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The Structure of Turkish Economy

The Structure of Turkish Economy. The Early Years of the Republic of Turkey. Turkish Economic Congress 1923 Objectives of the congress: Tradesmen, farmers, workers, manufacturers presented their problems, needs and wants Present the general picture of the Turkish Economy to the foreign world.

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The Structure of Turkish Economy

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  1. The Structure of Turkish Economy The Early Years of the Republic of Turkey

  2. Turkish Economic Congress 1923 • Objectives of the congress: • Tradesmen, farmers, workers, manufacturers presented their problems, needs and wants • Present the general picture of the Turkish Economy to the foreign world.

  3. In the congress the parties presented their needs some of which are summarized below: • Farmers: 80% of the population. They want the tax burden and the tobacco monopoly to be abolished. • Tradesmen: Bank; Laws and regulations; chambers of trade; transportation; foreign capital

  4. Manufacturers: Protecting industry through customs tax; taxreduction in machinery purchase; Industry Incentive Law (Sanayi Teşvik Yasası); education; Chambers of Industry • Workers: 8 hrs. Of work; pay leave; security; insurance; work safety measures.

  5. Lozan Peace Treaty • 1. Capitalizations were abolished • 2. Foreign privileges • 3. Ottoman debt • 4. Customs measures • 5. War losses • 6. Population exchange • 7. Musul problem

  6. Reforms • Comprehensive revolutions • Revolutions that cover both social life and economic life • This is the key idea through 1940s.

  7. Institutions • Trade Associations and Professional Unions (Meslek oda ve birlikleri) • Central Bank (Merkez Bankası) • Hygiene Institute (Hıfzısıhha Enstitüsü) • Community Centers (Halkevleri) • Dil ve Tarih Kurumu

  8. Budget • Balanced budget • Sources of income: Primarily through indirect taxes (mainly through salt, tobacco, sugar consumption) • Expenditures: National defence, railway acquisitions from the foreigners, domestic and foreign debt

  9. Table III.l Public Finance Data, Total Credits ,and Wholesale Price Index (WPI), 1923-1932(Current Prices, Million TL) Source: Genel Bütce: Maliye ve Gumrük Bakanlığı Bütçe Kesin Hesap Kanunları, C. I. Ankara, 1992; Vergiler, Ulusal Gelir ve Fiyatlar: Bulutay, Tezel, Yıldırım, Turkiye Milli Geliri (1923 -1948), Table 8.4a ve 9. 10; Krediler: Akguc, Öztin, Cumhuriyet Dönemi'nde Bankacilik Alanında Gelişmeler, Ankara, 1971, ss. 69-71.

  10. Triple balance until the end of WWII • Balance in budget • Stability in money supply • Balance in foreign economic affairs

  11. Agriculture • Reforms in • Taxes • Credits • Land ownership • Taxes: Abolition of the tithe. (Aşar vergisinin kaldırılması.) • Credit: For irrigation, fertilizers, seed, technical education. • Land ownership: Land for landless farmers; laws for private land ownership. • 1927 Census of Agriculture

  12. TABLE: III.2. Credits of Ziraat Bank, 1923-1932 (Current Prices, 000 TL) Source: Bulutay, T. Tezel, Y. S. Yildinm, N. National Income of Turkey 1923-1948, Ankara: SBF, 1974, Table App.40

  13. Industry • Sanayi ve Maadin Bankası (1925) • Sanayi Teşvik Yasası (1927) • Gümrük Saptama Serbestisi (1929). • Incentives: • Land offer for the manufacturers • Tax exemption • No fee for communication, energy • Reduced rates in transportation of goods • State aid

  14. 65000 manufacturing firms • 44% food • 24% weaving • 22% mining, machinery

  15. Services • Restructuring • Nationalization of railways • Railways were not effective tools for industrialization but was helpful in advancement of trade

  16. Tablo III.3 Foreign Trade Data, 1923-1932 (Current Prices, Million TL) Source:Bulutay,T.,Tezel,Y.S. ve Yıldırım N., age. Table 9.5 and 8.4A.

  17. Table:III.4. Foreign Trade Price Ratios,1923-1932 (*) Fs=Export;Fa=Import Prices Index Source:Price Indexes a)Bulutay,T..,Tezel,Y.S. ve Yıldırım,N..,age. Table 52. b)Ministry of Commerce, Ministry of Commerce and 50 Years,s. 48 vd.(Average Price Per Ton)

  18. FIGURE: III.l. Export Coverage Import Ratio and Foreign Trade Amount, 1923-1932 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Source:Table III.3

  19. Tablo:III.5. Number of Students ,1923-1934(1000) Source: TUIK, Türkiye'de Toplumsal ve Ekonomik Gellişmenin 50 Yılı, Ankara 1973, s. 456 vd. and Ministry of Education Statistics (various numbers).

  20. Tablo:III.6. National Income, 1923-1932(Current Prices,Million TL) Note:Numbers in paranthesis shows percentage shares Source:Bulutay,T. Tezel,Y.S. Yıldırım,N.age,Table:8.2A

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