The Us Foreign Aid Policy and the Institutionalization of Dependency in the Periphery in the Post-Ww2 Era: Turkey and India Compared (1947-1973)
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THE US FOREIGN AID POLICY AND THE INSTITUTIONALIZATION OF DEPENDENCY IN THE PERIPHERY IN THE POST-WW2 ERA: TURKEY AND INDIA COMPARED (1947-1973) THE INSTITUTE OF ECONOMICS AND SOCIAL SCIENCES OF BILKENT UNIVERSITY BY LEYLA SEN IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN HISTORY IN THE DEPARTMENT OF HISTORY BILKENT UNIVERSITY ANKARA FEBRUARY 2003 I certify that I have read this thesis and have found that it is fully adequate, in scope and quality, as a thesis for the degree of Doctor of Philosophy in History. --------------- Asst. Prof. Oktay Özel Supervisor I certify that I have read this thesis and have found that it is fully adequate, in scope and quality, as a thesis for the degree of Doctor of Philosophy in History. --------------- Asst. Prof. Akşin Somel Examining Committee Member I certify that I have read this thesis and have found that it is fully adequate, in scope and quality, as a thesis for the degree of Doctor of Philosophy in History. --------------- Asst. Prof. Nur Bilge Criss Examining Committee Member I certify that I have read this thesis and have found that it is fully adequate, in scope and quality, as a thesis for the degree of Doctor of Philosophy in History. --------------- Asst. Prof. Ömer Faruk Gençkaya Examining Committee Member I certify that I have read this thesis and have found that it is fully adequate, in scope and quality, as a thesis for the degree of Doctor of Philosophy in History. --------------- Asst. Prof. Galip Yalman Examining Committee Member Approval of the Institute of Economics and Social Sciences --------------- Prof. Dr. Kürşat AYDOĞAN Director of the Institute of Economics and Social Science 1 ACKNOWLEDGEMENTS The dissertation is the byproduct of four-and-half years study. The process was extended and exhausting. But it is worth as PhD is one of the biggest challenges of my life. Number of people has contributed to my studies. Some provide excellent academic, physical and psychological environment, some helping with the content and methodology and may display their deep belief in me under all conditions. Without the outstanding contribution of Bilkent University the study could not have been realized. I would like to express my gratitude to the founder and honorary chair of the History Department, Prof. Dr. Halil İnalcık and Acting Chair of the Department, Asst. Prof. Mehmet Kalpaklı. In their personality I am presenting my respects and appreciation to the academic staff of the History Department of Bilkent University. I owe special debt of gratitude to Asst. Prof. Akşin Somel for his support, encouragement, deep understanding and his confidence in me and for his delicate way of teaching the necessities of being an ethical academician. This dissertation would have been impossible without Dr. Somel’s support. I also would like to express my gratitude to my lately supervisor Asst. Prof. Oktay Özel for his understanding, support, empathy, researcher-centricism, mind-broadening and educating exchange of views and valuable suggestions. Dr. Özel and his wife, Clare, have always been constructive and supportive. I would like to thank Asst. Prof. Ömer Faruk Gençkaya and Asst. Prof. Nur Bilge Criss for their constructive and valuable suggestions. I am also grateful to Asst. Prof. Galip Yalman as the member of thesis committee for his various instructive comment and worthwhile advice. My special thanks go to Dr. Necat Erder and Asst. Prof. Ayşe Gündüz Hoşgör. I am grateful to Dr. Erder not only for taking his time to read the manuscript closely at every crucial stage of its composition but also for his encouragement and thoughtful interventions which remained my sources of inspiration throughout the study. I am also grateful to Asst. Prof. Ayşe Gündüz Hoşgör who extended her generous support and encouragement. 2 Those who provide me technical support during the research and writing stages are the `hidden heroes`. I thank all of them, namely Sevil Danış and Nebahat Öksüz, the secretaries of the History Department and particularly my friends in the BCC-Hande, Nurcan, Seher, Erdal, Murat, İsmail, Alper, Alkın, Muharrem, Ahmet and Bülent. In this respect, I am also grateful to the staff of the Library of Turkish Grand Assembly who eases the research process. I also feel extraordinarily lucky to be acquainted with İbrahim Göktepe and Kürşat Müftüoğlu who have great contributions in the formation of this academic work. There are others who should be noted. Not only some visiting Indian academicians but also friends in India have crucial roles in the fulfillment of the research in India. I am grateful to Imfeld family, particularly to Josef Imfeld, Vinod and his wonderful family and the Tiwaris for their wonderful hospitality and arrangements in India. As the link that enables me to acquaint with these friends, I greatly owe to the friends in SURKAL, mainly its Executive Director Asst. Prof. Ahmet Saltık. Along with my parents, Dr. Saltık comprises my `Holy Trinity` in life. Without his generous support, encouragement and thoughtful interventions the thesis could have remained as an unrealized dream. In his personality I thank the SURKAL family. Last but not least, it has to be noted that there could have been no success in this arduous and painstaking project without the support, incredible patience and lasting love of my family. Regarding this work as also the biggest challenge in their lives, my mother, Aysel, and my father, İsmail Şen have contributed to every pages of it by their altruism. I would like to express my gratitude and respects to my parents and other members of the family, Cenker, Lale and Cem. It is to them that this study is dedicated. 3 TABLE OF CONTENTS INTRODUCTION..................................................................................................7-32 CHAPTER I: DEVELOPMENT PARADIGMS & US FOREIGN AID POLICY IN POST-WW2 ERA………...33-68 1.1 Redefinition of Development and Dominant Development Paradigms in the Post-WW2 Era……………………33 1.2 Development Paradigms in the Post-WW2……………………………………34 1.2.1 Orthodox Development Thinking…………………………………..34 1.2.2 Heterodox Development Thinking………………………………….44 1.3 US Foreign Aid Policy in the Post-WW2 Era………………………………...47 1.4 Concluding Remarks.…………………………………………………………67 CHAPTER II- DEVELOPMENT POLICIES OF TURKEY & INDIA IN THE POST-WW2 ERA: 1947-73……………..69-187 2.1 An Introductory Glance at Turkey in the Post-WW2 Era……………………69 2.2 Development Strategies of Turkey in the Post-WW2 Era…………………...71 2.2.1 Development Strategy of Turkey in 1947-60 Era…………………71-88 2.2.1.a Agricultural Development Policy of Turkey in 1947-60……….76 2.2.1.b Industrialization Development Policy of Turkey in 1947-1960……………….…………………………………..82 2.2.2 Development Strategy of Turkey in 1960-73 Era………………88-97 2.2.2.a Agricultural Development Policy of Turkey in 1960-73 Era…..92 2.2.2.b Industrialization Policy of Turkey in 1960-73………………….95 2.3 Outcomes of Development Strategies..…………………………………….98-113 2.3.1 Outcomes of the Agricultural Development Policies (1947-73)..98 2.3.2 Outcomes of the Industrial Development Policies (1947-73)…..110 2.4 Development Strategies of India in the Post-WW2 Era: 1947-73………...114-179 2.5 An Introductory Glance At India in the Post-WW2 Era…………………..114 4 2.6 Development Strategies of India in the Post-WW2 Era (1947-73)……….115 2.6.1 Agricultural Development Policies of India in 1947-73………..125 2.6.2 Industrial Development Policies of India in 1947-73……………144 2.7 Outcomes of the Development Strategies…………………………………156 2.7.1 Outcomes of the Agricultural Development Policies (1947-73)...156-174 2.7.1.a Cooperative Farming…………………………………………..157 2.7.1.b Land Reform Policies………………………………………….158 2.7.1.c Community Development Programs…………………………..165 2.7.1.d Outcomes of the New Agricultural Development Strategy (1966 onwards)………………………………………166 2.7.1.d.a IADP…………………………………………………………166 2.7.1.d.b Green Revolution……………………………………………167 2.7.2 Outcomes of the Industrial Development Policies……………...174-179 2.8 Concluding Remarks………………………………………………………179 CHAPTER III- INNER DYNAMICS: THE RULING ELITE COALITION………………188-344 3.1 Ruling Elite Coalition of Turkish Republic, 1923-73……………………...188-265 3.1.1 Interaction between mass and the ruling elite coalition………….190 3.1.2 Interaction between the Components of Ruling Elite Coalition….209 3.1.2.a Political Elite…………………………………………………...209 3.1.2.b Rural Elite……………………………………………………...213 3.1.2.c Trade and Industrial Capital…………………………………...222 3.1.2.d Civilian Bureaucracy………………………………………….236 3.1.2.e Military Bureaucracy………………………………………….250 3.2 Ruling Elite Coalition of Indian Federal Republic, 1947-73………………266-339 3.2.1 Interaction between mass and the ruling elite coalition…………267 3.2.2 Interaction between the Components of Ruling Elite Coalition…288 3.2.2.a Political Elite…………………………………………………..288 3.2.2.b Civilian Bureaucracy…………………………………………..303 3.2.2.c Industrial Capital………………………………………………316 3.2.2.d Rural Elite…………………………………………………..…333 3.3 Concluding Remarks ……………………………………………………….340 CHAPTER IV- EXTERNAL DYNAMICS: TURKEY AND INDIA IN WORLD AFFAIRS ………………………………………345-495 4.1 Turkey in World Affairs (1947-73)……………………………………….. 345-423 5 4.1.1 The USA & Turkey on Economic Issues………………………..345-372 4.1.1.a Demands of the Superpower and Their Timing………………345 4.1.1.b Responsiveness of Turkish Policymakers…………………….358 4.1.2 Turkey-USA Alliance: Diplomatic Relations…………….….372-406 4.1.2.a First Period (late 40s to mid-60)…………………………….. 374-392 4.1.2.a.1 Relation of Turkey & Arab Countries………………………374