Tnrkey’s Crisis

Manawatu Times, Volume LVI, Issue 7066, 27 January 1933, Page 9

Tnrkey’s Crisis

PROBLEM OP THE STATE MANY MONOPOLIES. In common -with other South-eastern Europoan States, Turkey is passing through a severe economic crisis. But tho difficulties confronting the young republic are different from those of other countries. Turkey has practically no unemployment problem. Essentially an agricultural Stato, industry is only in" its infancy, and thore is consequently no trouble with labour. Workmen, however, are in a somewhat sorry position, as they have no organisation to look after their interests, says the “New York Times.” There is no scarcity of food, and bread is very cheap. Customs returns for tho first half of 1932 show that exports about balance imports. The currency is steady; it is based on the French franc, and one paper Turkish pound is worth about 12 francs and 10 centime?. Finally, Turkey has no war reparations or debts to pay; the only serious financial obligation is the prewar Ottoman debt, and this has been drastically scaled down. Nevertheless, the economic situation is. by no means satisfactory. The truth is that Turkey is still searching for a suitable economic policy. Mustapha Kemal Pasha and his party have been in power for nearly ten years. During the greater part of that time Ismet Pasha has been the Prime Minister, and both Kemal and Ismet have consistently preached the slogan of “Turkey for the Turks.” They have done more than preach; they have put the doctrine into practice. The' foreigner has found it increasingly difficult to trade in and with Turkey. The consequence is that the Turks, who formerly were content to leave business to others, now find themselves embarked on enterprises about which they know very little.

It is possible events havo moved a little too rapidly. For one thing, the Government has taken over a large part of the country’s trade. A system of State monopolies has been created which covers the manufacture and sale of tobacco, tho sale of sugar, petrol, and gunpowder, and the working of t!ie port of Istanbul. The Government defends the monopoly system on the ground that revenue is required and it is only monopolies which can supply the needed funds. But the result has been to stifle competition and incrcaso the cost of many articles.

In dealing with foreign trade the Government has gradually built up a high tariff wall. Tho importation Of many manufactured articles is forbidden, and cxcessivo duties are levied on some articles which are allowed to bo brought in. Very recently the Government became alarmed at tho rapid dwindling in the Customs receipts, and now proposes to diminish the restrictions. It is only natural that Turkey should have been influenced in its economic policy by Soviet Russia and Fascist Italy. Both these Powers havo maintained very close relations with Turkey, and frequent visits havo been exchanged between their statesmen.

From Russia Turkey has learned the creed of “State-controlled trade.” But no wthere are indications that Turkey is seeking to learn what America, Britain, and France havo to teach. Kemal and Ismet are still groping after a formula which will be best adapted to the needs of their countrymen.

Hitherto they have been handicapped owing to the fact that Angora, the capital, is isolatod and politicians havo been unablo to keep themselves abreast of current thought. This year, however, Turkey has become a member of the League of Nations, and whatever else this institution may do for this country it will give her a chance to make more contacts with the outside world. Possibly a foreign loan will be contracted. Since becoming a republic Turkey has lived entirely on its own resources, and has steadfastly refused U have recourse to foreign financiers. Money is now urgently needed to start several constructive schemes, but Kemal and Ismet are still afraid that “politics and finance may walk hand in hand.”