THE EFFECT OF ECONOMIC POLICIES APPLIED IN COUNTRIES DURING THE FIRST FIVE YEAR DEVELOPMENT PLAN (1963-1967)
The First Five-Year Development Plan was adopted and discussed in the parliament in accordance with Law No. 77 on 16 October 1962. The plan came into force in February 1963. This plan included the period when the economic developments determined in the country were tried to be implemented within the framework of the program. Within the framework of the plan, a major part of national income was allocated to public and private sector investments, and a balanced development between agriculture and industry was aimed. Within the framework of the Five-Year Development Plan, the Turkish economy was expected to show an annual growth rate of 7%. It was stated that there will be 12,9% increase in agriculture, 12,9% in manufacturing, 13% in energy and 9,3% in energy. In this context, it was envisaged that the national income would increase by 7% at the end of 1963, from 51.7 billion liras in 1962 to 55.4 billion liras by the end of 1963. The level of production to be reached in 1963 was also determined. Accordingly, it was aimed to increase the production of 59.3 billion liras in 1962 to 63.7 billion liras in 1963, to achieve a 7.6% increase in the first year of the plan and to realize a 43.7% increase in the fifth year. In the first year of the plan, the share of investments in the budget was set at 32%. However, the investments in the budget were realized as 23%. In the second year, the workers started to send foreign currency to the country and the Ankara Treaty, which came into force on 1 September 1964 and signed on September 12, 1963, brought confidence to the economy. Turkey-EU relations Ankara Agreement does not limit the free movement of labor as well as their goods, services and ensure the free movement of capital, thus aimed at the integration of Turkey into the European Single Market.
In the last two years of the program, economic relations with the Soviets were carried out and technical and technical assistance was provided from the Soviets. In this period, the Treaty on Economic-Technical Cooperation was signed with the Soviets on 25 March 1967. Within the framework of this agreement, heavy industrial projects such as Iskenderun Iron and Steel Factory, Bandirma Sulfiric Acid Factory, Artvin Forest Products Seydisehir Aluminum Facilities and Izmir Aliaga Refinery took place. With the financial support coming from the Soviets rather than Western Europe, the growth rate in 1966 was 12%. The share of agriculture in the GNP in 1962 at the beginning of the Plan period was 34,6% and the share of the industry was 16.7%. In the end of the period, these rates increased 29.3% in the agricultural sector and increased to 20.7 in the industrial sector. During this period, while the industrial sector grew, the share of agriculture decreased. A strategy focused on imports and public sector was applied in industry.
Five-Year Development Plans, Economics, Agriculture