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  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 WORLD RECESSION AND CRISIS 1974-1980 Political and Economic Distress THE THIRD REPUBLIC AND REFORMS 1980 - 1991 Political and Economic Restructuring


  4. 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

  5. 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

  6. 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

  7. 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

  8. 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)

  9. 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)

  10. 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

  11. 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.

  12. 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

  13. 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.

  14. LandReform A social reform to ameliorate the situation of the peasant The purpose: 1. Land reform - To distribute land to the landless and land-short peasants sufficient to provide a living 2. Agricultural reform - To furnish equipment for its cultivation - Rationality Produced violent criticism of the government

  15. 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)

  16. 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.

  17. The Memorandum of the Four (Dörtlü Takrir) • ByCelal Bayar, Adnan Menderes, Refik Koraltan and • Fuat Köprülü supported by Vatan and Tan • Turkish constitution be implemented in full • 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

  18. 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

  19. 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

  20. 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

  21. 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

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

  23. 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)

  24. 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)

  25. 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 SakareplacedRecep Peker 1949: Şemsettin Günaltay, - a more compromise figure 

  26. 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

  27. 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

  28. 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

  29. 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)

  30. 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

  31. 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

  32. 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

  33. 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)

  34. 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)

  35. 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

  36. Liberalism in the air before the Democrats A powerful industrial bureaucracy developed under RPP eagis Difficult to unseat

  37. 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)

  38. 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

  39. 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)

  40. 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 

  41. 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)

  42. 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

  43. 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 

  44. 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

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

  46. 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

  47. 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

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

  49. 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