranian goods their only option. 70% of Khiva's, 60% of Bukhara's, and 55% of Kokand's imports came from Iran. They exported cotton and medicinal herbs to Iran, and also resold tea and other goods imported from Qing China.

But market control alone was not enough; Iran needed actual control. In 1854, Iran launched an expedition with 1300 men to force the Khan of Khiva to repay a debt. Unable to do so, the Khan allowed them to station troops in Khiva and further open the market. Simultaneously, Iran planned a railway from Mashhad to Khiva, expected to be completed within five years.

Iran must win this race against Russia, so it's employing a two-pronged approach: threatening with force and enticing with benefits. Besides Kokand, Bukhara also leans towards Iran, mainly because compared to Russia, Iran is far too good; if all else fails, they can convert.

Furthermore, the only region without competition from Iran is the Arabian Peninsula. There, 99% of the region's food and 95% of its industrial goods are imported from Iran, and are unloaded in Dhahran before being transported.

Many people are unaware of the interests at stake in the Arabian Peninsula, yet Iran continues to supply large quantities of goods and expands its reach. The construction of railways and highways connects inland regions with the coast, and Shia tribes, led by the Shahmari, have pledged allegiance to Nasser al-Din.

The tribes levied tribute on the inhabitants of the settlements and were also responsible for protecting the settlements from external attacks. The oasis residents, in turn, were obligated to pay tribute and provide military support to the tribes. Iran primarily courted the tribal leadership, offering them high-ranking positions, generous salaries, and financial resources—anything they desired, provided they submitted to Iran.

Iran funded the hiring of a 3500-strong Arab cavalry force, which was sent to Central Asia on missions. Some Arab tribal princes also came to Tehran University to study, and they will bring Iranian culture back to their tribes.

But besides the tribes that have already pledged allegiance, some are still observing. They waver between the Ottomans and Iran, one ruled by a predominantly Muslim Caliphate, the other by a Shia Shah, though both are evenly matched. The Khalifa family, particularly in Kuwait, wants to wait and see; perhaps, if possible, they can expand their power and seize control of Baghdad.

(End of this chapter)