The Actual History
The Iranian Revolution of 1978-1979 stands as one of the most consequential political transformations of the late 20th century. Prior to the revolution, Iran was governed by Mohammad Reza Pahlavi, the Shah of Iran, who had ruled since 1941. The Shah's regime was firmly aligned with Western powers, particularly the United States, which had helped restore him to power in 1953 following the CIA-backed coup against democratically elected Prime Minister Mohammad Mossadegh.
Throughout the 1960s and 1970s, the Shah pursued an ambitious modernization program known as the "White Revolution," which included land reform, industrial development, women's suffrage, and secularization of education. While these reforms created a growing middle class and improved literacy rates, they also generated significant opposition from traditional sectors of Iranian society, particularly the religious establishment. The Shah's regime was increasingly characterized by authoritarianism, with his secret police (SAVAK) violently suppressing dissent.
By the mid-1970s, economic disparities had widened despite Iran's oil wealth. Rapid inflation, housing shortages, and perceived corruption fueled popular discontent. The Shah's lavish 1971 celebration of 2,500 years of Persian monarchy at Persepolis, costing an estimated $100-200 million, became symbolic of the regime's disconnection from ordinary Iranians.
Opposition to the Shah united disparate groups: Islamists led by Ayatollah Ruhollah Khomeini (exiled in Iraq and later France), leftist students, liberal nationalists, and traditional merchants (bazaaris). Mass protests began in January 1978 after a government-planted newspaper article insulted Khomeini. The Shah's security forces responded with violence, most notably on "Black Friday" (September 8, 1978) when hundreds of protesters were killed in Tehran's Jaleh Square.
By late 1978, strikes had paralyzed the economy, including the crucial oil industry. The Carter administration's support for the Shah wavered as the crisis deepened. On January 16, 1979, the Shah left Iran ostensibly for a "vacation," never to return. Ayatollah Khomeini triumphantly returned from exile on February 1, and on April 1, 1979, following a national referendum, Iran was officially declared an Islamic Republic.
The new regime quickly consolidated power by eliminating political rivals and establishing a theocratic government based on Khomeini's concept of velayat-e faqih (guardianship of the Islamic jurist). The revolution's aftermath included the seizure of the American embassy in Tehran and the subsequent 444-day hostage crisis, the Iran-Iraq War (1980-1988) that cost hundreds of thousands of lives, and Iran's transformation from a Western ally to an Islamic republic fundamentally opposed to American influence in the region.
The revolution's ripple effects extended far beyond Iran's borders. It inspired Islamist movements across the Muslim world, exacerbated Sunni-Shia tensions, affected global oil markets, and dramatically altered the geopolitical landscape of the Middle East. Four decades later, the Islamic Republic remains a significant regional power and continues to challenge Western interests in the Middle East.
The Point of Divergence
What if the Iranian Revolution never happened? In this alternate timeline, we explore a scenario where the coalition of forces that successfully toppled the Shah in 1979 either failed to coalesce or was effectively neutralized by the Pahlavi regime.
Several plausible points of divergence could have prevented or significantly altered the revolution's trajectory:
First, the Shah's response to early protests might have been fundamentally different. In our timeline, Mohammad Reza Pahlavi's approach oscillated between brutal crackdowns and conciliatory gestures, undermining his authority. If the Shah had implemented meaningful political reforms earlier—perhaps establishing a genuine constitutional monarchy with democratic elements while maintaining strong control of security forces—he might have divided the opposition and preserved his rule. The appointment of a broadly respected Prime Minister with greater autonomy to address economic grievances could have provided a pressure release valve for public discontent.
Alternatively, U.S. policy toward Iran could have shifted significantly. The Carter administration's human rights emphasis complicated its relationship with the Shah. Had the U.S. provided more consistent support—either through stronger backing of the regime or by encouraging manageable reforms earlier—the revolutionary momentum might have been disrupted. Intelligence sharing about opposition movements, particularly regarding Khomeini's activities in exile, could have been more effective.
A third possibility concerns Ayatollah Khomeini himself. The religious leader's exile in Iraq and then France allowed him to coordinate opposition activities with relative freedom. If Khomeini had been more effectively isolated, perhaps through Iraqi cooperation in restricting his activities (given Saddam Hussein's own fears of Shia rebellion), or if the Shah's intelligence services had succeeded in neutralizing key revolutionary organizers, the opposition might have lacked its galvanizing spiritual leader.
Finally, the economic factors that fueled discontent could have been addressed differently. Had the Shah moderated the pace of modernization and ensured the oil wealth was more equitably distributed, economic grievances might not have reached critical mass. A less ostentatious display of royal wealth coupled with more visible investments in public infrastructure and social welfare might have preserved critical public support.
In our alternate scenario, we'll explore how a combination of these factors—more effective political reform, consistent U.S. support, neutralization of key opposition figures, and better economic management—might have prevented the revolutionary coalition from achieving critical momentum in 1978, allowing the Pahlavi dynasty to weather the storm and evolve rather than collapse.
Immediate Aftermath
Political Stabilization (1978-1981)
In this alternate timeline, the Shah's regime implements a "Responsive Monarchy" initiative in early 1978, immediately following the first protests in Qom. Rather than alternating between harsh crackdowns and belated concessions, the Shah appoints a respected moderate, possibly someone like Shahpour Bakhtiar (who briefly served as Prime Minister during the Shah's final days in our timeline), but much earlier and with genuine authority to implement reforms.
This new government takes several crucial steps:
- Curtails SAVAK's more brutal practices while maintaining intelligence gathering capabilities
- Releases political prisoners not linked to violent organizations
- Establishes a genuine multi-party parliamentary system, albeit with significant royal oversight
- Introduces anti-corruption measures targeting the most visible examples of cronyism
Meanwhile, Ayatollah Khomeini's influence is significantly constrained when Saddam Hussein's government in Iraq, encouraged by both Iranian and American intelligence services, places him under stricter house arrest in Najaf, limiting his ability to communicate with followers in Iran. When Khomeini attempts to relocate to Kuwait (as he did in our timeline), he is denied entry. Without the move to France that provided him greater freedom to coordinate the opposition, his messages become more sporadic and less effective at mobilizing resistance.
By mid-1978, the protest movement shows signs of fragmentation. Liberal nationalists and moderate religious leaders cautiously engage with the reform process, while leftist students and hardline Islamists remain opposed but find themselves increasingly isolated.
Economic Corrections (1978-1980)
The Shah's government addresses economic grievances through several measures:
- Redirects funds from military purchases and prestige projects toward housing development and basic infrastructure
- Implements targeted subsidies for essential goods to combat inflation's impact on ordinary citizens
- Gradually moderates the pace of industrialization to reduce rural-urban migration pressures
- Creates a more transparent sovereign wealth fund to better manage oil revenues
These economic measures, while not solving all structural problems, provide enough relief to reduce public anger. The oil industry, which had been paralyzed by strikes in our timeline, continues functioning, maintaining crucial revenue streams for the government.
International Relations (1978-1982)
The Carter administration, seeing the Shah successfully navigating the crisis, maintains its support while quietly encouraging continued human rights improvements. The U.S.-Iran relationship evolves toward a more sustainable partnership rather than the complete rupture that occurred in our timeline.
In regional politics, a stable Iran continues its role as a key U.S. ally during the Soviet invasion of Afghanistan in December 1979. The Shah positions Iran as both a bulwark against Soviet expansion and a moderating influence in the region. Iran's military, continuing its modernization with American equipment, remains the dominant conventional force in the Persian Gulf.
Religious Accommodation (1979-1982)
Rather than being overthrown, the Shah's government attempts reconciliation with the religious establishment through:
- Moderating the most controversial aspects of Westernization
- Providing greater funding for religious institutions
- Incorporating more religious education in the national curriculum
- Giving moderate clerics positions on supervisory cultural boards
While hardline clerics remain opposed to the regime, moderate religious leaders find ways to work within the evolving system. Without the Islamic Revolution's success as inspiration, religious opposition throughout the region takes more moderate forms, focusing on gradual Islamization within existing political structures rather than revolutionary overthrow.
The Hostage Crisis That Never Was
Perhaps the most immediate difference in this alternate timeline is the absence of the Tehran hostage crisis. The U.S. embassy continues normal operations, and American personnel move freely throughout Iran. Without this 444-day crisis, U.S.-Iran relations develop along a more cooperative trajectory, and American public perception of Iran doesn't experience the dramatic negative shift that occurred in our timeline.
By 1982, Iran has transformed into a semi-constitutional monarchy with greater political participation, continued economic development, and a more balanced approach to modernization that attempts to bridge traditional values with progressive reforms—a very different path than the Islamic Republic that emerged from the revolution in our timeline.
Long-term Impact
Evolution of the Iranian Political System (1980s-1990s)
The Late Pahlavi Era
By the mid-1980s, Iran's political system would have evolved into what political scientists might term a "guided democracy" or "authoritarian constitutionalism." The Shah, aging and aware of his mortality (he died of cancer in 1980 in our timeline), increasingly focuses on ensuring a stable succession for his son, Crown Prince Reza Pahlavi.
The parliament (Majlis) gains greater independence, though the Shah retains final authority on matters of defense, foreign policy, and major economic initiatives. Opposition parties are permitted within boundaries that exclude revolutionary ideologies. The system resembles other liberalizing authoritarian regimes of the period, such as Taiwan under Chiang Ching-kuo or South Korea under Roh Tae-woo.
When Mohammad Reza Pahlavi dies (likely in the early 1980s given his cancer diagnosis), Crown Prince Reza ascends to the throne. Having been educated in the West but attentive to the lessons of the late 1970s crisis, Reza Pahlavi II likely accelerates political liberalization while maintaining the monarchy's central role—somewhat similar to Spain's transition under King Juan Carlos.
The Regional Security Environment
Without the Iran-Iraq War (1980-1988), which claimed between 500,000 and 1.5 million lives in our timeline, both countries follow significantly different trajectories:
- Iran maintains its position as the dominant Gulf power, continuing military modernization with American equipment
- Iraq under Saddam Hussein, while still pursuing regional influence, lacks the pretext of attacking a weakened revolutionary Iran
- The massive economic costs of the war (estimated at $627 billion for both countries combined) are avoided, allowing greater investment in development
By the 1990s, tensions between these regional powers remain, but express themselves through competition for influence rather than direct military confrontation.
Economic Development (1980s-2010s)
The Iranian Economic Model
Without the revolution and subsequent isolation, Iran's economy likely follows a development path more similar to other oil-rich modernizing states:
- Continued integration with global markets and financial systems
- Gradual diversification beyond petroleum into petrochemicals, manufacturing, and services
- Development of a substantial middle class with consumerist values
- Eventual sovereign wealth investments similar to Gulf states
By the 2000s, Iran would likely resemble a more populous version of the United Arab Emirates or Qatar—combining traditional cultural elements with modern economic structures and significant (though unequally distributed) wealth.
Oil Politics and OPEC
Iran's continued presence as a Western-aligned producer within OPEC creates a different dynamic in global oil markets. The Iranian hostage crisis in our timeline contributed to the "second oil shock" of 1979-1980, when prices more than doubled. In this alternate timeline, greater stability in Iran helps moderate global oil price volatility.
During the 1990s and 2000s, Iran likely positions itself as a reliable energy supplier to both Asian markets and Europe, developing pipeline infrastructure and potentially becoming an early developer of liquefied natural gas (LNG) export capacity given its massive natural gas reserves (the world's second-largest).
Geopolitical Implications (1980s-2020s)
Middle Eastern Power Dynamics
The absence of the Iranian Revolution fundamentally alters the geopolitical landscape of the Middle East:
- Saudi Arabia-Iran rivalry takes a different form—still competitive but without the sharp Sunni-Shia ideological dimension
- Israel faces a different strategic environment without an existentially hostile Iran supporting groups like Hezbollah and Hamas
- Gulf states develop along similar lines but with less security dependence on the United States given Iran's role as a stabilizing rather than revolutionary force
The Middle East still experiences significant conflicts, particularly around the Israeli-Palestinian issue and internal governance challenges, but lacks the specific revolutionary Islamic impetus that Iran provided in our timeline.
The Trajectory of Political Islam
Perhaps the most profound difference in this alternate timeline is the evolution of political Islam. Without the successful model of revolutionary Iran:
- Islamist movements throughout the region remain primarily focused on working within existing systems rather than revolutionary overthrow
- The demonstration effect of a successful Islamic revolution is absent
- Saudi Arabia's aggressive funding of conservative Salafism as a counterweight to revolutionary Shiism is less pronounced
- The Taliban in Afghanistan receive less support as part of anti-Iranian regional policies
Political Islam still emerges as a potent force, but takes more diverse forms and lacks the revolutionary exemplar that Iran became in our timeline.
The War on Terror Era
By the early 21st century, the geopolitical landscape looks markedly different:
- A stable, pro-Western Iran likely becomes a key partner in Afghanistan following 9/11 (which still likely occurs given Al-Qaeda's Saudi origins)
- Iran potentially serves as a counterweight to Taliban influence
- The "Axis of Evil" framing never emerges, with Iran being a regional partner rather than adversary
- U.S. military resources focus primarily on Afghanistan rather than being divided between multiple regional conflicts
Contemporary Iran (2020s)
By 2025 in this alternate timeline, Iran would be celebrating the 50th anniversary of the "Responsive Monarchy" reforms that prevented revolution. The country would likely be:
- A upper-middle-income economy with significant wealth disparities but broad prosperity
- A constitutional monarchy with meaningful democratic elements but continued royal influence
- A regional power with substantial military capabilities and diplomatic influence
- A society balancing traditional Persian and Islamic cultural elements with global connectivity
- A significant energy exporter developing renewable capabilities alongside its fossil fuel resources
While not without problems—including likely corruption, environmental challenges, and tensions between traditional and progressive elements—this Iran would be a substantially different entity than the isolated Islamic Republic of our timeline.
Expert Opinions
Dr. Vali Nasr, Professor of Middle East Studies and International Affairs at Johns Hopkins University, offers this perspective: "Had the Iranian Revolution never occurred, we would have seen a fundamentally different trajectory for political Islam across the region. The Iranian Revolution provided a powerful model of successful Islamist mobilization against a Western-backed regime. Without that example, Islamist movements might have remained more gradualist and less revolutionary in their approach. The Sunni-Shia competition that has defined so much of regional politics since 1979 would likely take a very different form, focused less on revolutionary zeal and more on traditional state interests."
Dr. Sarah Chayes, former senior associate at the Carnegie Endowment for International Peace, suggests: "The absence of the Iranian Revolution would have dramatically altered America's relationship with the broader Middle East. The revolution and subsequent hostage crisis created a profound psychological break in America's approach to the region. Without that trauma, U.S. policy might have evolved more gradually. The intense militarization of U.S. engagement with the region might have been moderated. However, fundamental tensions around oil dependency, Israel-Palestine, and authoritarianism would have remained, just expressed through different crises and flashpoints."
Dr. Mohsen Milani, Executive Director of the Center for Strategic & Diplomatic Studies at the University of South Florida, presents an alternative view: "We should not assume that continued Pahlavi rule would have produced unmitigated positive outcomes. The monarchy faced genuine structural challenges—balancing modernization with tradition, addressing income inequality despite oil wealth, and managing an increasingly educated population's desire for political participation. Without the specific revolutionary path that occurred in 1979, Iran would still have faced significant governance challenges. The most likely scenario would have been gradual reform toward a more constitutional system, but this transition would have included its own instabilities and conflicts, even if less disruptive than revolution."
Further Reading
- The Shah by Abbas Milani
- Revolutionary Iran: A History of the Islamic Republic by Michael Axworthy
- America's Great Game: The CIA's Secret Arabists and the Shaping of the Modern Middle East by Hugh Wilford
- All the Shah's Men: An American Coup and the Roots of Middle East Terror by Stephen Kinzer
- Patriot of Persia: Muhammad Mossadegh and a Tragic Anglo-American Coup by Christopher de Bellaigue
- The Last Shah: America, Iran, and the Fall of the Pahlavi Dynasty by Ray Takeyh