Patterns of Adjustment under the Age of Finance: The Case of Turkey as a Peripheral Agent of Neoliberal Globalization
AbstractTurkey experienced a severe economic and political crisis in November 2000 and again in February 2001.� The IMF has been involved with the macro management of the Turkish economy prior to�and after the crisis, and provided financial assistance of $20.4 billion between 1999 and 2003.� Following the crisis, Turkey implemented an orthodox strategy of raising interest rates and maintaining an overvalued exchange rate. The government was forced to follow a contractionary fiscal policy�to attain a primary surplus of 6.5% of the GNP, and promised to satisfy the customary IMF demands: reduce subsidies to agriculture, privatize, and reduce the role of the public sector in economic activity. � Contrary to the traditional stabilization packages that aim to�increase interest rates to constrain domestic demand, the new orthodoxy aimed at maintaining high interest rates to attract speculative foreign capital.�The end result in Turkey�was shrinkage of the public sector; deteriorating education and health infrastructure; and failure to provide basic social services to the middle class and the poor.� Furthermore, as the domestic industry intensified its import dependence, it was forced to adopt increasingly capital-intensive, foreign technologies with adverse consequences on domestic employment. �In the meantime the transnational companies and the international finance institutions have become the real governors of the country, with implicit veto power over any economic and or political decision that is likely to act against the interests of global capital.�
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp126.
Date of creation: 2007
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reinhart, Carmen & Kaminsky, Graciela, 1999.
"The twin crises: The causes of banking and balance of payments problems,"
14081, University Library of Munich, Germany.
- Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
- Graciela L. Kaminsky & Carmen M. Reinhart, 1996. "The twin crises: the causes of banking and balance-of-payments problems," International Finance Discussion Papers 544, Board of Governors of the Federal Reserve System (U.S.).
- Grabel, Ilene, 1996. "Marketing the third world: The contradictions of portfolio investment in the global economy," World Development, Elsevier, vol. 24(11), pages 1761-1776, November.
- Diaz-Alejandro, Carlos, 1985. "Good-bye financial repression, hello financial crash," Journal of Development Economics, Elsevier, vol. 19(1-2), pages 1-24.
- C. Emre Alper, 2001. "The Turkish Liquidity Crisis of 2000: What Went Wrong..," Working Papers 2001/11, Bogazici University, Department of Economics.
- Dani Rodrik & Andres Velasco, 1999. "Short-Term Capital Flows," NBER Working Papers 7364, National Bureau of Economic Research, Inc.
- C. Emre Alper & Ziya Onis, 2002. "Emerging Market Crises and the IMF: Rethinking the Role of the IMF in the Light of Turkey's 2000-2001 Financial Crises," Working Papers 2002/03, Bogazici University, Department of Economics.
- Tropeano, Domenica & Michetti, Elisabetta, 2008.
"Exchange rate policy and income distribution in an open developing economy,"
6642, University Library of Munich, Germany.
- Elisabetta Michetti, & Domenica Tropeano,, 2008. "Exchange rate policy and income distribution in an open developing economy," Working Papers 44-2008, Macerata University, Department of Finance and Economic Sciences, revised Nov 2008.
- Mathieu Dufour & Ozgur Orhangazi, 2009.
"The 2000-2001 Financial Crisis in Turkey: A Crisis for Whom?,"
Review of Political Economy,
Taylor & Francis Journals, vol. 21(1), pages 101-122.
- Dufour, Mathieu & Orhangazi, Ozgur, 2007. "The 2000-2001 Financial Crisis in Turkey: A Crisis for Whom?," MPRA Paper 7837, University Library of Munich, Germany, revised 2008.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Judy Fogg).
If references are entirely missing, you can add them using this form.