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Political Economy of Turkey (1980–2001)

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The Political Economies of Turkey and Greece

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Abstract

The chapter deals with the institutionalization of a reactive Turkish state in a neoliberal setting between 1980 and 2001. Kutlay argues that post-liberalization process in Turkey was accompanied by gradual deterioration of state capacity. Thus economic and political opportunities, which were structured by the state, led to self-reinforcing processes for the entrenchment of clientelistic policy coalitions. The chapter also discusses that Turkey’s integration into vagaries of financial globalization without robust institutional regulatory mechanisms also aggravated fiscal problems. The Ponzi-cum-funding-opportunities enabled policy-makers to postpone necessary reforms so that Turkey faced an early test in 1994. The economic crisis, however, argues Kutlay, did not invite a new paradigm in Turkish political economy. Status quo ante was reproduced because (a) crisis was not deep enough to deteriorate the legitimacy of predominant paradigms and disturb the existing mode of state-market relations, and (b) agency and institutional-level dynamics were unfavorable to initiate substantial reforms.

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Notes

  1. 1.

    Lance Taylor, “The Turkish Experience: Summary and Comparative Notes,” in Tosun Arıcanlı and Dani Rodrik, The Political Economy of Turkey: Debt, Adjustment, and Sustainability (London: Macmillan, 1990), 269.

  2. 2.

    Milliyet Gazetesi, “12 Eylül Olmasaydı, 24 Ocak Kararları Fiyasko ile Sonuçlanırdı,” January 7, 1991.

  3. 3.

    Ziya Öniş, State and Market: The Political Economy of Turkey in a Comparative Perspective (İstanbul: Boğaziçi University Press, 1998), 514.

  4. 4.

    John Waterbury, “Export-Led Growth and the Center-Right Coalition in Turkey,” Comparative Politics 24, no. 2 (1992): 133.

  5. 5.

    Oğuz Oyan, “An Overall Evaluation of the Causes of the Use of Special Funds in Turkey and Their Place in the Economy,” Yapı Kredi Economic Review 1, no. 4 (1987): 96.

  6. 6.

    Dani Rodrik, “Premature Liberalization, Incomplete Stabilization: The Özal Decade in Turkey,” NBER Working Paper Series, working paper no. 3300 (1990): 24.

  7. 7.

    Ziya Öniş and Steven Webb, The Political Economy of Policy Reform in Turkey in the 1980s, World Bank Working Papers, Paper no. 1059 (1992).

  8. 8.

    Rodrik, “Premature Liberalization, Incomplete Stabilization: The Özal Decade in Turkey,” NBER Working Paper Series, 24.

  9. 9.

    Erinç Yeldan, Küreselleşme Sürecinde Türkiye Ekonomisi (İstanbul: İletişim Yayınları, 2011), 76.

  10. 10.

    Erinç Yeldan and Ümit Cizre-Sakallıoğlu, “Politics, Society, and Financial Liberalization: Turkey in the 1990s,” Development and Change 31, no. 2 (2000): 498–499.

  11. 11.

    İzak Atiyas, “Uneven Governance and Fiscal Failure: The Adjustment Experience in Turkey,” The World Bank Private Sector Development Department Occasional Paper, no. 17 (1995): 16–17.

  12. 12.

    Ziya Öniş, “The Evolution of Privatization in Turkey: The Institutional Context of Public-Enterprise Reform,” International Journal of Middle East Studies 23, no. 2 (1991): 170.

  13. 13.

    Metin Heper, “Negative Bureaucratic Politics in a Modernizing Context: The Turkish Case,” Journal of South Asian and Middle Eastern Studies 1, no.1 (1977): 80.

  14. 14.

    Ayşe Öncü and Deniz Gökçe, “Macro-Politics of De-Regulation and Micro-Politics of Banks,” in Metin Heper, ed., Strong State and Economic Interest Groups: The Post-1980 Turkish Experience (Berlin and New York: Walter de Gruyter, 1991), 104.

  15. 15.

    Sylvia Maxfield and Ben Ross Schneider, eds., Business and the State in Developing Countries (Ithaca: Cornell University Press, 1997), 16–18.

  16. 16.

    Jesse Biddle and Vedat Milor, “Economic Governance in Turkey: Bureaucratic Capacity, Policy Networks, and Business Associations,” in Sylvia Maxfield and Ben Ross Schneider, eds., Business and the State in Developing Countries (Ithaca: Cornell University Press, 1997), 286.

  17. 17.

    Waterbury, “Export-Led Growth and the Center-Right Coalition in Turkey,” Comparative Politics, 138.

  18. 18.

    Biddle and Milor, “Economic Governance in Turkey: Bureaucratic Capacity, Policy Networks, and Business Associations,” 296.

  19. 19.

    Ibid., 297.

  20. 20.

    Korkut Boratav, Oktar Türel, and Erinç Yeldan, “Dilemmas of Structural Adjustment and Environmental Policies under Instability: Post-1980 Turkey,” World Development 24, no. 2 (1996): 378.

  21. 21.

    OECD, Society at a Glance, 2011: OECD Social Indicators (Paris: OECD Publication Service, 2011).

  22. 22.

    Independent Industrialists and Businessmen’s Association (MÜSİAD in Turkish acronym) should also be taken into consideration as the representative of conservative business elite in Turkey. However, MÜSİAD was established in 1990 and emerged as an important business association in mid-1990s, especially during 2000s with the rise of Justice and Development Party governments. Therefore, I will discuss the role of MÜSİAD in Chap. 4.

  23. 23.

    Yıldırım Koç, “30. Yıl Dönümünde 12 Eylül Darbesi ve İşçi Sınıfı,” Mülkiye Dergisi 43, no. 268 (2010): 57.

  24. 24.

    Ergun Özbudun, “The Post-1980 Legal Framework for Interest Group Associations,” in Metin Heper, ed., Strong State and Economic Interest Groups: The Post-1980 Turkish Experience (Berlin and New York: Walter de Gruyter, 1991), 41–53.

  25. 25.

    Ayşe Buğra, State and Business in Modern Turkey: A Comparative Study (New York: State University of New York Press, 1994).

  26. 26.

    Ayşe Buğra, “Political Sources of Uncertainty in Business Life,” in Metin Heper, ed., Strong State and Economic Interest Groups: The Post-1980 Turkish Experience (Berlin and New York: Walter de Gruyter, 1991), 152.

  27. 27.

    Milliyet Gazetesi, “Koçman: ‘24 Ocak Kararları Mucizevi Bir Karardır,’” April 20, 1983.

  28. 28.

    Yeşim Arat, “Politics and Big Business: Janus-Faced Link to the State,” in Metin Heper, ed., Strong State and Economic Interest Groups: The Post-1980 Turkish Experience (Berlin and New York: Walter de Gruyter, 1991), 144.

  29. 29.

    Milliyet Gazetesi, “Mühendisler Hükümeti,” December 14, 1983.

  30. 30.

    Şebnem Gülfidan, Big Business and the State in Turkey: The Case of TÜSİAD (İstanbul: Boğaziçi University Press, 1993).

  31. 31.

    Jesse Biddle and Vedat Milor, “Institutional Influences on Economic Policy in Turkey: A Three Industry Comparison,” World Bank Private Sector Development Department, Occasional Paper no. 3, 1995.

  32. 32.

    İsmail Arslan, A Review of Turkish Incentive Systems (Washington, DC: World Bank Publications, 1993).

  33. 33.

    Tercan Baysan and Charles Blitzer, “Turkey’s Trade Liberalization in the 1980s and Prospects for Its Sustainability” in Tosun Arıcanlı and Dani Rodrik, The Political Economy of Turkey: Debt, Adjustment, and Sustainability (London: Macmillan, 1990), 13 and Table 1.2.

  34. 34.

    Quoted in Özgür Öztürk, Türkiye’de Büyük Sermaye Grupları: Finans Kapitalin Oluşumu ve Gelişimi (İstanbul: SAV Yayınları, 2010), 140.

  35. 35.

    Hasan Ersel, “The Timing of Capital Account Liberalization: The Turkish Experience,” New Perspectives on Turkey 15 (1996): 45–64.

  36. 36.

    OECD, Economic Surveys, Turkey: 1994–1995 (Paris: OECD Publication Service, 1995), 1–3.

  37. 37.

    Ziya Öniş and Ahmet Faruk Aysan, “Neoliberal Globalization, the Nation State and the Financial Crises in the Semi-Periphery: A Comparative Analysis,” Third World Quarterly 21, no. 1 (2000): 129–130.

  38. 38.

    Fatih Özatay, “The 1994 Currency Crisis in Turkey,” The Journal of Policy Reform 3, no. 4 (2000): 346–348.

  39. 39.

    Milliyet Gazetesi, “İktidarın Son Şansı,” April 5, 1994.

  40. 40.

    OECD, Economic Surveys, Turkey: 1994–1995 (Paris: OECD Publication Service, 1995), 24–27.

  41. 41.

    Milliyet Gazetesi, “Ekonomide Sıkıyönetim,” April 4, 1994.

  42. 42.

    OECD, Economic Surveys, Turkey: 1994–1995, 34–54.

  43. 43.

    OECD, Economic Surveys, Turkey: 1995–1996 (Paris: OECD Publication Service, 1996), 20–22.

  44. 44.

    Turkish Statistical Institute, Statistical Indicators 1923–2011 (Ankara: Turkish Statistical Institute), 754.

  45. 45.

    OECD, Economic Surveys, Turkey: 1995–1996, 50.

  46. 46.

    Milliyet Gazetesi, “Çiller’in ABD’deki Serveti,” June 17, 1994.

  47. 47.

    Milliyet Gazetesi, “Çiller’i Şok Eden İstifa,” February 1, 1994.

  48. 48.

    Mehmet Ali Birand, Son Darbe 28 Şubat (İstanbul: Doğan Kitap, 2012).

  49. 49.

    Milliyet Gazetesi, “Yılmaz: ‘Paket Kötü Bir Kopya,’ ” April 6, 1994.

  50. 50.

    Milliyet Gazetesi, “Yılmaz Dinledi, Erbakan Uyardı,” April 5, 1994.

  51. 51.

    Erinç Yeldan, “Neoliberal Global Remedies: From Speculative-Led Growth to IMF-Led Crisis in Turkey,” Review of Radical Political Economics 38, no. 2 (2006): 199.

  52. 52.

    Milliyet Gazetesi, “Ekonomik Pakete Tepki Yağdı,” April 6, 1994.

  53. 53.

    Milliyet Gazetesi, “TÜSİAD Çiller’e Bir Şans Daha Verdi,” February 12, 1994.

  54. 54.

    Milliyet Gazetesi, “TÜSİAD’tan Hükümete Zorunlu Destek,” April 8, 1994.

  55. 55.

    Milliyet Gazetesi, “TÜSİAD Çiller’e Savaş Açtı,” May 5, 1994.

  56. 56.

    Yeldan, Küreselleşme Sürecinde Türkiye Ekonomisi, 76.

  57. 57.

    Özatay, “The 1994 Currency Crisis in Turkey,” The Journal of Policy Reform, 337–339.

  58. 58.

    İstanbul Sanayi Odası, Türkiye’nin 500 Büyük Sanayi Kuruluşu (İstanbul: İSO Yayınları, 1995), 70.

  59. 59.

    Milliyet Gazetesi, “26 Yılın Kanlı Bilançosu,” June 26, 2010.

  60. 60.

    Deniz Yükseker, “Neoliberal Restructuring and Social Exclusion in Turkey,” in Ziya Öniş and Fikret Şenses, eds., Turkey and the Global Economy: Neo-liberal Restructuring and Integration in the Post-Crisis Era (Oxon: Routledge, 2009), 266–267.

  61. 61.

    E. Fuat Keyman, “Modernity, Secularism and Islam: The Case of Turkey,” Theory, Culture & Society 24, no. 2 (2007): 223.

  62. 62.

    Ziya Öniş, “Democracy, Populism, and Chronic Inflation in Turkey: The Post Liberalization Experience,” Yapı Kredi Economic Review 8 (1997): 37.

  63. 63.

    OECD, Economic Surveys, Turkey: 2002 (Paris: OECD Publication Service, 2002), 80.

  64. 64.

    OECD, Economic Surveys, Turkey: 2001 (Paris: OECD Publication Service, 2001), 17–18.

  65. 65.

    Fatih Özatay and Güven Sak, “Banking Sector Fragility and Turkey’s 2000–01 Financial Crisis,” Brookings Trade Forum (Washington, DC: Brookings Institution Publications, 2002), Table 2.

  66. 66.

    Ümit Cizre and Erinç Yeldan, “The Turkish Encounter with Neo-Liberalism: Economics and Politics in the 2000/2001 Crisis,” Review of International Political Economy 12, no. 3 (2005): 391.

  67. 67.

    Erol Balkan and Erinç Yeldan, “Peripheral Development under Financial Liberalization: The Turkish Experience,” in Neşecan Balkan and Sungur Savran, eds., The Ravages of Neoliberalism: Economy, Society and Gender in Turkey (New York: Nova Science Publishers, 2002), 40–43.

  68. 68.

    Güzin G. Akın, Ahmet F. Aysan, and Levent Yıldıran, “Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis,” in Ziya Öniş and Fikret Şenses, eds., Turkey and the Global Economy: Neo-liberal Restructuring and Integration in the Post-crisis Era (Oxon: Routledge, 2009), 74.

  69. 69.

    Yeldan, Küreselleşme Sürecinde Türkiye Ekonomisi, 156.

  70. 70.

    John Maynard Keynes, The General Theory of Employment, Interest, and Money (London: St. Martin’s Press, 1960), 159.

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Kutlay, M. (2019). Political Economy of Turkey (1980–2001). In: The Political Economies of Turkey and Greece. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-92789-3_3

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