On the 87th anniversary of the death of Mustafa Kemal Atatürk, Türkiye reflects on the transformative economic policies he implemented during the early years of the republic. Atatürk’s leadership played a pivotal role in reviving a nation burdened by heavy debts from the Ottoman Empire and transitioning it toward a more independent economic model. Today, comparisons between Atatürk’s vision and contemporary economic challenges reveal a contrasting narrative of achievements and setbacks.
| Article Subheadings |
|---|
| 1) The Economic Legacy of Atatürk |
| 2) Comparative Economic Performance |
| 3) The Current Economic Landscape |
| 4) Currency Value Fluctuations |
| 5) Future Implications for Türkiye’s Economy |
The Economic Legacy of Atatürk
Mustafa Kemal Atatürk, often referred to as the founder of the Republic of Türkiye, was instrumental in laying the foundations of a modern economy. After the collapse of the Ottoman Empire, Türkiye was left with a crippled economy characterized by heavy debts and dependence on foreign powers. Understanding the necessity for a self-sufficient and independent nation, Atatürk focused on establishing a robust industrial sector.
In a mere 15 years, Atatürk oversaw the establishment of 42 factories, including an aircraft factory, and actively promoted several banks across different sectors such as agriculture, commerce, and industry. These initiatives were aimed at boosting domestic production, fostering innovation, and creating job opportunities, thereby driving economic growth. His vision was not just about immediate gains but also about setting a precedent for sustained development in the years to come.
Under his leadership, Türkiye witnessed remarkable financial milestones. The budget consistently showed surpluses in the late 1920s and early 1930s, indicative of a stable economy. For instance, significant budget surpluses were recorded in 1927 (5 million TL), 1928 (21 million TL), and 1929 (11 million TL). These achievements not only underline Atatürk’s effective governance but also reveal the potential for a prosperous future grounded in sound economic principles.
Comparative Economic Performance
Atatürk’s era was characterized by a notable contrast between earlier economic performance and contemporary challenges. Initially, the Republic enjoyed budget surpluses while grappling with the global economic environment, which was rife with uncertainty. By comparison, Türkiye’s current fiscal landscape reveals a downturn, as the nation has recorded significant budget deficits over the past two decades.
For example, the data from the Ministry of Treasury and Finance indicates that the central government budget was grappling with a deficit of 309.6 billion TL by September 2025. This contrasts sharply with the achievements of the 1930s when budget surpluses were the norm rather than the exception. Inflation, high cost of living, and declining purchasing power are challenges today that starkly differ from the thriving economic environment engineered by Atatürk.
Economic historians highlight how policy decisions made during Atatürk’s period contributed significantly to national growth. The encouragement of industry and innovation created a forward momentum that enabled Türkiye to withstand the global economic downturns much more effectively than what is currently observed.
The Current Economic Landscape
Unlike during Atatürk’s era, Türkiye in recent years has faced a series of economic hurdles. The recent governmental policies have resulted in budget deficits and an alarming trend of extensive foreign borrowing. The report for the first nine months of 2025 showed that the foreign trade deficit surged by 33.4% to reach 6.9 billion dollars, reflecting vulnerability to external economic pressures.
The economy is currently struggling under the weight of debt, as evidenced by rapidly rising budget deficits. With a drastic increase in the central government budget deficit to approximately 1.22 trillion TL, there are evident challenges in sustaining fiscal health. This raises essential questions about the nature of the contemporary economic policies being implemented and the commitment to creating a resilient economy on the foundation laid by Atatürk.
The years leading up to this point have illustrated a concerning trend wherein budget deficits and inflation rates have continued to escalate. The governmental sector, which was once a symbol of stability and growth, now faces scrutiny as indicators of economic distress become increasingly apparent.
Currency Value Fluctuations
Currency value plays a pivotal role in any economy and is often seen as a reflection of a country’s economic health. During Atatürk’s time, the Turkish Lira demonstrated resilience, appreciating by 24.6% against the U.S. dollar between 1923 and 1938. This was indicative of an expanding economy and strengthening fiscal assets driven by progressive policies.
However, the modern scenario presents a stark contrast. Since 2010, the Turkish Lira has depreciated by nearly 97% against the dollar, reaching record lows. The once-stable currency now faces ongoing pressures exacerbated by soaring inflation and economic instability. Not surprisingly, analysts have pointed to poor monetary policies and external factors that have intensified this downward spiral.
The repercussions of currency devaluation affect every sector, from imports to everyday consumer purchases. As the Turkish Lira continues to dwindle in value, the purchasing power of citizens deteriorates, causing a cascade of economic issues that echo the realities of an unstable economy.
Future Implications for Türkiye’s Economy
Looking forward, it is essential to re-evaluate economic strategies to ensure sustainability and growth. Drawing lessons from Atatürk’s era could serve as a catalyst for mitigating current economic challenges. To rekindle the spirit of economic independence, policy reforms aimed at boosting domestic production, fostering technological innovation, and enhancing financial literacy are necessary.
Future economic policies should focus on creating an environment that encourages entrepreneurship and supports local industries. Strengthening trade ties and increasing investment in vocational training could help revitalize diverse sectors that were once the cornerstone of Türkiye’s economic success.
Reimagining the economic landscape may also involve targeted fiscal policies aimed at reducing dependency on imports. Strengthening agricultural production and harnessing the nation’s natural resources can establish a balanced trade scenario. Implementing such reforms quietly echoes Atatürk’s visionary approach, showcasing the timelessness of his ideas.
| No. | Key Points |
|---|---|
| 1 | Atatürk played a pivotal role in establishing Türkiye’s economic foundation after the Ottoman Empire’s collapse. |
| 2 | Under Atatürk, Türkiye experienced budget surpluses and economic growth, in stark contrast to recent fiscal deficits. |
| 3 | Current economic challenges include high inflation, a declining currency, and substantial foreign debt. |
| 4 | The Turkish Lira has lost significant value against the dollar since 2010, affecting purchasing power. |
| 5 | Future economic policies must focus on domestic production and entrepreneurship to stabilize the economy. |
Summary
On this significant anniversary, reflecting on the economic legacy of Mustafa Kemal Atatürk underscores the critical challenges faced by Türkiye today. By examining past achievements juxtaposed against current difficulties, there’s an opportunity to learn valuable lessons for crafting effective economic policies moving forward. The journey from Atatürk’s robust economic strategies to today’s pressing economic issues calls for innovative solutions rooted in national independence and resilience.
Frequently Asked Questions
Question: Who was Mustafa Kemal Atatürk?
Mustafa Kemal Atatürk was the founder of the Republic of Türkiye and played a crucial role in establishing a modern economy after the fall of the Ottoman Empire.
Question: What economic strategies did Atatürk implement?
Atatürk implemented various strategies including establishing factories, creating banks, and promoting domestic production to revive the economy.
Question: How does today’s economic situation compare to Atatürk’s era?
Today’s economic situation is marked by significant budget deficits, currency depreciation, and inflation, contrasting sharply with the surplus and stability seen during Atatürk’s early years.
