Persian Empire 1845

Chapter 208 Industrialization and Population
Of course, the Shah wouldn't focus solely on diplomacy; domestic affairs were also something he had to be concerned about.

In the months following the establishment of the stock exchange, a great deal of company stock was traded. They obtained funds, and those who owned the stock became their investors; both sides benefited.

The funds previously planned for heavy industry have already been invested, so the government plans to increase investment by 4000 million rials over the next few years. At the same time, more state-owned enterprises will be established to encourage investment from the Iranian people.

The textile industry is arguably Iran's fastest-growing sector. As a producer of everyday consumer goods, it has accumulated substantial start-up capital for industrialization, possesses skilled technicians and workers, enjoys a large domestic market demand, rapid capital recovery, and high returns. Compared to heavy industry and transportation, it has a lower capital structure, higher labor consumption, and cheap labor. These favorable factors have made the textile industry a starting point for industrialization.

The textile industry is a key industry in humanity's transition from a state of being to one of self-awareness. Only by mastering textile technology could humanity enter civilized society. The significance of textiles to humanity is defining in terms of species. People often say "clothing, food, shelter, and transportation," with clothing—textiles—ranking first among the basic needs of human civilization. Textiles determine the hierarchical progression of human society. Hand weaving led humanity into pre-capitalist agricultural civilization, while machine-made textiles led humanity into capitalist industrial civilization. The textile industry initiated modernization because "in this process, textile manufacturing took place in steam-powered factories with greatly improved efficiency."

Tabriz was originally the center of the textile industry, but this gradually shifted to Tehran. The two cities account for 21% and 35% of mechanized looms respectively, but hand-weaving still exists. Tehran and the surrounding area have 322 textile factories with 10877 hand-looms, 2175 mechanized looms, and 26305 workers, generating an output of 910 million rials. Iran's textile industry imports cotton from Central Asia, India, and the United States, and exports it to its colonies and the Far East.

In 1849, the Tehran Textile Joint Stock Company was established, becoming Iran's first textile company. Its initial capital was 200 million rials, with shareholders including Iranian royalty, dignitaries, and the Federation of Industries. Today, it has grown into a large enterprise with assets of 600 million rials.

The textile industry in Tabriz has largely implemented modern enterprise systems—its level of corporatization and mechanization is the highest in the country. The return of the South Caucasus not only expanded the market but also provided access to a significant labor force.

Iranian industry, represented by the textile sector, is struggling to grow, and in order to protect it, the Shah decided to raise all tariffs to 17.5%. He also encouraged them to compete with other countries to make money.

The mode of production is a catalyst for structural social differentiation. Large-scale industrial production transformed the patriarchal, self-sufficient social stratification into a free, self-achieved social stratification, leading to the emergence of a propertied class and a proletariat in Iran. The Iranian bourgeoisie's dependence on the regime was the guarantee of their wealth accumulation. Because of the Iranian government's policies supporting industry, they became the government's biggest beneficiaries and staunch supporters.

Heavy industry is the equipment manufacturing sector of industrialization. Iran's heavy industry started with machinery and equipment manufacturing and the military industry. With government encouragement of development, private capital also entered the market. In 1855, Iran had 22 machine factories nationwide, five times the number in Russia, employing 4582 workers and generating an output value of 248 million rials. The growth of the machine manufacturing industry provided the material foundation for industrialization, making large-scale machine production possible and reducing machine prices to levels necessary for widespread use.

"It's not just the textile industry; papermaking, printing, food, and other industries are also experiencing different developments. Cities like Isfahan are seeing population growth, and of course, the most important factor is the rapid population growth across the country."

According to the Iranian population report completed last year, Iran's total population in 1855 was 1524 million, with 801 million males and 723 million females. The population distribution was predominantly western with fewer females, and more than 200 million people became Iranians through territorial changes.

Even such reports are incomplete, as many farmers in the mountains were not counted. Investigators only surveyed the population of cities and major villages, neglecting to send personnel to remote areas, thus leaving the exact number of these people unclear. Land reform released a large pool of free labor, who either went to work in cities or farmed in the countryside. To recoup their losses, large landowners began using agricultural machinery or cultivating cash crops, leading to the development of commercial agriculture. This provided the initial capital accumulation for industrialization.

Land reform created a large smallholder class, and agricultural production growth benefited from a significant increase in privately owned, self-sufficient farmers. Iran's agricultural production methods were relatively extensive, with low-tech production. However, after the reforms, the pursuit of agricultural machinery and technology led to a substantial increase in agricultural output. Industrial production also showed a clear tendency to be driven by agriculture.

Advances in sanitation were also a significant factor in population growth; in Tabriz and Tehran, infant mortality rates halved and overall mortality rates decreased by a quarter. As civilization spread, polygamy came under attack, with intellectuals advocating for monogamy, but this was opposed by conservative clergy who argued they had no right to alter the Quran.

The pipe was lit, and Nasserdin, looking at this hard-won achievement, felt it was an excellent start. The next step should be to continue promoting the economy and high technology, especially oil.

Oil was singled out for the Shah to review, and the Iranian Oil Company began searching for oil throughout Iran, while also exploring other parts of the world using investment opportunities.

This is mainly due to a surge in kerosene orders from Iran, with a large influx of orders from Europe. If all orders are fulfilled, the company could earn over 800 million rials.

How could the company let this opportunity slip by? On the one hand, they rushed to build the kerosene plant, and on the other hand, they explored for oil resources throughout the country. If there was oil in Baku, then there must be some in the nearby areas, but they just hadn't discovered it yet.

Oil revenue has become Iran's fastest-growing source of income, and the company's annual profit remittances have increased significantly. If another oil field is discovered, then there will be no need to worry about money in the future.

"The situation is better now than it was ten years ago, but we can't let our guard down. Britain became a world superpower with a territory much smaller than ours. If they can do it, so can we."

Britain became a world superpower by taking the lead in the First Industrial Revolution, possessing not only vast colonies but also an invincible navy. Iran can do the same.

(End of this chapter)