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) General Budget (Resultant) Deficit(-) Surplus(+) Indirect TaxesDirect TaxesBudget Expenditure Additive National Income Ratio Total CreditsWPI 1914=100 Income Expenditure 1923111,3105,95,490,68,111,1--1278 1924138,4131,66,8117,38,612,927,91 343 1925170,7202,3-31,6130,612,313,363,51413 1926180,2172,59,114312,810,454,41.465 1927201,6199,12,1157,415,113,595,21452 1928223,7200,822,917215,612,3105,11491 1929224,2212,811,4179,415,310,3129,11 513 1930217,5210,17,4166,813,813,3124,11 152 1931185,5207,5-22138,417,614,9120987 1932214,42122,4132,434,418,1123,3848 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) Z.B.Credits Annual Increase(%) Ratio of Z.B Credits to Total Credits 19238037-- 19241704011261,1 1925199371731,4 1926204922,837,7 192720376-0,621,4 19282680631,625,5 1929271761,421,4 19303571331,426,6 193134634-3,128,9 193233629-3,127,3 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. ExportImport Deficit()/Surpl us() Export/Im port Export/Additive National Income Import/Additive National Income Foreign Trade Amount 192385145-6058,58,915,224,1 1924159194-6082,113,216,120,3 1925192241-4979,616,615,828,4 1926187235-4879,411,314,225,5 1927158211-5374,910,714,325 1928173223-5077,610,613,724,3 1929155256-10160,67,413,320,7 1930151147+4+4102,79,69,318,9 1931127126+1+1100,59,1918,1 193210186+15117,88,67,315,9

17. Table:III.4. Foreign Trade Price Ratios,1923-1932 F s /F a (*) (a)IndexF s /F a (b)Index 19231,531000,79100 19241,681260,91115 19251,51130,88111 19261,11830,6380 19271,19890,6987 19281,2900,86109 19291,15860,88111 19300,96720,85108 19310,96720,5671 19320,76570,4557 (*) 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 Source:Table III.3 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933

19. Tablo:III.5. Number of Students,1923-1934 (1000) İlkOrtaLiseMesleki TeknikYüksek 1923341,95,91,26,52,9 1924390,410,12,27,13,5 1925406,811,62,76,83,9 1926235,615,63,16,33,5 192746219,43,27,73,9 1928477,623,24,28,53,8 1929469,125,44,78,23,6 1930489,327,15,79,14,2 1931523,630,36,99,24,7 1932567,436,17,975,3 1933591,242,39,67,75,9 1934643,443,89,88,26,6 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) 1923192419251926192719281929193019311932 Agriculture 379,3573,3733820,7608,57241 075,2723,2632,4470,9 (39,8)(47,6)(48,6)(49)(41,4)(44,3)(51,9)(45,8)(45,5)(40,2) Industry 126,1118,8147,7166,3191,6188,8204,5180,2175,8165,2 (13,2)(9,9)(9,7)(10,1)(13)(11,6)(9,9)(11,4)(2,9)(14,1) Trade 73,984,9110115,5118,3119,8131,2162,995,584,8 (7,8)(7,1)(7,2)(7)(8)(7,3)(6,3)(6,5)(6,9)(7,2) Other Services 373,3276,8534,9548552,8599,9662,2574,2487,9470,2 (39,29)(35,4)(35,1)(33,2)(37,6)(36,8)(31,9)(36,3)(34,7)(38,5) Additive National Production 952,61 023,81 525,61 650,51 471,21 632,52 073,11 580,51 391,61 171,2 (100) Chain Index- 126,4186,7108,289,111112776,28884,2 Note:Numbers in paranthesis shows percentage shares Source:Bulutay,T. Tezel,Y.S. Yıldırım,N.age,Table:8.2A