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| First Five-Year Plan (Turkey) | |
|---|---|
| Name | First Five-Year Plan (Turkey) |
| Native name | Birinci Beş Yıllık Kalkınma Planı |
| Country | Republic of Turkey |
| Period | 1934–1939 |
| Adopted | 1934 |
| Authority | State Economic Council |
| Preceded by | Early Republican economic measures |
| Succeeded by | Second Five-Year Plan (Turkey) |
First Five-Year Plan (Turkey) The First Five-Year Plan (1934–1939) was a centrally coordinated development program implemented by the Republic of Turkey under the leadership of Mustafa Kemal Atatürk's successor, İsmet İnönü, designed to accelerate industrialization, boost agricultural productivity, and modernize transport and energy networks. It combined state-led investment via institutions such as the Sümerbank and the State Economic Council with legal frameworks influenced by the 1933 labour legislation and fiscal measures shaped by the Ministry of Finance and Central Bank of the Republic of Turkey.
The plan emerged from the interwar context shaped by the Great Depression, the Treaty of Lausanne, and the 1930s global protectionism trend, responding to vulnerabilities exposed during the World War I and the Turkish War of Independence. Key objectives included import substitution industrialization inspired by models from the Soviet Union, the New Deal, and the Ottoman Tanzimat-era reforms, rural transformation linked to the Agrarian reform movements and the Village Institutes initiative, and strengthening fiscal sovereignty in light of prior foreign debt obligations and interactions with the League of Nations economic orthodoxy.
Planning work was coordinated by technocrats associated with the General Directorate of State Hydraulic Works, the State Economic Council (Turkey), and advisors trained in agricultural colleges and Istanbul Technical University faculties. The Republican People's Party legislative majority enabled passage of statutory measures, while ministries such as the Ministry of Public Works (Turkey), the Ministry of Commerce (Turkey), and the Ministry of National Education (Turkey) executed sectoral plans. Implementation drew on state enterprises such as Sümerbank, the Turkish State Railways, and the General Directorate of Mineral Research and Exploration, with technical cooperation from engineers familiar with projects in Germany, France, United Kingdom, and Soviet Union.
Policy instruments included protective tariffs administered by the Customs Administration (Turkey), state credit from Sümerbank and the Ziraat Bankası for rural modernization, and public works financing through the Ministry of Finance (Turkey) and bond issues overseen by the Central Bank of the Republic of Turkey. Sectoral programs targeted textile production at factories like Sümerbank textile mills, coal and iron ore exploitation by the Mineral Resources Directorate, sugar beet cultivation promoted by the Sugar Factories (Turkey) network, and expansion of light industry and heavy industry capacity modeled in part on plans from Soviet Gosplan advisors and engineering missions from Germany (Weimar Republic) and Italy.
Major projects included expansion of the Turkish State Railways network, electrification and hydroelectric developments by the General Directorate of State Hydraulic Works at sites analogous to later projects such as Keban Dam concepts, construction of modern textile and cement plants by Sümerbank and private partners, development of port facilities at İzmir and Mersin, and urban public works in Istanbul and Ankara. Mining operations were extended in regions like Zonguldak and Erzurum, while road-building programs linked to the Highways Directorate (Turkey) increased connectivity to agricultural markets.
The plan affected labor markets by expanding employment in state enterprises and construction, altering rural labor patterns through mechanization promoted by Ziraat Bankası credits and agricultural extension services tied to Gazi Institute training programs. Social policies intersecting with economic aims included vocational education at institutions such as Istanbul Technical University and the Vocational Schools (Turkey), public health improvements influenced by the Ministry of Health (Turkey), and population redistribution policies that connected to rural settlement initiatives and the population exchange legacy. Labor legislation and unions such as nascent workers' associations were regulated under statutes influenced by European labor codes and domestic priorities.
Outcomes included measurable increases in industrial output in sectors like textiles, cement, sugar, and mining, enhanced rail and port capacity, and greater state control over strategic enterprises through Sümerbank and state monopolies. Macroeconomic indicators showed import substitution gains alongside continued trade deficits in certain commodities, fiscal strains managed by the Ministry of Finance (Turkey) and stabilised by the Central Bank of the Republic of Turkey. Critics cited issues comparable to critiques of import substitution industrialization in Latin America and India, pointing to inefficiencies, limited productivity growth in agriculture, and regional disparities mirrored in provinces such as Eastern Anatolia Region and Southeastern Anatolia precursors.
Politically, the plan reinforced the Republican People's Party (Turkey)'s developmental state model and continuity from Mustafa Kemal Atatürk to İsmet İnönü, shaping Turkey's trajectory toward state-led industrialization seen later in the Second Five-Year Plan and postwar planning debates involving actors like Celâl Bayar and Adnan Menderes. The legacy informed mid‑20th century policymaking in areas connected to Korean War era trade shifts, subsequent integration with OEEC-era economic structures, and long-term debates over privatization and market liberalization reflected in reforms of the 1980s.
Category:Economic history of Turkey Category:Interwar period