Why and how was the State Planning Organization established?

Whenever I read economic data and assessments or commentaries regarding the course of the economy, the State Planning Organization (DPT) comes to mind. It is due to the need for planning and planned development, as well as the frequent reminders of the DPT... Why and how was the DPT, which operated between 1960 and 2011 to further advance our country's economic and social development, established, and what kind of change and transformation did it undergo over the years? Let us recall...

The DPT was established following the May 27 coup with Law No. 91, enacted on September 30, 1960. The idea of establishing a planning organization had developed during the final period of the Democrat Party (DP) government, which had been pursuing a liberal economic policy.
The duties and objectives of the DPT, which was the center and, in a sense, the 'brain' of planning, were stated as follows: To identify all of the country's natural, social, and economic resources and opportunities. To determine the social and economic policies and goals to be followed and to assist the government in this direction. To ensure coordination between ministries on economic issues and to make relevant recommendations. To prepare plans aimed at the goals set by the government; to provide necessary recommendations to relevant institutions and organizations during the implementation phase of the plans, to monitor the implementation of the plan, and to make changes when necessary. To make recommendations that would encourage and regulate the activities of the private sector in line with the plan's goals and objectives.

BALANCED ECONOMIC DEVELOPMENT

The first undersecretary of the DPT, which was tasked with preparing long-term and annual plans and began preparing five-year plans starting in 1963, was Osman Nuri Torun. These cadres, who held socialist tendencies, prepared the first 'Five-Year Development Plan' covering the years 1963-67 as a balanced economic development plan. 'State economic enterprises', the 'housing problem', 'social goals', and 'financing' were the most important issues. The text, which caused great controversy, was accepted after various changes. Later, names such as Ziya Müezzinoğlu, Memduh Aytür, and Orhan Çapcı served as Undersecretary in succession. Then, in January 1967, Turgut Özal, the architect of the January 24, 1980 Decisions—which were the step toward Turkey's integration into the neoliberal system—took charge of the DPT. He held this position until April 1971. In the 'Second Five-Year Development Plan' prepared during this period under Prime Minister Demirel, broad incentive opportunities were offered to free enterprise. More emphasis was placed on the growth rate. Instead of a trend toward balanced development of agriculture and industry, it was envisioned that industry would be the driving force of the economy. On the other hand, economic stability was formed by fiscal stability and the balance of payments. Among the goals were the development of the export industry and the increase of export revenues, and the production of investment goods was taken among the priorities.

Prof. Dr. Korkut Boratav, the teacher of teachers, stated that the three five-year plans implemented since 1963 were decisive on investment policies, despite all the justified criticisms regarding planning methods and plan implementation. Public investments had to be compatible with the annual programs determined in line with the five-year plans. Private investments also needed the approval of the DPT or public institutions that were auditing whether investment projects were in accordance with the plan's objectives in order to benefit from certain supports. Long-term resource allocations determined by the economy's investment policies were largely determined according to plan goals.

NEOLIBERAL WIND...

The DPT was included under the heading 'Social and Economic Provisions' in the 1982 Constitution, which was prepared after the military coup in 1980. The social change pursued through the free-market economy, led by the ANAP government headed by Turgut Özal, also took the first steps of the era that continued until the idea of development in the country and the process of direct intervention in markets. The DPT also received its share of this wind.

By the 1990s, it was decided to make arrangements for the DPT to cooperate with international institutions and organizations through statutory decrees (KHK). During this process, the 'Sixth Five-Year Development Plan' was put into effect. Economic indicators focused on imports and exports. In the plan, which was listed as “raising the welfare level of society and implementing the principles of a society and economy open to competition,” fiscal policies were implemented in the 1990-93 phase, and structural reforms were implemented after 1994.

SHELVED STEP BY STEP...

In the plan covering the 1995-2000 period, “the goal of EU membership and legal and institutional compliance with the Maastricht criteria, reforms related to the subject, and economic and social transformation” were expressed. The Seventh Five-Year Development Plan pointed to the process of harmonization with the European Union. After the 'Eighth Five-Year Development Plan', the 'Ninth Development Plan' was sent to the Grand National Assembly of Turkey (TBMM) one year late in order to be organized as seven years for compliance with the EU programming period. According to the long-term strategy plan prepared by the DPT, a program aimed at “a Turkey that can compete on a global scale... and has completed the European Union harmonization process...” was targeted. The effectiveness of globalization in all sectors was another of the projections.

The period of full candidacy to the EU and the establishment of development agencies began. The DPT carried out the strategic coordination of these agencies. Planned development was shelved. The DPT gradually abandoned its planning duty and assumed the role of coordinator. And subsequently, it was abolished with the establishment of the 'Ministry of Development'.

Names such as Prof. Dr. Bilsay Kuruç, İlhan Kesici, Memduh Aytür, Kemal Cantürk, Yusuf Bozkurt Özal, Kemal Madenoğlu, and Yıldırım Aktürk had also served as DPT Undersecretary...

In a period when the importance of short, medium, and long-term planning is increasing in almost every field; is there not a greater need than ever today for the DPT, which had taken many issues such as planned development, fair income distribution, tax reform, reorganization of state economic enterprises (KİT), improvement of the administrative structures of public institutions, establishment of development banking, reorganization of the capital market, advancement of cooperativism, and reorganization of the domestic market onto its agenda?


Sources:

- Korkut Boratav, Türkiye İktisat Tarihi 1908-2009, İmge Kitabevi Yayınları, Ankara, 2012.

- Tevfik Çavdar, “Cumhuriyet Döneminde Türk İktisadi Düşüncesi”, Cumhuriyet Dönemi Türkiye Ansiklopedisi, Volume 4, pp. 1074-1084, İletişim Yayınları, Istanbul, 1983.

- İlhan Tekeli and Selim İlkin, Uygulamaya Geçerken Türkiye’de Devletçiliğin Oluşumu, Türkiye Belgesel İktisat Tarihi-2, Bilge Kültür Sanat, Istanbul, 2009.

- Cemal Mıhçıoğlu, “Devlet Planlama Örgütünün Kuruluş Günleri”, Prof. Dr. Fadıl H. Sur’un Anısına Armağan, Ankara University Faculty of Political Sciences Publications, Publication No: 522, pp. 229-257, Ankara, 1983.

- Cumhuriyetin Ekonomi Politiği, Ed: Şenol Çarık, Tarihçi Kitabevi, 2nd Edition, Istanbul, 2020.

- Osmanlıdan Günümüze Türkiye'de Siyasal Hayat, Ed: Gökhan Atılgan, Cenk Saraçoğlu, Ateş Uslu, Yordam Kitap, Istanbul, 2015.

https://ataturkansiklopedisi.gov.tr/detay/960/Devlet_Planlama_Teşkilati

https://www.ilhankesici.org/tr/medya/basin/devlet-planlama-teskilati-dpt-ugur-emek-karar