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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.

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Presentation on theme: "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."— Presentation transcript:

1 BAHÇEŞEHİR (Spring 2008) PART 1

2 TRANSITION TO DEMOCRACY From Single-Party Era to Multi-Party Era DEMOCRAT PARTY ERA Transition to Democracy and Liberalism THE SECOND REPUBLIC May 1960 and the 1961 Constitution PLANNING AND ECONOMIC GROWTH Problems of Pluralism and Democracy

3 WORLD RECESSION AND CRISIS Political and Economic Distress THE THIRD REPUBLIC AND REFORMS 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 – 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 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 to 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) Agricultural Products Law (Toprak Mahsulleri Vergisi) 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 RPP extraordinary congress – May 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 A new economic five-year plan similar to pre-war plans Emphasis on autarky and state control 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 Saka replaced Recep 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 emphatic in its support for liberal economic policies 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 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 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 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 – 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 workers the right of organization in trade unions b) forbade political 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) ) : 87 Bank deposits: from 197 million TL (1937) to 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 RPP Religiously motivated

40 Election law - Bone of contention – February 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 ( ) (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) won 5 seats in 1954

47 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

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

51 End of Railways The building of railways came to an almost complete halt Highways 1600 km of hard-surfaced roads in km of hard-surfaced two-lane highways built between 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

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

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

54 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

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

56 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

57 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

58 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.)

59 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)

60 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

61 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

62 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

63 Economic Problems Turkey suffered a trade deficit from 1947 onwards even during the boom years of Turkey had a wheat surplus became a major wheat exporter

64 The boom was over by 1954 Weather conditions worsened Turkey imported wheat once again 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

65 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

66 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

67 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

68 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

69 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

70 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

71 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

72 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

73 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

74 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

75 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

76 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

77 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

78 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

79 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

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

81 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

82 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

83 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

84 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 seats) FP (extremely disappointing) % 3.8 & 4 seats Republican Nation Party (ultra-conservative) % 7 & 4 seats

85 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

86 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

87 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

88 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

89 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)

90 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

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

92 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

93 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)

94 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

95 Emergence of anti-secularism 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

96 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

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

98 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

99 Illiberal spirit After 1954 DP sought to buttress their strong position by restricting political liberties 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

100 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

101 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)

102 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

103 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

104 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

105 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

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

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

108 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

109 The Second Turkish Republic The military takeover of 27 May 1960 (27 Mayıs Devrimi) a) “to prevent fratricide” (kardeş katli) b) “to extricate the parties from the irreconcilable situation into which they had fallen” The conspirators: a number of radical colonels, majors and captains Greeted with explosions of public joy among student an the intelligentsia The rest of the country showed no such reaction

110 General Cemal Gürsel: as a figurehead, former commander in-chief of the land forces National Unity Committee (NUC) (Millî Birlik Komitesi) headed by Cemal Gürsel – 38 officers - Alpaslan Turkeş – the most influential member Declaration of professors justifying the intervention: DP acted unconstitutionally The investigatory commission – Tahkikat Komisyonu became illegal

111 Young Turks Tradition of military leadership of modernizatation ceased to be under the Single-Party regime Fevzi Çakmak = Millet Partisi Restructuring of Army in the 50s. Extensive rearming and retraining of the military (NATO) The modern army = the most progressive element The process of modernization created expectations Under the guise of Atatürkism or Kemalism Underlying factor encouraging the military to intervene: A combination of frustration & renewed self-confidence

112 Most prestigious elements in society in the 1950’s Free professions in law, medicine, engineering and the like Not military nor civil servants Social background & social and economic views of the instigators of the coup NUC – discontented with DP’s economic and social policies a) A more balanced economic growth b) A more equitable distribution of wealth c) Land reform for DP social justice was not a main consideration

113 Military Rule May 1960 – October 1961 NUC decision (3 August) to retire 235 out of 260 generals & some 5000 colonels and majors Democrat Party suspended on 31 August & dissolved on 29 September 1960

114 A speedily return to constitutional rule Onar Commission – Prof. Sıddık Sami Onar A provisional constitution – 12 June 1960 giving legal basis both to the coup and to NUC The cabinet of technocrats as an executive organ To finalize the text of the constitution The Constituent Assembly (Kurucu Meclis) convened in January 1961

115 Consisted of two chambers Bicameral parliament 1.An upper house in the legislature: the NUC (Milli Birlik Komitesi) 2. A lower house: 272 (Kurucu Meclis) representatives of a) the remaining political parties b) the professional (occupational) groups c) the provinces

116 The New Constitution: (1961) The Republic is described as nationalist, democratic, secular and social Social and democratic are not in the 1924 Populist and revolutionary (1924) are omitted Legislative and executive power are no longer concentrated in the GNA From an assembly, or convention, system to a parliamentary one

117 The New Constitution: (1961) to prevent a power monopoly from using its majority to become despotic by counterbalancing the National Assembly (Millet Meclisi) with other institutions

118 1961 Constitution derived from 3 main sources: a)The historical legacy of the Constitutions of 1876 & 1924 b)The experience of contemporary democratic states c)Turkey’s present social needs

119 a) Historical legacy 1876 Constitution Created an elected parliament Gave place to individual rights (limited) Gave recognition to the idea of limitation of the Sultan’s powers in the name of the people Participation of the ‘people’ in a system dominated by the Sultan The emergent principle of division of powers To replace the concentration of all legislative, executive and judicial powers in the hands of the Sultan

120 1924 Constitution A victory for the principle of pupular sovereignty [milli hakimiyet = halk egemenliği ] at the expence of the separation of powers Sovereignty firmly invested in the nation Nation’s soveregn rights exercised on its behalf by the GNA Only the nation and its representative GNA possessed authority GNA the source of executive as well as legislative power

121 1961 Constitution Provided greater degree for the separation of powers An impartial Presidency A parliamentary form of government in which a balance between government and parliament 1876 & 1924 “government with parliament” 1961 parliamentary government

122 b) Contemporary experience Illuminated by ideas about representative democratic government Insistance on patriotism = national (rather than nationalism), on laicism, on the legitimacy of power only through elections Subjecting political power to the inspection of public opinion & political institutions.

123 c) Present needs i)Strong democratic government to carry through economic and social development in a planned way ii) Inclusion of social rights Constitution is a foundation stone for a democratic welfare state (refah devleti)

124 1.2 Chambers: National Assembly and Senate The National Assembly 450 members The supremacy of the lower house - the last voice More representative on account of its system of election by proportional representation Term of office is 4 years Deputies need only be 30 years of age and be literate

125 A second chamber : Senate (Senato) 150 elected members Natural members life membership for member of the NUC 15 members appointed by the President former presidents The term of office of all elected and appointed senators is 6 years 1/3 of elected and appointed members of the Senate retire every 2 years Senators have to be at least 40 years of age & to have had higher education

126 2. An independent Constitutional Court (Anayasa Mahkemesi) to review the constitutionality of the laws of the GNA High Council to try the President, the PM, & other ministers & highest legal personages for offences arising out of their duties Suits for annulment of laws and standing orders Suits for the closing down of political parties

127 3. Full autonomy for the judiciary, the universities and the mass media 4. The system of proportional representation: to prevent the division of the country into two hostile camps to lessen the chance of one party to make single-party government unlikely holding an overwhelming majority

128 5. A full bill of civil liberties - To strengthen the basic rights Social and economic rights and obligations the right to bargain collectively and to strike the right to social security and medical care 6. A constitutional role for the military: the National Security Council (NSC) (Milli Güvenlik Kurulu)

129 National Security Council March 1962 advised the government on internal and external security Members: The chief of the general staff [genel kurmay başkanı The service chiefs [kuvvet komutanları] & The ministers concerned [ilgili bakanlar] A powerful watchdog, sometimes replacing the cabinet as the center of real power and decision-making

130 The President of the Republic A tendency to make the President an arbiter in the political struggle More distant from the GNA than formerly The requirement of political neutrality Yet, the break from Parliament is not complete

131 President chosen by the GNA for seven 7 years (longer term of office) by a 2/3 majority of the GNA in plenary session [NA + Senate] from among members of the GNA who are at least 40 years old + higher education should not be responsible to GNA The president is not eligible for re-election

132 The referendum on the new constitution (9 July 1961) A severe setback for the forces of 27 May Accepted with 61.7 against 38.3 per cent of the votes cast The ban on political activity lifted (13 January 1961) RPP & RPNP reactivated

133 New Parties 1) The Justice Party [Adalet Partisi] headed by Ragıp Gümüşpala; retired general Primary goal full rehabilitation of the retired officers and arrested democrats 2) The Workers [Labor] Party of Turkey [Türkiye İşçi Partisi] headed by Mehmet Ali Aybar, publicist, lawyer, former University academics 3 ) The New Turkey Party [Yeni Türkiye Partisi] headed by Ekrem Alican

134 The parliamentary elections (15 October 1961) RPP gained % 36.7 : (171 seats) disappointed JP polled % 34.7 (158 seats) The New Turkey Party got % 13.9: A continuation of the Freedom Party founded by dissident Democrats in 1955 The conservative RPNP polled % 13.4

135 Taken together, the parties which were considered heirs to DP were still the strongest in the country The new constitution more liberal than the old one: It tolerated a wider spectrum of political activity than before, both to the left and to the right

136 The trial of the old regime: Yassıada Mahkemeleri 31 sentenced to life imprisonment & 418 to lesser terms, while 15 sentenced to death (11 death sentence commuted) müebbed hapis Adnan Menderes, Fatin Rüştü Zorlu and Hasan Polatkan hanged Celal Bayar’s death sentence commuted because of his advanced age

137 A Period of Transition – the Period of Coalitions Heavy pressure on the two party to collaborate in a coalition to be led by İsmet İnönü The First İnönü Coalition A marriage of convenience, not love Failure: a) the amnesty for the former DP politicians b) the project for a planned economy The JP rejected as insufficient a proposal to reduce the sentences of the Democrats

138 The Second İnönü Coalition İnönü formed a new cabinet A coalition with the two smaller parties Many frictions The worst: the proposal for a land tax

139 Cemal Gürsel asked the JP leader, Ragıp Gümüşpala to form a government. He failed in his attempt The Third İnönü Coalition A minority coalition of RPP and independents JP brought it down: budget is not approved A Caretaker Cabinet headed by Suat Hayri Ürgüplü (a former diplomat)

140 Elections in October 1965 JP won a landslide victory gaining an absolute majority of the votes cast ( % 52.9) RPP was down to % The other parties gained les than % 7 Workers’ Party of Turkey (WPT) in the parliament: 15 deputies

141 National remainder system NRS Milli Bakiye Sistemi % of votes = % of seats in parliament Permitted the Workers’ Party 15 seats in the assemby

142 Demirel, prime minister. He dominated Turkish politics for the next five years Goods years for Turkey High economic growth - % 6.9 growth rate & Continual increases in real incomes Demirel’s most important achievement Reconciliation of the army & the rule by civilians The price paid: The armed forces were granted almost complete autonomy

143 JP was a coalition of 1. industrialists 2. small traders and artisans 3. peasants and large landowners 4. religious reactionaries 5. Western-orientated liberals It had very little ideological coherence

144 Demirel’s frequent recourse to two tactics To preserve the unity of the party and his own position 1. Emphasis on the Islamic character of the party He stood for traditional values Flirted with leaders of Nurcu movement 2. Constant anti-communist propaganda campaign & harassment of leftist movements

145 He became unpopular among intellectuals But his support held up well in the countryside The elections of 1969 JP suffered slight losses ( %46.5) RPP polled only % 27.4 JP formed a new cabinet Slightly more centrist than the old one

146 Problems within JP – Opposition to Demirel. He lost the support of the most conservative wing a) Anatolian landowners & b) small traders and artisans over his proposals for new taxation to help pay for industrialization

147 February 1970 The right wing of the JP voted with the opposition & forced Demirel to resign March 1970 New cabinet - No alternative to Demirel Rift (split - dissention) superficially healed

148 December 1970 JP decedents 41 deputies and senators left the JP & founded the Democratic Party (Demokratik Parti) led by Ferruh Bozbeyli its name, recalling DP

149 Left of Center (Ortanın Solu) New definition for RPP The RPP moved left of center A new manifesto in the 1965 elections written by two coming men of RPP Turhan Feyzioğlu and Bülent Ecevit

150 Emphasis on social justice and social security without being explicitly socialist To mobilize the votes of 1)workers 2) inhabitants of the shanty towns (slum areas of towns)

151 RPP new stance did not profit in 1965 elections Lacked credibility as a progressive party The people in the squatter towns basically villagers who had moved to the big city taking their village values with them as in the villages, they voted JP

152 JP propogandists’ tactics: Left of center is the road to Moscow Ortanın Solu Moskova’nın Yolu

153 After the defeat – Acrimonious (bitter) debate – Infighting Blaming “the left-of-center” tactics Extraordinary Congress of RPP Increase of the central office’s hold over the party Party dicipline

154 A group of 47 representatives and senators who opposed the left-of-center line left the party to found the Güven Partisi (Reliance Party) led by Turhan Feyzioğlu Right of center Ecevit’s main competitor for the position of “Crown prince” Personal jealousy

155 The growth of political radicalism On the left: A growing student population & a growing industrial proletariat On the right: JP policies served the interests of the modern industrial bourgeoisie, of big business

156 However, JP’s electoral base consisted of a)farmers & b) small businessmen They became the prime targets of both a)the Islamic party b)the ultra-nationalist party

157 NAP The NAP led by Alpaslan Türkeş – an ultra-nationalist (Nationalist Action Party / Milliyetçi Hareket Partisi) Claimed to be opposed to both monopoly capitalism & communism From RPNP to NAP – 1969 Hierarchically organized, militant with ultra-nationalist program – Nine Lights (Dokuz Işık) Youth Organization – Ülkü Ocakları + Bozkurtlar

158 NOP The NOP ( National Order Party / Milli Nizam Partisi ) 1970 headed by Necmettin Erbakan. Voice of smaller businessmen Used “Islamic” discourse to criticize the monopolies as lackeys of the Christian/Jewish West They posed a serious threat te Demirel’s power

159 Political violence in the late 1960s Bombing attack, robbery and kidnapping National Remaider System abolished in March 1968 Representatives of WPT played a very important role as opposition Left, without ouftlet for expressing discontent in the assembly, vented their frustrations in the street

160 The violence of the left met and surpassed by violence from the militant right By early 1971: Demirel weakened by defections - Became paralyzed He was powerless to curb the violence on the campuses and in the streets. He could not hope to get any serious legislation on social or financial reform passed in the assembly

161 The fragmentation of the Right became the major factor of political instability By the early 1970s Situation became explosive A dangerous mix Student and working-class militancy Social and economic changes Growing political conflict World situation

162 A revolution of rising expectations Expectation were not met German economic miracle had syphoned off workers Population growth Widespread unemployment Job market unable to absorb the younger population Overcrowded schools and universities Ideal for recruiting militants for the Left and the Right Youth played a crucial role in creating political instability

163 Demirel sided with Turk İş Wanted to destroy DİSK A Law : Unless represented at least 1/3 Workers came out in protest on June 1970 Paralysed the Istanbul-Marmara region The Right described the protest as “a dress rehearsal for revolution”

164 Beginning of 1971 – A state of turmoil Leftist student militants robbed banks Kidnapped US servicemen Attacked American targets Constant strike activity The Gray Wolves, neo-fascist militants Attacked professors who were critical of the goverment Islamists became more aggressive Openly rejected Atatürk and Kemalism, infuriating the armed forces

165 12 March Memorandum (12 Mart Muhtırası) Handed by the chief of the general staff It amounted to an ultimatum by the armed forces The memorandum demanded: A strong and credible government to end the “anarchy” & and carry out reforms “in a Kemalist spirit” If demands were not met, the army would “exercise its constitutional duty” and take over power itself

166 Demirel resigned İnönü denounced any military meddling in politics The new government installed by the generals headed by Nihat Erim, member of the right wing of the RPP Ecevit, infuriated, resigned as secretary-general A cabinet consisted largely of technocrats from the outside the political establishment. Nihat Erim announced that his government would: 1. restore law and order 2. enact a number of long-overdue socio-economic reforms

167 Atilla Karaosmanoğlu (World Bank) drew up a reform program: 1. Land reform 2. Land tax 3. Nationalization of the mineral industry 4. Joint ventures to protect Turkish industry at least % 51 Turkish-owned Stubborn opposition from vested interests in business and agriculture But sophisticated industrialists like Vehbi Koç and Nejat Eczacıbaşı supported the reform proposals

168 Renewed terrorist attacks NSC proclaimed martial law in 11 provinces Renewed every two months for two years Persons suspected of terrorism rounded up Witch-hunt - The persecution of the left Progressive liberal sympathisers arrested 5000 people put to jail leading intellectuals (writers, journalists, professors), leading members of the Workers Party of Turkey prominent trade unionists

169 The NOP & WPT closed down in May & July 1971 Erbakan allowed to resume his activities in October 1972 under National Salvation Party (Milli Selamet Partisi) Erim to compromise with the conservatives in the assemby Demirel’s old ministers in the cabinet

170 11 reformist technocrats resigned Replaced by politicians from the right Erim’s new cabinet amendments to the constitution aiming at making it less liberal support of the parties of the right

171 44 articles were changed. Basically: 1. Limits to civil liberties 2. End to the autonomy of the universities and of radio and TV 3. Limit to freedom of the press 4. Curtailment of the powers of the Constitutional Court 5. Increase of the powers of the NSC giving unsolicited advice to the cabinet - Binding advice 6. Foundation of special State Security Courts (Devlet Güvenlik Mahkemeleri) to try over 3000 people Abolished in 1976

172 The assembly refused the right to rule by decree (kanun hükmünde kararname) Nihat Erim resigned (April 1972) Succeeded by Ferit Melen one of the leaders of the Reliance Party Collaborated more closely with JP Principled stance of Ecevit Ecevit ousted İnönü from the RPP chairmanship succeeded him in Party conference (May 1972). İnönü resigned from the RPP (November 1972)

173 The term of office of Cevdet Sunay ( ) came to an end The army put forward the chief of general staff Faruk Gürler as his successor Gürler was defeated Fahri Korutürk, a retired admiral, became the president He appointed the economist Naim Talu to lead a caretaker government to take the country to the free elections

174 October 1973 Elections: produced a surprise result RPP polled % 33.5 against % 29.5 won by JP NSP: % 11.9 None of the parties had an absolute majority Long-drawn-out negotiations January a new cabinet Based on the surprising combination of RPP with NSP

175 RPP: Social Democratic Identity Won its votes in the progressive, industrial belt Not in its traditional stronghold of backward, east and central Anatolia Attractive to urban migrants Social democracy as the ideology of the future

176 NSP : Opposition to the growth of monopolies & dependence on foreign capital Call for heavy industry & an economy based on Islamic values (interest-free banking) The New Cabinet A marriage of convenience: Common basis: the distrust of a)European and American influence b)Big business

177 Cyprus crisis broke out Turkish forces in Cyprus Ecevit became a national hero overnight Karaoğlan He wanted to use his popularity to gain an absolute majority in early elections Resigned to instigate new elections (September 1974)

178 A major miscalculation A caretaker cabinet under Professor Sadi Irmak Demirel finally formed a coalition: First Nationalist Front JP, the NSP, the NAP, RRP and defectors from the DP Bribing them with cabinet posts – 30 ministers

179 Disproportioned influence of NSP & NAP Colonizations of ministries in an unprecedented way Thousands of civil servants discharged or demoted Replaced with party loyalists Increased violence and economic crisis The elections of 1977 Ecevit’s popularity - RPP got % 41.4 JP went up to % 36.9 A stalemate Attempt by Ecevit to form a coalition with the independents Failure

180 Second “Nationalist Front” coalition by Demirel Influence of the NSP and NAP greater than in the first one Short lived. JP deputies defected Ecevit formed a cabinet with defectors now independents The independents given cabinet posts It survived until October 1979 It could not master the rising tide of violence

181 The military grew increasingly disillusioned with Ecevit’s soft attitude to terrorism and Kurdish separatism October 1979 elections for the senate Drop in support for the RPP Defections from RPP Ecevit lost majority - Resigned Demirel returned to power Minority government supported by independents

182 JP-RPP coalition proved impossible to realize throughout They were unable to cooperate The political system gradually became paralysed giving small extremist groups disproportionate influence Polarization of the big parties due to ideological factors President Fahri Korutürk’s term ended in 1980 Paralysis -The assembly proved incapable of electing president after 100 rounds of voting

183 Overwhelming problems Turkey faced in the 1970s (1) Political violence (2) Economic crisis. The development policies of the governments : the substitution of imports through industrialization Direct investment incentives: subsidies & tax rebates

184 Economic crisis 1973 – 1980

185 The creation of a home-grown industry: 1.Extensive import restrictions and high tariffs 2. Manipulation of the exchange rates 3. Creation of a buoyant internal market

186 1. Extensive import restrictions & high tariffs to keep out European & American industrial products 2. Manipulation of the exchange rate by keeping the rate of the TL artificially high Firms, to buy foreign investment goods & raw materials, allowed to purchase $ or DM comparatively cheaply 3. Creation of a buoyant internal market through Populism: a)paying high guarantee prices to farmer (above world price) b) allowing industrial workers high wage rises

187 Industries which would never have been able to compete on world market made handsome profits on the home front. New industries spread unevenly among regions Vast majority established in the Istanbul area smaller concentrations around İzmir and Adana Import-substitution strategy successful for some time the annual rate of growth averaged % 6.9

188 Role of the state economic enterprises still important % 40 of total industrial production Inefficiency: Reasons: 1)Political concern 2)Social concern 1. Business decisions in the state state sector, including the pricing of products, remained politically influenced 2. Huge overstaffing as a result of patronage system Result: Heavy losses to be covered through the state budget

189 New industries heavily dependent on imports (foreign parts & materials for production) dependency: on the availability of foreign reserves to pay for them Economy became extremely vulnerable Since the 1950s Increasing dependence on oil as a source of energy The oil crisis of quadrupled price on the international market Steep rise in import bill

190 Second oil price shock in /3 of foreign currency earnings to meet oil bill Recession in Europe Western market for Turkish products declined For a while Possibility to keep up economic growth by depleting the Central Bank’s foreign reserves

191 Using the transfers of the Turkish workers in Germany Remittances began to decline steeply after 1974: a) Recession – Unemployment b) Political unrest – Loss of trust 1. The situation of the workers in Europe deteriorated 2. They lost confidence in the situation in Turkey They kept their money in Germany

192 Governments tried to solve problems by: 1. concluding costly short-term Eurodollars loans 2. printing money 3. conserving foreign reserves through import restrictions Scarcety of oil for industry & electricity generating By 1979 power cuts off up to 5 hours a day Fuelled inflation a)Rising price of energy b) Irresponsible financial policies

193 Inflation running around % 20 during the early 1970s By 1979 it was at % 90 To keep inflation down: 1) price control thought Price-Control Board Result = huge black market 2) Artificially high rate of exchange for the TL Devaluation always came too late

194 Import restrictions imposed to save foreign exchange a) fuelled the black market b) gave rise to large-scale smuggling Radical measures to extricate Turkey from its financial and economic impasses Ecevit negotiated with IMF, World Bank and OECD for new credits (1978) Creditors demanded drastic economic reforms Agreement to release 1.8 billion $ in new credits (July 1979)

195 Dependent on a reform program to be implemented 1. Abolishing import and export controls 2. Cutting subsidies 3. Freeing interest rates 4. Raising prices 5. Cutting government expenditure Demirel’s government The task of implementing given to Turgut Özal the under-secretary (müsteşar) for economic affairs in charge of planning

196 24 January 1980 Reform package launched (called “Chilian solution” ) Credits began to arrive Widespread resistance Activities of the trade unions made it impossible to implement economic package Members of DISK occupied factories - Strikes accompanied by clashes with the security forces

197 The Third Republic Political Structure

198 The Third Republic The coup: 12 September 1980 Armed forces took over political power – To save democracy The communiqué State organs had stopped functioning

199 The the existing political system uprooted 1. Parliament dissolved 2. Cabinet deposed 3. Immunity (dokunulmazlık) of the deputies lifted 4. Political leaders arrested 5. Political parties abolished 6. Radical trade unions confederations, DİSK and MİSK suspended 7. Mayors & municipal councils dismissed A state of emergency (olaganüstü hal) declared

200 Concentration of all power in the hands of the military National Security Council (Milli Güvenlik Konseyi) headed by General Kenan Evren declared head of state (devlet başkanı) (14 September 1980) Local commenders, under martial law, given wide-ranging powers Closures of newspapers – Arrests of journalists & editors Eventual return to democratic system envisaged

201 Enforcement of radical changes before handing power back to the civilians Undoing work of their predecessors, perpetrators of 27 May Saw their task: a) saving democracy from the politicians b) Purging the political system A 27-member cabinet under Bülent Ulusu (Retired admiral) Composed of bureaucrats and retired officers

202 A wave of arrests swept the country after the coup In the first 6 weeks people arrested By the end of the number grew to After one year arrests had been made Politically motivated terrorist attacks diminished but at great human and social cost Trials held before military courts under martial law Within 2 years death sentences pronounced 15 carried out. Tens of thousands of lesser sentences

203 The new constitution prepared by a constitutional committee headed by Professor OrhanAldıkaçtı (İstanbul University) A constituent assembly (Danışma Meclisi) of 160 members met on 23 October 1981 (120 appointed by the military governors, 40 by the NSC) Elected 15-member constitutional committee The Constitution of 1982 A reversal of the 1961 constitution

204 1. Concentration of power in the hands of the executive 2. Increase of the powers of the president and the NSC 3. Limits to freedom of the press, freedom of trade unions (banning political strikes, solidarity strikes & national strikes) 4. Limits to rights and liberties of the individual The usual rights and liberties (freedom of speech, freedom of association, etc) included in the constitution

205 Rights & Liberties could be annulled, suspended or limited on the following considerations: 1. the national interest, 2. public order, 3. national security, 4. danger to the republican order and public health. Constitution subjected to a referendum 7 November 1982 Voting made compulsory Anyone who chose not to or neglected to vote: a) had to pay a fine b) lost the right to vote for five years

206 Criticism of a)the constitution b)speeches General Evren held in favour of yes vote banned The referendum yielded expected result: a yes vote of % 91.4 New Law on Political Parties promulgated (March 1983) Politicians active before September 1980 banned from politics for 10 years

207 New parties could be formed but their founders needed the approval of the NSC Students, teachers & civil servants barred from party membership Parties not allowed a)to found women’s or youth branches b)b) to develop links with trade unions c)to open branches in villages. 15 parties founded, but 12 not approved by the military

208 3 parties allowed to take part in the elections 1. The Party of Nationalist Democracy Milliyetçi Demokrasi Partisi Identified with & supported by the generals Led by retired general Turgut Sunalp 2. The Populist Party Halkçı Partı led by Necdet Calp 3. The Motherland Party Anavatan Partisi led by Turgut Özal Turgut Özal - behind the economic reform program served as a minister in charge of the economy under the military regime (Bülent Ulusu government)

209 6 November 1983 Elections MP scored an overwhelming victory - polling over % 45 PP did reasonably well to poll % 30 PND came the third with % 23 New electoral system heavily weighted in favor of majority To limit the disproportionate influence of the small parties Before 1980 = one of the reasons for the breakdown of system The % 45 gave the MP an absolute majority

210 Under Turgut Özal slow process of further democratization went on Before the municipal elections of March 1984 the parliament voted to allow some of the parties banned the year before to participate The Municipal elections of March 1984 The MP did only marginally less well than five months earlier % 41.5

211 The Social Democratic Party 23.5 per cent [Sosyal Demokrat Parti ] led by professor Erdal İnönü The True Path Party polled % 13.5 [Doğru Yol Partisi] Süleyman Demirel’s party, - fronted by other politicians The National Salvation Party, got % 4.5 of the vote [Milli Selamet Partisi] Necmettin Erbakan’s party, - fronted by other politicians The Populist Party less than % 9 The Party of Nationalist Democracy only % 7

212 Strange political landscape Opposition parties in parliament lost their legitimacy Parties with sizeable portion of the electorate behind them not represented on a national level Solutions: On the Left: PP and SDP merged to form Social Democratic Populist Party [Sosyal Demokrat Halkçı Parti – SPP] November 1985.

213 A new challenger for the inheritance of old RPP The Democratic Left Party DLP Demokratik Sol Partisi - DSP Led from behind the scenes by Bülent Ecevit fronted by his wife, Rahşan Ecevit - party chairwoman The Ecevits a)depicted SPP as elitist and old fashioned b)declared the PDL as the only true workers’ party On the Right The leadership of PND dissolved the party - May 1986 Representatives joined the MP & PTP

214 18 members of SPP deserted to the DLP - December 1986 giving DLP representation in parliament Özal accepted the challenge of the old guard Referendum on a change in the constitution to allow the old politicians to take part in politics

215 Referendum - 6 September % yes against % no The result of the referendum led Özal to announce early national elections

216 29 November 1987 Elections The MP managed to retain its absolute majority MP polled % 36.3 SPP % 24.5 PTP came third - % 19.2 Other parties failed to pass the threshold [baraj] (% 10)

217 March 1989: Municipal elections The results: Support for the MP severely eroded MP suffers major defeat in local elections Reasons: Corruption and unpopular economic policies With both voters and private sector

218 SPP came out on top, % 28.2 PTP came second % 25.6 MP managed only third place % 21.9

219 Evren’s term came to an end - November 1989 Regardless of the electoral result Özal stood as presidential candidate The opposition boycotted the session of the TBMM in which the new president was elected Turgut Özal elected 8th president of Turkey

220 Yıldırım Akbulut replaced him as PM He lacks Özal’s authority & fortunes of party decline hereafter

221 Reasons for the decline of Özal’s popularity High inflation - back to pre-1980 level of around % 80 Erosion of purchasing power 2. Nepotism and corruption surrounding the regime

222 Özal’s belief: Unrestricted capitalism free-for-all Resulted in a number of business scandals Özal family criticized for a)nepotism b)corruption in their business activities

223 June 1991 Mesut Yılmaz elected leader of MP Forms new cabinet He is expected to give party youthful and modern image 20 October 1991 Elections: PTP (center-right) won the elections %27 MP % 24 SPP - disappointing result % 20 % 20 included votes for People’s Labour Party (Halkın Emek Partisi) Their candidates contested the elections on the SPP slate

224 Personal animosity between Demirel and Özal prevented coalition A coalition of PTP and SPP Süleyman Demirel: Prime Minister Erdal İnönü: Vice Prime Minister 17 April 1993 President Turgut Özal dies of heart attack at age of 66 Parliament elects Süleyman Demirel as Turkey’s 9th president Leaving his party without strong leader

225 13 June 1993 Tansu Çiller elected leader of TPP First woman to lead Turkey, heading coalition with the Social Democrats 25 March 1994 The Welfare Party, (the party of political Islam) Makes a breakthrough in local elections Its candidates becoming mayors of Istanbul and Ankara

226 18 February 1995 Social Democrat parties – RPP and SPD unite under umbrella of RPP 23 July 1995 Parliament passes amendments to 15 articles of constitution, designed to make political life more democratic 20 September Coalition collapses, leading to early election 24 December 1995 WP (representing political Islam) wins with % of votes and 158 seats,

227 Insufficient to form government Political crisis follows 6 March 1996 MP and TPP coalition is formed Unstable - hostility between two leaders Mesut Yılmaz – Tansu Çiller 6 June 1996 Mesut Yılmaz resigns opening way for Necmettin Erbakan

228 29 June 1996 Erbakan and Çiller announce formation of coalition Both leaders agree to shelve investigations of corruption against each other 28 February 1997 NSC advises Erbakan-led coalition to clamp down / put pressure on Islamist activity, especially the wearing of headscarves in universities 18 June 1997 Erbakan decides to resign hoping to be replaced by Tansu Çiller as PM and for coalition to continue

229 President Demirel appoints Mesut Yılmaz (Motherland Party) to form new coalition New coalition:Yılmaz + Ecevit 16 January 1998 a) Constitutional court orders dissolution of Welfare Party for violating principle of secularism, b) Bans Erbakan from party’s leadership for 5 years 17 December 1997 In anticipation Islamists had already formed Virtue Party (Fazilet Partisi)

230 21 April 1998 Continuing offensive against political Islam Recep Tayyip Erdoğan, Mayor of Istanbul and member of VP sentenced to 10 months’ imprisonment for a speech made in 1997, exploiting Islam & inciting religious heatred 26 November 1998 PM Mesut Yılmaz resigns amid charges of mafia connections 11 January 1999 DLP leader Ecevit forms new cabinet to lead the country to an early general election

231 18 April 1999 General election won by Ecevit and NAP (extreme right) center-right parties collapse 3 May 1999 Ecevit is reappointed PM Coalition with NAP and MP 5 May 2000 Ahmet Necdet Sezer, president of Constitutional Court, replaces Demirel as president

232 21 June 2001 Constitutional Court dissolves VP, describing it a center of Islamic fundamentalism 21 July 2001 Political Islamists form Felicity Party (Saadet Partisi) as successor to VP 14 August 2001 Moderates from VP, led by Recep Tayyip Erdoğan, found Justice and Development Party (Adalet ve Kalkınma Partisi) claiming to be secular ‘Muslim democrats’, not successors to former VP

233 3 November 2002 Early general election brings AK Party to power with % 34.3 of ballot and 363 seats RPP with % 19.4 & 178 seats becomes the opposition with no other parties managing to clear the % 10 electoral barrier

234 Economic Structure 1980 – 2005

235 The efforts to restructure the economy 24 January 1980 :“The “stabilization program” Turgut Özal the architect of the IMF-inspired economic reform package of the last Demirel cabinet The Program become effective after 12 September 1980: Military takeover The suppression of the trade unions and the political left by the military

236 Renewal of confidence for Turkey International business world and financial community represented by the IMF, the World Bank and the OECD, Flow of credits, denied to pre-1980 governments, resumed. National debt grew from 13.5 billion $ to 40 billion $ in But the repayment posed no real problems

237 The aims of the program. Threefold 1. To improve the balance of payments 2. To combat inflation 3. To create an export-orientated free market economy

238 The means employed to attain these goals: 1. Drastic (and ongoing) devaluation of the TL to make Turkish exports competitive in foreign markets 2. Rise in the interest rates: From – to + interest rates to reduce over consumption and thus inflation. 3. Wage-freeze of workers to increase competitiveness and lower inflation 4. Price-rises - the abolition or reduction of state subsidies to reduce budget deficit

239 Exports encouraged through a set of specific measures: 1. Subsidies for exporters – tax examption etc. (vergi iadesi) 2. Simplification of the notoriously complicated bureaucratic export procedures 3. Abolition of the customs duties on imported inputs for export-orientated industries

240 A drop in real purchasing power of between % for most wage-earners in the years Caused by: a) price rises b) a freeze on wages c) high interest rates (purchases on credit reduced) The main winners of the decade: Large-scale economic units the existing and emerging big holdings

241 Types of family holdings in the 80s 1. generation: RPP generation Koç & Eczacıbaşı group had roots which went back to the 1920s. 2. generation: DP-AP generation Sabancı group begun their rise in the 1950s 3. generation: ANAP generation Anka and STFA - Building firms (early 1980s) profited from building boom in Arab oil-producing countries used the opportunity to branch out into other sectors

242 Nearly all these firms a) family-owned b) structured as holding companies with their own banks, insurance, trading and production companies. The early stage of accumulation & import substitution Imports and joint ventures with foreign firms Main business: production of goods under license Holdings, in times became export-orientated without halting their earlier activities

243 The government tried to keep down prices for industrial goods by encouraging competition on the home market through the abolition of import restrictions Luxury items could be freely imported subject to a special tax Revenue used for the housing program (toplu konut)

244 Foreign investors encouraged: 1. No longer faced discriminatory measures 2. Repatriation of invested capital and the export of profits made possible 3. Investors given preferential treatment regarding import duties 4. Free trade zones instituted in different places (around the ports of İzmir and Mersin and near Adana) Firms sep up factories & re-exported their products

245 Government promoted investment in infrastructure & utilities 1. Telecommunications & road networks modernized 2. Construction of natural gas pipelines from the Soviet Union Significant impact on air pollution replacing the inferior coal & lignite

246 New constructions took place on “build-operate-transfer” basis (yap-işlet-devr et) 1. Foreign investor builded a facility (a power plant, airport) & 2. Operated it until its costs recovered & profit margin achieved 3. Handed over facilities to government for further operation Used in energy & tourism sector

247 The building up of a tourism industry energetically pursued By the late 1980s - Turkey captured a sizeable part of Mediterranean holiday market became a popular destination for package tours The Gulf crisis hit the tourism industry hard It recovered quickly in 1992 following the civil war in the former Yugoslavia

248 South-Est Anatolia Project Gigantic (GAP – Güneydoğu Anadolu Projesi) energetically pursued project The plan envisaged the building of a whole complex of dams on Fırat and Dicle including hydro electrical plants and irrigational works a)to produce energy for industry b)to irrigate 1.6 million hectares in the plain of Harran doubling the area under cultivation

249 The main part of the project The enormous Atatürk dam on Fırat opened in 1992 The project and the dam built without financial assistance from international agencies For political reasons to avoid having to reach agreement with downstream countries about sharing the water Syria and Iraq

250 The stabilization program achieved many of its aims: 1. Exports grew by an average % 22 yearly during the years The nature of Turkish exports changed over the decade In 1979 % 60 of exports had consisted of agricultural products In 1988 this was down to % 20

251 Over the same period the % of industrial products in total exports grew to over 72 Among the industrial goods textiles were of special importance contributing over a 1/4 of the total value of the exports 3. Export destinations changed

252 The early 1980s coincided with the 2. boom in world oil prices The Turkish exporters, supported by the Government managed to profit from the new wealth in the Arab oil-producing countries A period Turkish exports to the Middle East & North Africa exceeded those to EC with Iran the single biggest market B period The older pattern re-established itself E C once again main Turkish export market

253 Imports went up and exceeded exports The balance of payments gap closed by remissions from workers in Europe Political stability & attractive interest rates above the rate of inflation encouraged workers to put their money in Turkish banks High interest rates & wage freeze combined to lower inflation - % in the ½ of 80s

254 Inflation rose once again it reached its pre-1980 level in 1988 Reason: The continuing high budgetary deficit Causes: 1. Failure to curb the growth of civil service 2. Inefficient taxation Profits of the industrial holdings left untouched 3. Huge state industrial sector KİTs Inefficient and largely loss-making

255 The privatization program progressed very slowly Reason: State industries - old-fashioned & overstaffed The private investors not interested in them The abolition of a number of government monopolies: private airline companies & television stations 1989: The turning-point – Spiriling inflation

256 1. A serious drought (dry weather) Agricultural producers (and exporters) hit hard 2. Increase in interest rates Cutbacks in government investment 3. A high exchange rate for the TL The TL’s gradual devaluation dropped behind inflation By 1990 it was overvalued by some 40 per cent The economic policies of the 1980s greatly increased the differences between rich and poor

257 1. A new class of often very wealthy entrepreneurs arose Fortunes made in import, export & construction 2. The purchasing power - the majority of the population drastically reduced & real poverty in many homes 3. A steep rise in the number of unemployed (İşsizlik) Labor unrest increased January 1991 – 1.5 million employees held a general strike

258 The slowdown in the world economy at the end of the 1980s The projected growth of the 6. Five-Year Plan ( ) proved unattainable Turkey more sensitive to global economic trends because of its export-orientated economy Turkey entered a period of low growth combined with high inflation and growing unemployment

259 1994 Nature of crises Balance of payments crises Originating mainly from the capital account Caused partly by domestic imbalance Origins: Fiscal imbalances; Relaxation of austerity measures steady appreciation of the real exchange rate; export stagnation, import boom, outflow of short-term capital

260 External Dimension Significant over-dependence on fragile short-term capital inflows following premature capital account liberalization in August 1989 International actors in the post-crisis context: IMF : the primary actor EU: involved through the Customs Union

261 Political consequences Democratic regime remained intact An implicit link: The negative effect of 1994 crisis The rise of political Islam Indirect or “postmodern” military intervention February 1997 (28 Şubat)

262 2000 / 2001 Crises Nature of crises Balance of payments crisis caused by Successive speculative attacks and massive outflows of capital leading to a) the collapse of growth b) heavy unemployment Both internal and external imbalances are important

263 Origins Disequilibrium in the banking sector Private banks in 2000 & public banks in 2001 Strong link: Disequilibria in the banking sector and fiscal imbalances

264 External dimension Highly volatile external environment Characterized by recurrent crisis in emerging markets & reversible capital flows especially after Asian crisis of 1997 Export performance negatively affected by the Russian crisis & weak global demand Rendered the economy highly vulnerable to a crisis

265 International actors in the post-crisis context IMF is the critical actor both in the pre-and post-crisis era The role of the EU decisive for the first time IMF and EU anchors are increasingly interrelated World Bank involved as a secondary actor

266 What went wrong between 1980 & 2001 ? There was considerable liberalization in foreign economy policy Difficulty: undertaking long-term structural reforms such as a) privatization & b) achieving the retreat of the state on the domestic front Özal’s liberalization agenda – accompanied by the expansion & concentration of the state’s economic power Public sector still dominated in the economy The creation of the out-of-budget funds (public housing & public transportation) under direct control of PM

267 The behavior of economic groups (reliance on import substitution policies) A new export elite prospered because of export subsidies & export promotion schemes Side payments to various interest groups - Populism a) Subsidies for the agricultural elite & b) Industrial incentives for various industrial groups, lowering of import tariffs on certain goods Crucial for building large electoral coalitions

268 Democratic pressures & electoral concerns increased the need for more side payments & extension of state patronage Although economic policies changed a) the institutional setting b) the nature of bureaucracy & c) the personalized, higly politicized distribution of state patronage remained intact

269 Payments dstributed to the constituencies Examples of side payments by existing governments: TPP (Çiller) farmers above-the-world-market base prices RPP - urban workers - wage increases TPP – WP coalition – support for the new Anatolian business community & small-to-medium-sized enterprises ANAP coalition – rising base prices for tea Populist policies resulting from; Increased political fragmentation in the parliament The need for coalition governments and frequent elections

270 The problem with privitization: The paradox: Liberal agenda coexisting with a state based on patronage Some success in the 1980s Less than %10 of the privatization program’s goals in the 1990s Turkey ranked among the worst three privatizing countries total revenue from P did not exceed $ 3 billion Unresolved problems: Endemic fiscal deficits with inadequate tax revenues & rising external / internal debt

271 Significant policy contraints introduced by globalization Transformation of political economy from A protected and closed regime to An export-oriented liberal one Turkey’s economic performance in the 1990s disappointing compared to that of the 1980s & changes in other emerging markets

272 To attract a significant amount of Foreign Direct Investments (FDI) and portfolio investments To become significant players in regional and global trade Turkey became a liberal economy But not enough to push for public-sector reform & end patronage-based politics The necessity of setting up institutional framework to resolve the distributional conflicts resulting from openness and liberalization

273 Reasons for Turkey’s stagnant economic performance Extreme forms of popular spending & spiraling public deficits Rapid technological change The pace of financial integration The liberalization strategies adopted in 1980s As a response to globalization pressures insufficient to reap the benefits of a highly interdependent global economy

274 Crucial issues: Turkey’s ability to implement institutional & public-sector reforms Turkey’s foreign economic policy: Turkey applied a liberalization strategey in its external ties This is not enough / at times counterproductive Solution: Ongoing coordination of domestic industrial strategies, technology policies, & incentive mechanisms with those of foreign economic venues To combine proactive foreign economic strategies with domestic institutional reforms and development goals

275 Political consequences A decisive turning point The democratic regime proved to be highly resilient (recuperating quickly) in the face of the crisis Collapse of the democratic regimes following 1958/59 & 1978/60 crises 1960 Restoration of democracy over a relatively short period of time 1980 Longer military rule Restoration of full or unrestricted party competition over a longer period

276 The impact of the changed international environment & The presence of a powerful EU anchor

277 Turkey finds itself at a crossroads After having experienced the most serious crisis in its recent history between , the economy has recovered and reveals one of the highest growth levels amongst the OECD countries.

278 The adoption of a new institutional framework in terms of monetary and budgetary policies as well as product, labor and capital markets, including infrastructure sectors and agricultural subsidies, a path has opened up that will enable the country to free itself of three traps linked to a lack of confidence, government weakness & extreme informality in committing itself long term to the road to greater growth

279 This new framework of measures must be set entirely in motion and completed for it realize its full potential.

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