Between 19231930 liberal policy applied in Turkey.

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
• Izmir Congress on Turkish Economy and Lozan
  Treaty had a great impact on the economic
  policies during 1923-1930.
• Lozan
• Izmir 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
Izmir 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 Asar tax,technical and
  financial support
• Industrialists. Investment 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
Izmir 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
Izmir 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
Izmir Congress

• FARMERSAsar 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
Izmir 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 Workers Holiday.

13
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