What did Atatürk do against the cost of living, poverty, and unemployment?

Turkey is a country that struggles to solve its structural problems such as the cost of living, poverty, and inflation. Unemployment, inequality, and a lack of production are always on our agenda. The limited use of advanced technology in industry, with a reliance on low- and medium-level technology, and the lack of conscious and consistent national policies in agriculture, inevitably lower productivity. Furthermore, the rapid decrease in arable land and the aging and shrinking of the agricultural workforce are among our significant problems. For this reason, Turkey has become dependent on foreign sources for many agricultural and livestock products. 

Foreign dependency is a major problem. Beyond its economic aspect, it has dimensions of nutrition and food security, foreign policy, and national security, and it is of strategic importance. It is vital. This reality was understood once again during the Covid-19 pandemic. Therefore, the decline in agricultural production should be considered not only in terms of the increase in fruit and vegetable prices but also in its other dimensions. 

For this, education, science, and awareness are essential. The state is, of course, obligated to prioritize agriculture, to educate its peasants and farmers, and to equip them with the most contemporary knowledge, the newest techniques, and the most advanced technology. This is necessary for the nutrition and health of the nation, for a strong economy, and for competing with the world. It is also a requirement of being a social state. 

There is more; a nation-state that has adopted a mixed economy must adjust its presence in the economy according to the needs of the nation. Therefore, if necessary, it is the duty of the state to be an entrepreneur itself, from industry to finance. For this reason, the Republic placed great importance on planning, and the First Five-Year Industrial Plan was put into effect in 1934. Thanks to this planning, pioneering, large-scale, and advanced technology-equipped factories and facilities were established in many sectors, from iron and steel to textiles, sugar to glass, and cement to mining. These facilities also stood out with their social dimensions for their employees, featuring nurseries, sports clubs, balls, theaters, reforestation campaigns, and housing. 

After founding the Republic, Atatürk considered the state, society, and the economy together and sought to increase their capacities simultaneously. He did not leave one behind while prioritizing another. Because Atatürk was an intellectual and a leader who knew that none of these could be sacrificed for the others. He understood very well the harmony, indispensability, and complementarity between freedom, equality, security, and prosperity. He determined that disrupting the balance between these would create very negative consequences. This is an approach unique to Atatürk. In 1921, he gave the following response to those who said this model did not resemble other models: 

“Gentlemen, we should take pride in not resembling others and not letting others resemble us. Because we resemble ourselves.”

Atatürk, who placed great importance on the economy, ensured that the amount of banknotes in circulation did not change until his death. A balanced budget, stable and balanced development, avoiding foreign debt as much as possible, industrialization, a sound monetary policy, and supporting the farmer were among the distinct preferences of the Atatürk era. Two years after the 1929 global economic depression, in 1931, the Turkish Lira gained 40 percent in value against the US dollar and the British pound. The young Republic was open to foreign capital but was cautious, wary, and reserved against foreign borrowing. Only when it came to establishing very large and strategically important facilities, such as the Karabük Iron and Steel Works, were financial resources sought abroad, and with an agreement made in 1936 for KARDEMİR, a loan of 2.5 million pounds was obtained from England. 

Atatürk attached great importance to agriculture, the peasant, the farmer, and increasing production in agriculture with contemporary, state-of-the-art techniques and scientific methods. To reduce the financial burden on the farmer, the young Republic, at the cost of losing a very important tax revenue, abolished the Tithe (Aşar) tax in 1925. Under these conditions, thanks to conscious policies, an increase of up to 40 percent was seen in the number of animals in our country, agricultural production growth fluctuated between 50 and 70 percent, and the share of agriculture in GDP approached 50 percent. In addition, the nationalization of railways and the importance given to railway transportation, as well as the Cabotage Law, should be considered alongside their contributions to the economy, among other aspects. 

The Republic's achievements in the economy were accomplished in a society that was war-weary, poor, and had experienced occupation. Just as the young Republic was affected by the Great Depression of 1929, Turkey also accepted, as per the decision taken at Lausanne—signed on July 24, 1923, and recorded in history as the founding treaty—that the customs tariff applied by the Ottoman Empire on September 1, 1916, would remain in effect for five years. Thus, Turkey committed to not making any regulations or setting any fee policies in customs tariffs for imports and exports between 1923 and 1929, except in extraordinary circumstances. Despite this, very significant successes were achieved during that period. After this period expired in 1929, that is, with full sovereignty over customs, customs duties on imported products were increased. At the same time, customs duties on the import of machinery and raw materials to be used in manufacturing were kept low. Protectionist policies in the economy had a very positive impact on production and employment.

In the book titled "Civic Knowledge for the Citizen," published in 1931, Mustafa Kemal Atatürk explained statism to Afet İnan as follows: 

“The statism we follow is to keep the state actively involved in matters required by the general and high interests of the nation, especially in the economic field, in order to bring the nation to prosperity and the country to development in as little time as possible, while taking individual labor and activity as the basis.”

Let us state that the Republic, among its other definitions, means public-mindedness and planning. A national economy and populism are necessary for the consolidation of national sovereignty and a social democracy. A social state is necessary for this.