Neoliberal Unshared Growth Regime of Turkey in the Post-2001 Period
After the 2001 crisis, Turkey continued to pursue a radical market-oriented reform strategy that followed the philosophy of the Washington Consensus. By the early 2000s the government had already liberalised the capital account, privatised many banks and enterprises, and kick-started the processes of financialisation. The government had also withdrawn from redistribution and social justice policies. Gross domestic product (GDP) growth in the post-2001 period was relatively high, but it was a “jobless” growth caused by substantial productivity increases generated largely by intensifying the work process rather than by technological advancements. Today, Turkey is still characterised as a country with very high income inequality. The economic growth in the post-2001 period benefited the society very unequally. This type of growth regime harbours great economic risks and is socially unjust. The development of Turkey is vulnerable thanks to the high current account deficit, high currency mismatch particularly in the enterprise sector, high income inequality, high unemployment, and an unsatisfactory development of the industrial sector despite some limited successes. We recommend a new development regime with selective capital controls, a balanced current account, an active industrial policy by the government, stronger unions and employer associations combined with coordinated wage bargaining on the sectoral level, and, last but not least, redistributive policies aiming to achieve a more equal income distribution.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Düsternbrooker Weg 120, 24105 Kiel / Neuer Jungfernstieg 21, 20354 Hamburg|
Phone: +49 431 8814-1
Fax: +49 431 8814-520
Web page: http://www.econstor.eu/
More information through EDIRC
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.:
- Özlem Onaran & Nursel Aydiner-Avsar, 2006.
"The controversy over employment policy: Low labor costs and openness, or demand policy? A sectoral analysis for Turkey,"
Department of Economics Working Papers
wuwp097, Vienna University of Economics and Business, Department of Economics.
- Nursel AYDINER-AVSAR & Özlem ONARAN, 2010. "The Determinants Of Employment: A Sectoral Analysis For Turkey," The Developing Economies, Institute of Developing Economies, vol. 48(2), pages 203-231.
- Milka Kazandziska, 2015. "Macroeconomic policy regime in Poland," Working Papers 59/2015, Institute of Economic Research, revised Apr 2015.
- Hansjörg Herr, 2009. "The labour market in a Keynesian economic regime: theoretical debate and empirical findings," Cambridge Journal of Economics, Oxford University Press, vol. 33(5), pages 949-965, September.
When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:88606. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.