Etatism

At its 1931 congress, the Republican People’s Party (Cumhuriyet Halk Partisi–CHP) adopted etatism, one of Atatürk’s Six Arrows, as its official economic strategy. According to this program, individual enterprise was to retain a fundamental role in the economy, but active government intervention was necessary to boost the nation’s welfare and the state’s prosperity. The CHP also declared that etatism was an intermediate road between capitalism and socialism. In practice, etatism entailed the promotion of industrialization by means of five-year plans and the creation of public enterprises.

Comprehensive protective tariffs also were introduced during the 1930s, establishing a pattern of import-substitution industrialization that would continue for many years.

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