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The Pahlavi dynasty was the ruling dynasty of Iran from 1925 to 1979, from which two Shahs were drawn.
In 1921 Reza Khan (later Reza Shah Pahlavi), an officer in Iran's only military force (Cossack Brigade) used his troops to support a coup against the government of Qajar dynasty. Within four years he had established himself as the most powerful person in the country by suppressing rebellions and establishing order. In 1925 a specially convened assembly deposed Ahmad Shah Qajar, the last ruler of the Qajar dynasty, and named Reza Khan, who earlier had adopted the surname Pahlavi, as the new shah.
Reza Shah had ambitious plans for modernizing Iran. These plans included developing large-scale industries, implementing major infrastructure projects, building a cross-country railroad system, establishing a national public education system, reforming the judiciary, and improving health care. He believed a strong, centralized government managed by educated personnel could carry out his plans.
He sent hundreds of Iranians including his son to Europe for training. During 16 years from 1925 and 1941, Reza Shah's numerous development projects transformed Iran into an industrial, urbanized country. Public education progressed rapidly, and new social classes were formed. A professional middle class and an industrial working class had emerged.
By the mid-1930s Reza Shah's dictatorial style of rule caused dissatisfaction in Iran. In 1935 the country's name was changed from Persia to Iran.
Reza Shah tried to avoid involvement with Britain and the Union of Soviet Socialist Republics (USSR; formed from the Russian Empire in 1922). Even though many of his development projects required foreign technical expertise, he avoided awarding contracts to British and Soviet companies. Although Britain, through its ownership of the Anglo-Iranian Oil Company, controlled all of Iran's oil resources, Reza Shah preferred to obtain technical assistance from Germany, France, Italy and other European countries. This made problems for Iran after 1939, when Germany and Britain became enemies in World War II. Reza Shah proclaimed Iran as a neutral country, but Britain insisted that German engineers and technicians in Iran were spies with missions to sabotage British oil facilities in southwestern Iran. Britain demanded that Iran expel all German citizens, but Reza Shah refused, claiming this would adversely impact his development projects.