An analysis of the transition from Asiatic mode of production to Capitalism in Iran from the 18th century to the present. The author reviews the historical stages of development of Iranian capitalist and its relationship with the world capitalist economy with particular emphasis on the imperialist policies which led to the Shah's White Revolution and the crisis ridden type of economic growth that followed it. The rise of the bazaari-clerical opposition to the Shah is explained in relation to these developments.