Death of a prominent person,

Khodadad Farmanfarmaian

Five years ago, when Mehdi Sameii – prominent Iranian banking and planning figure who served as the Head of the Planning Organization and Chief of the Central Bank and a candidate for Prime Minister in Shah’s period – died in Los Angeles, Khodadad Farmanfarmayan, who was his deputy and a close friend wrote: “Mehdi Sameii was unique and a director whose signature worked like the credit of national money; he belonged to a short unprecedented period in Iranian history which was never repeated again.”

The period referred to in this remark is the politically tranquil years in the history of Iran; between 1955 and 1975, when the Royal Government of the country, hand in hand with the West, was going through a prosperous economic growth. This was an exception in the history of this ancient nation. The driving force of this period was a group of Iranians educated in world’s best universities, who were on the brink of being absorbed by the US and European labour market, but were recruited just in time by the Iranian government. One can name a group of fifty graduated Iranians who loved their country and returned to Iran, happy of the tranquil atmosphere of the country. Enthusiastic about their country, they came to have an impact on the process of their country’s development. But many of them were in their mid-ages and were driven out of the scene in the fifties and this marked the beginning of the end to those happy dreams, as many analysts believe.

Khodadad Farmanfarmayan, who died of cancer in a London hospital on 16^th December 2015, aged 87, did not mention his own name when he talked about Mehdi Sameii. He was one of the few outstanding figures in Iranian technocracy who abandoned his Princeton and Harvard University positions, to return to Iran in the tranquil atmosphere of the second half of the thirties, when he was in his twenties. It was believed the country was in a golden era and was filling the gap with the industrial countries.

Khodadad was one of the smallest children of Abdolhossein Farmanfarma, famous Qajar Prince and the first prime minister after the Constitution. When he entered into public services he thought working in an economic research centre such as the Plan and Budget Organization will not turn him into a “subject of the State”. The Qajar Prince prohibited his children from working for the state. But Khodadad left his position in Princeton and flew to Tehran.

At that time the Americans had proposed economic and development aid to Iran and requested an organization to take care of and coordinate the development process in the country and to elaborate six year development plans. Abolhassan Ebtahaj, neglecting the ruling power and the temporary government, established a data bank in the Plan and Budget Organization and created a specialist team, aware of the global changes, to manage the elaboration of developments plans, confirmed by the international and Western centres to be the key to the progress of underdeveloped countries.

When Khodadad Farmanfarmayan worked in the economic research centre, one of his relatives, Ali Amini, economist and economic minister during Mosaddeq period, became the Prime Minister. In a row between Amini and Ebtehaj, both trusted by the Americans, Ebtehaj had to quit the Plan and Budget Organization; but his legacy remained: educated Iranians aware of global situation who were each appointed to be in contact with domestic and foreign clients.

Mehdi Sameii became the third chief of the Plan and Budget Organization; same as Ebtehaj in Central Bank. Khodadad Farmanfarmayan replaced Sameii in both cases.

One thing that all those in the Plan and Budget Organization and the government after the 60s had in common was that they all were in ages similar to the last Shah of Iran. What they saw in Mohammad Reza Shah was a democrat who loves the development of the country and to pull out the country from poverty. They realised that he, unlike traditional ruler, was keen to listen and learn and wants to list Iran under the industrialized countries.

Khodadad Farmanfarmayan, even before he became the deputy of the Plan and Budget Organization, had the opportunity to talk to Shah in economic council, when he served in the economic centre of the organization. As he described in his memoire, he was delighted to talk to Shah and sometimes criticized the programmes relentlessly. The elder politicians of the time recommended him to keep his distance with the Shah. But Khodadad Farmanfarmayan was a technocrat, planner and researcher. He had a simple life and was committed to what he had learned and could not but speak frankly and to the point. Along with the Land Reform programme, Shah invited Mehdi Sameii to become the chief of the central bank and to develop the bank, just like its global counterpart, as an institute independent from the government and other fluctuations. Sameii responded to Shah by saying that he is an accountant and knows nothing about banking and told him he can only accept the job if Khodadad Farmanfarmayan becomes the deputy chief of the bank. Shah said Khodadad Farmanfarmayan is a supporter of Mosaddeq. And this was a serious allegation at that time. Shah was pointing to the 1953 coup in which Dr Mossadeq, relative of Khodadad Farmanfarmayan, was toppled during Winston Churchill government and the help of the CIA. Dr Mossadeq was the nephew of Farmanfarma’s children. Despite this, Sameii persistence lead to Khodadad Farmanfarmayan going to the Central Bank.

Khodadad Farmanfarmayan says in his autobiography in a long interview with his colleagues in the Plan and Budget Organization, before going to the central bank, that they even challenged Shah’s decision to weapon purchases. They even once wrote a letter in this regard, signed by him, Reza Moghaddam and Cyrus Sameii and sent to Shah’s office; a move that had severe consequences years after when he was dismissed.

After the Royal Celebrations, which the Shah called a big victory and a sign of the exceptional progress, the rise in oil prices brought the queue of ships waiting in Iranian ports, bringing all sorts of commodities from around the world. The inflation was high and popular demands from the government was on the rise. Rural immigrants settled around large cities. This situation was partly anticipated by the new generation managers before.

Khodadad Farmanfarmayan, who had written about the land reform and modification in agricultural system years ago and had discussed this with Hassan Arsanjani (becoming the next Agriculture Minister and executive of the land reform), like many of his colleagues, criticized some points in the “Revolution of Shah and the people.”

In the 50s, the younger managers such as Alinaqi Alikhani, Ardeshir Zahedi, Mehdi Sameii and Khodadad Farmanfarmayan, were driven off the ruling body one by one, which lead them to work in the private sector. Rumours in the political circles attributed this to the competition by Amir Abbass Hoveyda, the obedient prime minister. But, as mentioned a few times in the years to come, Shah’s eagerness to progress the country was so intense that he could not accept any criticism or challenge. He mocked the intellectuals and technocrats saying they do whatever he says.

Their first dispute with Shah rose when the oil prices increased. Economists and the educated people warned him about the coming crisis. They recommended to save the oil revenue for infrastructural works. They often warned Shah in public and private meetings of the coming inflation and recession.

The second pint which distanced Shah from them was his view about reaching the peak in a short time – as turning in one of the five top industrial countries in five years. No economist deemed that feasible.

Twenty eight years after the fall of the royal rule in Iran, once again the rise in oil prices made the country susceptible to yet another crisis, which the international system tried to prevent by the sanctions upon Ahmadinezhad’s government. People like Alinaqi Alikhani and Khodadad Farmanfarmayan were to witness the history repeat itself.

A review of 87 years of life of Khodadad Farmanfarmayan is an occasion to review a special period in Iranian history and the missed opportunity of a generation of Iranian, who came to participate in the progress of their country but was faced by a modern and reformist dictatorship who blocked the way for any progress. Eight years after Khodadad Farmanfarmayan quit the governmental roles to join the private sector, the Shah was faced with a popular uprising which toppled him and gave way to a middle ages type of rule and all those technocrats were either executed or forced to leave the country. Khodadad Farmanfarmayan managed to flee after a short time after the revolution and went to Britain and stayed there until the end of his life. He used his expertise in international banking and educational institutions.

He established two academic institutions in Iran which were related to Harvard University and European academic centres. He was proud of his educational endeavours, much more than his high ranking and managerial roles.

Where did he come from?

Khodadad Farmanfarmayan was eleven years old when his father died. When he was born Farmanfarma had no more power because all the power concentrated in the hands of Reza Khan Pahlavi who even turned their house into his personal palace. After the WWII he went to Beirut, like many of Farmanfarma’s children and then to the US to study.

He was studying in Stanford when due to the process of the nationalisation of oil industries he could not receive money from Iran. For the first time after eleven years he came to Iran by a university loan and travelled to many parts of the country.

His article Social change and economic approach in Iran, was published in prominent Harvard publications by the help of Professor Cole. This put him in the centre of interest. Many of the things which occurred in the management system of the country was what he mentioned as the main infrastructural framework needed for the country.

He was twenty when he defended his PHD thesis and married Joanna. She was with him for 67 years. They had three children. Khodadad Farmanfarmayan had no arrogance of a prince and no failure or success ever changed his course. He had a well intention and a freedom lover and remained so until his last days.

 from: BBC Persian