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And certainly long before it, Iran experimented—perhaps more than any other country—with a wide range of policies to respond to widespread drug use and poppy cultivation, alternating between permissive and very harsh policies. What is perhaps most surprising is how little the Iranian revolution actually changed drug policies in Iran. And while the revolution did have pronounced effects on international drug markets, they were, once again, actually less than meets the eye. Importantly, for example, poppy production was bound to go up in Afghanistan regardless. From the 19th century up to the revolution, drug policy in Iran oscillated widely, running the gamut from legalization to harsh prohibition. Iranian narratives blame British machinations. It was for those economic reasons that Iran was loath to control its opium exports to China and elsewhere even though it had signed a variety of international commitments to that effect in the early 20th century. Even as China specifically banned the imports of Persian opium in , Iran encouraged its farmers and businessmen to export it there. Meanwhile, in the early part of the 20th century, opium abuse in Iran also dramatically increased. Still, by the s, Iran was estimated to have some 1. In , the shah imposed a total ban on cultivation and outlawed the possession and sale of opium. In a country where many rural areas had no medical facilities of any kind and opium was widely used as a universal medicine, the policy also severely impacted a wide range of medicinal practices. The economic and social hardships were great, even though use and addiction did not subside. Users and addicts were imprisoned for longer and longer periods: In , even the possession of poppy seeds, such as on bread, was criminalized with up to three years of imprisonment. Prohibition was systematically undermined by widespread smuggling of opium and heroin from Afghanistan and Turkey—an inevitable outcome, as the ban did not end demand and no treatment facilities and programs were in place. Thus, when they lost drugs to interdiction operations, they often looted Iranian rural settlements and dragged off villagers into Afghanistan. Once again under a state monopoly, poppy cultivation swung back to 20, ha. Some , addicts, those deemed unable to quit because of age or other physical conditions, were given registration cards to obtain state-provided opium. At least , officially estimated users , however, did not end up on the registration list, and the actual addiction rate was believed much higher. A notorious chief justice of the Revolutionary Tribunals and simultaneously head of the Anti-Drugs Revolutionary Council, Sadeq Khalkhali, previously a minor cleric, sentenced to death at least drug dealers during his month reign in , along with the hundreds of others whom he had arbitrarily executed for imagined offenses with zero due process. The use of capital punishment for drug crimes intensified after , and some 10, people have received the death penalty for drug-related offenses since then. The revolution also ended domestic experimentation with legal cultivation of poppy. Opium and methadone maintenance were discontinued, but no other treatment for widespread addiction was available. And once again, outsiders moved to supply the intense demand for drugs. By then, Turkey had effectively legalized its opium production and prevented diversion into the illegal trade, with the United States committing itself to buy a substantial portion of such legal Turkish opium. So drug smuggling into Iran shifted to Pakistan. Critically, opiate production switched robustly to Afghanistan and—along with CIA money from the mids on—funded the mujahideen who fought the invading Soviet Army. To starve the mujahideen and deprive them of food and shelter among the population, the Soviet Army adopted a scorched-earth policy. In order to drive the rural population into cities which they controlled , the Soviets burned orchards and fields and destroyed water canals. The consequence was a significant increase in poppy cultivation: Simply no other crop could survive the harsh weather and lack of water and fertilizers. Unlike legal goods that needed to be processed, and depended on good roads and legal value-added chains and markets, harvested opium resin would not spoil. It was of little comfort to the Afghan people that the heroin production flourishing in the destroyed land also got the Soviet Army extensively addicted. The s Taliban policy of taking an already impoverished and devastated country back to the 9th century—with systematic destruction of administration and socio-economic facilities—had one key outcome: more and more poppy. It has remained the dominant supplier of illegal organic opiates since. Seventeen years of U. Despite the dramatic political developments in and a series of wide policy swings for over a century, drug use in Iran has remained remarkably stubborn. Prisons abound with users: In , 78, people were imprisoned in Iran on drug-related charges; in , the number was , In the mids, Iran and the United States shared a similar rate of imprisonment for drug users, some of the highest rates in the world. The revolution transformed the socio-political context: Alcohol was prohibited for all other than religious minorities, severe restrictions were imposed on social interaction among unrelated men and women, and few opportunities existed for personal self-fulfillment. These developments likely exacerbated drug use. Perhaps the most significant and detrimental effect of greater penalties and intensified efforts at supply control after the revolution has been the switch to hard drugs. Because it is compact and easier to hide, heroin is easier to smuggle than opium. Thus, although the rate of addiction in Iran may be half of what it was in the s, the severity of addiction and its associated effects worsened. The failures of harsh policies periodically resurrect reforms. Methadone maintenance came back into vogue , with some , receiving methadone in Such progressive reforms, however, weakened during the Mahmoud Ahmadinejad years, and treatment facilities and harm-reduction support systems are still hard to come by, particularly for women , while social stigma and fear of law enforcement persist. In January , Iran raised the amount of drugs in possession that triggers the death penalty from a mere 30 grams of heroin, morphine, and cocaine, and 5kg of cannabis and opium, to more than 50kg of opium, 2 kg of heroin, and 3 kg of crystal meth. The change allowed around 5, people on death row to have their cases reviewed , with the prospect of having their sentences commuted to imprisonment or fines. The death penalty for marijuana possession and trafficking has been completely eliminated. And in the spirit of marijuana-legalizing times, a proposal even sought to decriminalize opium and marijuana and introduce state-controlled cultivation. With Afghan opium poppy blooming on its doorstep and its own addiction unabating, Iran has sought to prevent trafficking into the country. Annually, it carries out some to armed interdiction operations. Around 4, Iranian police officers and border guards have lost their lives in counternarcotics operations. Amid growing insecurity in Afghanistan and many economic and governance challenges to legal economic development, those efforts fared as well—or poorly— as U. But even as Iran has devoted vast resources to supply control, suffered widespread addiction, and railed against Western failures to end poppy cultivation in Afghanistan, a variety of state and Iran-sponsored actors have been implicated in drug trafficking. The U. As Felbab-Brown learned during interviews in Iraq in December , Iranian-sponsored paramilitary groups in Iraq are alleged to smuggle heroin from Iran and captagon from Syria into Iraq. Foreign Policy. Sections Sections. Sign Up. Vanda Felbab-Brown and. Bradley S. Related Books Militants, Criminals, and Warlords. Iran Reconsidered. Related Content Another embassy under siege. Pakistan Another embassy under siege Madiha Afzal January 24, More On. The power of Mexican cartels: In Mexico and abroad.

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FORTUNE Magazine — Lunchtime in Tehran's tony northern suburbs, and around the crowded tables at Nayeb restaurant, elegant Iranian women in Jackie O sunglasses and designer jeans pick at grilled Alborz trout and salad, their table chatter gliding effortlessly between French, English, and their native Farsi. And the drink of choice? This being revolutionary Iran, where alcohol is banned, the women are making do with Coca-Cola. Isn't corporate America prohibited by Washington's sanctions from doing business in Iran? Yes, for the most part, says U. Treasury spokeswoman Molly Millerwise. But Treasury has bent the rules for foodstuffs, a loophole through which American drinks giants Coca-Cola and PepsiCo have been able to pour thousands of gallons of concentrate into Iran via Irish subsidiaries. And that has allowed these brands, so much a symbol of America—and so much an affront to Iran's conservative clerics—to open another front in their global cola war. After just a few years back in Iran, Coke and Pepsi have grabbed about half the national soft drink sales in what is one of the Middle East's biggest drinks market. That may be good news in Atlanta and Purchase, N. Minai would rather Iranians drink Zamzam Cola, named after a blessed well in Mecca, the holiest place in Islam, or other local brands produced by Khoshgovar, which licenses Coke, and Sasan, which has the Pepsi franchise. But Iran's trendy young consumers are not as engaged in the Palestinian conflict as their Arab neighbors, anti-U. That only makes them want to buy it more. Zamzam's 17 plants bottled Pepsi before the Islamist revolution. Now the company is controlled by the Foundation of the Dispossessed, a powerful bonyad, one of many religious charities Ayatollah Ruhollah Khomeini used to quasi-nationalize Iran's economy. Conceived as a way of helping Iran's needy, the bonyads have become gold mines for the powerful. Coke and Pepsi shrug off the hardliner rhetoric and insist they aren't breaking any laws—American or Iranian—by licensing products in Iran through their concentrate subsidiaries in Ireland. Says Pepsi spokesman Dick Detwiler: 'PepsiCo has no equity investment in Sasan or any other enterprise in Iran and has no relationship with the government of Iran. We sell in strict accordance with all applicable U. Morad Abadi is also sanguine about his Iranian critics. Boycotts of American beverages are nothing new in the Middle East. Coke has endured persistent—and false—claims that its logo insults the Koran. Iran's diatribes against Pepsi were particularly shrill last July, when Israel clashed with the Tehran-backed Hezbollah in Lebanon. Things have quieted since the end of the war, but the whispering campaign against Coke got so bad that the company felt compelled to create a page on its website called 'Middle East Rumors' to counter the myriad accusations. Shopkeeper Shahgholi owns a store in downtown Tehran around the corner from the former U. Reliable sales figures are hard to come by. Coke may be the real thing in Iran, but you won't hear that familiar slogan here. Washington's rules forbid U. It wouldn't be welcomed anyway by the mullahs, who regard American-themed advertising as spiritual pollution. The history of Coke and Pepsi in Iran is as chaotic and complex as the country's politics. Both companies were active here before the revolution, when Pepsi dominated the market through Zamzam. In the s Coke tied up in Tehran with Sasan Pepsi's bottler since and with Khoshgovar, a private company owned by the Yazdi family that controlled distribution in Iran's eastern territory. Though arriving late, Coke pushed ahead of Pepsi after an ayatollah issued a fatwa, or religious ruling, banning Pepsi because its franchisee followed the Baha'i faith, which is regarded as heretical by Iran's majority Shiite Muslims. But Coke says it pulled out in as Khomeini's revolution was building. The following year the Shah was ousted, and then came the day siege of the U. Washington slapped sanctions on Iran during the hostage drama, but by they were relaxed enough to allow Coke to return, again with Khoshgovar in the eastern part of the country. Khoshgovar wanted to capture the Tehran market and bought a brewery in the capital that had been shut down by the teetotaling revolution. But under pressure from the regime, it sold the site to a Tehran investment company, Noushab, which had close links to then-President Akbar Hashemi Rafsanjani, today one of Iran's richest men. In , Coke licensed Noushab to sell its products in Tehran. A year later U. President Bill Clinton tightened sanctions on Iran. That left Noushab with a new factory and thousands of Coke bottles but no concentrate. Undaunted, Noushab devised its own syrups and filled Coke's bottles with them. That didn't stop Noushab, leading to confusion in the marketplace when Clinton eased sanctions on foodstuffs in and Coke tied up again with Khoshgovar. For years Iran has been awash with Khoshgovar's genuine Coke and what looked like Coke in Noushab's real bottles. Today Iranians know that if Coke comes in plastic bottles, it's Khoshgovar's real Coke, but if it is in glass bottles, it's probably Noushab's faux Coke. Noushab declined a request for an interview, a company lawyer saying the group was 'in turmoil. How will it all play out? Sasan deputy CEO Saeed Jalilian sees a younger, richer Iran forcing out the cheaper and politically correct local brands like Zamzam in favor of foreign brands. Fast food has changed their tastes. Germany, with a similar-sized population, consumes bottles per person annually. The threat of war with the U. Jalilian reckons that his company is a winner either way. If there's a war and the American brands are again banned, he says, Sasan will take over Khoshgovar's Coke market share with its local brand, Parsi Cola. And if there's peace—or a U. While the mullahs in the mosque might beg to differ as political winds again buffet Iran, they may not be able to do much about it. Licensed by Khoshgovar, an Iranian company that gets its syrup from an Irish subsidiary of Coke. Licensed by Sasan, Coke's former bottler, in Gets concentrate from an Irish subsidiary of PepsiCo. What sanctions? Coke and Pepsi are battling for the hearts and minds of Tehran. More from Fortune Will Mmmhops be a hit? NBA confirms L. Subscribe to Fortune. From the March 5, issue. Top Stories 7 things to know before the bell. SoftBank and Toyota want driverless cars to change the world. Why it's time for investors to go on the defense. Iran's Cola War Sanctions? More from Fortune. Will Mmmhops be a hit? Top Stories.

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