'We Became North Korea': Pahlavi's Economic Case Against the Islamic Republic
Iran's exiled crown prince invokes his father's economic legacy, comparing a nation that once rivaled South Korea to its isolated neighbor. Critics say he offers nostalgia without substance.
Iran's exiled Crown Prince Reza Pahlavi has framed the country's economic collapse as a central argument for regime change, drawing a stark comparison between Iran and South Korea that has resonated widely on social media.
"Iran should have been the South Korea of the Middle East," Pahlavi said in a recent video statement. "At the time, Iran's GDP was five times larger than South Korea's. Today, instead, we have become North Korea."
The comparison has struck a nerve. Seven years before the 1979 Islamic Revolution, Iran's economy was twice the size of South Korea's. Iran ranked 18th among world economies in 1977, while South Korea sat at 28th. According to Iran Open Data, the positions have now reversed dramatically: South Korea's GDP exceeds Iran's by more than three and a half times.
The numbers tell a story of squandered potential. Iran's GDP grew an average of just 1.9% annually from 1979 to 2020, according to Central Bank data. Before the revolution, that figure was 9.1%. South Korea's economy, meanwhile, has grown nearly 25 times since 1971, while Iran's grew just 190% over the same period.
The White Revolution's Legacy
Pahlavi's father, Mohammad Reza Shah, launched the White Revolution in 1963, a sweeping modernisation programme that included land reform, expanded infrastructure, women's suffrage, and literacy campaigns. According to Britannica, the programme redistributed land to approximately 2.5 million families and drove annual economic growth rates of nearly 10%.
Iran in the 1970s was frequently compared to the emerging Asian tigers. Western journalists predicted the country would achieve First World status within a generation. By 1976, Iran's per capita GDP reached $10,261 in 2010 dollars, the highest in the country's history.
Yet this economic boom came with severe political repression. The Shah's secret police, SAVAK, tortured and detained thousands of political prisoners. Amnesty International described the regime as one of the worst human rights violators in the world in a 1976 report. The economic modernisation alienated traditional power structures and failed to deliver political freedom, ultimately contributing to the revolution that swept the Shah from power.
A Contested Legacy
Pahlavi's economic message has found an audience among Iranians who grew up hearing stories of pre-revolutionary prosperity. Viral posts contrasting images of 1970s Tehran with the present day have garnered millions of views.
But critics argue Pahlavi offers nostalgia rather than substance. According to the Middle East Forum, his movement has become "the opposition against the opposition," with pro-Pahlavi accounts attacking prominent dissidents including Nobel Peace Prize winner Narges Mohammadi and journalist Masih Alinejad.
TIME Magazine reports that Pahlavi has no meaningful organisation inside Iran. A 2009 Brookings Institution assessment found no serious monarchist movement in the country, and critics say that judgment remains valid.
His stance on Israel has also drawn criticism. Pahlavi described Israeli strikes on Iran as "an opportunity," alienating some opposition figures who object to foreign military intervention.
Neither Shah Nor Mullah
The emergence of "Neither Shah nor clergy" chants in some protests suggests many Iranians reject both the current regime and a return to monarchy. In March 2023, five opposition groups formed the Solidarity for a Secular Democratic Republic in Iran, offering an alternative vision that does not involve the Pahlavi dynasty.
The European Union has already taken action against the regime, with the European Parliament banning Iranian diplomats and preparing fresh sanctions. But European governments have been cautious about engaging with Pahlavi specifically, wary of appearing to endorse a restoration of monarchy.
For Europe, which rebuilt its economy through democratic institutions and multilateral cooperation, the question of Iran's future matters both strategically and morally. The EU's own experience suggests that economic development without political freedom proves unsustainable, a lesson the Shah learned too late.
What Numbers Cannot Capture
The economic comparison between Iran and South Korea, while striking, obscures important context. South Korea's rise came with substantial American aid and security guarantees during the Cold War. Iran faced international sanctions, a devastating eight-year war with Iraq that cost an estimated $500 billion, and the disruption of revolutionary upheaval.
Yet even accounting for these factors, Iran's performance has been poor. The Atlantic Council notes that GDP growth during the Iran-Iraq War averaged just 0.9% annually, and the country never returned to its pre-revolutionary trajectory.
As Iranians risk their lives calling for change, Pahlavi's economic message offers a powerful "what if" narrative. Whether that narrative translates into political support inside Iran remains uncertain. The country's future may well be decided by forces that have little connection to the exiled prince invoking his father's legacy from Washington.
January 21, 2026