Discussions on Planned Development in Turkey and Foreign Trade Policies Implemented During the Planned Development Period

After establishing the Turkish Republic, there was a balanced foreign trade. However, the 1929 world economic crisis affected the economy negatively, and foreign trade shrank significantly. Türkiye has followed a more liberal foreign trade policy since 1946. This policy continued in the first years of the Democratic Party, which came to power in 1950 but later adopted a protectionist policy. As a requirement of the foreign trade policy implemented in the planned development period between 1963-1980, inward protectionism was aimed at quantitative restrictions, customs, quotas, and prohibitions. In addition, the industrial sector was supported with various incentives. Until 1970, there was a balanced foreign trade outlook. However, the economic and political problems that emerged due to the oil crises, embargo, and the overvaluation of TL from time to time also negatively affected foreign trade. In fact, at the end of the 1970s, exports could not even meet oil imports. Later, with the January 24, 1980 decision, Turkey adopted an export-based industrialization policy, and the planned development period ended. In this period, Turkey made a significant industrialization move and significantly increased its exports of industrial products. During this period, the foreign trade deficit in Turkey was not compensated with high remittances and convertible deposit practices. This study aims to show that this policy inevitably causes a foreign trade deficit.