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BAHÇEŞEHİR (Spring 2008) PART 1

BAHÇEŞEHİR (Spring 2008) PART 1. 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

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BAHÇEŞEHİR (Spring 2008) PART 1

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  1. BAHÇEŞEHİR (Spring 2008) PART 1

  2. 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

  3. 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 1991 – 2008 Towards the 21st Century

  4. Transition to Democracy Wartime Developments Social Stata (Classes) 1. Peasantry 1945 :% 83 – 40.000 villages 1955: % 71 Small property: the dominant type 2. Industrial Workers – Working Class 3. Middling Strata: Landowners, Businessmen, Intellectuals

  5. Statism created capital and allowed accumulation in private hands Classes / strata differentiated Conflicts arouse Difficulty in maintaining social policy and statism General discontent Peasantry – The largest social group Living standard of peasantry deteriorated

  6. Villages confronted with following problems: 1.    Shortages of land 2.    Farming methods and techniques 3.    Large estates Distribution of national income unbalanced

  7. Measures necessitated by war: a)Industrialization in its initial stage possible only by exploiting internal markets chiefly the rural ones. b) Heavy taxes & unfavorable internal terms of trade despite the removal of tithe (aşar)

  8. Office of Soil Products 1938 1. To protect peasant through price supports 2. To accumulate farm supplies for army, schools, & needy regions

  9. Uneven distribution of burden when war broke out 1.    Sharp increase in consumption of soil products Army – from 120.000 to 1.500.000 No official mobilization Ministry of Defence budget % 30 to % 50 Tax raises Increase in money supply – Printing money

  10. 2.    Decrease in agricultural production producers drafted into the army Shortage of bread The Office: authoritarian & unrealistic policy Uneven distribution of the burden Inflation Consumer price index increase: from 100 to 459 Excluding black market prices

  11. Four legislations affecting Single-Party Era 1.National Defence Law- January 1940 (Milli Korunma Kanunu) 2.    Tax on capital (Varlık Vergisi) 1942 3. Agricultural Products Law (Toprak Mahsulleri Vergisi) 1942 4. Land Reform Law (Çiftçiyi Topraklandırma Kanunu) 1945

  12. The Memorandum of the Four (Dörtlü Takrir) Celal Bayar, Adnan Menderes, Refik Koraltan Fuat Köprülü supported by Vatan and Tan [newspapers] a) Turkish constitution be implemented in full b) Democracy established Democratic Party (Demokrat Parti) January 1946

  13. National Development Party (Milli Kalkınma Partisi) by Nuri Demirağ - industrialist The liberalization of the economy The development of free enterprise 

  14. Sixth Congress of RPP - 1943 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

  15. 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 organize Elections  DP won 62 of the 465 seats

  16. 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

  17. Turkey desperate for foreign financial assistance To facilitate this applied for membership of the IMF

  18. 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)

  19. Hardly any difference between the economic policies of the DP and of the RPP Exception: the DP wanted to sell off the state industries

  20. July 1947 Twelfth of July Declaration by İnönü a) Legitimized the existence of the opposition b) Called upon the state apparatus to be impartial Defeat of hard-liners in the RPP Hasan SakareplacedRecep Peker 1949 Şemsettin Günaltay, - a compromise figure

  21. 1947 RPP Congress  RPP moved even closer to the DP program 1. Advocated free enterprise 2. Decided to retract /withdraw art. 17 of Land Reform 3. Allowed religious education in the schools 4. Reformed the Village Institutes

  22. Istanbul Economic Congress - 1948 emphatic in its support for liberal economic policies 1945-1950 years of growth (11 % growth in GDP per year) Economic growth in agricultural sector From 1947 onwards, trade surplus changed into a persistent trade deficit due to fast-rising imports of machinery.

  23. 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

  24. 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

  25. 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

  26. Turkey was desperate for foreign financial assistance Applied for membership of the IMF 1947 IMF established in 1944 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

  27. Truman doctrine: 1947 Civil War in Greece American commitment Military and financial support for Greece & Turkey to the defence of anti-communist regimes

  28. Marshall Plan 1947 - 1948 Financial support to European countries Main aim: a) To help them to rebuild their economies Complementary aims: b) To sustain lucrative export market for US industry c) To eliminate poverty as a breeding ground for communism

  29. 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

  30. 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)

  31. 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

  32. 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

  33. 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

  34. 1947 Law on Trade Unions a) gave to the workersthe right of organizationin trade unions b) forbadepolitical activity & strikes DP promised to grant workers the right to strike (grev hakkı)

  35. 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)

  36. Private Banking Institutions 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

  37. Liberalism in the air before the Democrats came to power A powerful industrial bureaucracy developed under RPP eagis – State industries Difficult to unseat KİTs.

  38. 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 million TL (1937) to 1.031 million TL (1950)

  39. DP = A splinter group from RPP Split off from the DP Nation Party (Millet Partisi) – Marshal Fevzi Çakmak A more uncompromising opposition to the RPPReligiously motivated

  40. 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)

  41. Electoral system Majoritarian (Çoğunluk sistemi) versus Proportional Representation (Nisbî temsil) 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  Catch-all Party

  42. 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 ( since 1876) Multy party democracy (1908-1913) (1924) (1930)

  43. 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

  44. In 1953 Democrat Party a) dominated National 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 

  45. 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

  46. Nation Party (Millet Partisi) banned in 1953 reconstituted as the Republican Nation Party (Cumhuriyetçi Millet Partisi) won5 seats in 1954

  47. Economic Development DP trusted implicitly in the working of the market Foreign Capital The Law to encourage foreign investment1951 Foreign investment remained extremely limited % 1 of total private investment No more than 30 firms invested

  48. 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

  49. Privatization of large state enterprises - a dead letter Contributions from private sector & foreigners disappointing % 40 to 50 of investment came from the State

  50. Investments concentrated: 1. Road network 2. Building industry(İnşaat Sektörü) 3. Agro-industries New roads Switch to road transport a changeover from public to privately owned transport to lower transport costs Tied the country together – National market Opened up access to the villages More effective marketing and distribution

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