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

Author

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  • Ziya Onis

    (Koc University)

  • Fikret Senses

    (Middle East Technical University)

Abstract

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.

Suggested Citation

  • Ziya Onis & Fikret Senses, 2007. "Global Dynamics, Domestic Coalitions and a Reactive State: Major Policy Shifts in Post-War Turkish Economic Development," Working Papers 2007/7, Turkish Economic Association.
  • Handle: RePEc:tek:wpaper:2007/7
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    File URL: http://www.tek.org.tr/dosyalar/ONIS_SENSES_TEK.pdf
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    References listed on IDEAS

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    1. Yýlmaz Akyüz, "undated". "Global Rules and Markets: Constraints over Policy Autonomy in Developing Countries," Working Papers 2007/5, Turkish Economic Association.
    2. Anne O. Krueger, 1974. "Foreign Trade Regimes and Economic Development: Turkey," NBER Books, National Bureau of Economic Research, Inc, number krue74-1.
    3. 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.
    4. Wade, Robert Hunter, 2003. "What strategies are viable for developing countries today? The World Trade Organization and the shrinking of ‘development space’," LSE Research Online Documents on Economics 28239, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Ziya Onis & Ali Burak Güven, 2010. "Global Crisis, National Responses: The Political Economy of Turkish Exceptionalism," Koç University-TUSIAD Economic Research Forum Working Papers 1013, Koc University-TUSIAD Economic Research Forum.
    2. Caner Bakir & Ziya Onis, 2009. "The Emergence of the Regulatory State: The Political Economy of Turkish Banking Reforms in the Age of Post-Washington Consensus," Koç University-TUSIAD Economic Research Forum Working Papers 0905, Koc University-TUSIAD Economic Research Forum.
    3. Sadik Ãœnay, 2012. "Domestic Transformation and Raison du Monde: Turkey's Nascent Competition State," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(S5), pages 7-18, November.
    4. Sadik Ünay, 2012. "Domestic Transformation and Raison du Monde: Turkey's Nascent Competition State," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(S5), pages 7-18, November.

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