The construction of lavish palaces and mosques, as well as expensive military campaigns, put a strain on the economy and led to a decline in resources available for public services and infrastructure development. The Iranian economy also suffered from the imposition of unequal treaties by European powers, particularly Russia and Britain. These treaties forced Iran to open up its markets to foreign goods, leading to a further decline in traditional industries. Additionally, Iran was often forced to borrow money from European banks at high interest rates, further increasing the country's debt burden.
