In which congress was economic independence clearly stated as the principle means of economic development?
In the resolutions of the Sivas Congress, as well as those of the National Pact, economic independence was clearly stated as the principle means of economic development.
After the War of Independence when was the importance of economic development stressed?
Immediately after the end of the War of Independence, the importance of economic development was once again stressed in the convention of the İzmir Economy Congress in February 1923
Which treaty put some constraints on the power of the leaders of the Turkish Republic?
The Treaty of Lausanne, signed on July 24, 1923, put some constraints on the power of the leaders of the Turkish Republic in forming their economic policies, specifically in determining the customs tariffs, until 1929.
After the Lausanne, what type of economic policy was followed by the Turkish Republic?
Within the constraints of Lausanne, the leadership of the Turkish Republic followed a relatively liberal economic policy from 1923 to 1929.
What was the major goals of The Turkish War of Independence?
The major goals of this war were to secure the territorial integrity of what remained of the territories of the Ottoman Empire and defend the rights and independence of Muslim/Turkish elements against the Allied occupation.
Why did the Treaty of Sèvres (August 10, 1920), mean complete economic dependence for Turkey?
According to this treaty, Capitulations and foreign concessions were to be restored. A Financial Commission consisting of France, Great Britain, and Italy were to be formed to control the financial affairs of the Ottoman State, its budgets and financial laws, its currency and its economic resources.
When did the leaders of the Turkish War of Independence realized the importance of economic issues?
The most noteworthy development which demonstrated the extent to which the leaders of the Turkish War of Independence realized the importance of economic issues was the convention of the ‘First Turkish Economic Congress’ in İzmir, February 17-March 4, 1923, which took place during the interval between the two sessions of the Lausanne Peace Conference.
What did Mustafa Kemal Atatürk mention in his long speech at the Economic Congress of İzmir?
In his speech, Mustafa Kemal [Atatürk] criticized the Ottoman sultans for their dream of conquest as they had caused the subject populations in the occupied lands to receive privileges under the name of ‘Capitulations’. As a result, foreigners could constitute an economic force within the Empire with separate identity in the long term. He further criticized the Ottoman practice of negotiating foreign loans which had led the Empire to bankruptcy. He stated that the Turkish nation had saved the country from the dissolution it faced at the end of World War I by firmly defending the National Pact (Misâk-ı Millî). He also stated, that the nation still had enemies and that in order to fight against them, it would be necessary for her to arm economically as she had armed militarily in the immediate past (Finefrock, 1981, p. 378; İnan, 1989, pp. 57- 69). Mustafa Kemal [Atatürk] emphasized that they did not oppose to foreign investment on the condition that the foreign investors complied with the laws of the country and that they did not seek preferential treatment. He maintained that they were ready to give the required assurance to foreign capital investors.
Why was the final document of the Economic Congress of İzmir named as National Pact (Misak-ı Milli)?
The final document of the Conference was named the National Pact (Misâk-ı Millî)
in order to demonstrate that economic independence was equally important as political independence.
What were the provisions of the Treaty of Lausanne?
According to the provisions of the Treaty of Lausanne, the regime of capitulations was completely abolished. Yet, Turkey had to agree to the foreign concessions, originating from the capitulatory agreements and rights, until 1929. Turkey could not freely change its customs tariffs until that year. In other words, Turkey would not be able to impose customs duties on the goods of the signatory countries as it saw fit in terms of the needs of the country. Additionally, many of the foreign companies with commercial privileges continued to have them in the 1920s.
What was the provision about Ottoman Depts in the Treaty of Lausanne?
These debts were divided between Turkey and the other countries separated from the Ottoman Empire. Turkey’s share was two-thirds of the total debt (84,597,495 Turkish gold pounds). Payments were to be made annually. First installment was to
be paid in 1929.
What were the things that hindered economic development?
Both agricultural and industrial sectors had been severely affected from the incessant wars since 1912 (the Balkan Wars, the First World War and the Turkish War of Independence, respectively). Mobilization for war, recruitment of manpower and their loss in battles, starvation and disease, Greek invasion of Anatolia, all hindered economic development. Agricultural production decreased because of the destruction of railways and bridges, houses, some villages and urban centers, especially in western Anatolia.
Why did the Agricultural production decrease?
Agricultural production decreased because of the destruction of railways and bridges, houses, some villages and urban centers, especially in western Anatolia. The wheat production estimated to decrease by 47 %, tobacco 51 %, raisin 54 % and nut 65 %.
What is Tithe?
Tithe, one tenth of the annual produce, It was the symbol of peasant exploitation in the Ottoman Empire.
What was the Tithe replaced by?
Tithe was replaced by a land-income tax, which lessened the tax burden of the peasantry.
What were the monopolies on some commercial items controlled by?
Monopolies on some commercial items had been in control of the Public Debt Administration in return of the foreign debt of the Ottoman Empire. As the Public Debt Administration was liquidated by the Treaty of Lausanne and the Ottoman Debt issue was rearranged, foreign companies continued to have monopoly rights on specific items.
What were the three major economic goals of the governments of the 1920s for economic development?
The governments of the 1920s had three major economic goals for economic development under these circumstances. First, they aimed at the industrialization of the country through which they would strengthen the national economy and bourgeoisie. Secondly, they aimed to ensure a rapid increase in agricultural production. This would improve the living conditions of the agricultural population as well as increase the share of agriculture in industrial development. Finally, they aimed to develop transportation and financial (banking) infrastructure. This would enable the growth of domestic market and, thus, stimulate the industrial and agricultural production.
What were the attempts of the early Republican governments the financial infrastructure and extend credit facilities to industrial enterprises and agricultural producers?
In 1924, Business Bank (İş Bankası) was established. Among its tasks were making investments in industry, mines and commerce, providing credit facilities to private entrepreneurs and taking initiative in the organization of export activities. In 1925, the Bank for Industry and Mining (Sanayi ve Maadin Bankası) was founded. In order to expand credit facilities for the agricultural sector, the government reorganized
the Agricultural Bank (Ziraat Bankası) which had been founded in 1888.Regarding the development of transportation infrastructure, the state undertook the investment in this sector since the private enterprise was not strong.
As the production capacity of the United States, Germany, France and Britain deteriorated what happened?
As the production capacity of these countries deteriorated, both commodity prices and the prices for agricultural items fell because demand on items decreased.
What were social consequences of the crises in 1929?
Social consequences of the crisis, especially unemployment and the weakening of the middle class in industrialized countries, formed the ground for the empowerment of authoritarian/fascist political regimes in Europe. Germany was the typical example.
What were the measures of Turkey to decrease the effects of the crisis?
The immediate measures that Turkey took to lessen the negative impact of the crisis included the establishment of a firm control on foreign trade aiming to restrict imports and a cut down on government expenditures.the state increasingly intervened in the situation, adopted a protectionist policy and import-substitution; that is, it attempted to replace some of the imported goods by local production. In order to stabilize the budget and increase the value of Turkish Lira, the Law on Foreign Exchange Markets (Menkul Kıymetler ve Kambiyo Borsaları Kanunu) was enacted (December 1929) and the Law on the Protection of the Value of Turkish Lira (Türk Parasının Kıymetini Koruma Hakkında Kanun) was introduced in February 1930. These laws enabled the government with instruments ‘to purchase, sell, and export gold and foreign and local currency’. the government led the establishment of the Society of National Economy and Savings (Millî İktisat ve Tasarruf Cemiyeti) in December 1929.
Why did the Republican regime give the utmost importance to railroads?
The Republican regime gave utmost importance to railroads for strategic and
economic reasons. In the early years of the republic, the railway network was mostly under foreign control, serving external markets. In order to develop the domestic market, the new regime began to construct new lines and nationalized the existing ones.
What is the gold standard?
The gold standard is a monetary system in which the value of the currency of a country is directly linked to gold. The country that uses the gold standard sets a fixed price for gold. It buys and sells gold at that price. The fixed price determines the value of the currency. The use of the gold standard was widespread from the 1870s to 1914. The outbreak of the World War I ended its use. However, in 1920s, it was again in use; yet, it collapsed in the 1930s under the impact of the Great Depression.
What is Ètatism?
Ètatism, not clearly defined by the government in its initial phase, came to mean the state’s responsibility for investing in industry, creating and running industries that the private sector could not due to lack of sufficient capital, and supervising the production in these industries.