1923-1930

1. 1923-1930 • Between 1923-1930 liberal policy applied in Turkey. • Atatürk belives that Turkish economy can not develop without foreign capital and foreign aid.

2. 1923-1930 • During the war Turkey was devastated by the wars in the early 20 th century. • Turkish economy was dependent on agriculture and industry was almost non-existent. • Agriculture sector was not mechanised. • Most manpower was used for the army, so no manpower to cultivate the land • There was inflation due to shortage goods, • 90% of industry was small scale, and agriculture was dominant and main

3. 1923-1930 • and main industial sector was handicraft industry. • Syria , Pallestine etc. all belonged to the Ottoman Empire • When Ottoman Empire disappeared, huge amount of debts to be paid by Turkey. After 1923, Turkish Republic paid debts was until 1954. • Because of debt, Turkish government allowed western countries to collect some tax from Turkish tobacco,liqeur etc. • Foreign companies running railways etc more pressure on Turkey ( 68 % of FDI invested on raiyways ) • FDI ( 44% French, 34 % Germ, 17% Eng )

4. 1923-1930 • From 1923 to 1929, Turkey was not obliged to change customs duties as was in Ottoman Period. During this period , Turkey exported raw materials cotton, some agricultural products but imported manufactured textile • İzmir Congress on Turkish Economy and Lozan Treaty had a great impact on the economic policies during 1923-1930. • Lozan • İzmir Congress ( February 17, March 4, 1923)

5. Lozan Discussions • During Lozan discussions five points were taken: • Abolition of capitulations and problem of foreign concessions • Customs tariff.. • Settlement of Ottoman debts. • Occupation expenses and war repairations • Transfer of population. • Musul question.

6. İzmir Congress • 1100 delegations attended • “ We need economic victory besides military victory” economy receives the most emphasis Introductionary speech was done by Atatürk.

7. Reperesentations • Farmers: remove of Aşar tax,technical and financial support • Industrialists. İnvestment subsidies, extra import and export facilities • Workers. Better working condition, 8 hours of work and insurance • Traders : the most organized group, argued • the merits of free trade, • Emphasized the need for legal and institutional framework

8. İzmir congress • All groups agreed on the implementation of the liberal economic policies though national identitiy and independence often emphasized. • Except the full acceptance of workers demands. There was an agreement to achieve the desires of other groups.

9. İzmir Congress • Commercials were most organized. They demanded below: • Commercial banks and foreign exchange stock market should be regulated. • Friday must be holiday. • Regulation of mines and foresty must be reformed. • Government monopolies should be eliminated. • Establishment of chamber of commerce. • Regulating private corporations

10. INDUSTRIALISTS, They wanted below: • Protection of domestic industy with high tariffs • Tax exemptions for machinery and equipment imports • Education and training • Chamber of Industry • Industrial bank

11. İzmir Congress • FARMERS:Aşar tax must be abolished ( 1925 ) • Tobacco monopoly should be abolished. • in order to be organized and extended for agricultural credits, they demanded Agricultural Bank.(In 1932 Agricultural bank was established to buy some agricultural products.( Wheat,barley Grain SILOS idea was to create a shock to eliminate price changes.) • Social insurance • Some machines equipment • Trained agricultural workers.

12. İzmir Congress • WORKERS • Working time per day must be restricted to 8 hours. • Off work should be paid. • Social security and unemployment security. • maternal leaves and wedding allowance • Newyl available jobs to be allocated for turks. • May 1must be declared as a Worker’s Holiday.