Economic development of Turkey from 1914 to 2013

Topics: Economic growth, Gross domestic product, Turkey Pages: 4 (1166 words) Published: December 4, 2013


Economic Development of Turkey From 1914 to 2013

The movement of Turkish economy in twentieth century was influenced by large number of historical, political and economic events. Externally, Turkish economy was influenced by large events such as World War I., Economic depression, and World war II. Internally, Turkish economy was influenced by changes in economical policy(Altuğ et al., 2006). The changes in economical policy can be divided in the four major period. On the period of liberal economic regime from 1923 to 1929. The period of state accumulation which lasted from 1929 to 1945. The period of state guided by industrialization which lasted from 1950 to 1980. The period of liberal trade of goods, services and financial transaction which started in 1980. (Prof. Dr. Mükerrem Hiç et al., 2009). The Turkey as a modern state aroused from the collapse of Ottoman Empire in 1923. World War I and its impact has a very harsh effects on the Turkish economy. Just in the period from 1914 to 1924 population of the areas comprising present day Turkey declined by 18 percent. Neverthless, during the liberalization of market Turkey had slow growth rate from 1920 to 1929. With that pace Turkey reached a pre-war level of GDP just in 1929. (Altuğ et al., 2006). In 1929 Economic depression cast a shadow on classical laissez-faire economy which asserted that economy will automatically achieve full employment without any type of state intervention. (Prof. Dr. Mükerrem Hiç et al., 2009, p.5-6). As a response to that event almost all high official of that time such as president Atatürk, prime minister İnönü, and secretary general Recep Peker, decided to accepted Etatism. Etatism means that from then onward Turkishm goverment had decided to have more control over economic and social politicy. Concerning that the Turkey was relativly new republic turkish government was sensitive toward any form of reactionism or religious extremism. In other words to secure stability,...
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