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n, the more opposition. The Democrats’ criticism of the oneparty state attracted urban intelligentsia as well as the masses. 28, 1950 – 1960: Regime? In 1950, the people voted for the Democrats。 a party built up by landowners, merchants and lawyers from all regions of Turkey. The party was especially strong in the developed cities of Ankara and the West, while the Republicans were strong in rural areas where their People’s Houses had less petition of thought. The Democrats nevertheless secured many rural votes through their religious tolerance. In 1951, the Democrats closed the Republicans’ People Houses. In 1953, all Republican property was confiscated, including the party newspaper. The 1954 election was easily won thanks to the economic prosperity, but for the rest of the decade, economic stagnation forced the Democrats to first buy votes with irresponsible economic policies, and then dictatorially amend the election laws to stay in power. 29, 1950 – 1960: Policy? The new government took basic economic decisions in collaboration with business circles. Stateowned enterprises and farmlands were auctioned, and public utilities transferred at below market prices. A law facilitating the entry of foreign capital was passed amid strong Republican protest. The private sector was given a lax credit policy, foreign reserve allocation and import controls. In the mid50s, the government tried to save its landowning constituency from falling export revenues by protectionist custom tariffs and large sums of agricultural subsidies in form of a pricesupport scheme. These protective measures later came to cover most of the economy. 30, 1950 – 1960: Economy? In 1950, the economy was balanced. Marshall tractors, land distribution and good weather caused an agricultureled GDP growth of 10% for the first years. The new ways of stimulating private industry generated some corrupt ties between businessmen and bureaucrats. A draught in 1954 reversed the positive trends, and with Europe lowering agricultural prices, Turkey saw its trade balance tip over, debt rise and BOP worsen. The populist policies implemented further deepened the crisis。 by 1958 Turkey could not service its debt and carry out foreign trade. The IMF program of 1958 stabilized inflation and BOP. Economic growth did not recover, however, and recession continued into the next decade. Despite crises, both the private and public manufacturing sector doubled the number of employees during the decade. 31, 1950 – 1960: Society? The Turkish labor union TurkIs was founded, but not given the right to strike. To honor its election pledges, the new government gave more room for religion in society. But opening the religious box, the Democrats soon found themselves fighting infuriated Islamic radicals. In 1953, they forbid the use of Islamic symbols in political campaigning, and in 1956, pilgrimage was outlawed. But when implementation of IMF’s austerity program enraged the masses, the Democrats desperately returned to Islamic symbols as propaganda. This did not deter media, students and the intellectuals from slamming the government’s policy decisions. As the government turned repressive and enacted several laws to silence democratic opposition, popular confrontation escalated. 32, 1960 – 1971: Regime? The political violence and the arbitrary Democrat rule caused the military to intervene and overthrow the regime. The Democrats were banned, but soon reborn as the Justice Party. The army strengthened its own role by creating the National Security Council (NSC) in the 1961 constitution which was approved by the people in a referendum. The Republicans took over under military direction, and after winning the 1961 election, they led series of coalition governments. Managing not to offend the military, the Justice Party gained strong rural support under Suleyman Demirel who could grasp power with a rightwing coalition in 1964 and also win the 1965 elections. To stay in power, Demirel bought off the electorate with budget deficits and foreign borrowing. 33, 1960 – 1971: Policy? The 1963 fiveyear plan named the Turkish economy a mixed economy and introduced ISI as the main industrialization strategy. Within the ISI the main industrial goods that had previously been imported would be produced by the domestic market. The state supervised the process, with precautions against external petition, production of basic goods and services, control mechanisms for the distribution of resources, and laws and regulations regarding the working conditions. The state industries were directed to invest in largescale intermediate goods industries, while the private panies were left the consumer goods market which was to be kept profitable by excluding foreign petition through restrictive customs tariffs. The 1968 fiveyear plan emphasized industry over agriculture and promoted urbanization. 34, 1960 – 1971: Economy? Primary industries requiring low technologies, such as textiles, developed rapidly. The private sector continued to enlarge and consolidate a foothold in the system. Business enterprises which were in close cooperation with politicians grew very big, while the share of small and mediumseized enterprises shrank. Economic growth averaged 6% from 196267, industrial production rising at 9% annually. In the early stages there were no problems in production and demand in the market. A byproduct of the protectionist policies was an overvalued currency that hurt exports. Demirel’s populist policies caused chronic budget deficits of 56 %GDP a year. Domestic industry relied much on imported goods and BOP worsened towards the end of the decade when the Lira was devalued 66%. The country got trapped in vicious cycle of debt and defi