Turkish Defence Industry: An Evolution

 

Introduction

The Royal Artillery Foundry supplies weapons and tools of war, such as explosives and cannons, and this structure of Turkey's Defense Industry dates back to the rise of the Ottoman Empire. Its production capacity significantly exceeds that of its European competitors. When the Turkish army, led by Mustafa Kemal Ataturk, recaptured the allied areas of Turkey, no one expected the Turkish army to be executed. Additionally, the defense Industry drives the expansion of related fields, such as coordination and transportation, and contributes to the development of the local economy through the purchase and management of goods. The demise of the defense industry goes hand-in-hand while maintaining the competitiveness of products and administrations in an inclusive competitive environment. Abandoned research and advancement projects are transforming industries by producing breakthrough innovations and spurring innovation in other areas of the economy. However, the position of Turkey's protection industry in the international market continues to rise compared to its competitors.

 

The innovations the country receives also benefit other mechanical sectors, and in this way, defense enterprises act as the engine of the economy.[i] In other words, it “will take advantage of the financial and innovative advantages that come from arms production.” Some say that it should be based on basic weapon components and that advanced weapon frameworks are already manufactured by companies selected by the country. At that time, the main legal obligation for the defense industry was the creation of the SSM (Savunma Sanayii Mustesarligi/ Undersecretariat for Defense Industries), and accordingly, the SSDF(Savunma Sanayii Destekleme Fonu / Defense Industry Support Fund), to provide additional funding for Turkey's military purposes.

 

The all-civilian General Directorate of Defense, Inspection, and Enterprise Integration (SDİGV) was established in 1983. Its decision-making bodies consist of the Main Service Authority, the Main Service Authority, and the General Service Authority( Fund Management and Defense Agency). The official group consisted of civilians appointed by the Defense and Finance Ministry. This group will be dependable in meeting and developing the TAF's unique desires. This official group consisted of civilian bureaucrats named after patron priests. The agency managed to meet and implement TAF's(Turkish Armed Forces) unique requirements. Due to the lack of housing construction within the Ministry of Defense, the Sphere was disbanded, and SDGİV was disbanded to address and develop the dream of the defense industry.

Turkish Defense Industry's formative years

 The well-known "Johnson Letter," sent in 1964 after the Turkish military intercession in Cyprus, communicated that Turkey might not utilize the weapons and equipment provided by the USA for such an intercession, alongside the arms boycott constrained by the USA from February 1975 to 1978 after the Cyprus Peace Operation in 1974, and revived enthusiastically to set up a national defense industry. Fittingly, foundations for fortifying the arrival, maritime constraints, and talks about qualities were built. Owing to the influence of the crisis, the establishment of present-day private arm-era companies created a crisis organization for Turkey.

 Turkey's modernization effort began in November 1985, with the reform of the military industry authorised by Act No. 3238. The legislation was enacted to assist Turkey in better responding to rapid technological changes in the defense industry and in providing cutting-edge defensive equipment to its armed forces. The Act established a three-tier framework for making procurement decisions in accordance with the national strategy. In accordance with this idea, the Prime Minister and the Chief of the General Staff were granted to co-chair the Defence Industry Supreme Coordination Board. One of the primary areas in which states develop policies is the defense sector and defense economics.

In 1989, the Defense Industry Development and Assistance Agency was antiquated under Law No.[ii] 3238 of 1985, established December 1989 under Proclamation no. 390, as an Under Secretary of State. The Defense Industry Coordinating Committee and the Defense Industry Official Committee (SSIK) dealt as the SSM's decision-making bodies. The role of the High Coordinating Committee(Board) was to hold twice-a-year meetings of thirteen members chaired by the Prime Minister.

Governmental Initiatives and the Development of Structures

As in other countries, the development of Turkey’s defense industry has been linked to better utilization of resistance forces. According to the SIPRI, military consumption is characterized as the continued capital use of armed forces, security services, and other government materials to build resistance programs. Budgetary funds and extra-budgetary assets are the two key components of military investment in Turkey. Budget Assets is the Defense Control section of the fund’s Budget Information Service. It is clear that the Defense Department's budget still matters; in 2008, it accounted for 99% of what was important to him. In any case, according to the modern classification, the duties of the Joint Gendarmerie Command and the Coast Guard Command gradually became controlled. The other is under the "Open Order Security Administration" rather than the "Defense Administration.” ’

 

From 1988, overall military spending began to rise quickly; from 1988 to 1999, military spending climbed by 4.3 times in dollar terms. In all expenditures, $1,328 million per year was spent on military hardware between 1988 and 1999. $5 to $8 billion was spent on the military yearly between 1990 and 2000, while $1 to $2 billion was spent on military hardware.[iii] These figures reflect a significant increase in military spending during this period, likely due to geopolitical tensions and conflicts worldwide. Additionally, this increased spending may have had an impact on government budget priorities and allocations to other areas, such as education and healthcare. TAFF has about 700% of companies linked, and in 1999, another industry group was established by the Defense Industry Association (SADER). Starting in 1990, with 12 founding members, the Defence and Aerospace Industries Manufacturers Association (SASAD) grew in membership, with 21 members in 1991, 61 in 2002, 73 in 2004 and reached 83 in 2010. This number increased to 179.

 

Despite speculation about expanding the National Guard division after 1985, the fruits of military modernization efforts in the 2000s appeared to have distant capital stakes. Tenders for advanced tanks, unmanned aerial vehicles, and strategic surveillance helicopters, one of the largest TAF projects worth a total of 27 trillion TL, were terminated at a meeting of the Resistance Industries Official Committee in 2004.[iv] In 2005, the SSM signed $1billion contracts with over 100 companies, including 15 affiliated with the TAFF (Turkish Armed Forces Foundation), to realize new defense industry projects based on domestic production and original designs. This was achieved through new supply models based on domestic production and the original design.[v] The 2017-2021 Strategic Plan was preceded by three Strategic Plans (2007-2011, 2012-2016, and the 2009’s Defense Industry Sector Strategy Paper). The precise target categories were also identified in policy documents during this period. 

Table 1: Fastest Growing Arms Suppliers and Rankings, 2000-2019

Country	Average rank 2000-2004	2005-2009	2010-2014	2015-2019	Progression, 2000-2004 to 2015 to 2019
United Arab Emirates	42	39	26	19	+23
Turkey	29	22	19	13	+16
South Korea	25	17	15	11	+14
India	35	31	37	24	+11
Indonesia	35	42	42	26	+9
Australia	28	29	22	20	+8
Denmark	38	39	32	31	+7
Singapore	33	32	34	26	+7
Iran	41	29	28	37	+5
Brazil	29	28	25	24	+4
New Zealand	46	45	34	42	+4
South Africa	25	19	20	21	+3
Czechia	23	27	33	20	+3
Norway	21	26	17	19	+2
Bulgaria	30	37	37	30
Belarus	20	20	26	20	20

 Notes: Each state's relative share of total arms exports over a five-year period was used to calculate the ranking. Over a 20-year period, countries that consistently ranked among the top 10 exporters for more than 10 years were excluded. States in the top 50 or below for more than 10 years were also excluded.

Source: SIPRI Arms Transfers Database, Mar. 2020, accessed, April 2023

The post-2016 era saw significant changes in the defense industry, with decision-making structures centralized under the control of the president. The police branches were also brought within the scope of the SSM, and the committee's mandate included a statement that the production and supply of weapons, tools, and equipment would be in line with the Ministry of the Interior for the General Command of Gendarmerie, Coast Guard Command's security priorities.

Figure: 1 

Source: Turkey Exporter Assembly, Turkey, accessed date: April 2023

URL: https://tim.org.tr/en/export-export-figures

 Turkey's share of global arms trade has increased from 0.6% in 2018 to 1.1% in 2022, making the country the 12th largest arms exporter in the world. In addition, imports fell by 49% between the two periods. Turkey's arms exports increased by 69% over the four years from to 2018-2022 compared to 2013-2017. Arms exports from Turkey surged within three years. Defense exports have increased to US$2.28 billion in 2020 and US$4.3 billion in 2022.[vi]

Figure: 2

Source:  Turkey, Imports and Exports World Arms and ammunition; parts and accessories thereof, Value   (US$) and Value Growth, | 2010 – 2022, Tredeconomy

URL: https://trendeconomy.com/data/h2/Turkey/93

Turkey's defense and aerospace sector got off to a bold start in 2022, exporting $3.2 billion worth of goods by 2021. The total industrial exports in January 2022 were US$306.811 billion, an increase of 84.2% compared to the same month in the previous year.[vii] The land platform sector had sales of $2.347 billion, followed by arms, ammunition, and missiles, contributing the most to the growth of the country's arms industry.[viii] Comparing 2020 with 2019, his two later categories showed significant increases. In other alterations, there is a strong and stable foundation underpinning the Turkish generation of defense technology. Against this backdrop, the industry recovered quickly, with sales rising to pre-pandemic levels, despite the adverse effects of the disease.

U.S. arms exports to NATO member Turkey were at low levels from 2018 to 2022, as bilateral relations deteriorated. Turkey fell from being the seventh largest recipient of U.S. arms from 2013-2017 to the 27th largest recipient of U.S. arms from 2018-2022. According to Turkish Deputy Defense Minister Musin Dere, the national share in Turkey's defense sector has increased from 20% to 80%. In 2004, many external projects were converted into domestic ones.[ix] Seven Turkish defense companies appeared on the performance list of international defense corporations in 2020. However, few companies have made it to the top 100. According to the Defense News report, three Turkish companies are in the top 100, with Lokesan ranked 86th, Turkish Aerospace Industries (TAI) 67th, and Asersan 49th in 2022.[x]

Conclusion

However, the AK Party's defense strategy has shifted from longstanding idealism based on the expectation of cooperation and partnership through traditional alliances to a more realistic strategy based on a new concept of "self-reliance" in the defense sector shows. Ankara's defense philosophy has changed as a result of the differences between Turkey's objectives and those of its long-standing partners within NATO. Turkey's national security was adversely affected by growing conflicts of interest between Turkey and its allies in the 2000s. As a result, Ankara's new defense policy is influenced by its understanding of the current dangers and potential consequences of being dependent on foreign militarily.

 

Research and development efforts are aimed at reducing dependence on overseas suppliers and developing locally advanced skills. This strategy has resulted in the development of state-of-the-art platforms and systems that specifically serve Turkey's defense needs. Turkey's defense industry has also been significantly strengthened through cooperation with external partners and technology transfers. The Turkish government has allocated significant funds to facilitate research and development (R&D) in the defense industry. One of the biggest challenges facing the industry is ensuring that Turkey's defense sector does not rely on imports of critical components and systems. The indigenization process of Türkiye has advanced significantly. Turkey needs to invest in programs focused on specialized areas, such as engineering, advanced manufacturing, and technical research.

Despite these obstacles, Turkey's defense sector has the potential for growth and expansion. Turkey has the potential to influence the international defense sector with improved local capabilities. Turkey's strategic location and geopolitical importance facilitate partnerships and cooperation between regional and global actors. Turkey's foreign policy has received much attention since the weapon of Turkish origin was used in its immediate vicinity. Turkey's independence and flexibility in foreign policy have been strengthened by the growth of its defense sector, which has reduced its reliance on imported arms. The TAF is currently deploying several UAV models in various regions outside Turkey.

Endnotes

 [i]“Domestic Rate Reached 80% in Defense Industry” DEFENSE INDUSTRY, SANAYI, Turkey

 URL: https://sanayigazetesi.com.tr/savunma-sanayinde-yerlilik-orani-yuzde-80lere-ulasti/

[ii] “Top 100 companies for 2022” Defense News

URL: https://people.defensenews.com/top-100/

[iii] “Turkish Defence Industry Exports Skyrocket in January” Turkish Defense News, January,  2022

  URL:https://www.turkishdefencenews.com/turkey-unveils-ambitious-objectives-for-2022/

 [iv]Kasapoglu Can, “Transforming from arms importer to trendsetter: Assessing the growth of Turkey’s defense industries” Atlantic Council, December, 2022

URL:https://www.atlanticcouncil.org/content-series/ac-turkey-defense-journal/transforming-from-arms-importer-to-trendsetter-assessing-the-growth-of-turkeys-defense-industries/

[v]Yildirim Goksel ,  “Defense and aerospace industry renewed its export record”

Anadolu Agency, Turkey, December, 2021

URL:https://www.aa.com.tr/tr/ekonomi/savunma-ve-havacilik-sanayisi-ihracat-rekorunu-tazeledi/2437444

[vi]Gülay Günlük-Şenesen, "1980-2001 Türkiye’de Savunma Harcamaları ve Ekonomik Etkileri", s. 76, 82

 [vii]“Savunma ihaleleri iptal”, 15 May, 2004, Milliyet, URL:http://www.milliyet.com.tr/2004/05/15/ekonomi/eko02. html.

“Tank and helicopter tenders canceled”  Hurriyet,  May 14, 2004, Turkey  URL:https://www.hurriyet.com.tr/ekonomi/tank-ve-helikopter-ihaleleri-iptal-edildi-225670

  [viii] Lale Sarıibrahimoğlu, “Savunma Sanayii”, Eds. Ali Bayramoglu, Ahmet İnsel, Almanak Türkiye 2006-2008 Güvenlik Sektörü ve Demokratik Gözetim, Istanbul: TESEV, 2009, p. 181-182.

  [ix] Republic of Turkey Official Gazette, “Savunma Sanayii Geliştirme ve Destekleme İdaresi Başkanlığının Kurulması Hakkında Kanun”, Law no. 3238, T.C. Resmî Gazete, issue 18927, 13.11.1985.

[x]“Turkey’s Military Spending Trends: A Reflection of Changes in Defense Policy” Insight Turkey, Volume 22, Number 3, Summer 2020

URL: https://www.insightturkey.com/articles/turkeys-military-spending-trends-a-reflection-of-changes-in-defense-policy