Political Economy of Development Banking after World War II

Institutions are crucial in reflecting the economic and political conditions of their time. This thesis analyses the features of establishment process of the Industrial Development Bank of Turkey (TSKB) in close relation with the World Bank and the activities of the TSKB in its first four years between 1950 and 1953. The arguments of Development economics and the dependency theory are utilized in the discussion. The main objective of the study is to bring out the link between the establishment of a privately owned development bank in Turkey, aiming to promote private industry, and the economic environment at the time, including the Cold War atmosphere affecting internal and external politics of Turkey. Moreover, it is put forward that the sectors chosen for credit allocation are compatible with the international division of labor of the time. That is, the TSKB has channeled international funds in a way aiming at Turkey¿s integration to the world markets as a supplier of agro-industrial goods.