An Analysis of the Rise and Fall of Developmentalism in the Fifth Islamic Republic Administration from the Perspective of John Kingdon’s Policy Window Model

Document Type : Research

Author

Institute For Trade Studies and Research

Abstract

Abstract:

The First Economic and Social Development Plan, which began in 1989 following the coming to power of the fifth government and a relative consensus among government institutions and social forces, was a fundamental turn and transformation in the economic policies of the Islamic Republic of Iran. This shift - from a focus on "social justice" to "economic growth" - was designed to strengthen the foundations of entrepreneurship and increase the share of the private sector in the industrial economy. The plan aimed to achieve these goals through privatization policies, the return of expelled and exiled capitalists, and the attraction of foreign capital. However, three years after its implementation, the plan was derailed by unprecedented inflation, increasing corruption, economic instability, growing criticism from opposition forces, and the emergence of social protests. This paper adopts a political economy approach and uses John Kingdon’s “policy window” model to explain the underlying reasons for this policy shift and its eventual failure. The study concludes that the 1989 shift from a state-controlled, distributive economy to an economy of industrial growth and development began with the convergence of three processes: the intensification of social welfare demands after the war, the revision of the constitution and the subsequent restructuring of political power, and the presentation of a clear development agenda by technocrats. These elements temporarily opened a policy window that allowed for the pursuit of industrial growth initiatives. but the economic policies of the fifth administration failed due to the lack of a comprehensive strategy, deviation from the principles of adjustment and privatization policies, and the inability of politicians and policymakers to properly exploit the limited opportunity created. When the policy window was closed, the economic and industrial growth and development program was stopped and the government's economic policy returned to distribution policies and social justice.

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References

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International Political Economy Studies
Volume 7, Issue 2
December 2025
Pages 225-248

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History

  • Receive Date: 24 April 2023
  • Revise Date: 15 June 2024
  • Accept Date: 08 October 2024

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