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SECOND SEMESTER
TRANSITION TO DEMOCRACY 1945-1950
From Single-Party Era to Multi-Party Era
DEMOCRAT PARTY ERA 1950 -1960
Transition to Democracy and Liberalism
THE SECOND REPUBLIC 1960-1961
27 May 1960 and the 1961 Constitution
PLANNING AND ECONOMIC GROWTH 1961-1973
Problems of Pluralism and Democracy
WORLD RECESSION AND CRISIS 1974-1980
Political and Economic Distress
THE THIRD REPUBLIC AND REFORMS 1980 - 1991
Political and Economic Restructuring
CREDITS AND DEBITS OF GLOBALIZATION
UPS AND DOWNS AND RECOVERY
Towards the 21st Century
1991 - 2004
Turkey
moving in the direction of a more effective
parliamentary democracy
Transition to
modern community of mobile, participant citizens
Population increased
13,5 million in 1927
21 million in 1950
The proportion living in cities rose significantly
An increase in urbanization
Literacy increased
A literate, urban population
New interests and habits
Anxious to be kept informed – Public opinion
The number and circulation of newspapers rose steadily
The number of wireless sets increased
The modernization of communication
THE END OF STATISM
Statism created capital
&
allowed its accumulation in private hands
Classes became differentiated - Conflicts were bound to arise
Difficulty in maintaining the social order
General discontent
The living standard of the peasantry worsened
THE SECOND WORLD WAR
Uneven distribution of burden when war broke out
1.
Sharp increase in the consumption of soil products
2. Diminution in agricultural production / producers drafted
into the army
Shortage of bread
The villages confronted with the following problems:
1.
Shortage of land
2.
Farming methods and techniques
3. Large estates – distribution of national income to the
agricultural population unbalanced
Measures necessitated by war conditions:
Industrialization in its initial stage was possible only by
exploiting the internal markets, chiefly the rural ones.
Heavy taxes levied on agricultural, despite the removal of tithe
(aşar)
The Industrial Workers
Their number increased
Wages in remained extremely low
insufficient for an adequate standard of living
Government control barring the workers from political activity
–
Labor Law (1936)
Industrial workers did not benefit from any government
welfare programs until 1945
except for a few measures connected with work safety and
hygiene
Ministry of Labor established in 1945.
Trade Union Law enacted in 1947
Welfare needs were tackled in a more basic fashion
Welfare insurance (1945) and paid holidays (1951) laws passed
National Defence Law (Milli Korunma Kanunu)
January 1940
Crop prices below the market prices
to keep down the cost of bread in the cities
to the peasants’ detriment
Compulsory contribution of crops demanded by the state:
All crops in excess of the amount needed for family consumption
and seeding to be delivered to the state.
Peasants had to sell their belongings to meet the contribution
quota.
The Urban and Rural Middle Classes
Affected by two major laws to:
a) establish social justice
b) stimulate agriculture.
1. Tax on capital (Varlık Vergisi) 1942
2. Tax on agricultural products (Toprak Mahsulleri Vergisi)
3. Land Reform Law (Çiftçiyi Topraklandırma Kanunu) 1945
Tax on capital - Varlık Vergisi
Addition revenue for urgent military expenditures
A tax upon incomes and capital accumulated through
unorthodox means,
which could not be subjected to ordinary taxes.
On profiteers, businessmen, and intermediaries
who had acquired wealth by speculation and black marketing
with imported goods and essential items.
The firms of the minorities were subjected to the tax
in an arbitrary and unrealistic way.
Land Reform
A social reform to ameliorate the situation of the peasant
The purpose:
1. Land reform - To distribute land to the landless and landshort peasants sufficient to provide a living
2. Agricultural reform - To furnish equipment for its
cultivation - Rationality
Produced violent criticism of the government
The deputies divided into two groups:
1.
Intellectuals and government officials:
adopted a social-intellectual approach. Partitioning the land.
Natural social consequence of populism – Political viewpoint
2.
Deputies with some personal land interests
adopted a technical viewpoint.
Improving the cultivation methods.
(Rational agriculture and mechanization)
Demanded the respect for and guarantee of the right to private
property
(The preservation of the status quo of landed property in
Turkey)
Result: The first concerted opposition to the government and
the formation of the Democratic Party
The People’s Party decided to amend the law
to appease the opposition,
limiting the land to be distributed
to that owned by the government and vakıfs.
The expropriation provisions
concerning private property were barely applied.
The Memorandum of the Four (Dörtlü Takrir)
By Celal Bayar, Adnan Menderes, Refik Koraltan and
Fuat Köprülü supported by Vatan and Tan
a) Turkish constitution be implemented in full
b) b) Democracy established
Democratic Party (Demokrat Parti) January 1946
National Development Party (Milli Kalkınma Partisi) 1945
by Nuri Demirağ
The liberalization of the economy
The development of free enterprise
RPP extraordinary congress – May 1946
1. Liberalizing measures
2. Direct elections
3. The position of permanent chairman of the party abolished
4. The title of “National leader” (Milli Şef) abolished
After the congress:
1. A liberal press law
2. Autonomy for the university
National elections brought forward from July 1947 to July 1946
Catching the Democrats before they fully established
Elections
DP won 62 of the 465 seats
1. Massive vote-rigging
2. No guarantee of secrecy during the actual voting
3. No impartial supervision of the elections
As soon as the results were declared actual ballots were
destroyed making any check impossible
Turkey was desperate for foreign financial assistance
To facilitate this applied for membership of the IMF 1947
To qualify for membership:
7 September 1947 Decisions
a) A devaluation of Turkish lira by % 120
b) A number of liberalizing measures
aimed at the integration of Turkey into the world economy
Marshall Plan 1947
Financial support to European countries
a) To help them to rebuild their economies
Complementary aims:
b) To sustain lucrative export market for US industry
b) To eliminate poverty as a breeding ground for communism
Truman doctrine: 1947
Civil War in Greece
American commitment
Military and financial support for Greece & Turkey
to the defence of anti-communist regimes
1946 - A new economic Five-Year Plan
similar to pre-war plans
Emphasis on autarky and state control
1947 - A new Development Plan
echoed the wishes of the Istanbul businessmen and of the DP
1. Free enterprise
2. Development of agriculture and agriculturally based industry
3. Road instead of railways
4. Development of energy sector (oil)
Hardly any difference
between the economic policies of the DP and of the RPP
Exception:
the DP wanted to sell off the state industries (KİT)
Twelfth of July Declaration
by İnönü (July 1947)
a) Legitimized the existence of the opposition
b) Called upon the state apparatus to be impartial
Defeat of hard-liners in the RPP
1947: Hasan Saka replaced Recep Peker
1949: Şemsettin Günaltay, - a more compromise figure
1947 RPP Congress
RPP moved even closer to the DP program
1. Advocated free enterprise
2. Decided to retract article 17 of Land Reform
3. Allowed religious education in the schools
4. Reformed the Village Institutes
Istanbul Economic Congress - 1948
Support for liberal economic policies
American Missions
American fact-finding missions - commissions
The World Bank Report 1949
influencial in government circles
in line with the 1947 Plan
RECOVERY
1945-1950 - years of growth
(11 % growth in GDP per year)
From very low level of economic activity of WWII
Large gold & foreign exchange stocks
accumulated during WWII
Purchase of chrome ore by belligerents
Nonavailability of imports
Investment Program
A good position to step up investment program
Machines, contruction materials, etc. to be imported
A disguised form of investment in agriculture
Money Supply
An increase in money supply
Subsidizing basic crops to a level above world prices
(wheat price about double the going world price)
Tax Burden
Tax burden of rural populace decreased
compared to urban population
To stir economic incentive
Large share of the national income channeled
into the rural areas
Assistance
Military and economic assistance from the US
- International position strengthened
- Domestic investment load lightened
Autarky came to an end – Incorporation speeded up
Economic growth in agricultural sector
From 1947
Trade surplus changed into a trade deficit
due to fast-rising imports of machinery
Social policies
The ban on organizations with a class base lifted (1946)
Trade unions established – 1946 - linked to socialist parties
Martial law – close them down
International Labor Organization
Turkey joined the ILO
1947 Law on Trade Unions
a) gave to the workers the right of organization in trade unions
b) forbade political activity & strikes
DP promised to grant workers the right to strike (grev hakkı)
Restictive policies of the governments
Until 1950 – labor unions acting as adjuncts of the RPP
After 1950 – an independent labor movement
Special courts to handle labor cases (1950)
Weak Trade Unions
because:
a) Small number of industrial workers
b) Low level of education
c) Extreme poverty of working class – insufficient union dues
(aidat)
Private Banking
Yapı Kredi 1944
Garanti 1946
Akbank 1948
The Industrial Development Bank of Turkey
(Sanayi Kalkınma Bankası) 1950
Purpose:
Recruiting capital for private business
at more reasonable terms
Liberalism
in the air before the Democrats
A powerful industrial bureaucracy
developed under RPP eagis
Difficult to unseat
By 1950:
Literacy % 34.5
Population : 20.9
Labor force: 10.6 million
Persons employed in industry and crafts: % 8.7 of the labour
force
Per capita real income: index 107
(1938 the base year_(100)) - 1929 : 87
Bank deposits: from 197 (1937) to 1.031 million (1950)
DP = A splinter group from RPP
Split off from the DP
Nation Party (Millet Partisi) – Marshal Fevzi Çakmak
A more uncompromising opposition to the RPP
Election law - Bone of contention – February 1950
1. Free and fair elections
2.Supervision of the elections by the judiciary
The elections of 14 May 1950
– free and fair
– without major incident
– very high turnout ( % 80) (of the electorate casting its vote)
Electoral system - Majoritarian
DP received 408 seats (% 53.5)
against the RPP’s 69 (39.8)
Nation Party (Millet Partisi) won 1 seat
RPP votes from east of Ankara:
notables, tribal chiefs & large landowners controlled the vote
DP - First political organization with a mass following
Peaceful handover of power (1950)
Peaceful transition
from autoritarianism to multi-party democracy (1946)
Unique experience in the developing world
A democratic heritage
Experiments with parliamentary election (1876)
Multy party democracy (1908-1913) (1924) (1930)
1950 – 1960 Democrat Party Era
1. Liberal economic policies
2. Authoritarian methods to curb the opposition
3. Relaxation of secularist policies
4. Strengthening ties with the West
1951 and 1953 RPP congresses
1. Six arrows redefined
2. More emphasis on social policies
In 1953
Democrat Party
a) dominated assembly
b) requisitioned all the RPP’s material assets
c) closed People’s Houses (Halkevleri) & People’s Rooms (Halk
odaları)
Insecurity within DP
1953 : Amendments
Government control of the press and the universities
1954 (before the elections)
The press law tightened
1954 Elections
Increased DP majority: 503 seats for the DP
RPP left with 31 seats
A tremendous success for Menderes
Massice support of peasantry
Policies vindicated by the economic boom
Nation Party
banned in 1953
reconstituted as the Republican Nation Party
(Cumhuriyetçi Millet Partisi)
won 5 seats in 1954
Economic Development
DP trusted implicitly in the working of the market
Foreign Capital
The Law to encourage foreign investment 1951
Foreign investment remained extremely limited
% 1 of total private investment
No more than 30 firms invested
Emerging Turkish Bourgeoisie
expected to start investing the profits accumulated in the 1940’s
Family businesses
hesitated to invest on the scale desired by DP
Privatization
of large state enterprises - a dead letter
Contributions
from private sector & foreigners disappointing
% 40 to 50 of investment came from the State
Investments concentrated:
1. Road network
2. Building industry
3. Agro-industries
New roads
Switch to road transport
a changeover from public to privately owned transport
to lower transfort costs
Tied the country together – National market
Opened up access to the villages
More effective marketing and distribution
End of Railways
The building of railways came to an almost complete halt
Highways
1600 km of hard-surfaced roads in 1950
5400 km of hard-surfaced two-lane highways
built between 1950-1960
with American technical and financial assistance
Turkey obtained the services of the U.S. Public Roads
Administration
Fast-rising number of cars, buses and trucks
in private hands
Effectiveness of the investments
lessened in three ways:
1. Investments uncoordinated
2. Quick and tangible results expected
3. Investment decisions politically inspired
1. Investments uncoordinated
Menderes - allergic to economic planning
Associated it with the evils of statism
Denounced planning as synonymous with communism
2. DP wanted quick and tangible results
(to reach the level of Europe within 50 years )
DP confused development with growth
a) Use of credit facilities and investments short-sighted
b) Aimed at a high level of growth
rather than
a long-term improvements in the productive capacity
3. Investment decisions politically inspired
Factories put up in:
a) economically unpromising locations
b) the wrong sectors
Income distribution & social policies
a) Agricultural incomes grew faster
than non-agricultural incomes
Larger farmers profited most
b) Profits grew faster than wages & salaries in the towns
Traders and industrialists were relatively better off
Worsening inflation from 1955
hit wage- and salary- earners
Still, by 1960,
their real incomes had grown considerably
compared
with the immediate post-war years
Demographic Transformation – Revolution
1. Respectable increase in total population
2. Unbanization:
Mass migration from countryside to towns
Major cities growing by % 10 a year
Labor migration - permanent rather than seasonal
3. Emigration to European countries
Limited Capacity
of new industries
to accommodate fast-growing but unskilled workforce
Small proportion found permanent jobs in industry
Most of the migrants ended up
as casual labourers or as street vendors
Lack of infrastructure
Cities - not equipped to receive large numbers of new
inhabitants
Satellite towns (shanty-towns)
sprang up without infrastructure
No water, electricity, roads, or sewage system
(Gecekondu)
Settlers built their houses
on unused land on the outskirts of town
Labour Conditions
Trade Unions Law of 1947
Most unions were linked to the RPP
through “Workers Bureau” (İş Bürosu)
Unions forced on the workers by the RPP
DP powerful weapon: The promise to grant
the right to strike
After the elections this promise forgotten
The trade Unions Confederation (Turk İş) 1952
Founded with moral and material assistance
from the International Conference of Free Trade Unions
The position of the unions remained week
Extremely low living standards of the members
Contributions (Aidat)
insufficient for the running of the organizations
Economic Problems
Turkey suffered a trade deficit from 1947 onwards
even during the boom years of 1950-53
Turkey had a wheat surplus
became a major wheat exporter
The boom was over by 1954
Weather conditions worsened
Turkey imported wheat once again
Agricultural growth
Extensive farming dominant
achieved by a combination of:
1. Extension of the sown area
2. Exceptionally good weather
Intensive farming marginal
a) Improved agricultural techniques
b) Irrigation
c) Use of fertilizers
Economic growth
fell from around % 13 to % 4
Trade deficit
in 1955 was 8 times that of 1950
Government kept up
the rate of imports and investment
Turkey’s strategic position in the Cold War
to get
financial aid and easily borrowing terms
In 1960
total external debt stood at 1.5 billion $ = ¼ of the GNP
The weakness of the economy
Solution for financial problems :
effective taxation
taxing the new wealth in the countryside
Finances
Rich (large) landowners & substantial farmers
earned more than a % 20 of the GDP
paid only 2 % of the total tax revenue
Political considerations
prevented DP from levying taxes in rural areas
Inflation
Instead of taxation
borrowed from Central Bank, = printing money
Inflation went up
from 3 % in 1950 to 20 % in 1958
hitting
a) wage-earners
b) salary- earners & pensioners
c) consumers in towns
Measures (from September 1953)
Import and foreign exchange controls
Ending
1. Five-year period of gradual opening up of the economy
2. Rapid integration into the world economy
From 1954
International financial institutions began to caution DP
Classical “IMF package” prescribed:
1. Devaluation of TL
2. End to artificial prices and to subsidies
3. End to import and export restrictions
DP resisted these pressures
Stuck to official fixed exchange rate of TL
Result:
a) Economy deteriorated
b) Inflation grew
Gap between the official rate & the real value of TL widened
Black-market in foreign currency by 1958
Instead of recognizing the economic realities
DP revived National Defense Law
Milli Korunma Kanunu (1940)
to enforce price controls
Result:
Black market = Goods disappeared from shelves
Finally
DP agreed to the demands of the IMF (August 1958)
1. Devaluated TL
2. Rescheduled debts
3. Rised prices of KİT products
In exchange: Loan package
from USA, European countries, IMF
The debit side of DP’s Economic Policy
Unsound financial and fiscal structure
Creating
1. Huge deficits in balance of payment = Debts
2. Inflation at home = Black market
The credit side
mobility and dynamism
1. Modernized agriculture
Passage from extensive farming to intensive farming
2. Increased the industrial base
Large industrial firms have their roots in the 1950s
3. Built new road network opening up the country
Villages came into contact with the outside world
From 1954
Economic downturn eroded support for the DP
Reasons:
a) Deterioration in standards of living
Limits put on the imports of consumer goods
b) Rise in the expectations of material improvement
1957 Elections:
Gradual loss of support for DP in the countryside
Still kept the support of the majority
Serious problem:
Crumbling / decaying support of
1) intellectuals
2) bureaucracy
3) armed forces
Results:
a) Groving economic difficulties = inflation
hitting salaried people, civil servants, pensioners
b) Groving authoritarianism
hitting intellectuals & universities
Measures against the bureaucracy
Suspected of loyalty to İnönü
Increased hold over the bureaucracy
Civil servant: + 25 years of service
could be suspended and sent into retirement
Applied also to judges & university professors
Political control over the executive and judiciary
Academic freedom restricted
The degree of tension:
6-7 Eylül Olayları – Events of September 6-7
Riots of September – The future of Cyprus
Negotiations lead to nationalist fervour, fanned by the press
Expected:
A limited spontaneous demonstration by students
To demonstrate public feeling
Result:
Demonstrations got out of hand
Developed into a pogrom against orthodox citizens
General attack on wealth by the inhabitants of the gecekondus
Martial law declared (İstanbul, Ankara, İzmir)
Interior minister resigned
Opposition
to authoritarian policies within DP (1955)
vis-a-vis the press, the universities & the judiciary
Bone of contention within DP
Right to Prove (Ispat Hakkı)
journalists taken to courts
should have the right to prove the truth
of what they have written
Proposal rejected by DP parliamentry group
Freedom Party (Hürriyet Partisi) - December 1955
Liberal wing broke away from DP
under the leadership of Fevzi Lutfi Karaosmanoğlu
Became the biggest opposition party
Wanted:
A more sophisticated economic policy – planning
1956
Trend towards authoritarianism continued
National Defence Law revived to control prices and supplies
Press Law changed
to strengthen further government control of the media
Political meetings prohibited except during election campaigns
Elections due in 1958
pulled back (27 October 1957)
Prices of agricultural products raised
Ten-month moratorium on farmer’s debts
Cooperation between opposition parties
Joint declaration of principles (4 September)
Law (11 September) banned
the use of combined lists in elections
1957 Elections – A major setback for DP
DP = the largest party, but lost the absolute majority in %
DP % 47.3 & 424 seats
RPP % 40.6 & 178 seats (in 1954 31 seats)
FP (extremely disappointing) % 3.8 & 4 seats
Republican Nation Party (ultra-conservative) % 7 & 4 seats
After the elections
RNP merged with Peasants Party (Köylü Partisi)
to form
The Republican Peasants National Party
(Cumhuriyetçi Köylü Millet Partisi)
December 1958
FP merged with RPP
Infusion of new ideas to reorientate the RPP
a) social justice
b) democratic safeguards
Secularism
DP (1957) appealed to religious sentiments
a) Described the Republicans as communists and unbelievers
b) Boasted about the number of mosques and religious schools
opened under DP
charged / accused of
a) using religion for political purposes
b) reneging on the secularist principles of the state
Kemalism (Single-Party Era)
A modernization strategy based on a positivist world vision
Religion seen as a hindrance to progress in modernization
Kemalist secularism
subjugation and integration of religion
into the state bureaucracy
After 1946 (Multi-Party Era)
Parties started to court the Muslim vote
RPP : (After 1947 congress)
more tolerant of religion
a) Reintroduced elective religious education in schools
& training establishments for preachers
b) Faculty of Divinity in Ankara University (1949)
c) Tombs and shrines (türbe) reopened
But: Article 163 (Penal code) :
against religious reaction in politics
Prohobited
propoganda attacking the secular character of the state
DP (Before 1950)
Great care to emphasize secularism
Islamic currents (Sebilürreşat etc.) attacked the DP
Formation of more radical opposition parties:
Nation Party
Dissolved in 1953
for alleged complicity in reactionary religious plot
DP (After 1950)
Relaxation of secularist policies
a) Restrictions relaxed on expressions of religious feeling
b) Concessions to the feelings of the Muslim population
c) Koran reading on the wireless
& reversion to Arabic for the prayer call
d) Religious education expended
e) Parents had to opt out instead of having to opt in
f) The number of preacher schools enlarged
g) Increase in mosque buildings
h) The sale of religious literature allowed again
i) accepted the existence of autonomous religious organizations
(legitimized brotherhoods)
But still:
The DP’s understanding of the secularism
- not significantly different from that of the RPP
- did not end the integration of the religious establishment
into the bureaucracy
-Preacher remained civil servant
-The administration of religious endowments in state hands
Emergence of anti-secularism
1950-51 Dervish sheikhs came out into the open
with large following
Ticani dervish order started to smash busts of Atatürk
Persecuted vigorously by the government
Their leader, Kemal Pilavoğlu sent to jail
Law against defaming Atatürk’s memory passed in 1951
However
Nurcu movement supported DP in the elections
DP tacitly admitted:
Religion was not necessarily incompatible with development
Within the army
seen as betrayal to the Kemalist traditions
Result:
Islam made much prominent in everyday life in the cities
Seen a a resurgence of Islam by intellectuals
Obscurantism or traditional culture of the mass of population ?
Interpreted as:
The former subject class reasserting its right to express itself
Economic policies of RPP and DP
differed in emphasis
Not in direction
SEE not turned over to private capital
State continued to invest heavily
Illiberal spirit
After 1954 – DP sought to buttress their strong position
by restricting political liberties
1954-59
Prosecutions of journalists, editors and newpaper owners
Ammendments to the press & libel laws – 1956
Severe penalties for criticizing persons in official positions
Control of the allocation of newsprint – 1958
Amendments to Civil Service Law 1954
a) Government empowered to retire judges and university
teachers after 24 years service or at age 60
b) Dismissal of civil servants after a period of suspension
Activites of political parties curtailed
Amendment to the electoral law to prevent electoral coalitions
All public meetings & demonstrations banned
except in the 45 day campaign period preceding elections
Rise in the temperature
1960
Commission to investigate activities of the opposition
(tahkikat komisyonu)
Opposition accused inter alia of interfering with the army &
with arming its own followers
Commission set up with powers
a) To suppress newspapers
b) Subpoena persons and documents
c) To imprison for up to 3 years those who impeded its
investigations
The effect of the restrictions
Political strife driven out into the streets
Dubious legitimacy of the measures
Encouraged illegitimate means of action
Opposition strong in large towns
Particularly amongst students
Educated sections of society
a) Schools & Universities
b) Civil service
c) Military officer class
Former elite displaced from the center of the stage
Fall in purchasing power of the salaries
Displaced as the elite in society
New centers of wealth and influence
Necessity to call in the army to suppress demonstrations
Army – sympathy with İnönü
Why did DP cling so obstinately to power ?
1 . The character of the DP leadership.
2. Restriction on personal basis
rather than rational basis
3. Excessive confidence
in their popularity & their own legitimacy
1 . The character of the DP leadership.
Active participation in the authoritarian RPP
not democratic by training
2. Restriction on personal basis rather than rational basis
İnönü complex.
frustrated in the RPP
unable to unseat İnönü
3. Excessive confidence in their popularity & their own
legitimacy
Support of the bulk of the electorate
Little interference with traditional and religious customs
Underestimated the power of the Opposition
The Second Turkish Republic 1960-1980
The military takeover of 27 May 1960
a)
“to prevent fratricide”
b) “to extricate the parties from the irreconcilable situation into
which they had fallen”
The conspirators:
a number of radical colonels, majors and captains
Greeted with explosions of public joy among student an the
intelligentsia.
The rest of the country showed no such reaction.
General Cemal Gürsel: as a figurehead,
former commander in-chief of the land forces
National Unity Committee (NUC)
(Millî Birlik Komitesi)
headed by Cemal Gürsel – 38 officers Alpaslan Turkeş – the most influential member
Declaration of professors justifying the intervention:
DP acted unconstitutionally
The investigatory commission – tahkikat komisyonu
became illegal
Young Turks
Tradition of military leadership of modernizatation
ceased to be under the Single-Party regime
Fevzi Çakmak = Millet Partisi
Restructuring of Army in the 50s.
Extensive rearming and retraining of the military (NATO)
The modern army = the most progressive element
The process of modernization created expectations
Under the guise of Atatürkism
Underlying factor encouraging the military to intervene:
A combination of frustration & renewed self-confidence
Most prestigious elements in society in the 1950’s
Free professions in law, medicine, engineering and the like.
Not military nor civil servants
Social background
&
social and economic views of the instigators of the coup
NUC – discontented with DP’s economic and social policies
a) A more balanced economic growth
b) A more equitable distribution of wealth
c) Land reform
DP social justice was not a main consideration
NUC decision (3 August)
to retire 235 out of 260 generals
&
some 5000 colonels and majors
Democrat Party suspended on 31 August
&
dissolved on 29 September 1960
A provisional constitution – 12 June 1960
giving legal basis both to the coup and to NUC
The cabinet of technocrats as an executive organ
To finalize the text of the constitution
The Constituent Assembly (Kurucu Meclis)
convened in January 1961
Consisted of two chambers: bicameral parliament
1. An upper house : the NUC
2. A lower house: 272
representatives of the remaining political parties, professional
groups and of the provinces
The new constitution: (1961) to prevent a power monopoly
By counterbalancing the National Assembly (Millet Meclisi) with
other institutions.
1. A second chamber, called the Senate (Senato)
2. An independent Constitutional Court (Anayasa Mahkemesi)
3. Full autonomy for the judiciary, the universities and the mass
media
4. Proportional representation:
to lessen the chance of one party
holding an overwhelming majority
5. A full bill of civil liberties
6. A constitutional role for the military:
the National Security Council (NSC) (Milli Güvenlik Kurulu)
National Security Council (NSC) March 1962
(Milli Güvenlik Kurulu)
advised the government on internal and external security.
Members:
The chief of the general staff, the service chiefs
&
the ministers concerned
A powerful watchdog,
sometimes replacing the cabinet
as the center of real power and decision-making
The referendum
on the new constitution (9 July 1961)
A severe setback for the forces of 27 May
Accepted with 61.7 against 38.3 per cent of the votes cast
The ban on political activity lifted (13 January 1961)
RPP + RPNP reactivated
New Parties
1) The Justice Party
headed by Ragıp Gümüşpala; retired general
Primary goal
full rehabilitation of the retired officers and arrested democrats
2) The Workers Party of Turkey (February 1961)
headed by Mehmet Ali Aybar, publicist, lawyer, former U.
teacher
3 ) The New Turkey Party
headed by Ekrem Alican
The parliamentary elections (15 October 1961)
RPP gained 36.7 per cent: (171 seats) disappointed
JP polled 34.7 per cent (158 seats)
The New Turkey Party got 13.9 per cent:
A continuation of the Freedom Party
founded by dissident Democrats in 1955
The conservative RPNP polled 13.4 per cent
Taken together,
the parties which were considered heirs to DP
were clearly still the strongest in the country
The new constitution more liberal than the old one:
It tolerated a wider spectrum of political activity than before,
both to the left and to the right
The trial of the old regime: Yassıada Mahkemeleri
31 sentenced to life imprisonment &
418 to lesser terms,
while 15 sentenced to death (11 death sentence commuted).
AdnanMenderes, Fatin Rüştü Zorlu and Hasan Polatkan
hanged
Celal Bayar’s death sentence
commuted
because of his advanced age
A Period of Transition – the Period of Coalitions
Heavy pressure on the two party
to collaborate in a coalition
to be led by İsmet İnönü
The First İnönü Coalition
A marriage of convenience, not love
Failure:
a) the amnesty for the former DP politicians
b) the project for a planned economy
The JP rejected as insufficient
a proposal to reduce the sentences of the Democrats
The Second İnönü Coalition
İnönü formed a new cabinet
A coalition with the two smaller parties
Many frictions
The worst: the proposal for a land tax
Cemal Gürsel asked the JP leader, Ragıp Gümüşpala
to form a government.
He failed in his attempt
The Third İnönü Coalition
A minority coalition of RPP and independents
JP brought it down
his budget is not approved
A Caretaker Cabinet
headed by Suat Hayri Ürgüplü (a former diplomat)
Elections in October 1965
JP won a landslide victory
gaining an absolute majority of the votes cast (52.9 per cent)
RPP was down to 28.7.
The other parties gained les than 7 per cent
Workers’ Party in the parliament: 15 deputies
Demirel, prime minister.
He dominated Turkish politics for the next five years
Goods years for Turkey
High economic growth
&
Continual increases in real incomes
Demirel’s most important achievement
Reconciliation of the army & the rule by civilians
The price paid:
The armed forces were granted almost complete autonomy
JP was a coalition of
1. industrialists
2. small traders and artisans
3.
peasants and large landowners
4.
religious reactionaries
5. Western-orientated liberals
It had very little ideological coherence
Demirel’s frequent recourse to two tactics
To preserve the unity of the party and his own position
1. Emphasis on the Islamic character of the party
He stood for traditional values
Flirt with leaders of Nurcu movement
2. Constant anti-communist propaganda campaign
&
harassment of leftist movements
He became unpopular among intellectuals
But his support held up well in the countryside
The elections of 1969
JP suffered slight losses ( %46.5)
RPP polled only % 27.4
JP formed a new cabinet
Slightly more centrist than the old one
Problems within JP – Opposition to Demirel.
He lost the support of the most conservative wing
a) Anatolian landowners
&
b) small traders and artisans
over his proposals for new taxation
to help pay for industrialization
February 1970
The right wing of the JP voted with the opposition
&
forced Demirel to resign
March 1970
New cabinet - No alternative to Demirel
Rift superficially healed
December 1970
41 deputies and senators left the JP
&
founded the Democratic Party (Demokratik Parti)
led by Ferruh Bozbeyli
its name, recalling DP
New definition for RPP - Left of Center
The RPP moved left of center (Ortanın Solu)
A new manifesto in the 1965 elections
written by two coming men of RPP
Turhan Feyzioğlu and Bülent Ecevit
Emphasis on social justice and social security
without being explicitly socialist
To mobilize the votes of
1) workers
2) 2) inhabitants of the shanty towns (slum areas of towns)
RPP new stance did not profit in 1965 elections
Lacked credibility as a progressive party
The people in the squatter towns basically villagers
who had moved to the big city
taking their village values with them
as in the villages, they voted JP
JP propogandists’ tactics:
Left of center is the road to Moscow
Ortanın Solu Moskova’nın Yolu
After the defeat – Acrimonious debate – Infighting
Blaming “the left-of-center” tactics
Extraordinary Congress of RPP - 1967
Increase of the central office’s hold over the party
Party dicipline
A group of 47 representatives and senators
who opposed the left-of-center line
left the party
to found the Güven Partisi (Reliance Party)
led by Turhan Feyzioğlu
Ecevit’s main competitor for the position of “Crown prince”
Personal jealousy
The growth of political radicalism
On the left:
A growing student population
&
a growing industrial proletariat
On the right:
JP policies served the interests of
the modern industrial bourgeoisie, of big business
However, JP’s electoral base consisted of
a) farmers
&
b) small businessmen
They became the prime targets of both
a) the Islamic party
b) the ultra-nationalist party
The NAP led by Alpaslan Türkeş
(National Action Party / Milli Hareket Partisi)
From RPNP – 1969
Hierarchically organized, militant with ultra-nationalist
program – Nine Lights (Dokuz Işık)
Youth Organization – Ülkü Ocakları + Bozkurtlar
The NOP ( National Order Party / Milli Nizam Partisi ) 1970
headed by Necmettin Erbakan.
Voice of smaller businessmen
They posed a serious threat te Demirel’s power
Political violence in the late 1960s
Bombing attack, robbery and kidnapping
The violence of the left
met and surpassed by violence from the militant right
By early 1971:
Demirel weakened by defections - Became paralyzed
He was powerless to curb the violence
on the campuses and in the streets.
He could not hope to get
any serious legislation on social or financial reform
passed in the assembly
12 March Memorandum (12 Mart Muhtırası)
Handed by the chief of the general staff
It amounted to an ultimatum by the armed forces
The memorandum demanded:
A strong and credible government
to end the “anarchy”
&
and carry out reforms “in a Kemalist spirit”.
If demands were not met, the army would “exercise its
constitutional duty” and take over power itself.
Demirel resigned
İnönü denounced any military meddling in politics
The new government installed by the generals
headed by Nihat Erim, member of the right wing of the RPP
Ecevit, infuriated, resigned as secretary-general.
A cabinet consisted largely of technocrats
from the outside the political establishment.
Erim announced that his government:
1. restore law and order
2.
enact a number of long-overdue socio-economic reforms
Atilla Karaosmanoğlu (World Bank)
drew up a reform program:
1.
Land reform
2. A land tax
3.
Nationalization of the mineral industry
4. Joint ventures to protect Turkish industry
at least 51 per cent Turkish-owned
Stubborn opposition from vested interests in business and
agriculture
But sophisticated industrialists
like Vehbi Koç Koç and Nejat Eczacıbaşı
supported the reform proposals
Renewed terrorist attacks
NSC proclaimed martial law in 11 provinces.
Renewed every two months for two years
Persons suspected of terrorism round up
Witch-hunt - The persecution of the left
Even progressive liberal sympathisers
5000 people arrested,
leading intellectuals (writers, journalists, professors),
leading members of the Workers Party of Turkey
prominent trade unionists
The NOP & WPT closed down in May & July
Erbakan allowed to resume his activities in October 1972
under Milli Selamet Partisi (National Salvation Party)
Erim to compromise with the conservatives in the assemby
Demirel’s old ministers in the cabinet
11 reformist technocrats resigned
Replaced by politicians from the right
Erim’s new cabinet
amendments to the constitution
aiming at making it less liberal
support of the parties of the right
44 articles were changed.
Basically:
1. Limits by law to the civil liberties (Article 11).
2. End to the autonomy of the universities and of radio and TV
3. Limit to freedom of the press
4. The powers of the Constitutional Court curtailed
5. The powers of the NSC increased
giving unsolicited advice to the cabinet - Binding advice
6. Special State Security Courts (DGM) instituted
to try over 3000 people
Abolished in 1976
The assembly refused
the right to rule by decree (kanun hükmünde kararname)
Nihat Erim resigned (April 1972)
Succeeded by Ferit Melen
one of the leaders of the Reliance Party
Collaborated more closely with JP
Ecevit’s principled stance
Ecevit ousted İnönü from the RPP chairmanship
succeeded him (Party conference in May 1972).
İnönü resigned from the RPP (November 1972)
The term of office of Cevdet Sunay (1966-1973) came to an end
The army put forward the chief of general staff Faruk Gürler
as his successor
Gürler was defeated
Fahri Korutürk, a retired admiral, became the president
He appointed the economist Naim Talu
to lead a caretaker government
to take the country to the free elections
October 1973 Elections:
produced a surprise result
RPP polled 33.5 per cent against 29.5 per cent won by JP
None of the parties had an absolute majority
Long-drawn-out negotiations
January 1974 - a new cabinet
Based on the surprising combination of RPP with NSP
A marriage of convenience: Common basis: the distrust of
a) European and American influence
b) big business.
Cyprus crisis broke out – Invasion of Cyprus
Ecevit became a national hero overnight
He wanted to use his new popularity
to gain an absolute majority in early elections
Resigned in September 1974
A major miscalculation
A caretaker cabinet under Professor Sadi Irmak
Demirel finally formed a coalition: First Nationalist Front
JP, the NSP, the NAP, RRP and defectors from the DP
Bribing them with cabinet posts – 30 ministers
Disproportioned influence of NSP & NAP
Colonizations of ministries in an unprecedented way
Thousands of civil servants discharged or demoted
Replaced with party loyalists
Increased violence and economic crisis
The elections of 1977
Ecevit’s popularity RPP,got % 41.4
JP went up to % 36.9
A stalemate
Attempt by Ecevit to form a coalition with the independents
Failure
Second “Nationalist Front” coalition by Demirel
Influence of the NSP and NAP greater than in the first one
Short lived. JP deputies defected
Ecevit formed a cabinet with defectors now independents
The independents given cabinet posts
It survived until October 1979
It could not master the rising tide of violence
The military grew increasingly disillusioned with
Ecevit’s soft attitude to terrorism and Kurdish separatism
October 1979 elections for the senate
Drop in support for the RPP
Defections from RPP
Ecevit lost majority - Resigned
Demirel returned to power
Minority government supported by independents
JP-RPP coalition
proved impossible to realize throughout 1973-80
They were unable to cooperate
The political system gradually became paralysed
giving small extremist groups disproportionate influence
Polarization of the big parties due to ideological factors
President Fahri Korutürk’s term ended in 1980
Paralysis -The assembly proved incapable of electing president
after 100 rounds of voting
Two overwhelming problems Turkey faced in the 1970s.
(1) Political violence (2) Economic crisis.
The development policies of the governments were aimed at
the substitution of imports through industrialization
Direct investment incentives, such as subsidies and tax rebates
The creation of a home-grown industry in three main ways:
1. Extensive import restrictions and high tariffs
2. Manipulation of the exchange rate
3. Creation of a buoyant internal market
1. Extensive import restrictions and high tariffs
to keep out European and American industrial products
2. Manipulation of the exchange rate
by keeping the rate of the TL artificially high
Firms which were allowed to purchase $ or DM from the Gov.
to buy foreign materials comparatively cheaply
3. Creation of a buoyant internal market through Populism:
a) paying high guarantee prices to farmer (above world price)
b) allowing industrial workers high wage rises
Industries
which would never have been able to compete on world market
made handsome profits on the home front.
New industries spread unevenly among regions
Vast majority established in the Istanbul area
smaller concentrations around İzmir and Adana
Import-substitution strategy
successful for some time
1963 - 1976 the annual rate of growth averaged % 6.9
Role of the state economic enterprises still important
% 40 of total industrial production
But it was inefficient:
1) Political
2) Social
1. Business decisions in the state state sector, including the
pricing of products, remained politically influenced.
2. Huge overstaffing as a result of patronage system
Result: Heavy losses to be covered through the budget
New industries heavily dependent on imports
(foreign parts & materials for production)
and thus
on the availability of foreign reserves to pay for them
Economy became extremely vulnerable
Since the 1950s
Increasing dependence on oil as a source of energy
The oil crisis of 1973-74
quadrupled the price of oil on the international market
Steep rise in import bill
After the second oil price shock in 1979-80
2/3 of foreign currency earnings to meet oil bill
Recession in Europe
Western market for Turkish products declined
For a while it was possible to keep up economic growth
By depleting the Central Bank’s foreign reserves
Using the transfers of the Turkish workers in Germany
Transfers began to decline steeply after 1974:
a) Recession – Unemployment
b) Political unrest – Loss of trust
1. The situation of the workers in Europe deteriorated
2. They lost confidence in the situation in Turkey
They kept their money in Germany
Nationalist Front coalition governments tried to solve problems
by:
1.
concluding costly short-term Eurodollars loans
2. printing money
3.
conserving foreign reserves through import restrictions
Oil for industry and electricity generating became scarce
By 1979 power cuts of up to 5 hours a day
a) Rising price of energy b) Irresponsible financial policies
fuelled inflation
Inflation running around % 20 during the early 1970s
By 1979 it was at % 90
To keep inflation down:
1) price control thought price-control board
Result = huge black market
2) Artificially high rate of exchange for the TL
But devaluation always came too late
Import restrictions imposed to save foreign exchange
a) fuelled the black market
b) gave rise to large-scale smuggling
Radical measures
to extricate Turkey from its financial and economic impasses
Ecevit began negotiating with IMF, World Bank and OECD
for new credits (1978)
Creditors demanded drastic economic reforms
Agreement to release 1.8 billion $ in new credits (July 1979)
Dependent on a reform program to be implemented
1. Abolishing import and export controls
2. Cutting subsidies
3. Freeing interest rates
4. Raising prices
5. Cutting government expenditure
Demirel’s government
The task of implementing given to Turgut Özal
the under-secretary for economic affairs in charge of planning
24 January 1980
he launched the reform package (called “Chilian solution” )
credits began to arrive
Widespread resistance
Activity of the trade unions
made it impossible to implement economic package
Members of DISK occupied factories - Strikes
accompanied by clashes the security forces
The Third Republic
The coup: 12 September 1980
Armed forces took over political power – To save democracy
The communiqué
State organs had stopped functioning
The uprooting the existing political system
1.
Parliament dissolved
2.
Cabinet deposed
3.
Immunity of the deputies lifted
4.
Political leaders arrested
5.
Political parties suspended, then abolished.
6. Radical trade unions confederations, DİSK and MİSK
suspended
7.
Mayors and municipal councils dismissed
A state of emergency declared
Concentration of all power in the hands of the military
National Security Council (Milli Güvenlik Konseyi)
headed by General Kenan Evren
Officially declared head of state (14 September)
Local commenders, under martial law, given wide-rangin
powers
Closures of newspapers – Arrests of journalists & editors
Eventual return to democratic system envisaged
Enforcement of radical changes
before handing power back to the civilians
Undoing work of their predecessors,
perpetrators of 27 May
Saw their task:
a) saving democracy from the politicions
b) Purging the political system
A 27-member cabinet under Bülent Ulusu (Retired admiral)
Composed of bureaucrats and retired officers
A wave of arrests swept the country
In the first 6 weeks after the coup 11.500 people arrested
By the end of 1980 the number grew to 30.000
After one year 122.600 arrests had been made
Number of politically motivated terrorists attacks diminished
but at great human and social cost
Trials were held before military courts and under martial law
Within 2 years 3600 death sentences were pronounced
15 were carried out. Tens of thousands of lesser sentences
The new constitution prepared by a constitutional committee
headed by Professor OrhanAldıkaçtı
A constituent assembly (Danışma Meclisi) of 160 members
met on 23 October 1981.
(120 appointed by the military governors, 40 by the NCS)
Elected 15-member constitutional committee
The Constitution of 1982
A reversal of the 1961 constitution
1. Concentration of power in the hands of the executive
2. Increase of the powers of the president and the NSC
3. Limits to freedom of the press, freedom of trade unions
(banning political strikes, solidarity strikes & national strikes)
4. Limits to rights and liberties of the individual
The usual rights and liberties (freedom of speech, freedom of
association, etc) were included in the constitution
R & L could be annulled, suspended or limited
on the following considerations:
1.
the national interest,
2. public order,
3.
national security,
4.
danger to the republican order and public health.
Constitution subjected to a referendum
7 November 1982
Voting made compulsory
Anyone who chose not to, or neglected to, vote
a) had to pay a fine and
b) lost the right to vote for five years
Criticism banned
a) the constitution
b) b) speeches General Evren held in favour of yes vote
The referendum yielded expected result:
a yes vote of 91.4 per cent
New Law on Political Parties promulgated (March 1983)
Politicians active before September 1980 banned from politics
for ten years.
New parties could be formed
but their founders needed the approval of the NSC
Students, teachers & civil servants barred
from party membership
Parties not allowed
a) to found women’s or youth branches
b) b) to develop links with trade unions
c) to open branches in villages.
15 parties founded,
but 12 not approved by the military
3 parties allowed to take part in the elections
1. The Party of Nationalist Democracy
Milliyetçi Demokrasi Partisi
Identified with and supported by the generals
Led by retired general Turgut Sunalp.
2. The Populist Party
Halkçı Partı
led by Necdet Calp.
3. The Motherland Party
Anavatan Partisi
led by Turgut Özal.
Turgut Özal - behind the economic reform program
served as a minister in charge of the economy under the
military regime (Bülent Ulusu goverment)
6 November 1983 Elections
MP scored an overwhelming victory polling over % 45
PP did reasonably well to poll % 30
PND came the third with % 23
New electoral system heavily weighted in favor of majority
To limit the disproportionate influence of the small parties
Before 1980 = one of the reasons for the breakdown of system
The % 45 gave the MP an absolute majority
Under Turgut Özal
slow process of further democratization went on
Before the municipal elections of March 1984
the parliament voted to allow some of the parties
which had been banned the year before to participate
The Municipal elections of March 1984
The MP did only marginally less well than five months earlier
% 41.5
The Social Democratic Party 23.5 per cent
Sosyal Demokrat Parti
led by professor Erdal İnönü
The True Path Party polled % 13.5
Doğru Yol Partisi, Demirel’s party,
though fronted by other politicians,
The National Salvation Party, got % 4.5 of the vote
The Populist Party less than % 9
The Party of Nationalist Democracy only % 7
Strange political landscape
Opposition parties in parliament lost their legitimacy
Parties with sizeable portion of the electorate behind them
not represented on a national level
Solutions:
On the Left:
PP and SDP merged to form Social Democratic Populist Party
Sosyal Demokrat Halkçı Parti - SPP - November 1985.
A new challenger for the inheritance of old RPP
The Democratic Left Party
Demokratik Sol Partisi - DSP
Led from behind the scenes by Bülent Ecevit
fronted by his wife, Rahşan Ecevit - party chairwoman
The Ecevits
a) depicted SPP as elitist and old fashioned
b) declared the PDL as the only true workers’ party
On the Right
The leadership of PND dissolved the party - May 1986
Representatives joined the MP & PTP
18 members of SPP deserted to the PDL - December 1986
giving PDL representation in parliament
Özal accepted the challenge of the old guard
Referendum on a change in the constitution
to allow the old politicians to take part in politics
Referendum - 6 September 1987.
% 50.24 yes against % 49.76 no
The result of the referendum led Özal to announce
early national elections
29 November 1987 Elections
The MP managed to retain its absolute majority
MP polled % 36.3
SPP % 24.5
PTP came third - % 19.2
Other parties failed to pass the threshold (% 10)
March 1989: Municipal elections
The results:
Support for the MP severely eroded
SPP came out on top, % 28.2
PTP came second % 25.6
MP managed only third place % 21.9
Evren’s term came to an end - November 1989
Regardless of the electoral result
Özal stood as presidential candidate
The opposition boycotted the session of the TBMM
in which the new president was elected
Reasons for the decline of Özal’s popularity
High inflation - back to pre-1980 level of around % 80
Erosion of purchasing power
2. Nepotism and corruption surrounding the regime
Özal’s belief:
Unrestricted capitalism free-for-all
Resulted in a number of business scandals
Özal family criticized for
a) nepotism
b) corruption in their business activities
20 October 1991 Elections:
PTP won the elections %27
MP % 24
SPP - disappointing result % 20
% 20 included votes for People’s Labour Party
(Halkın Emek Partisi)
Their candidates contested the elections on the SPP slate
Personal animosity between Demirel and Özal
prevented coalition
A coalition of PTP and SPP
Süleyman Demirel: Prime Minister
Erdal İnönü: Vice Prime Minister
1980-1991
The efforts to restructure the economy
24 January 1980 :“The “stabilization program”
Turgut Özal
the architect of the IMF-inspired economic reform package
of the last Demirel cabinet
The Program become effective after 12 September 1980:
Military takeover
The suppression of
the trade unions and the political left by the military
Renewal of confidence for Turkey
International business world and financial community
represented by
the IMF, the World Bank and the OECD,
Flow of credits, denied to pre-1980 governments, resumed.
National debt
grew from 13.5 billion $ to 40 billion $ in 1989.
But the repayment posed no real problems
The aims of the program. Threefold
1. To improve the balance of payments
2. To combat inflation
3. To create an export-orientated free market economy
The means employed to attain these goals:
1. A drastic (and ongoing) devaluation of the TL, to make
Turkish exports competitive in foreign markets.
2. A lager rise in interest rates, to reduce over consumption and
thus inflation.
3. Freezing wages to increase competitiveness and lower
inflation
4. Raising prices through the abolition or reduction of state
subsidies
Exports were encouraged through a set of specific measures:
1.
Subsidies for exporters
2. Simplification of the notoriously complicated bureaucratic
export procedures
3. Abolition of the customs duties on imported inputs for
export-orientated industries
A drop in real purchasing power
of between %40 - 60
for most wage-earners in the years 1979-89
Caused by:
a)
price rises
b)
a freeze on wages
c)
high interest rates
The main winners of the decade:
the existing and emerging big holdings
Types of family holdings in the 80s
1. generation: RPP generation.
Koç & Eczacıbaşı group
had roots which went back to the 1920s.
2. generation: DP-AP generation
Sabancı group
begun their rise in the 1950s
3. generation: ANAP generation.
Anka and STFA - Building firms (early 1980s)
profited from building boom in Arab oil-producing countries
used the opportunity to branch out into other sectors
Nearly all these firms
a) family-owned
b) structured as holding companies
with their own
banks, insurance, trading and production companies.
Age of import substitution
Imports and joint ventures with foreign firms
Main business: production of goods under license
Holdings, in times
became export-orientated
without halting their earlier activities
The government tried to keep down prices
for industrial goods
by encouraging competition on the home market
through the abolition of import restrictions
Luxury items could be freely imported
but were subject to a special tax
the tax revenue used for the housing program (toplu konut)
Foreign investors encouraged:
1.
No longer faced discriminatory measures
2. Repatriation of invested capital and the export of profits
made possible
3. Investors given preferential treatment regarding import
duties
4. In four different places (around the ports of İzmir and
Mersin and near Adana) free trade zones instituted
Firms sep up factories & re-exported their products
Government promoted
investment in infrastructure & utilities
1. Telecommunications & road networks modernized
2. Construction of natural gas pipelines from the Soviet
Union
Significant impact on air pollution
replacing the inferior coal & lignite
New constructions took place on
“build-operate-transfer” basis (yap-işlet-devret)
1. Foreign investor building a facility (a power plant, airport)
&
2. Operate it until its costs recovered & profit margin achieved
3. Facilities be handed over to government for further
operation
This technique - used in energy & tourism sector
The building up of a tourism industry
energetically pursued
By the late 1980s - Turkey
captured a sizeable part of Mediterranean holiday market
became a popular destination for package tours
The Gulf crisis - 1990-91
hit the tourist trade hard
It recovered quickly in 1992
helped this time by the civil war in the former Yugoslavia
Gigantic “South-est Anatolia Project”
(GAP – Güneydoğu Anadolu Projesi)
energetically pursued project
The plan envisaged
the building of a whole complex of dams on Fırat and Dicle
including hydro electrical plants and irrigational works
a) to produce energy for industry
b) to irrigate 1.6 million hectares in the plain of Harran,
doubling the area under cultivation
The main part of the project
The enormous Atatürk dam on Fırat opened in 1992
For political reasons the project and the dam built
without financial assistance from international agencies
to avoid having to reach agreement with downstream countries
about sharing the water
Syria and Iraq
The stabilization program achieved many of its aims:
1. Exports grew by an average % 22 yearly during the years
1980-87.
2. The nature of Turkish exports changed over the decade
In 1979
% 60 of exports had consisted of agricultural products
In 1988
this was down to % 20
Over the same period
the percentage of industrial products in total exports
grew to over 72
Among the industrial goods
textiles were of special importance
contributing over a 1/4 of the total value of the exports
Export destinations changed
The early 1980s coincided with 2. boom in world oil prices
The Turkish exporters, supported by G,
managed to profit from
The new wealth in the Arab oil-producing countries
A
Turkish exports to the Middle East & North Africa
exceeded those to EC
with Iran the single biggest market
B
Thereafter, the older pattern re-established itself
E C once again main Turkish export market
Imports went up and exceeded exports
The balance of payments gap closed
by remissions from workers in Europe
Political stability & attractive interest rates
above the rate of inflation
encouraged workers to put their money in Turkish banks
High interest rates & wage freeze
combined to lower inflation - % 30 - 40 in the ½ of 80s
Inflation rose again
it reached its pre-1980 level in 1988
Reason:
The continuing high G deficit
Causes:
1. Failure to curb the growth large civil service
2. Inefficient taxation
Profits of the industrial holdings left untouched
3. Huge state industrial sector
Inefficient and largely loss-making
The privatization program progressed very slowly
Reason: State industries - old-fashioned & overstaffed
The investors not interested in them
The abolition of a number of government monopolies:
led to a
private airline companies & television stations
1989: The turning-point.
1. A serious drought (dry weather)
Agricultural producers hit (and exporters) hard
2. Increase in interest rates – cutbacks in government
investment
3. A high exchange rate for the TL. The TL’s gradual
devaluation dropped behind inflation. By 1990 it was
overvalued by some 40 per cent.
The economic policies of the 1980s greatly increased the
differences between rich and poor
1. A new class of often very wealthy entrepreneurs arose.
Fortunes made in import, export & construction
2. The purchasing power - the majority of the population
drastically reduced & real poverty in many homes
3. A steep rise in the number of unemployed
Labor unrest increased - 1990-91. In January 1991 a million ad
a half employees held a general strike.
With the slowdown in the world economy at the end of the
1980s, the projected growth figures of the sixth five-year plan
(1990/1994) officially adopted in 1989, proved unattainable
Turkey by then was much more sensitive to global economic
trends because of its export-orientated economy.
Turkey entered a period of low growth, combined with high
inflation and growing unemployment