The struggle for economic independence the industrial leap and statism in the Atatürk era

With the proclamation of the Republic, Türkiye faced the historic task of complementing its political independence with economic sovereignty. The legacy inherited from the Ottoman Empire consisted of heavy foreign debt, capitulations, an exhausted treasury, and an agricultural economy with almost no industrial infrastructure. Under these conditions, the development drive initiated under the leadership of Mustafa Kemal Atatürk was not merely an industrialization project, but the concrete embodiment of the ideal of building a fully independent state.

The İzmir economics congress (1923) the national pact of economic independence

Even before the Treaty of Lausanne was signed, the İzmir Economics Congress, held between February 17 and March 4, 1923, represented the first major declaration of the new Türkiye's economic direction. The decisions taken at the congress, while encouraging the private sector, also paved the way for the state to play an active role in industrialization. Atatürk's words at the congress perfectly summarize the entire endeavor.

"However great political and military victories may be, unless they are crowned by economic victories, the victories won cannot be lasting."

The principle of statism why state-led industry?

The devastation caused by the 1929 World Economic Depression and the private sector's lack of sufficient capital accumulation pushed the state directly into the role of investor. The principle of Statism adopted in the 1930s envisaged the state engaging in production in areas where the private sector either could not enter or was insufficient. However, this was not an application against private enterprise; on the contrary, it was a necessity to build the infrastructure that would create national industry.

Sümerbank the heart of industry and the hub of development

The most remarkable institution of this period was Sümerbank, established on July 11, 1933. Sümerbank was more than just a bank; with its factories spread across the four corners of Türkiye, it was essentially an industrial holding company. Aiming to produce everything from cotton to cloth, and from wool to blankets using domestic resources, Sümerbank carried out major investments that are still talked about today.

1. Kayseri Cloth Factory (1935): Türkiye's first large-scale textile complex.
2. Nazilli Print Factory (1937): Inaugurated by Atatürk himself, this factory played a key role in the development of the Aegean Region.
3. Bursa Merinos Factory (1938): One of the last factories opened by Atatürk, Merinos also laid the foundation of Türkiye's woolen industry.

Sümerbank also transformed the social fabric of Anatolia with the schools, dispensaries, and social facilities it established around its factories.

SEKA (cellulose and paper factories) the nationalization of paper

Initiating paper production in Türkiye was one of the Republic's most strategic moves. SEKA, whose foundations were laid in İzmit in 1936 and which began production in 1939, was established to meet this need. Türkiye, which had previously imported paper, reduced its foreign dependency in this area with SEKA. Pioneering the training of engineers like Mehmet Ali Kağıtçı, SEKA also became a center of social life in the city where it was located, housing facilities such as a cinema, a sports club, and a community center.

Banks and infrastructure institutions

 The industrial drive was not just about factories. Institutions to finance these investments and to process energy and mineral resources were also established one after another.

• Etibank (1935): Established to operate mineral deposits and organize energy production.
• Electrical Works Survey Administration (1935): Laid the groundwork for energy infrastructure by planning the country's electricity potential.
• State Airlines (1933): The first step in modernization of transportation.

Why was this drive "revolutionary"?

The institutions established during the Atatürk era served directly the goal of a "national economy." Previously, Anatolia largely exported raw materials and imported processed products from abroad. With these facilities.

• High value-added products began to be produced domestically.
• Efforts were made to curb unemployment.
• The domestic market was revitalized.
• Foreign dependency was reduced.

All these moves were products of the belief, as Atatürk emphasized in 1923, that political liberation must be reinforced with economic liberation.

The changing world order and the reflection of the legacy today

Unfortunately, starting from the 1980s, within the framework of neoliberal economic policies that came to dominate the world, institutions like Sümerbank, SEKA, and Etibank were downsized or closed down through privatization. For example, SEKA effectively ended in 2005, and Sümerbank in 2002. However, the greatest legacy these institutions left behind was ensuring that the industry had a certain accumulation of knowledge and a culture of the working class.

Today, the foundations of Türkiye's success in areas ranging from automotive to defense industry lie in the modest but determined steps taken in that era.

The industrial drive of the Atatürk era was not merely a development strategy, but also the economic reflection of the Republic's philosophy of independence. Factories, banks, and institutions were the building blocks of the ideal of building an independent, strong, and dignified society. Whatever the fate of these institutions in the historical process, the path they opened will remain in memory as a turning point in Türkiye's industrialization journey.