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- W136402343 abstract "Turkey is currently experiencing an Islamic reaction against the securalism of Kemal Ataturk. The author traces the history of the Westernization of the Turkish economy, which those who believe that this trend would be threatened by Islamic fundamentalism. He shows how this had initially been supported by etatism, a protectionist system of state initiatives, which was more recently replaced by a policy of economic liberalization involving privatization and the reduction of trade barriers. Key Words: Turkey, Kemal Ataturk, Etatism, Protectionism, Free Market Economy, Privatization The Development of the Turkish Economy A. 1923-1930 Period: The New Republic Years Turkey gained its secular form under the leadership of Mustafa Kemal - popularly known Ataturk - on 23 April 1920, and proclaimed itself a Republic on 29 October 1923. At the time of proclamation of the Republic, the Turkish economy was weak, its infrastructure had been destroyed during the national independence struggle. Moreover, it was founded on the social and economic heritage of the Ottoman Empire, and was totally devoid of the economic wealth that had characterized the older Empire. It had a heavy burden of debt and an economic structure that had collapsed completely: There were only 182 operating industrial establishments of a non-artisan character, employing a mere 14.060 workers and employees. Of this labor force, 70 percent were engaged in the production of wool and cotton yarn, cloth and raw silk, in flour mills and in tobacco processing. These activities, represented 78 percent of industrial production, were the main body of Ottoman industry.1 Thus the new Turkish Republic had few public enterprises, these being mainly composed of the following textile and armament manufacturers founded during the Ottoman Empire.2 - Beykoz Military Equipment Factory, established to manufacture military shoes, boots, belts, etc. in 1835. - Cap Factory, established to manufacture broadcloth, caps and blankets in 1835. - Izmit Factory, established to produce broadcloth and military uniforms in 1845. - Hereke Factory; a textile manufacture industry in which velvet and satin were made, which started to operate in 1845. - Zeytinburnu Factory, established to manufacture cotton and various cloths in 1855. The number of the public enterprises in the Ottoman era failed to grow because the Ottoman Empire was heavily indebted to foreign countries and the Ottoman government was not able to implement protective tariff policies. Political turmoil, as well as foreign debt, had negative effects on the establishment of public enterprises, and a large part of the Empire's infrastructure had been destroyed during the World War and the National Independence Struggle (1920-1923). In a speech to the Turkish Grand National Assembly on March 1, 1922 Ataturk focused on the importance of economic development. One year later, as chairman of Anadolu and Rumeli Mudafa-i Hukuk Cemiyeti (Association for the Defence of Anatolia and Territories of the European Continent Particularly Thrace), he issued a series of proposals to promote the import of agricultural machinery, for the manufacture of commodities using domestic raw materials, for the construction of railways, the modernization of schools, and the productive utilization of forests and mines. An economic congress was convened in Izmir in 1923 and the new Republic's first and most important decisions concerning its economic system were taken at this congress. Two crucial policy issues were debated at length in this congress: the role of the government and the role of the foreign capital in the development of economy. Minister of Economy, Mahmut Esat Bozkurt outlined the main principles of the new government's economic policy at the Izmir Economic Congress as follows: We are not attached to laissez-faire, socialist, communist, etatist or protectionist schools of thought. …" @default.
- W136402343 created "2016-06-24" @default.
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- W136402343 date "1997-07-01" @default.
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- W136402343 title "Turkey: From Etatism to a More Liberal Economy" @default.
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