ATA 641-PART 2 BOĞAZİÇİ UNIVERSITY 2007 Prof. Dr. Zafer Toprak First part available at: www.ata.boun.edu

under faculty / Zafer Toprak

Establishment of the Turkish Republic 29 October 1923

Consolidation of power 1923-1927 Ankara – Capital of the Republic 1923 Growing tension between Ankara & Istanbul

Kemalists in minority Opponents (Islamists & liberals) To restore the Sultanate Assembly dissolved 1 April 1923 Tightly controlled new elections June 1923 The new chamber 11 August 1923 A new party – Vangard of change The inaugural congress of RPP 9 August 1923 Ankara – new capital

Adoption of a new Constitution 20 April 1924 Anayasa = Teşkilat-ı Esasiye Kanunu Incorporating the principles of the Constitutional Act of 1921 Teşkilat-ı Esasiye Kanunu Concentration of all three government powers in the one-house National Assembly Millet Meclisi Executive – Legislative – Judiciary ( Tevhid-i kuvva )

( TBMM- Türkiye Büyük Millet Meclisi ) to be elected by indirect vote The indirect two-tier system of election (İki dereceli seçim) 1923-up to 1946 1923 - 27 - 31 - 35 - 39 - 43

Abolition of the Caliphate 1924 Members of the Ottoman Dynasty left Turkey * * * 17 November 1924 Progressive Republican Party ( Terakkiperver Cumhuriyet Fırkası ) Republic – Premature decision

Radicals: Inönü versus Moderates: Hüseyin Rauf Minority within RPP - 32 deputies Corruption – possesions of Greek migrants

People’s Party – Republican People’s Party (Halk Fırkası – Cumhuriyet Halk Fırkası) Cumhuriyet Halk Partisi 1935 Radical & authoritarian - Centralist Unity of powers (Tevhid-i kuvva) National economic policy Revolutionary changes The indirect two-tier system of election

Progressive Republican Party ( Terakkiperver Cumhuriyet Fırkası ) Liberal –Decentralization Separation of powers Liberal economic policy = Foreign loans + capital Evolutionary changes Direct elections by universal suffrage Minimum state intervention

The Issue of Regime Conservatives Caliphate – Spritual leader and president of the assemby An Islamic constitutional regime Caliph to ratify all legislation Legislation in line with the Şeriat the legal code of Islam

Revolutionaries The notion of an Islamic state – anathema / curse Islamic state – to maintain the status quo Modern national state – Secular & rational Science & Modern Education

ORIENTATION TOWARDS SECULARISM LAİKLİK Three Revolutionary Laws - 3 March 1924 (Üç Devrim Yasası) 1 - Abolition of the Caliphate ( Hilafet ) 2 - Replacement of Ministry of Religious Law and Pious Foundation by The Directorate of Religious Affairs ( Diyanet İşleri ) 3 - Unification of the educational institutions ( Tevhid-i Tedrisat )

11 February 1924 Kurdish revolt headed by Şeyh Sait Elazığ Purpose: Establishment of an independent Kurdish state Restoration the Caliphate

4 March 1925 Promulgation of the Maintenance of Order Law ( Takrir-i Sükun Kanunu ) 2 years To ban any organization or publication considered as the cause of disturbance to law and order

Opposed by PRP – too elastic Two independence tribunals Eastern provinces – Rest of the country Deportation Compulsory settlement in the West Kurdish identity officially denied Constitutional identity replaced ethnic identities

Extensive powers to deal with a) rebels, b ) reactionaries c) subversive elements.

Martial law ( Sıkı yönetim ) To suppress the Kurdish uprisings 8 newspapers and periodicals closed down Leading journalists, columnists from Istanbul arrested

The PRP closed down 3 June 1925 Accused of A - Giving support to the rebellion B - Exploiting religion for political purposes

Consolidation of power History repeats itself 1908-1912 pluralistic – relatively free 1913-1918 – power monopoly Radical program of secularization and modernization Removal of Şeyhülislam from cabinet etc. * * * 1920-1925 / 27 pluralistic 1925 – 1945 authoritarian regime A program of reforms

Alternatives: A - Democratic system with a slower pace B - Autoritarian system with radical reforms The dilamma Democracy versus Republic Strengthening and survival of the State

Independence Tribunals - Revolutionary courts ( İstiklal Mahkemeleri ) established in 1920 reactivated Political opposition and its press silenced

Discontent arising from a) unfavorable economic situation & b) unpopularity of the reforms A plot to assasinate Mustafa Kemal June 1926 Led by Ziya Hurşit Prominent Unionists and PRP adherants arrested Accused of planning a coup d’etat Kara Kemal , regarded as the brain behind the attempt Death sentence - Shot himself

1927 – End of the troubled post-war period Second Congress of the RPP Retrospectively adopting Sivas as first congress

36-hour Speech (Nutuk) A report on the national movement from 1919 to 1927 Vindication / justification of the purges (1925-1926) Criticism of the former leaders of PRP Disregard the earlier phase of the resistance Nutuk determined historical vision of the genesis of New Turkish State

THREE BASIC FUNDAMENTAL PRINCIPLES OF THE TURKISH REPUBLIC 1927 NATIONALISM, SECULARISM, LAICISM POPULISM

NATIONALISM Nationalism based on the sovereignty of the nation ( Hakimiyet-i Milliye – Ulusal Egemenlik ) The task of building a national state Ulusal Devlet A culturally homogeneous Turkey From Nation-State to National State Nation-State = Economic entity Strengthening a feeling of national consciousness in the individual Türk ( Ulusal bilinç )

POPULISM Adaptation of Western ideas of democracy to domestic needs A mean of securing social unity around the ideals of nationalism

A society to be composed not of classes but of individuals assembled in occupational groups (businessmen, government officials, farmers, craftsmen) dependent of each other A consentual society Economic interests of any not conflicting with others’

The People’s Party ( Halk Fırkası ) – ( Cumhuriyet Halk Fırkası 1924 ) “the synthesis of the people”, the sole representative of all these groups, uniting link among them.

The First Program of the Party (1931) Populism is the means of preserving the unity of Turkish society by not yielding to class struggle. Rejection of class-structure

REFORMS The ultimate purpose: Modernity Modernization of Turkish society by supplanting its traditionalist , emotional ways and customs with rationalist, modernist ideas

CITIZEN - YURTTAŞ New individual or citizen (Yurttaş) a) rationalist b) anti-traditionalist c) anti-clerical person

1924 Abolition of religious courts ( Şer’i mahkemeler ) 1925 The shrines, sects, convents and monasteries closed.

( türbe, tekke, zaviye ) Sartorial reforms – Concerned with men’s clothes Religious vestments - clothes or insignia by persons not holding religious office forbidden Civil servants to wear the clothes common to the civilized nations – Western suit and hat

1925 European calender (Gregorian) adopted International solar calendar (miladî takvim) replaced Islamic lunar one (hicrî takvim) 24-Hour International Clock replacing time concept based on prayer timing Zevâlî Vakit instead of Ezânî Vakit

Changes in symbols 1925 All men to wear hat Wearing of fez = Criminal offence The hat (western style) replaced the fez (Mahmud II) Hierarchical titles (Paşa) abolished Economic / Financial Reforms The religous / tithe tax (aşar) abolished Secular / indirect taxes replaced them basically istihlak vergileri ve muamele vergisi (quasi VAT)

1926 Legal Reforms The Civil Code of Switzerland Obligations Code (Borçlar Kanunu) Penal (Criminal) Code (Ceza Kanunu) Commercial Code (Ticaret Kanunu) Maritime Code (Deniz Ticaret Kanunu) Civil and Criminal Procedure (Usul Kanunları) A new system of judicature / administration of justice

The Civil Code of Switzerland replaced the Mecelle based on Şeriat, family relations , including women’s status on Western foundation

Abolition of religious marriage, repudiation [boş ol !] & polygamy Civil marriage & divorce Inheretance Equal rights for both parties Marriage of a Muslim woman to a non-Muslim man permitted Adults given legal right to change religion No more penalty for “tenassur”

A new Law School in Ankara (1925) – Revolutionary law challenging positivistic İstanbul Law Faculty Visibility due to low degree of literacy Visual / visible reforms (Post-modern reforms) versus socio-economic reform partly due to political concerns Land Reform postponed until 1945

The first statues of Mustafa Kemal in 1926 unveiled in Istanbul at Sarayburnu . Then statues in Ankara (Canonica) in 1927 and Taksim in 1928 (Islam oppressed reproduction of the human figure)

1928 Western numerals adopted, (Arabic figures) Romanization Latin alphabet replaced Arabic script.

National schools (millet mektepleri) a campaign to teach new “Turkish letters” to adults

1928 Disestablishment of Islam 2. Article of the Constitution: The religion of the Turkish state is Islam Islam as an official religion struck from the Constitution Arabic and Persian deleted from high school curricula replaced by Western languages: French, German, English

Language Reform First phase: 1910s’ – Genç Kalemler Ömer Seyfettin, Ziya Gökalp, Ali Cânib, etc Second phase: 1930s’ The establishment of Turkish Language Institute ( Türk Dil Kurumu ) The Sun-Language Theory (Güneş Dil Teorisi) Romantic theory: all languages stemmed from Turkish

1930-1932 Conversion of Turkish Hearths (Türk Ocakları) into People’s Houses (Halk Evleri) and People’s Rooms 1932 Turkish Historical Society (Türk Tarih Kurumu) Revision of Turkish history.

Women 1930 to vote in municipal elections 1935 Women voted for and elected to the National Assembly.

1934 Ecclesiastical garb forbidden outside the mosques.

1935 Family name (Soyadı) law replaced Arab nomenclature Weekly holiday from Friday to Sunday

Autoritarian modernism rather than totalitarian tendencies Totalitarianism requires media & propoganda

RPP – a power monopoly An authoritarian One-Party Regime Not a dictatorship or totalitarian regime Free discussion – Closed meetings of the parliament Assembly votes – not a mere formality Parliaments create their own opposition Four-yearly parliamentary elections – no ceremonial function Slates of candidates for parliamentary seats

Congress of 1931 Political system – officially – One-Party State No independent “Kemalist” ideology RPP – led by the secretary-general RPP dominated by member of the TBMM Prime minister – executive chairman President – Party chairman State & Party closely identified

Congruency between state apparatus & party organisation 1936 Governor of province – head of RPP branch A ‘tame’ opposition party (1931) No legal opposition Underground oppositon Insignificant communist movement Kurdish nationalism Dersim (Tunceli) 1937-8 Kurds forcibly resettled in the west

Widespread resentment - Authoritarian behaviour of the RPP - Favouritism and corruption - Lack of civil liberties - Reform policies World economic crisis Turkey hardly hit – agricultural producer

A loyal opposition party Channelling the social discontent Shaking up lethargic RPP Fethi (Okyar) – offered to found a new party Free Republican Party – Serbest Cumhuriyet Fırkası Faithful to the ideals of republicanism ad secularism Liberal economic policy Encouragement of foreign investment Freedom of speech Direct elections rather than two-tier elections

Widespread enthusiasm – Ecstatic crowds RPP leaders alarmed 1930 local elections FRP won in 30 of the 512 councils RPP alarmed Fethi Bey accused RPP of large-scale irregularities & electoral fraud Fierce attacks on FRP – accused of high treason Fethi Bey closed down FRP – 16 November 1930

Direct control of cultural and intellecual life One-Party State To combat the lethargy 30 in 1931 - 16 in 1935 reserved to independents (müstakil)

Turkish Hearts suppressed – closed down 1931 Reactivated by Hamdullah Suphi (Tanrıöver) To spread nationalism, positivism and secularism Lectures, courses & exhibitions Replaced by People’s Homes in town (500) People’s Rooms in villages Same function as Turkish Hearts but low (popular ) culture rather than high (elite) culture

Women’s People Party - Kadınlar Halk Fırkası 1923 Turkish Women’s Union (Türk Kadınlar Birliği) Found in 1924 Organized International Women’s Congress 1935 Anglo- Saxon - Anti-militarism and peace movement Extraordinary congress in May 1935 to disband Pretext - Its aim (equal rights for women) achieved With the granting of the vote

The Turkish Freemasons’ lodges closed down Liberal and socialistic newspaper and periodicals already closed down in 1925 Tomorrow (Yarın) Arif Oruç in 1931 A new press law – to close down papers contradicting the “general policies of the country”

University Reform - 1933 Darülfünun (House of Sciences) – University of Istanbul Purges Two-thirds of the teaching staff, (100) lost tenure Dependable followers kept on New curricula German migrants professors initiated modern sciences in Turkey Faculty of Language, History & Geography in Ankara 1936 Faculty of Economics in İstanbul 1936

Stifling political and intellectual climate Kemalist elites – Münevver (Enlighteneds - Elite) Inspired teachers, doctors, writers To guide ignorant compatriots Active in People’s Houses Prolific cultural activities in People’s Houses Theatre, publications, folkloric dances, ethnographic values

Kemalism Never a coherent, all-embracing ideology Flexible concept The basic principles Republicanism Secularism Nationalism Populism Statism Revolutionism

Six arrows – Altı Ok First in the program of the RRP then Incorporated into constitution 1937 The Age of Ideologies - State ideology Indoctrination in schools, media and army

Tensions built up within leadership An open row – divergence of ideas between Atatürk and İnönü İsmet İnönü replaced by Celal Bayar Minister of economic affairs 1932 Atatürk passed away - 10 November İnönü elected president - 11 November

Extraordinary Party Congress – December 1938 The Party statutes changed Atatürk – Eternal Party Chairman – Ebedi Şef İnönü – Permenant Party Chairman Millî Şef – Official title Difference of opinion – İnönü – Bayar Over economic policies Reconciliation with old leaders of independence movement Return from exile

Autoritarian regimes : Salazar (Portugal) , Franco (Spain) Metaxas (Greece) Difference: Culturally and religiously conservative Cultural revolution

Claim: Similarities between Italy & Turkey Extreme nationalism Legitimization of historical mythology Racist rhetoric Authoritarian character of the regime Efforts to establish totalitarian monopoly for the party Personality cult Emphasis on national unity and solidarity Denial of class conflicts

Differences Fascism : Popular movement reaction to Disruption of traditional society brought about by industrialization Threat posed by socialism to the middling strata Turkey: Indifferent population No attempt to mobilize population No mass rally in the fascist style No militarist rhetoric No expansionist & irredentist propaganda

Kemalist regime: Autoritarian modernity Cautious, defensive and realistic policies All-powered leader – guiding political principle Semblance / likeness of democratic system: Parliament and elections Invention of citizen

Characteristic element Secularist drive Secularization of state, education & law Attack on the traditional stronghold of institutionalized Islam – Ulema Separation of state and religion Control of the state over religion

The Turkish Economic History

The years of deglobalization in the world The Country economically in shambles / devastated in ruin in 1923 1923-29 A period of institutional change, westernization & reconstruction Modern development policy with industrialization as its backbone

The Great Depression 1929 Compounded problems The policy after 1929 Clearing agreements in foreign trade One of the first examples among developing countries An inward-looking, import-substitution strategy Mixed economy with a large public enterprise sector & economic planning After World War II The standard policy in decolonized countries

This policy continued until 1980 A short period of liberalization in the early 1950s Planning became a constitutional requirement in 1961 The inward-looking development policy The inward-looking policy of import substitution broke down in the late 1970s Radical turnaround in development strategy Long overdue The development strategy after 1980 Liberalization of trade and export orientation

Turkey in 1923 An agrarian economy with rudimentary modern industry Frontier economy : abundant resources of uncultivated land Agricultural expansion Limited urban working class in the early 1920s Frontier conquered in the late 1950s Distribution of uncultivated public land to private smallholders

Periodization Interwar years, 1923-38 The WWII with following recovery 1939-1953 Democratic rule & agricultural growth 1951-1960 Inward-looking planning, 1961-1977 Reform and export-oriented growth 1980 The response to the Great Depression 1929-1932 The liberalization years, 1950-1953 The stabilization efforts, 1959-1960, 1978-1979

Until the second half of the 1950s A frontier economy: abundant unciltivated land Extensive (horizontal) expansion 1920s Industrialization based on private entrepreneurship Support of the emerging domestic industry The accumulation of private capital in the industrial sector with government intervention whenever necessary Liberal ?

Emphasis on public financing with the active participation of private local investors and capital contributions from foreign investors

Initially emphasized sectors : Natural areas of IS Raw metarials could be obtained domestically Sugar, textiles & cement Constraints: 1923 Lausanne Peace Treaty The tariff and tax structure Frozen tariffs at the level of 1916 until 1929 Differential rates of excise taxes on imported and locally produced commodities prohibited No quantitative restrictions on foreign trade Exception: Government monopolies for revenue purposes

Direct investment by foreigners encouraged Particularly in partnership with Turkish citizens 1/3 of the firms established in the 1920s Joint ventures

Government subsidization of domestic private enterprise Decree for the Encouragement of Industry , 1913 Law for the Encouragement of Industry , 1927 A wide variety of incentives and subsidies Private investors profited from state monopoly of alcohol, sugar, tobacco, explosives, oil, matches, harbors etc.

Partly farmed out to private companies

Financial infrastructure In agriculture Agricultural Bank [established in 1888] reorganized 1925 In business & industry Business Bank (İş Bankası) 1924 State Industrial and Mining Bank 1925 Devlet Sanayi ve Maadin Bankası İş Bankası & İtibar-ı Milli Bankası merged in 1927 Sümerbank 1933 – Etibank 1935 to meet the shortages of capital for financing industrialization and mining

First Turkish Economic Congress – İzmir February 1923 Importance of economic independence 1100 delegates – Farmers, traders, workers, industrialists [four groups = occupational represeptation] Choice between liberalism and state intervention Call for protection of local industry No opposition to foreign investment Disparate [essentially different] resolutions – Mixed economy State responsible for major investments

1920s – Semi-liberal in essence based on private ownership and initiative State interference – Railways requiring large amount of capital The backbone of economic integration Ottoman tobacco monopoly bought out – State monopoly An important income for the state budget End of capitulatory consession Departure of Greeks and Armenians Shortage of manpower & entrepreneurial skill Lausanne Treaty – import tariffs 1929 [transionary period of 5 years] Limited protection for local products

Lack of entrepreneurial know-how Lack of prosperous market Law on the Encouragement of Industry 1913 – 1927 Tax exemptions Agriculture recovered Replacement of tithe by sales tax 1927-1928 hit by a long drought dry weather causing distress 1929 Great Depression hit hard Turkish economy terms of trade unfovorable for Turkey

Financial Policies Conservative – balanced budget, low inflation DENK BÜTÇE SAĞLAM PARA Balanced budget – Strong currency Tight monetary policy - strong TL Still - trade deficit in the 1920s due to Lausanne Treaty

1929 A turning point for economic development The beginning of the Great Depression Tariff and tax autonomy The year of abolition of the Capitulations in terms of foreign trade The first installment of the Ottoman debts To be paid between 1929-1953 Suspention of the payments at the end of 1930

Exporter of primary commodities [agricultural] Turkey sufferred from adverse terms of trade development A sharp deterioration in external terms of trade Imported goods relatively more expensive than exported goods By % 23 in 1925-1929 % 33 in 1929-1934 A deterioration in internal terms of trade against agriculture ITT fell by % 23 in 1929-1934

Growth rates 1927-29 to 1937-39 % 6.3

Per capita growth % 4.2

The volume of exports continued to rise in the 1930s Protection as an infant-industry policy The new tariff an average nominal protection of % 46 from 1929 onwards as compared with the previous average rate of % 13 1916 tariff between 1924-1929

1929 Exceptional year for imports Huge deficit in balance of payment An increase in imports as the last of of liberal policy A depreciation / devaluation of the TL Law for the Protection of Turkish Currency 1930 authorizing the government to intervene in the local exchange markets Türk Parasını Koruma Kanunu To stabilize the international value of the TL

Bileteral Trade Agreements instead of Free Trade Clearing Aggreements Germany to become Turkey’s largest trading partner Overvaluation of TL – Continuing problem until 1980 Aşırı değerli TL 1980 liberalization and reform brought an end to the policies initiated in 1930.

Legislation in June 1931 Import restrictions

Quota lists - November 1931 Investment goods + raw material + medical requirements Import of agricultural and industrial machinery, raw materials, & medicine free Eliminated from the list: Consumer goods + luxury etc.

Imports of processed food, alcoholic beverages, clothing, shoes, leather goods, some other consumer items

Import licenses distributed administratively = created favoratism Created economic rents to a limited number of favored importers and producers Priority for imported goods to prevent large trade deficit To maintain surpluses on the trade account in order to finance debt service [Ottoman debts]

Result: Severe curtailment in the volume of imports Declined by % 60 in 1929-1933 Concern for expanding the volume of imports without experiencing trade deficits Bilateral trade, clearing, and barter agreements during mid-1930s A worldwide trend

Bilateral trade agreements with German, the united Kingdom, France, & Italy % 84 of imports & % 81 of exports Became part of the clearing and reciprocal quota systems in 1934 1939 The exception: the USA Turkey had a trade surplus against the USA

Industrial output High rates of growth after 1929 Manufacturing industry averaged over % 15 a year Total industry including mining and utilities exceeding % 13 Despite the contraction of rural demand arising from curtailment of imports Import-substituting industrialization

Subsidies in the 1920s Protection in the 1930s By the end of 1930 Private industry primitive in character appropriating the rents brought about by the restriction of imports and protection of the domestic market A search for a new strategy Radical reorientation of economic policies Solution: Etatism State to participate in economic affairs

A response to the Great Depression A common approach: Latin American countries Mixed economy & government intervention & balance of payments controls Tendencies toward autarky [ self sufficiency in economy ] in several European countries The adoption of five-year planning in the Soviet Union

Under etatism

Foreign trade regime

High tariff rates Balance of payments controls Quantity restrictions

Control of domestic markets Direct or indirect price support policies (agricultural commodities) Prices of some industrial goods controlled Wages controlled in supported industries = Low wages Interest rates in financial transactions and banking activities fixed by central authorities No free interest rates

The most conspicious feature of Etatism The emergence of the state as a major producer & investor Most of the state monopolies, administered by private firms, transferred to the public sector Foreign-owned maritime transport companies and railroad, nationalized and transformed into state monopolies An important role in large-scale investment projects A Key factor in the development process: State economic enterprises (KİT)

Two Five-year industrial plans drawn up Preparatory work in late 1932 with the help of Soviet and American advisers The plan adopted in 1934 A detailed list of the investment projects for the public sector Financing party obtained abroad (Soviet union and the United Kimgdom The First Five-Year Plan attained by 1938 The Second Five-Year plan, started in 1938, interrupted by the WWII

Agriculture emerged as the leading contributor to growth under etatism Before etatism, public investment concentrated on transport & communications (railways) With etatism, public investment shifted toward industry, education & health, & agriculture Even so, more than half of public investment went into transport and communications. Investment in transport benefited agriculture Even in the last years of interwar years % 25 of public investment in industry against % 50 in agriculture and railroads

World Economic crisis hit very hard Wheat price declined by 2/3 Terms of trade deteriorated 100 – 1929 46 – 1934 No system of buffer stocks to regulate prices Loss of purchasing power Imposition of quatos and restrictions Imports declined 256 m. TL 1929 85 m. TL 1932

Trade surplus 1930s Autarky – A practical necessity An autonomous industry 1929-1932 a period of searching Statism State took responsibility for creating and running industries Lack of accumulated capital in private sector Soviet delegation 1932 Concentration of textiles, iron and steel, paper, cement, glass and chemicals 1933 First Five-Year plan

Kadro Movement 1932-34 A cadre to act as a vanguard of Kemalist revolution State planning in all areas of social, economic & cultural life Third way – a viable alternative to communism and capitalism İnönü versus Bayar Sümerbank 1933 – Etibank 1935 State Economic Enterprises State intervention in agriculture 1932 To regulate prices by building up and selling off stocks Office for Soil Praducts 1938

End of Part II