Between liberal policy applied in Turkey. Atatürk belives that Turkish economy can not develop without foreign capital and foreign aid.

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

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 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 )

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 İzmir Congress on Turkish Economy and Lozan Treaty had a great impact on the economic policies during Lozan İzmir 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 İzmir 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 Aşar tax,technical and financial support Industrialists. İnvestment 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 İzmir 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 İzmir 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 İzmir Congress FARMERS: Aşar 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 İzmir 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.

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