ABSTRACT
One of the weaknesses of the Ottoman Empire was the political segregation of the different peoples and creeds into watertight compartments. The original cause of the watertight compartments into which the economy of the Empire drifted were the Capitulations. For in 1935 the Ataturk announced a Five-year Plan of industrial development for Turkey, and the Government was to undertake the direction of the Plan. The real trouble has been that foreign capital has been shy of investing in Turkey, in spite of its great possibilities, because of the state of the existing law on foreign business activities. The Democrats had stated in their party programme that they would relax State control over industry and encourage private and foreign capital. Turkey has been relieved of some of her defence burdens and of part of the problem of modernising the Turkish Army, and financial resources in recent years have been going more and more into economic development.
