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equipment
is gradually retired. But
finished steel, and exported three
to
four times as much. Since then, howmuch of the European industry has
undetermined- mainly those to ware-
ever, two major factors have inter- had to be completely rebuilt. Convened to even up the balance be- sequently, a much greater proportion
of its equipment than ours is of
which have had an unusual, though tween steel exports and imports.
not decisive, impact on the steel in- One has been the amazingly rapid relatively recent vintage. The averdustry's sales in the past two years. growth of the West European econ- age productivity of European equipThese are inventory movements and omy. While this growth has created ment is therefore higher, giving that
a greater demand for steel products, region a trade advantage in steel.
foreign trade.
Because the demand for steel is
it has also been accompanied by a
According to estimates made for
substantial expansion of steel-pro- tied to the growth of the economy, it
Fortune by Alan Greenspan, a wellknown economic consultant for the
ducing capacity, enabling West Eu- would take a dire pessimist indeed to
steel industry, inventories of finished
rope's steel needs to be met more predict that steel's present troubles
steel in the hands of users and disfully from domestic sources. The re- will long continue. The number of
tributors have fallen by three
gion's
or growth has provided it with new young workers entering the
four million tons since 1958. The
the productive facilities to enter labor force will rise rapidly during
bulk of this reduction occurred, not
more actively into the American the 1960s, from the two-million-a-
Second, because this newly in- million a year by the end of the
decade. Either the GNP will grow at
To some extent, cutting back steel stalled capacity, incorporating the
a record pace, or unemployment will.
inventories was a reaction to falling latest technological advances, is so
Assuming the former, consumer inprofit margins during 1960; also, it much more productive than the
vestment in durable goods, such as
represented a retreat from the exces- older American plants, European
sive optimism of early 1960, when in- producers have been getting an in- autos and appliances, will progressively swell.
ventories were built up in expecta- creasing price advantage. Thus,
tion of sharp increases in demand. while steel prices in the U.S. rose by These sales will be in response to
the needs of the mounting wave of
But another important factor is that about one-fourth between 1955 and
newly
two formed families, as well as to
steel users have permanently drifted 1959, in France they rose only
desires excited by rising incomes
1 per
away from holding heavy steel in- per cent and in Germany only 1 the
ventories. This is because there is no
generally. Investment by business
cent- despite general wage increases
will also be stimulated, as growing
of over 30 per cent.
longer any danger that the order
output gradually absorbs the excess
European productivity in steelbooks of the steel companies will get
capacity
that now discourages further
making has risen faster than ours
as
too overloaded to permit prompt
a result of the destruction of steel
investment. Thus, if we avoid ecobilling of new orders. The excess
during World War II. Innomic
the catastrophe, the 1960s should
capacity of the steel companies mills
has
prove,
steel industry, where productive
fa- for steel, to be a decade of
taken the place of large inventories
in the hands of steel users.
steadily accelerating expansion. This
cilities are of such long life, technoIn 1955 the United States imrestore the industry to its former
logical advances can normallywill
only
position
incorporated
very slowly, as
old as a basic growth industry.
ported roughly a million be
tons
of
1960.
by KEMAL H. KARPAT
velopment,
governmental organizaDemocratic party government
of
tion and mass education. His aim
Discontent had been
on May 27, 1960. It was sweptMenderes.
aside
was
to becreate a modern country based
mounting for several years,
and
by a coup d'tat engineered by young
thinking,
self-reliant and creative
hind the coup was a social on
and
ecoarmy officers headed by Gen. Cemal
nomic ferment.
individuals.
it The methods used were harsh and
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farm
credits and modernization as an
goals desired. Nevertheless, by
the
Turkey's progress toward democend of World War II Turkey
had policy to extensive expro-racy, her strong stand against comalternate
established the basis of a modern napriation of land. Although the bill
munism and her strategic position
were sufficient reasons to induce the
tional economy. Though the great
became law, the strength of the
majority of the population was still
opposition prevented extensive exUnited States to grant her generous
comprised of peasants, a relatively
propriation of private estates from
military and economic assistance.
The aid started in 1947 in the form
large intelligentsia had been edutaking place.
cepts that emphasized action and recriticize the government and propose Turkey's economy is based on
changes.
agriculture, which still supports the
her lot.
toward modernization.
cratic party was established in 1946.
Farm mechanization
Its leaders were Celai Bayar, AdnanThe Democratic party leaders The American economic aid enbrought together these differentabled the Democrats, hard-pressed to
belonged, until a few months earlier,
groups with conflicting views and
reform agriculture, to promote an ex-
plementing it. Adnan Menderes, a ganization to build public opinioncontrol led to private investment in
rich landowner, was a relatively ob-into the chief political force. Butindustry. The government's own proscure figure until 1945. In that year they did not foresee that, eventually,
gram of road and hydroelectric dehe won national attention as the
this force would turn against them.
velopment also stimulated the econspokesman for the Agricultural ComThe politcial struggle between 1946
omy.
mittee during the debates on and
the1950 cast little light on the sub- When new elections were held in
land reform bill.
tle meanings of democracy, but it
1954 the Democrats swept them with
Menderes, backed by a sizable
made everyone aware of what de-a margin greater than in 1950. Their
number of deputies who supported
mocracy was not, namely suppression
victory convinced them that ecothe interests of the landowners, opof freedom, whatever the pretext. nomic development, whatever the
When elections were held in 1950
posed the extreme expropriatory proprice and consequence, was the cure
visions of the bill. The intense dethe Democrats won by promisingfor all ills. The old promise of conbate taking place on this occasion
liberalization and democracy. These
solidating democracy by means of
between those advocating expropriawere very adroitly contrasted with
constitutional amendments and spetion and those against it cast light
the Republican's strong-handedcial institutions was cast aside, and
on the dire condition of the peasanthe government embarked on ecomethods during the latter's one-party
try and indicated the urgent need for
rule. Obviously, the Republican recnomic plans more grandiose than
ever.
bates, Menderes distinguished himpressed the voters who wanted deThe pulse of life in the country
self not only by his brilliance and
mocracy and were convinced that
a
quickened
as the new economic ac18 Challenge March, 1961
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Something basic
strike. The government tried to pla- turn. This odd deal carried the name
Under the Democrats, Turkey had cate labor by providing some ma- of democracy and the emboldened
villagers were all for it.
made enormous progress. Yet, despite terial benefits and to lull discontent
all this material progress, people be- with paternalistic advice. When all
Dire circumstances
gan to turn away from that party. In this proved unavailing the governThe demands became so great that
the 1957 elections the government ment abruptly suppresed the more
trailed behind the combined votes
daring trade unions. Discussiononly
of a huge assistance program could
have met them. The rural front,
of the opposition parties. Neverthelabor problems became taboo, for
which had supported the Democrats,
suchin
discussion was regarded as conless, it won a comfortable majority
ducive
to leftism.
the Assembly (424 to 186 seats)
beThe worst effects of the Democause the vote against it was split
among the opposition parties.cratic
Sig- policies were found
brought
in
the the rich and the poor farmersprotogether in a union of interest at
countryside.
The 40,000 tractors
nificantly enough, the Democrats
sufexpense of the white-collar workwent
fered their defeats primarily incured
the to mechanize agriculture the
ers and
into the hands of a small group
ofthe industries that paid taxes
overwhelmingly rural eastern provinces.
and supported the public services. As
upper-income farmers. These favored
a result,
Something very basic was wrong;
persons built fortunes rapidly
and the white-collar workers,
squeezed
in fact, so wrong that it could
spent
not them lavishly on luxuries
and by inflation and the high
cost of living, found themselves in
dire circumstances.
enough.
The Democratic party's strength
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social
the mind from the hold of dogmaany violence or any restrictions
on and economic forces that it
nomic problems loom large. A national planning board has been es-
trade deficit.
of army
them were from lower middleas a result, was toppled by an
operation as soon as ratified by the
class and peasant families. In fact,
Constituent Assembly. There is noththe overwhelming majority of Turing to prevent Gen. Gursel from
Urgent need
key's 35,000 teachers and an equal
handing over power to a civilian adOnly a few weeks after it came to number in other professions, includministration once the proper legal
power, the military junta, especially ing army officers, come from these
foundations for a stable democracy
coup.
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