Economy after republic declaration. Declaring the purpose creation of the modern secular state of the western type, Mustafa Kemal Ataturk has emphasised progressive reforms in economy. The Turkish state has got the railways built by the European companies still in Ottoman empire, has laid new and has connected them in a uniform national network. It has joined in building of industrial targets and has organised the bank system, called to make Turkey independent of foreign financial institutions.
In the first decade after declaration of republic Ataturk in the decision of a problem of economic development relied on the private initiative, however in the country there was no class of businessmen, and in trading operations in territory of Ottoman empire throughout centuries national minorities and foreigners dominated. Besides many Greeks, Armenians and Jews have emigrated from the country. Great depression 1929–1939 has reduced Turkish export that was negatively reflected in national economy.
In the early thirties the authorities have actively started stimulation of economic development. For acceleration of industrialisation the state built factories, mines and power stations. This policy known as , provided creation of special state economic structures most important of which were “Sumerbank” and “Etibank” supervising the state enterprises in processing and a mining industry (and also in power).
The course on active intervention of the state in an economic life proceeded up to the beginning of 1990th years when the government has passed to a policy of privatisation.
Economic development of the country has been slowed down by the Second World War. After 1948 Turkey has received from the USA, the West European countries and the International bank of reconstruction and development in the form of the help and loans some billions dollars. From the middle of 1950th years of Turkey considerable loans by the European countries, in particular Germany and Great Britain have been given. With foreign assistance, first of all from outside the USA, the network of the highways which have connected to national transport system inaccessible areas was possible to improve.
Essential capital investments also have been made in power, a coal mining and in the new enterprises of branches of a manufacturing industry – textile, sugar and cement. Within 1950th years economic growth averaged 6,3 % year, however fast lifting was in the early fifties replaced by the period of inflation, economic ailments and relative stagnation in the late fifties.
After the military coup d’etat 1960 which have partially become by reaction to not clear results of chaotic and inconsistent economic policy, Turkey has entered the period of planned development. In 1st five years’ plan (1963–1967) mid-annual growth was accelerated and made 6,7 % that was nevertheless below a planned target. The volume of capital investments also has not reached 20 % from gross national product.
In 2nd five years’ plan (1968–1972) investment process proceeded more slowly, than it was planned, nevertheless it was possible to reach an object in view: to provide annual increase in gross national product at 7 %. (1973–1977) this indicator was provided by the third five years’ plan approximately at level of gross national product of 8 %, but has really made apprx. 6,5 %.
In second half 1970th years inflow of capital investments in economy and its development were slowed down, unemployment became widespread. The crisis reason partly was world recession of the middle of 1970th years which has led to sharp decrease in receipt in the country of money resources from Turkish migrants in the Western Europe, and partly import rise in price, for example oil and finished articles.
Turkey has appeared in a vice of an enormous external debt which could not pay without reception of new loans from the International currency fund (IMF) and the USA.
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With 1980 on 1987 annual value of growth of gross national product fluctuated between 3,3 % and 8,1 %, but in 1988 about 2,5 %, and in 1989 – to 1,1 % then the government has entered the restrictions directed on delay of inflation were reduced. After decrease in an indicator to 0,9 % in 1990 that has been connected with war in Persian gulf (1990–1991), gross national product of Turkey has started to increase gradually: in 1995 on 8,1 %, in 1996 – on 7,1 and in 1997 – on 8 %.