Fri. Aug 14th, 2020

FPI

Power Changes and Economy in Turkey

turkey economy

There was never an idea that was the sole sovereign in Turkey. There has therefore been a
diversity of power in the country since the past. Especially between 1960 and 1980, there was
an extreme change of power. Each time these changes of government brought with them new
ideas and new changes in the field of Economics. Thus, capital groups have changed
periodically. For example, in the early years of the Republic, the great landowners were
important to the economy and represented the bourgeoisie. Between 1960 and 1970, industrial
capital came to the fore. After the 1974, we see the place of trade in the economy.
Between 1950 and 1960, the Democratic Party was in power in Turkey. During this period,
the statist economic system was tried to be abandoned and a liberal economy was preferred.
Turkey turned to agriculture and stopped being an industrial country. Foreign capital was
encouraged, and a large amount of foreign debt was taken on. The number of tractors
increased from 1,000 in 1945 to 40,000 in 1955. These steps, which are not quite right, have
brought a number of problems to Turkey. The end of the Korean War and Europe's
improvement in agriculture reduced exports. The liberalization of foreign trade caused a trade
deficit. Thus, the economy became dependent on the outside. As a result of this period,
Turkey experienced an economic revolution and no significant successes have been achieved
in order to increase the share of private enterprise in the economy. In this period, the inflation
external pay problems and accordingly, the devaluation phenomenon has been the subject of
the agenda.
The period between 1960-80 is the period of coups in Turkey. These coups have prevented
the economy and democratization. It is one of the parameters that caused these coups to the
economic problems he experienced in the late 1950s. Due to changing forces, economic plans

could not be long-term, the goal was simply to eliminate existing problems. The importance
of exports and foreign capital in foreign economic relations is emphasized and while
encouraging, it is aimed to give weight to goods that will increase domestic production in
imports. In foreign economic relations, incentives have been started to bring the economy in
line with the conditions of external competition and to open Turkish industry to world
markets.

In the face of this precarious situation, urgent new arrangements were made after 1980.
Their primary goal is to prevent inflation, external through export growth achieving
equilibrium and free market conditions in the economy January 24 decisions to ensure that the
country's current industrial sector production it is based on the arrangement of its structure by
opening up to external competition. Thus, the volume of dental trade went on an upswing. If the crisis in 2001 is kept out, during this period, gross national product grew by 32.8%, while
exports increased by one-fold and imports by one-and-a-half. In the same period, Turkey's
foreign debt increased 2.3 times. As a result, growth and GDP per capita doubled by 2008.
Import-based trade boom with US, Far East and Russia. Exports to the Middle East and Africa
outweigh imports, and the start of negotiations with the EU has positively affected trade with
the EU. Turkey's total external debt has increased exponentially; in 2017, the public external
debt has increased to $ 129.5 billion, the CBRT external debt to $ 704 billion and the private
sector external debt to $ 307 billion and the share of the external debt in GDP has been
51.9%.
As a result, the economic process in Turkey is constantly changing. the new moral values
produced in order to secure the new power of the ruling new class have created new political,
military and economic bonds. The party, which is generally in power, has made
transformative movements in the sense of their ideology.

This article written by Elif Su Yatkın.

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