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Global Dynamics, Domestic Coalitions and a Reactive State: Major Policy Shifts in Post-War Turkish Economic Development

  • Ziya Önis

    ()

    (Department of Economics, Koc University)

  • Fikret Senses

    ()

    (Department of Economics, METU)

Registered author(s):

    The main objective of this study is to propose an analytical framework to explain the major policy shifts that has characterized post-war Turkish economic development; divided into four phases, starting respectively in 1950, 1960, 1980, and 2001. Its main contribution is to incorporate external and internal factors into this framework within a broadly political economy perspective, attaching particular significance to the role of economic crises in moving from one phase to the other. While the role of external agents is identified as the main factor behind policy shifts, the role of domestic coalitions in support of policy regime in each phase is also recognized. Drawing attention to the role of state in the impressive recent growth of countries such as China, India, and Ireland, the paper argues that there is still room for the state taking on a developmental role. The paper recommends that Turkey follows a similar path by improving state capacity not only with respect to its regulatory role but also in more developmental spheres, encompassing its redistributive and transformative role on the basis of a domestically-determined industrialization strategy.

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    File URL: http://www.erc.metu.edu.tr/menu/series07/0706.pdf
    File Function: First version, 2007
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    Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0706.

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    Length: 36pages
    Date of creation: Sep 2007
    Date of revision: Sep 2007
    Handle: RePEc:met:wpaper:0706
    Contact details of provider: Postal: Ankara 06531
    Phone: +90 (312) 210 2003
    Fax: (312) 210 1244
    Web page: http://www.erc.metu.edu.tr
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    1. Yılmaz AKYÜZ, 2007. "Global rules and markets: Constraints over policy autonomy in developing countries," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 22(257), pages 5-43.
    2. Yýlmaz Akyüz, . "Global Rules and Markets: Constraints over Policy Autonomy in Developing Countries," Working Papers 2007/5, Turkish Economic Association.
    3. Anne O. Krueger, 1974. "Foreign Trade Regimes and Economic Development: Turkey," NBER Books, National Bureau of Economic Research, Inc, number krue74-1, June.
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