From a "Political Economy" perspective, some major changes in the ISLAMIC Republic of Iran, different from the nature and content of the ISLAMIC Revolution, have been occurred. These changes, during four PERIODs, from modernism to fundamentalism and traditionalism in the sphere of culture and ideology, from industrial capitalism and bourgeois orientation in economy to commercial capitalism and non-bourgeois orientation, and in the political sphere from liberal democracy and political pluralism to populism and theocracy, have been formed. This essay trys to explain the process of formation of intellectual trends in association with economic tendencies and power blocks (the relations of ideas to interests and political positions), and evaluate the possibility or impossibility of the realization of development and democracy in Iran.