Russian-British Economic Rivalry in Eastern Persia at the turn of the 20th Century: Kerman and Sistan

Abstract

he economic development of Eastern Persian provinces Kerman and Sistan — and the latter’s role in Russian-British economic rivalry — throughout the late 19th and early 20th centuries remains somewhat understudied in both Russian and foreign historiographies. Goals. The article attempts an analysis of key trends in the development of Sistan and Kerman at the turn of the 20th century and their significance in foreign economic activities of both Great Britain and Russia. Materials and methods. The paper investigates reports by Russian diplomats to have headed Consulates to Kerman and Sistan. The employed research methods are the historical/genetic, historical/comparative, and historical/typological ones. Results. Russian diplomats paid great attention to peculiarities of Kerman and Sistan’s development, with due regard of their ethnic compositions, climatic conditions, and economic potentials. The article emphasizes that for a long time foreign trade of Kerman and Sistan was dominated by the British Empire which used, first of all, the potential and experience gained by India in organizing trade with Persia. The analysis of the Russian diplomatic reports shows since the late 19th century Russia — driven by its own foreign economic ambitions in Eastern Persia — was showing great interest in these provinces. St. Petersburg was aware of the impossibility of maintaining political dominance in Persia without strengthening its economic presence in the country, including in regions traditionally dominated by the British Empire. This initiative of St. Petersburg caused great concern in London. Conclusions. In the late 19th – early 20th centuries, Russia succeeded in challenging the positions of the British Empire in Sistan and Kerman markets, even in the segment of textile exports traditionally dominated by Great Britain. At the same time, when it comes to describe the obvious achievements of Russia in Persia’s eastern provinces it should be noted that Russian entrepreneurs showed little interest in developing trade with Kerman and Sistan. Therefore, most foreign economic operations were to be implemented with the active participation of Russian diplomatic missions. However, on the eve of WWI Russia’s entrepreneurs did take an initiative of their own, and thus paved further trade success in Sistan and Kerman.