The Rise of New Developmentalism in Turkey? A Query on Foreign Economic Relations

Global challenges to neoliberal policies upon consecutive economic crises in the 21st century led to a transformation of state–market relations along new developmentalist lines. This paper examines a possible transition in Turkish economic policy towards new developmentalism by offering a multifaceted methodology: (i) the rise of new developmentalism resulting from the emergence of non-Western centres of power at the global scale; (ii) evolving dynamics of Turkish political economy towards new developmentalist principles; and (iii) Turkey’s increasing foreign economic relations with the major non-Western economies, namely Russia and China. It posits that the challenges to neoliberalism, shifting global power dynamics and the rise of new developmentalism have transformed Turkey’s fundamental economic policies, investment strategies and foreign economic relations. It argues that the strengthening economic relations with Russia and China are not merely the result of the shift in market priorities but also a catalyst for Turkey’s changing economic tendencies. The policymaking processes in Turkey have turned into a self-reinforcing cycle, where the two prominent trends of the past decade—the emergence of the new developmentalist paradigm and the strengthening of economic relations with Russia and China—mutually reinforce each other.