Appraisal of the Period Notes

The International Environment and Dynamics

Following World War II, significant changes occurred in Europe and the international system.
The Western world divided between democracies and fascists after World War I, then the U.S. and USSR competed with Europe.
Europe lost its dominating position after World War II; the world was no longer Eurocentric.

A Bipolar System

The international system was transformed politically, militarily, and economically.

Politically

The United Nations (UN) was established in 1945.
The Security Council, controlled by the veto-wielding big five, reflected the power balance of the time.
The U.S. predominated in the General Assembly, which favored America, upsetting the balance of the UN.

Militarily

The defeat of Nazis and Fascists was due to the U.S. and the USSR, not Western Europe.
Countries clustered around these two powers, leading to a “bipolar system,” a key feature of world politics for twenty years
This period was called the Cold War, starting after 1946, peaking in the mid-1950s.

Economically

The capitalist system gave one side a clear superiority in this bipolar system due to its geographic extent and workability at a global scale.
Before the war ended, the U.S. convened a conference at Bretton Woods in New Hampshire to regulate the world economy.
The Bretton Woods institutions, the International Monetary Fund (IMF) and the World Bank (WB), manage the global economy under major capitalist countries.
The IMF oversees timely loan repayment, while the WB ensures structural adjustments aligning members with the international capitalist economy
The General Agreement on Tariffs and Trade (GATT) in 1947 was designed to secure liberalization of international trade, but Institutionalized later.
The Bretton Woods system made the U.S. the leader of the global economy until 1971, recovering this position in the 1980s.
The U.S. institutionalized GATT in 1995 with the establishment of the World Trade Organization (WTO), seeking to set up the Multilateral Agreement on Investments.

The Eastern Bloc

Russia had been invaded by France in 1812 and Germany twice within thirty years, all coming from Eastern Europe, and had Western intervention during civil war after 1917.
The second front was delayed in World War II, presumably to wear down the Soviet Union, so Russia wanted a buffer zone in Eastern Europe for security.
Communist regimes established after the war in Eastern Europe were set up by local Communists, not the USSR.
Communists led the struggle against occupiers, got elected, joined governments, and eliminated other parties; only after 1948 did the USSR turn Eastern European countries into satellites.
Stalin feared local Communists might remove their countries from Russia's orbit, so he replaced them with Moscow subservient officials.
The Cominform (Communist Information Bureau) was set up in 1947 to ensure ideological alignment with Moscow.
With the establishment of COMECON (Council for Mutual Economic Assistance) in 1949, the Eastern Bloc was consolidated, and the USSR’s security belt was in place.
Western nations started worrying about their security with the USSR completing its security arrangements.
The U.S. started taking economic initiatives before the war ended.
NATO pacts established after the war, the Western Bloc or capitalist bloc was able to extend its influence over the world.
The Western Bloc extended its influence militarily through NATO and economically through post-1947 economic aid programs.
Each U.S. and allied outpost exacerbated the USSR's insecurity, making the Cold War self-sustaining, with each action leading to a reaction.
It became harder to discern whether the U.S. presence was serving to contain communism or protecting U.S. interests.
Changes in the USSR after Stalin's death attenuated the rigid bipolar system.
Molotov's call for a thaw in 1954 and the principle of peaceful coexistence between blocs brought international climate changes.
The nonaligned movement, rejecting allegiance to either bloc, reinforced this trend.
These changes created opportunities for countries within the blocs and for smaller, nonaligned countries.
During the early Cold War stages, the geographical location of medium powers deemed important by the bloc’s leader was affected.
Considered important from a geostrategic point of view it was no longer possible to pursue an independent foreign policy.

The Western Bloc

The USA

The main U.S. objective after the war was to ensure that the USSR did not overrun Western Europe.
Western Europe was shattered and needed time to recover, so the American economy needed to capture this potentially rich market as quickly as possible.
The Soviet threat to Greece and Turkey gave urgency to the American effort.

Methods

The U.S. traditionally remained aloof from European entanglements after the Monroe Doctrine in 1823, but it now decided to get fully involved in European affairs, using psychological preparation, military measures, and economic measures.

Psychological preparation

The American public was used to focusing on the Western Hemisphere and needed to be persuaded to get involved in European affairs.
Arthur Vandenberg and Joseph McCarthy became prominent figures.
Vandenberg declared that the first task was to "scare the hell out of American people” to galvanize their fighting spirit. The fear of the Soviet Union and communism had to be turned into a mass psychosis.
McCarthy claimed there were 205 Communists in the State Department, launching investigations that caused officials to lose jobs and become disgraced.
McCarthyism became a byword for persecuting individuals by labeling them as Communist and forcing Americans to become compliant citizens.
McCarthy was stopped when he accused Eisenhower of being soft on communism. McCarthyism spread to other countries, including Turkey, where members of the intelligentsia lost their jobs.

Military measures

Greece received $300 million in military aid and Turkey$ 100 million under the Truman Doctrine on 12 March 1947, countering the Soviet threat and bringing them under U.S. influence.
Under the policy of "containment,” Eastern Bloc countries were encircled by military pacts under U.S. leadership, with NATO established in 1949.
This was followed by the policy of “roll back,” aiming to liberate Eastern Europe by driving socialism back to the Soviet frontier.
John Foster Dulles became known for pact-mania, elaborating new geographical concepts such as the “Inner Crescent” and “Northern Tier.” The U.S. Air Force’s Strategic Air Command (SAC) was established.

Economic measures

The U.S. Congress enacted the Export Regulation Law, setting up a comprehensive trade embargo against the socialist bloc, joined by NATO members and Japan.
The U.S. Main outcome was shifting trade within the bloc led to an economic dimension of the split.
The main U.S. measure was the Marshall Plan, effective in April 1948, providing loans on favorable terms with low interest ( $2.5$ %), a fifteen-year grace period, and repayments over forty-four years.
The disbursement favored U.S. producers and suppliers, with the recipient country indicating requirements to the American aid mission, which procured products in the U.S. and shipped them on U.S.-flag vessels.
Aid utilization was determined with U.S. consultation, influencing recipient states’ economic policies. The local currency counterpart was deposited in a special U.S. account, giving Washington a second lever to influence policies..
The Marshall Plan had three objectives: (1) restore Western Europe’s economies and resume their place in the international trading system; (2) control the economies of recipient countries (the USSR and its partners refused to take part); (3) stimulate the U.S. economy by securing new markets. All objectives were achieved.
The U.S. established a new world order with the Pax Americana through the Truman Doctrine, NATO, the Marshall Plan, and structural adjustment recommendations.

Western Europe

Western Europe, heir to a deeply rooted civilization and industrial tradition, recovered rapidly with the Marshall Plan, becoming a valuable economic partner of the U.S.
The nineteenth-century order had changed fundamentally, with Western Europe aware of this change.
The Western European nation-state of the latter twentieth century was established based on new institutions, above all, the welfare state gaining legitimacy.
The nation-state could survive only through cooperation on a continental scale, with European integration designed to secure its continuation within a wider union.
Turkey faced this international environment and the U.S. and European models after World War II.

The Domestic Environment and Dynamics

Turkey's economic, political, social, and psychological condition after the war presented an integrated picture.

The Economy

The foreign trade balance registered a $21.3 million deficit in 1947 for the first time since 1938, increasing to$ 147.5 million by 1960.
The ratio of foreign trade to GNP increased rapidly until 1952, then fell.
Turkey's foreign indebtedness was understated until 1957 due to improper accounting.
When Turkey applied to the IMF in 1958, the cumulative debt exceeded $1 billion, a 7.5-fold increase since 1945, making it difficult to obtain new loans.</li></ul><h5 id="c74224ac-6a51-4dd7-96bb-fd92487a6888" data-toc-id="c74224ac-6a51-4dd7-96bb-fd92487a6888" collapsed="false" seolevelmigrated="true">Unrestricted Exposure to the Outside World (1946-1953)</h5><ul><li>At the end of the war, the economy was abruptly opened wide to the outside as a result of the Marshall Plan, leading Turkey into difficulties.</li><li>The Marshall Plan aimed to integrate Western Europe into the global trading system, with Turkey supplying foodstuffs and raw materials.</li><li>American reports appeared, including “Turkey—An Economic Appraisal” by M.W. Thornburg, recommending dismantling statism, selling the Karabük Iron and Steelworks, focusing on metal ploughshares and hand tools rather than locomotives, abandoning chemical fertilizer factory plans, encouraging foreign investments.</li><li>James M. Barker recommended lower priority for industry and abandoning comprehensive planning, emphasizing agriculture and raw materials, and lowering the rate of growth to keep inflation under control.</li><li>Süleyman Demirel stated that the West was never comfortable with Turkey’s industrialization, and Turkey disregarded these recommendations in the 1950s, 1960s, and 1970s and pressed forward with its industrialization. F. R. Zorlu walked out of a meeting in Germany when Germans refused Turkish requests for refineries and iron and steelworks construction.</li><li>The Marshall Plan’s implementation, starting in 1948, aimed at transforming Turkey into “the greengrocer of Europe.”</li><li>Vast sums were invested in agriculture and peasants land was being brought under cultivation and tractors grew from 1,000 in 1945 to 40,000 in 1955.</li><li>New railroad construction was halted, while construction machinery was imported for roads and harbors, serving both exports and military bases the U.S. was constructing.</li><li>Agricultural production saw a big jump due to new lands, mechanization, fertilizer use, and favorable weather, along with increased demand for Turkey’s products.</li><li>The Democratic Party government utilized$ 245 million in monetary reserves accumulated by previous CHP governments.
Marshall Plan loans helped flood the market with imports, directing money earned through the black market to investments, soaring per capita income by $28$ % from 1950 to 1953.
Exports significantly increased and allowed the Democractic party to increase their share of votes, gaining support in rural areas with peasants earning decent incomes.

The Consequences of Unrestrained Extravagance

The economy seriously deteriorated after 1954 due to mismanagement without planning or programming.
Uncontrolled printing and spending of money caused inflation to climb, while increased imports and agricultural subsidies led to trade and budget deficits.
The rate of inflation had climed to $18.7% in 1957 from$ 0.8% in 1952, an illusory due to the fixed parity.
The Recep Peker government devalued currency on 7 September 1946, ahead of membership in the IMF, liberalizing trade.
Exports increased by $8.7 million, and imports rose by$ 125.8 million. The implementation of Marshall Plan did not include capital goods, further investments, or industrialization, leading to a growth in imports, such as automobiles and fuel.

The Economy's Dependency on Foreign Resources

The economy began depending on foreign countries, advising liberalization and emphasizing agriculture.
The foreign trade to GNP ratio went from $9.77% in 1946 to 19.21% in 1952. Imports grew faster than exports, agricultural production was falling, and agricultural production was falling at a time when foreign loans could no longer be obtained strangling foreign trade.</li><li>After 1952 there was a rapid decline in foreign trade to GNP due the overvaluation of the Turkish currency.</li><li>The official value of the lira was$ 108 $% higher than its real value. There was an increase in the GNP shown in statistics, this was due to inflation, while the increased dollar value of foreign trade was because the official price of the dollar was kept artificially low.</li></ul><h5 id="2dbf472c-8f99-4cc9-9782-6e440b7b097c" data-toc-id="2dbf472c-8f99-4cc9-9782-6e440b7b097c" collapsed="false" seolevelmigrated="true">An Unsatisfactory Model for Borrowing: 1958</h5><ul><li>Turkey's poor economic conditions led it to seek new foreign loans.</li><li>In 1952 Turkey had drawn$ 355 million from the IMF, and its foreign debt to GNP ratio was at $7.42%$ .
In the period from 1950 to 1954, excessive printing of money occured, and the economy suffered from the effects of liberalization.
Reserves accumulated over the years had been exhausted in less than two years. The economy was facing a crisis ,and relations with the IMF came under severe strain.
In 1954 the IMF recommended a devaluation to relieve inflationary pressures, to eliminate the deficit in foreign accounts, and Menderes rejected the recommendations, while still facing an election.
By 1957 Turkey was insolvent due to not being able to afford to import a single horseshoe nail.
The government eventually submitted its first letter pf intent to the IMF on 4 August 1958, a substantial devaluation of the Turkish lira had to occur.
In 1956 the government refused to devalue the lira ( $2.80 TL) to$ 6 $, but it then devalued to the level of$ 9 TL $.</li><li>$ 600 million in debts amount and $250 million in new loans were negotiated</li><li>A tax of$ 6.20 TL was applied to the old rate for transactions.
Printing money was brought under control, the prices of state economic enterprises were raised, the balanced budget was promised, and introduced tax increases under the letter of intent.
These measures came to be know as IMF recipes. An identical agreement was concluded by Menderes to the proposals made by the British delegation in 1854 (Ottoman Empire), which called for public spending cuts and and to the printing of banknotes and reform of the judiciary to combat corruption.
The Menderes government overcame the 1958 setback and neglected to fulfill its commitment to the IMF. It became the first country to exceed its IMF quota in borrowing and restructuring of debts.
With import substitution the industrialization policy was abandoned and local production came to the rescue. Furthermore, the financial incentives, inputs below real cost, and subsidies provided to industrialists contributed to the growing budget deficits.
Borrowing was being resorted to in order to repay past loans and cover deficits.
Relations with the IMF were strained by irresponsible policies and discipline was relaxed with temporary relief.
The government approached the IMF to late; it was under the worst circumstances. As a result, the measures were half-hearted, returning to the bad habits at the first sign of improvement in the economy.
The economy was very poor causing for agriculture to be adversely affected after 1954, leading to a an acceleration of exodous of peasants from rural areas to urban sectors.
Squatter settlements grew in the periphery or cities and armies of unemployed people.

Politics

Politics developed in special time and circumstance. Isolation in Turkey was felt greatly and Soviet threat was made worse by harpng the subject.
Seeking of the West created sense of anxiety even fear.

Political Tracks

First Track

National leader was taken away and Strict implementation of statism and secularism was relaxed

Second Track

Increase in Mccarthyism religious tolerance deviation from strict laicism.
The premises of the left-wing newspaper Tan, as well as a number of publishing houses identified as leftist, were vandalized.
Left academics and parties and associated were closed down
Religion courses were given. Liberal progressive views where prevented expressing.
Ministry of eduction got destroying in fire Students caused a riot and Boratav was fired.
Sabahattin Ali murdered and faculty of divinity was established elective relegions in primary schools
Religious courses were added. Right party came into power
The call to prayer, made in Turkish, began to be made in Arabic again, opposing Turkey's participation in the Korean War.
Each was subsequently sentenced to forty-five months of imprisonment.
Head if Religious Affairs Department Declares that Islma Rejected Communism
: The Turkish brigade left for Korea courses of religion became compulsory in primary schools
Leftist Studying Aborad saw their exchange allocation cancelled
On 18 February Turkey Joined Hato
American was peveres by many as being a siser.
President remarked the closer American ships come to Turkey the better.
In bureaucrancy Truman Doctrine ,the new bourgeoise links woth us as safety net
Exceopt for leftis all welcome America connections.

Law for Promotion of Foreigh Investments,

Artical 10- Foreign Invesmtements would enjoy all ights immunities and predige enjoy by local Capitial.
PL WAs a conncetion law private allow the private to ative in fiels states in compary stock.

Dismissed of provisions and inclinations of the Democratic Party.

Foreign Policy of the Period

After the war, the U.S. became Turkey’s most important trading partner, and Britain remained so until 1950. Germany was also a aprtner.
Britain, Germany, and especially the U.S. were in the forefront in providing Turkey with financial assistance. Germany overtake then became turkeys trading patner.

Alignment

Turkey fully aligned with the West due to threatening circumstances and finding the international invironment very threatening.
Turkey joined NATO easly and readily without any dissenting. Inonu called closer American SHips in turkey the better and security was seen behind it.
Truman doctrines underpin security and to U.S as getting gains loans
Atention from communis, foreign policy remained outsider of party policy
A powerful Anti sentiment resisted
Arabs sided with America's request, and voted to free trade. After 1950 ıt supported Britain. After 1954 algerion question. the Baghdad Pact and incurre the wrath of most.arabs countries, during crisis for lebanon.

General Appraisal

Turkey and the Western world

No actual point in consider wheter. Stalin to move aganisted turkey.
US action is erronesou but percption in internationls relation.
We know Nato not pressure the Turkish in joining them.
Strategic social psycology and class make use of it.
Nato restiting from periferal .
Beter democracy leads to intemational groupings.
Communism has over come the last hope for Western.
General Nature of policy.
External dynmations (led exessive depend outsises. Internaly leads to extren dempendeces.
In short traditional wetern with the balancing of conlficting outside influences. Menders polices dicregaurds East west reduving freedome trankuly.