"The creation of a truly stratified society" which leaves more than one half of Tehran's population in poverty is responsible for the current political unrest in Iran, Ali Bannazizi, associate professor of psychology at Boston College, said in a panel discussion before about 40 people at Boylston Auditorium last night.

"Iran has one of the most skewed income distribution figures in the world" with more than 60 per cent of all income going to the top fifth of the population and less than five per cent going to the bottom fifth, Bannazizi added.

He said the Shah's economic policies contribute to the increasing frustration of a disillusioned lower class which is "even willing to march towards the firing guns of the Shah's army."

Bannazizi said these policies include the allocation of more than $3 billion a year for military expenditures which is "terribly difficult to justify" for an economic regime that claims to be primarily committed to the welfare of its own people.

Neither Bannazizi nor the other panelists considered salient the violation of human rights or lack of political freedom in Iran. Bannazizi said he thinks the Shah will remain in power because he has a strong and loyal military behind him.

He said his wish for Iran is the gradual development of a democratic political system which "could only come about with a less impulsive reaction," adding, "Right now, more extremist elements have a better chance."

Richard N. Frye, Aga Khan Professor of Iranian Studies, introduced the panel which included Michael M. J. Fischer, associate professor of Anthropology.