1. ATA 522 PART 4 2007

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

3. CREDITS AND DEBITS OF GLOBALIZATION UPS AND DOWNS AND RECOVERY Towards the 21st Century 1991 - 2004

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. Land Reform 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) By Celal Bayar, Adnan Menderes, Refik Koraltan and Fuat Köprülü supported by Vatan and Tan a)Turkish constitution be implemented in full b)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 (seçim hilesi) 2. No guarantee of secrecy (gizli oy) during the actual voting 3. No impartial supervision of the elections As soon as the results were declared actual ballots (oy pusulası) were destroyed making any check impossible

20. 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

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

22. 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

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 business circles 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 Saka replaced Recep 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 workers the right of organization in trade unions b) forbade political 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 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

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

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 million TL (1937) to 1.031 million TL (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 Religiously motivated

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 (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

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 ( since 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 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

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 (Millet Partisi) banned in 1953 reconstituted as the Republican Nation Party (Cumhuriyetçi Millet Partisi) won 5 seats in 1954

46. Economic Development DP trusted implicitly in the working of the market Foreign Capital The Law to encourage foreign investment 1951 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 (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

50. End of Railways The building of railways came to an almost complete halt Highways 1600 km of hard-surfaced roads in 1950 5400 km of hard-surfaced two-lane highways built between 1950-1960 with American technical and financial assistance Turkey obtained the services of the U.S. Public Roads Administration Fast-rising number of cars, buses and trucks in private hands

51. Effectiveness of the investments lessened in three ways: 1. Investments uncoordinated 2. Quick and tangible results expected 3. Investment decisions politically inspired

52. 1. Investments uncoordinated Menderes - allergic to economic planning Associated it with the evils of statism Denounced planning as synonymous with communism

53. 2. DP wanted quick and tangible results (to reach the level of Europe within 50 years ) DP confused development with growth a) Use of credit facilities and investments short-sighted b) Aimed at a high level of growth rather than a long-term improvements in the productive capacity

54. 3. Investment decisions politically inspired Factories put up in: a)economically unpromising locations b) the wrong sectors

55. Income distribution & social policies a) Agricultural incomes grew faster than non-agricultural incomes Larger farmers profited most b) Profits grew faster than wages & salaries in the towns Traders and industrialists were relatively better off

56. Worsening inflation from 1955 hit wage- and salary- earners Still, by 1960, their real incomes had grown considerably compared with the immediate post-war years

57. Demographic Transformation – Revolution 1. Respectable increase in total population 2. Unbanization: Mass migration from countryside to towns Major cities growing by % 10 a year Labor migration - permanent rather than seasonal 3. Emigration to European countries (Germany etc.)

58. Limited Capacity of new industries to accommodate fast-growing but unskilled workforce Small proportion found permanent jobs in industry Most of the migrants ended up as casual labourers or as street vendors (sokak satıcısı) Disguised Unemployment (Gizli işsizlik)

59. Lack of infrastructure Cities - not equipped to receive large numbers of new inhabitants Satellite towns (shanty-towns) sprang up without infrastructure No water, electricity, roads, or sewage system (Gecekondu) Settlers built their houses on unused land on the outskirts of town

60. Labour Conditions Trade Unions Law of 1947 Most unions were linked to the RPP through “Workers Bureau” (İş Bürosu) Unions forced on the workers by the RPP DP powerful weapon: The promise to grant the right to strike After the elections this promise forgotten

61. The trade Unions Confederation (Turk İş) 1952 Founded with moral and material assistance from the International Conference of Free Trade Unions The position of the unions remained week Extremely low living standards of the members Contributions (Aidat) insufficient for the running of the organizations

62. Economic Problems Turkey suffered a trade deficit from 1947 onwards even during the boom years of 1950-53 Turkey had a wheat surplus became a major wheat exporter

63. The boom was over by 1954 Weather conditions worsened Turkey imported wheat once again 1956 -59 marked by spiralling inflation Prices rising at % 18 per annum Growth rate levelled out to a mediocre % 4 Barely enough to keep up with the high birth rate No sign of self-sustaining development

64. Agricultural growth Extensive farming dominant achieved by a combination of: 1. Extension of the sown area 2. Exceptionally good weather Intensive farming marginal a)Improved agricultural techniques b) Irrigation c)Use of fertilizers

65. Economic growth fell from around % 13 to % 4 Trade deficit in 1955 was 8 times that of 1950 Government kept up the rate of imports and investment

66. Turkey’s strategic position in the Cold War to get financial aid and easily borrowing terms In 1960 total external debt stood at 1.5 billion $ = ¼ of the GNP The weakness of the economy Solution for financial problems : effective taxation taxing the new wealth in the countryside

67. Finances Rich (large) landowners & substantial farmers earned more than a % 20 of the GDP paid only 2 % of the total tax revenue Political considerations = Populism prevented DP from levying taxes in rural areas

68. Inflation Instead of taxation borrowed from Central Bank = printing money Inflation went up from 3 % in 1950 to 20 % in 1958 hitting a) wage-earners b) salary- earners & pensioners c) consumers in towns

69. Measures (from September 1953) Import and foreign exchange controls Ending 1.Five-year period of gradual opening up of the economy 2.Rapid integration into the world economy

70. From 1954 International financial institutions began to caution DP Classical “IMF package” prescribed: 1. Devaluation of TL 2. End to artificial prices and to subsidies 3. End to import and export restrictions DP resisted these pressures Stuck to official fixed exchange rate of TL

71. Result: a)Economy deteriorated b)Inflation grew Gap between the official rate & the real value of TL widened Black-market in foreign currency by 1958 Instead of recognizing the economic realities DP revived National Defense Law Milli Korunma Kanunu (1940) to enforce price controls Result: Black market = Goods disappeared from shelves

72. Finally DP agreed to the demands of the IMF (August 1958) 1. Devaluated TL 2. Rescheduled debts 3. Rised prices of KİT products In exchange: Loan package from USA, European countries, IMF

73. The debit side of DP’s Economic Policy Unsound financial and fiscal structure Creating 1. Huge deficits in balance of payment = Debts 2. Inflation at home = Black market

74. The credit side mobility and dynamism 1. Modernized agriculture Passage from extensive farming to intensive farming 2. Increased the industrial base Large industrial firms have their roots in the 1950s 3. Built new road network opening up the country Villages came into contact with the outside world

75. From 1954 Economic downturn eroded support for the DP Reasons: a) Deterioration in standards of living Limits put on the imports of consumer goods b) Rise in the expectations of material improvement 1957 Elections: Gradual loss of support for DP in the countryside Still kept the support of the majority

76. Serious problem: Crumbling / decaying support of 1) intellectuals 2) bureaucracy 3) armed forces Results: a)Groving economic difficulties = inflation hitting salaried people, civil servants, pensioners b) Groving authoritarianism hitting intellectuals & universities

77. Measures against bureaucracy Suspected of loyalty to İnönü and RPP Political control over the executive and judiciary Restricted academic freedom Incidents in the universities Increased hold over the bureaucracy Civil servant: over 25 years of service could be suspended and sent into retirement Applied also to judges & university professors

78. Tension in foreign policy: Riots of September – The future of Cyprus 6-7 Eylül Olayları – Events of September 6-7 Impasses in negotiations - Nationalist fervour fanned by the press Expected: A limited spontaneous demonstration by students to demonstrate public feeling

79. Result: Demonstrations got out of hand Developed into a pogrom (plunder) against orthodox citizens Attack on wealth by the inhabitants of the gecekondus

80. Martial law declared (İstanbul, Ankara, İzmir) Interior minister resigned Opposition to authoritarian policies within DP (1955) vis-a-vis the press, the universities & the judiciary Bone of contention within DP Right to Prove (Ispat Hakkı) journalists taken to courts should have the right to prove the truth of what they have written Proposal rejected by DP parliamentry group

81. Vote of confidence - Dissent / dissagreement within the DP Liberal wing broke away Freedom Party (Hürriyet Partisi) - December 1955 under the leadership of Fevzi Lutfi Karaosmanoğlu Became the biggest opposition party supported by big business Wanted: A more sophisticated economic policy – planning

82. 1956 Authoritarianism continued National Defence Law revived to control prices and supplies Press Law changed to strengthen further government control of the media Political meetings prohibited except during election campaigns Elections due in 1958 pulled back (27 October 1957) a) Prices of agricultural products raised b) Ten-month moratorium on farmer’s debts

83. Cooperation between opposition parties Joint declaration of principles (4 September) Law (11 September) banned the use of combined lists in elections 1957 Elections – A major setback for DP DP = the largest party, but lost the absolute majority DP % 47.3 & 424 seats RPP % 40.6 & 178 seats (in 1954 31 seats) FP (extremely disappointing) % 3.8 & 4 seats Republican Nation Party (ultra-conservative) % 7 & 4 seats

84. After the elections RNP merged with Peasants Party (Köylü Partisi) to form The Republican Peasants National Party (Cumhuriyetçi Köylü Millet Partisi) December 1958 FP – no grassroots organization - merged with RPP Infusion of new ideas to reorientate the RPP a)social justice b)democratic safeguards

85. Secularism DP confronted with an hostile opposition A worsening economic crisis Crubling support among city-dwellers & intellectuals DP (1957) appealed to religious sentiments a) Described the Republicans as communists and unbelievers b) Boasted about the number of mosques and religious schools opened under DP

86. DP charged / accused of a) using religion for political purposes b) reneging on the secularist principles of the state DP used religion for political purposes However DP did not undermine the secular character of the republic

87. Kemalism (Single-Party Era) A modernization strategy based on a positivist world vision Religion seen as a hindrance to progress in modernization Kemalist secularism subjugation and integration of religion into the state bureaucracy rather then separation of church and state

88. In the 30s and 40s – extremely repressive After 1946 (Multi-Party Era) Parties started to court the Muslim vote RPP : (After 1947 congress) more tolerant of religion a) Reintroduced elective religious education in schools & training establishments for preachers b) Faculty of Divinity in Ankara University c) Tombs and shrines (türbe) reopened (1949)

89. But: tried to guard against religious reaction in politics Article 163 (Penal code) : Prohobited propoganda attacking the secular character of the state DP (Before 1950) Great care to emphasize secularism Islamic currents (Sebilürreşat etc.) attacked the DP

90. Formation of more radical opposition parties: Nation Party Dissolved in 1953 for alleged complicity in reactionary religious plot

91. DP (After 1950) Relaxation of secularist policies a) Restrictions relaxed on expressions of religious feeling b) Concessions to the feelings of the Muslim population c) Koran reading on the wireless & reversion to Arabic for the prayer call d) Religious education expended

92. e) Parents had to opt out instead of having to opt in f) The number of preacher schools enlarged g) Increase in the building of mosques h) The sale of religious literature allowed again i) accepted the existence of autonomous religious organizations (legitimized brotherhoods)

93. But still: The DP’s understanding of the secularism - not significantly different from that of the RPP - did not end the integration of the religious establishment into the bureaucracy -Preacher remained civil servant -The administration of religious endowments in state hands

94. Emergence of anti-secularism 1950-51 Dervish sheikhs came out into the open with large following Ticani dervish order started to smash busts of Atatürk Persecuted vigorously by the government Their leader, Kemal Pilavoğlu sent to jail Law against defaming Atatürk’s memory passed in 1951 However Nurcu movement supported DP in the elections

95. DP tacitly admitted: Religion was not necessarily incompatible with development Within the army seen as betrayal to the Kemalist traditions Result: Islam made much prominent in everyday life in the cities visible in urban milieux through migration But seen a a resurgence of Islam by intellectuals

96. Religious Dilemma Obscurantism or traditional culture of the mass of population ? Interpreted as: The former subject class reasserting its right to express itself

97. Economic Convergence Economic policies of RPP and DP differed in emphasis Not in direction SEE not turned over to private capital State continued to invest heavily

98. Illiberal spirit After 1954 DP sought to buttress their strong position by restricting political liberties 1954-59 Prosecutions of journalists, editors & newpaper owners Ammendments to the press & libel (iftira / hareket) laws – 1956 Severe penalties for criticizing persons in official positions Control of the allocation of newsprint – 1958

99. Amendments to Civil Service Law 1954 a) judges and university teachers after 24 years service or at age 60 sent to retirment (emeklilik) b) Dismissal of civil servants after a period of suspension (görevden el çektirme) Activites of political parties curtailed Amendment to the electoral law to prevent electoral coalitions Public meetings & demonstrations banned except in the 45 day campaign period preceding elections

100. Rise in the political temperature Opposition accused of intirfering with a) the army b) arming its own followers Fatherland Front (Vatan Cephesi) 1958 To broaden the DP’s base To mobilize the mass of population 1960 Investegatory Commission to investigate activities of the opposition (Tahkikat Komisyonu)

101. Commission set up with powers a)To suppress newspapers b) Subpoena (summon to appear before the Commission) persons and documents c) To imprison for up to 3 years those who impeded its investigations Commision denounced as unconstitutional by law professor Accused of engaging in politics Disciplinary action taken against them Student demonstrations and riots

102. The effect of the restrictions Political strife driven out into the streets The events of 28 & 29 April 1960 Use of the troops to suppress demonstrations One student killed Silent demonstration by cadets of the War Academy (Harbiye) 21 May 1960 Dubious legitimacy of the measures Encouraged illegitimate means of action

103. Opposition strong in large towns Particularly amongst students Educated sections of society a) Schools & Universities b) Civil service c) Military officer class Former elite displaced from the center of the stage Fall in purchasing power of the salaries Displaced as the elite in society New centers of wealth and influence

104. Necessity to call in the army to suppress demonstrations Army – sympathy with İnönü Why did DP cling so obstinately to power ? 1. The character of the DP leadership 2. Restriction on personal basis rather than rational basis 3. Excessive confidence in their popularity & their own legitimacy

105. 1. The character of the DP leadership. Active participation in the authoritarian RPP not democratic by training

106. 2. Restriction on personal basis rather than rational basis İnönü complex frustrated in the RPP unable to unseat İnönü

107. 3. Excessive confidence in their popularity & their own legitimacy Support of the bulk of the electorate Little interference with traditional and religious customs Underestimated the power of the Opposition

108. End of Part 4