Turkish Modernization and Socio-Economic Structure’s Convertion: The Early Years of the Republic of Turkey

Abstract

In this study, the modernization process in socio-economic field in the first years of Turkish
Republic is examined within four stages; choosing the style of economics, founding local
entrepreneurs and financial institutions, regulations in the field of laicism and law, finally the
transformation of Islam into theology. The conclusion is: at first stage, The Ankara Government
of Turkish Republic started with choosing liberal economy style about which the signals have
been made in İzmir Economy Congress. As Mustafa Kemal Pasha emphasized in his speech in
the congress, the ‘self-interest’ concept was put into the center of new bureaucratic structure. At
second stage, by generating local entrepreneurs and founding İş Bank, basic driving forces are
created for articulating with western capitalist economy. In third stage, for integrating with
modern capitalist economy, western juridical system and laicism is adopted. Thus, transition to
capitalist production system is accelerated by pulling out the religion and tradition away from
public and economic field which both are blocking the mobilization of production factors. At
fourth stage, Islam is transformed into theology, plus it is moved away from social sphere and
individuals are supported to act as ‘Homo Economicus’.