ABSTRACT
The first four years of the Republic of Turkey was mostly about a great recover. The institutional arrangements to found the new state was almost ready, and political discussions regarding building a new economic structure were accelerated Mustafa Kemal Ataturk and the staff of the new republic had realized three crucial census: Census of Population, Census of Agriculture and Census of Industry. The aim of these census was to carry four-yearsold republic into the future. It is a fact that the findings of these census for the 13.640.270 million populated nation-state, were not that much strong. According to the Industrial Census of 1927, the industrial structure was composed of 65.245 business enterprises and 256.855 employees. The70% of these enterprises were mostly family businesses and the structural characteristics of these enterprises were not significantly different then the situation those of the Ottoman Industry in 1917. It is important to add that the 45% of these enterprises were in agriculture, 18% in weaving and 11% in the mining industry.. In line with the traditional manufacturing characteristics, only %4.3 of them were using engine power during production process. When we look at the geographical breakdown of these enterprises, it is possible to say that they concentrated in the big cities such as İzmit, Bursa, Balıkesir, Manisa, Denizli, Gaziantep, Kastamonu and Ankara but mostly in İstanbul. According to the findings of the Census of Industry, it was difficult to say that the industrial infrastructure could have provided a trustful future for the new Republic. Therefore, it was the time to make a decision for the Republicans. They have carefully continued to support private sector with some incentives up to 1930. However, especially in Istanbul, entrepreneurs prefer to import of goods rather than manufacturing, in general. At the end, the revenge was done in the Industrial Congress held in Ankara, in April 1930,. After that the Republic of Turkey carried on its’ way with a magical equation which was stated in the First Industrial Plan, 1933. The magical equation was: Railways + Industrialization = Statism…