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Transformation of the Turkish Defense Industry: the Story and Rationale of the Great Rise

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Transformation of the Turkish Defense Industry: the Story and Rationale of the Great Rise TRANSFORMATIONCOMMENTARY OF THE TURKISH DEFENSE INDUSTRY: THE STORY AND RATIONALE OF THE GREAT RISE Transformation of the Turkish Defense Industry: The Story and Rationale of the Great Rise İSMAİL DEMİR President of Defense Industry, Turkey ORCID No: 0000-0002-6528-2374 ABSTRACT Tracing the evolution of the Turkish defense industry through five major periods of development, this article draws attention to crucial turning points such as the Cyprus crisis of 1974, the estab- lishment of SAGEB in 1985, the ongoing fight against terrorism, the restructuring of the Turkish political system and the steadfast com- mitment of the AK Party governments under President Erdoğan to invest in Turkey’s indigenous defense industry. Since the early 2000s, the Turkish defense industry has shifted from a procurement model largely dependent on foreign imports to a far more self-reliant model with a strong research and development foundation and a growing number of exports. Thanks to the commitment, determination and resilience of Turkey’s engineers, technicians, workers and compa- nies, the Turkish defense industry has transformed into a multi-bil- lion-dollar industry characterized by technological depth and global effectiveness. Keywords: Presidency of Turkish Defense Industry (SSB), Turkish Armed Forces, NATO, secu- rity, defense Insight Turkey 2020 Vol. 22 / No. 3 / pp. 17-40 Recieved Date: 06/08/2020 • Accepted Date: 04/09/2020 • DOI: 10.25253/99.2020223.02 2020 Summer 17 COMMENTARY İSMAİL DEMİR Introduction torical background of the Turkish defense industry that we, as the Pres- he Turkish defense industry idency of defense industry leans on has a strong historical back- and refers to in summarizing story Tground in essence. Within the of defense industry in Turkey.1 The framework of this background, the featured characteristics of the his- positions and policies to build and torical period of the Turkish defense sustain a robust defense industry have industry until the establishment of always continued from past to present the Defense Industry Development and preserved their existence, even and Support Administration Of- though they were interrupted at times, fice (Savunma Sanayii Geliştirme even when they were pushed back ve Destekleme İdaresi Başkanlığı - visibly and even when they remained SAGEB) under the Ministry of Na- just a dream. Similarly, the history of tional Defense in 1985, will be dis- the Turkish defense industry has wit- cussed in this section. nessed myriads of breakthroughs, at- tempts and never-ending persistence The second section analyzes the de- at the individual level even if these fense industry after 1985 in the con- efforts faltered in continuity at times. text of the corporate transformation of the then Undersecretariat of the Today, as of August 2020, the Turk- defense industry. The third and final ish defense industry shines out as section of the article will examine in an extremely significant example in detail the fundamental characteristics terms of the history of the Republic, of the post-2017 period, i.e. the 5th pe- the understanding of the concept of riod, the main factors of the transfor- the defense industry and its relations mation process, the current situation with other fields, and of the future of and future orientations. This section the defense concept. will include concrete data on the juncture at which the Turkish defense In this context, we will scrutinize the industry has arrived today. transformation of the Turkish defense industry in terms of its objective goals. The main argument advocated in this The defense industry experience of article is the necessity of addressing emerging countries, such as Turkey, the recent rise of the Turkish defense the process of presenting and demon- industry in two different but interre- strating this experience through con- lated periods. The first is the reflec- crete projects and the political ethos tion in the Turkish defense industry represented by this process offer crit- of the great transformation in all di- ical lessons for both leading coun- mensions since 2002, achieved under tries on a global scale in this field and the leadership of the President of the countries eager to rise in this field. Republic of Turkey, Recep Tayyip Er- doğan. Within this reflection, the in- The first section of the article will frastructure of procurement of needs, present a brief summary of the his- the transformation of the industry 18 Insight Turkey TRANSFORMATION OF THE TURKISH DEFENSE INDUSTRY: THE STORY AND RATIONALE OF THE GREAT RISE and the formation of sound relations between technology and the defense The defense industry has industry in the field of defense have been built. Thus, opportunities have been acknowledged as increased, capacity has expanded an essential part of the and the defense industry has been Republic’s full-fledged provided with the strong support of an extremely decisive and long-term movement toward projection. industrialization and The second period represents the development transformation of the position and function of the Presidency of defense industry in bureaucratic mechanisms industry has managed to transform as well as government’s expectations the concept of ‘defense industry’ into from the defense industry in address- a full-fledged movement of industrial ing the needs of Turkish security development and a national tech- forces and coping with threats and nology trend by cooperating across challenges to the security of Turkey. a broad spectrum with many other A universal and systematic process fields, from healthcare to energy and of transformation has been under from youth to educational policies. way since 2014, in particular, and As can be inferred from the data pro- following the failed coup in 2016, the vided in detail in the following sec- defense industry was first attached tions, the point we have reached as of to the Turkish Presidency and then 2020 is a concrete indication of this restructured as a ‘Presidency of De- breakthrough. fense Industry.’ In this process, owing to the Presidential Government Sys- tem, the Presidency of defense indus- Historical Context and tries, as a structure, has come to the Background fore as one of the prime institutions at the core of the great transforma- Setting aside the previous histories, tion experienced in political, indus- in the transition to the modern era, trial and military-civilian policies, as the experience gained in the Repub- well as defense strategy and defense lic period mainly dates back to the technology in Turkey. rise of the Ottoman Empire. The key tools and materials of war were During this period, the defense in- almost completely manufactured dustry recovered from being an iso- by using local resources; Tophane-i lated area, and transformed into one Hümayûn [the Imperial Cannon that acts in concert with global trends Foundry] formed the core of the Em- and, at the same time, concentrates pire’s defense industry and reached a on the national needs of our coun- capacity of molding 1,060 cannons try. In the same period, the defense and producing 360 kg of gunpowder 2020 Summer 19 COMMENTARY İSMAİL DEMİR ferences regarding categorization of The airplane factory historical blocs.2 established by the Turkish The 1st Period: 1923-1939 Aviation Association in Throughout the decline and then fol- Ankara, in 1941, is considered lowing the fall of the Ottoman Em- pire, the Turkish Defense Industry the first major initiative of the struggled to keep up with technologi- Turkish aviation industry cal developments in Europe since the 18th century and lost its effectiveness and productivity to a great extent during World War I. For this reason, per month. The Empire’s capacity no significant infrastructure in this for manufacturing warships and the domain was inherited at the onset of level of technology were far beyond the Republic period, and activities those of the European countries. remained limited to a couple of man- Rebuilding a naval fleet of 200 ships ufacturing facilities during and after from scratch in a five-month period, the War of Independence. following its total destruction in the Battle of Leponto, reveals the extent Nevertheless, the defense industry of the manufacturing capacity of the has been acknowledged as an essen- Ottoman shipyards. Undoubtedly, tial part of the Republic’s full-fledged examples from the Ottoman experi- movement toward industrialization ence in terms of land, air and sea are and development. In this direction, too rich and numerous to be con- state support for the development of tained within the scope of this arti- the defense industry was projected cle. Here, we will mainly focus on the in the first planning period. Despite experience of the Republic period, economic and technological difficul- and address the main transformation ties, investments to set the basis of the points after 1985. national defense industry were made in the early years of the Republic. The history of the defense industry Significant initiatives were embarked during the Republican period may upon in the weaponry-ammunition be categorized in different ways. Our and aviation sectors such as the es- institutional approach is to divide the tablishment of the General Director- period that stretches from 1923 to the ate of Military Factories in 1921, in establishment of SAGEB in 1985 into particular. three main historical blocks, where SAGEB represents the first corporate In 1924, small weapons and cannon structure of the Presidency of defense repair shops and cartridge factories industries under the Turkish Presi- were established in Ankara. In the dency. The periods before and after same year, the Gölcük Naval Ship- 1985 will be briefly explained in the yard was set up for the maintenance same fashion, albeit with certain dif- of the Yavuz battle cruiser. With 20 Insight Turkey TRANSFORMATION OF THE TURKISH DEFENSE INDUSTRY: THE STORY AND RATIONALE OF THE GREAT RISE The Turkish defense industry carried out intensive work in 2019 to meet the operational needs of the security forces, January 1, 2020.
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