Atatürk Era Mixed Economy Model and Growth Records in the 1929 Depression

The mixed economic model and strategic investments implemented during the era of Gazi Mustafa Kemal Atatürk made it possible for Turkey to record high growth rates despite the 1929 Great Depression.

Economic Independence and the Izmir Economic Congress

Gazi Mustafa Kemal Atatürk, who prioritized the subject of economy even during the War of Independence, convened the Izmir Economic Congress in 1923 to chart the roadmap for the economic independence of the Republic of Turkey.

In line with the decisions taken at this congress, a pragmatic and national development model was put into practice that did not exclude private enterprise while carrying out strategic and major investments through the state.

Industrial Move and Strategic Factories

With the major industrial initiative carried out between 1923 and 1938, the country, which had just emerged from war, was endowed with a self-sufficient and independent structure.

During this fifteen-year period, strategic factories were established in many different fields such as sugar, food, weaving, textiles, defense, aviation, chemistry, and glass.

Social Factory Model

Certain important facilities that were established, such as the Nazilli Printing Factory, were designed as a social factory model complete with on-site nurseries, housing, and various social facilities.

The facilities in question began operating with an approach that took into consideration the welfare of employees, based on the philosophy of Ahi brotherhood.

Record Growth Despite the 1929 Depression

While major collapses were experienced worldwide due to the economic depression, Turkey was among the rare countries that emerged from the crisis through development thanks to the mixed economy model it applied.

Between 1930 and 1939, the country achieved an average annual national income growth rate of between 7.3 percent and 8 percent, reaching rates of 15.5 percent in 1933 and 23.1 percent in 1936.