Economic Policies of Atatürk’s Period

• With the leadership of Atatürk had been constituted “young” Turkish Republic from Ottoman Empire, which is economically and politically independent.

• According to Atatürk, political independence was not possible without economic independence.

• Rapid rushs had been undertaken

Last Times of Ottoman Empire

• The Ottoman Empire had been exhausted and its economy had been ruined because of wars.

• Its domestic resources had been insufficient to meet and it had started to take external debt in order to meet this deficit.

• At the end of these wars, many labor areas had been closed, productive male population had been diminished.

Anyway Atatürk…

• Atatürk had embraced market mechanism and worked for accumulation of capital by private sector.

• Turkey had chose capitalist system as an economic system.

• It had chose planning as an economic policy and decided to pass to Mixed Economy.

Before Planned Period: 1923-1929, Relative Liberal Period

• Turkish people were earning their breads from primitive production method and they were uneducated.

• They needed to cancel all foreigners who had ownership of these vehicles

• They also needed to abolish the public debtor which was stopping all trade relations.

• Turkish Economy Congress in İzmir had been arranged to take these decisions and apply them

Turkish Economy Congress in İzmir

• To Congress, from different sectors, employer, merchant and their representatives participated in.

• The purposes of Congress; to provide to recognize each other of economic units of Turkish economy.

• To help them to say what their problems.• To take attention to economic issues and to find

out some solutions to economic problems.

Economic Judgement of Lozan Treaty

• Lozan Treaty was not only a document which was showing political independence but also denoting the economic independence.

• However, the debts of Ottoman Empire had weighed down of new Turkish Republic.

• This was not beneficial for Turkey but the Allies.

The Situation of Turkish Economy in 1923-1929

• It grabed some areas which was unprofitable and related with common interests not private interests.

• Turkish Business Bank, Turkish Industry and Credit Bank, Federal Land Bank (rearranged) and Central Bank were only some of them.

• It had nationalized some monopolies coming from Ottoman Empire.

• Small, unproductive and family type business, which sovereigned on Turkish economy

Planned Period: Statism Policy in 1929-1938 Periods

• Turkey had pursued a statist industrialization.• For this planning, Turkey had taken a huge

help either tecnically or financially.• The Soviet Union had not been affected

negatively from the Great Depression.• Some ideologies based on interventionism in

the economy had gained popularity over classical liberal ideologies.

The Effects of the Great Depression on Turkish Economy

• Of course it harmed Turkish economy as well as the other country.

• Turkish Lira’s value started to decline.• All comodities which were exporting started to

become cheaper.• It affected negatively the balance of external

trade.• The Turkish economy was affected lesser than

other economies by the Great Depression.

First Five Year Industrial Plan

• It did only include industrial sector and not compass agricultural and service sectors.

• The Turkish Government had not increased the debt burden via a huge internal or external debts in the process of statist industrialization.

• All needed money had been obtained by taxes which was put on consumption goods.

• It was based import substitution

Second Five Year Industrial Plan

• Based on intermadiate and investment goods.• Realized with the English technical and

financial support.• Did born as died document.• Social service sectors had not been included in

two Plans.• And finally two Plan were executed by

external debts.