The Establishment of Economic Dirigism In Maritime Trade of Turkey, 1923–1950

Abstract

ABSTRACT In the aftermath of the establishment of the republican regime in Turkey in 1923, the policy of economic dirigisme began to dominate the markets step by step. This article aims to analyse the effects of economic dirigisme on maritime trade for a quarter of a century and furnishes an illustrative case delineating how the government’s favoured economic policy attenuated the developmental prospects of maritime commerce. Throughout this temporal span, endeavours advocating a laissez-faire market policy found themselves systematically marginalized, as the juggernaut of economic dirigisme unfolded. The corollary of this policy was a precipitous decline in the operational efficiency of maritime trade. The proclivity for deploying antiquated ships escalated the inherent risks of maritime accidents. Legislative initiatives, exemplified by the promulgation of cabotage laws and the imposition of onerous taxes, erected formidable impediments that curtailed the operability of foreign-flagged vessels in Turkish ports. Concurrently, the waning trade potential cast a pall over the developmental trajectory of Anatolian cities.