Stabilization through Europeanization? Discussing the Transformation Dynamics in Turkey

Various works of the Neo-Gramscian School analysed the Integration of Central and Eastern European Countries (CEEC) and the role of the European Governance process as a decisive actor in the transformation processes that opened the way to membership. The “first” generation of these works focused on the question of how transnational neo-liberal policies, deepening and integration of the EU and peripherialization of the CEEC relate to each other. However, after the accession of CEEC to the EU the focus of the “second generation” work shifted towards the emergence of varieties of capitalism among these countries and the role of the domestic forces in the process of state transformation. Our theoretical/methodological approach is based on the question: what can the scholars working on the Turkish transformation learn from the critical political economy studies of enlargement? Does the Turkish example differ from the CEEC? How can the influence of the European governance on Turkey be assessed? How can one discuss the neo-liberalization of the Turkish economy and Europeanization dynamics together? In this article we discuss the political economic dynamics of Turkey's integration into the world market and accession process to the EU. Although the transformation of Turkey's economy in the 1980s and 1990s was essential for bringing the country on the path to membership negotiations, the EU did only have a minor role in this process. Only after the severe crises of Turkey's economy in 2000/2001 and the stabilization programme of the IMF, could the EU substantially augment its influence. The focus of the stabilization programme on macroeconomic stability overlapped perfectly with the economic priorities of the EU and was an opportunity to become engaged in the Turkish reform process as an important player. Since then, the EU is seen as an anchor of Turkey's economic stability. For analysing the Turkish path of development we focus on the export orientation, financialization and monetary based stabilization programme to discuss three phases of liberalization in Turkey since 1980 from an Europeanization aspect. This analysis sheds light upon the question of what two generations of neo-Gramscian work can contribute to our understanding of the Turkish case.