POST' 50 ECONOMIC DEVELOPEMENTS

By adopting industralisation strategies, economic policies, and an export-oriented vision Turkey’s market economy made a significant
attack after the 80ies. With further reforms and investments grew the
private sector. In the 90ies industrial value grew 6.6 % (annual)
and 4.2 % in the next decade.

After the economic crisis and depreciation of the Turkish Lira in 2001 the economy of Turkey has changed. It showed a rapidly growth
for the following 3 years. The high and persistent inflation went down from 70 % to single numbers. The nominal and real interest rates have decreased decisively and debt ratio of overnment decreased significantly. These economic policies will be kept.

 
After the war a period of economic expansion set in, generated by several favorable factors such as the infrastructurewhich had been completed in previous years, the extension of education and the establishment of many industrial concerns. Moreover, the accumulation of foreign exchange during the war and the infusion of marshall aid all contributed to economic expansion.
   The socio-political change which had occurred in the country contributed to the expansion to a great extent. The introduction of the new political regime allowing the existence of many political parties instead of one part,, as the case had been before, had far reaching consequences. In fact, in 1950, the victory of the Democrat Party, which was founded by the dissidents of the previously ruling Republican People's Party, caused a fundamental change in the administrative principles of the government. A more democratic administration, based on the principle of satisfying the wishes of the electorate, created an atmosphere where the great majority of citizens wanted to cooperate with the government in the acceleration of economic development.
   State intervention into economic affairs, which was intensified during the War, gave over to a more liberal economic policy. The role of private enterprise and initiative was recognized and its future contribution to economic development was highly regarded; this constituted a substantial change of attitude towards it. The result of the changes and the transformation they brought about in the economy was the speeding up of the rate increase in the national income, (GNP), which went up to a yearly 6.3 per cent (calculated at compounded interest rates) for the entire period of 1950-1960.
   After a military coup in 1960 a military junta took over the government. One of the first measures of the State Planning Organization (SPO).

Structure of National Income

   Since 1960 the Turkish economy has undergone important structural changes. The graphy shows the shares of the agricultural, industrial and service sectors in national out put. The agricultural sector has declined steadily with a corresponding increase in the share contributed to national income by industry and services. Turkey shifted from an economy primarily based on agricultural to a semi-industrial economy.
In 1963 agricultural's share of GNP was double that of industry's. In 1973 industry's contribution exceeded agricultural's for the first time and has since retained a modest lead. The transformation of Turkey into a semi-industrial country has been responsible for the major part of total economic growth. ın the 1960s high annual average growth in the industrial sector (9.6 per cent) particularly in its manufacturing component, was almost four times greater than agriculture's 2.5 per cent. The differential narrowed during the 1970s but industry still grew at twice the pace of agriculture. Over the total period the service sector has also increased its share of national income but at a rate only slightly higher than the overall increase.