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ATA 641-PART 2
Prof. Dr. Zafer Toprak
First part available at:
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
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
The notion of an Islamic state – anathema / curse
Islamic state – to maintain the status quo
Modern national state –
Secular & rational
Science & Modern Education
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
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
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
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
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
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
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
( Ulusal bilinç )
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)
is the means of
preserving the unity of Turkish society
by not yielding to class struggle.
Rejection of class-structure
The ultimate purpose: Modernity
Modernization of Turkish society
by supplanting its
traditionalist, emotional ways and customs
with rationalist, modernist ideas
New individual or citizen (Yurttaş)
a) rationalist
b) anti-traditionalist
c) anti-clerical person
Abolition of religious courts ( Şer’i mahkemeler )
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
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
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
Western foundation
Abolition of religious marriage, repudiation [boş ol !] & polygamy
Civil marriage & divorce
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)
Western numerals adopted, (Arabic figures)
Latin alphabet replaced Arabic script.
National schools (millet mektepleri)
a campaign to teach new “Turkish letters” to adults
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
Conversion of Turkish Hearths (Türk Ocakları)
People’s Houses (Halk Evleri) and People’s Rooms
Turkish Historical Society (Türk Tarih Kurumu)
Revision of Turkish history.
Women to vote in municipal elections
Women voted for and elected to the National Assembly.
Ecclesiastical garb forbidden outside the mosques.
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
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
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
Never a coherent, all-embracing ideology
Flexible concept
The basic principles
Six arrows – Altı Ok
First in the program of the RRP
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)
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
Fascism: Popular movement
reaction to
Disruption of traditional society
brought about by industrialization
Threat posed by socialism to the middling strata
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 –
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
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
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
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
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
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
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
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
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
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 19341939
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
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
Agriculture emerged as the leading contributor to growth under
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
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
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