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Neoliberal restructuring in Turkey: From state to oligarchic capitalism

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  • Karadag, Roy

Abstract

How have neoliberal reform policies changed Turkey's political economy? The aim of this paper is to counter claims of convergence towards a liberal capitalist order. Given the historical dynamics of the political embeddedness of Turkey's economy, after 1980, transformations in the state and the economy institutionalized the erosion of Turkish state capitalism. Due to the consolidation of new elite cartels, political fragmentation, and continuing systemic corruption involving networks comprising political and economic elites, what emerged as a result of restructuring is an oligarchic form of capitalism. It is currently undergoing further institutional changes, the outcome of which will depend closely on the power resources and strategies of the incumbent moderate Islamist Justice and Development Party.

Suggested Citation

  • Karadag, Roy, 2010. "Neoliberal restructuring in Turkey: From state to oligarchic capitalism," MPIfG Discussion Paper 10/7, Max Planck Institute for the Study of Societies.
  • Handle: RePEc:zbw:mpifgd:107
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    1. C. Emre Alper & Ziya Onis, 2002. "Soft Budget Constraints, Government Ownership of Banks and Regulatory Failure: The Political Economy of the Turkish Banking System in the Post-Capital Account Liberalization Era," Working Papers 2002/02, Bogazici University, Department of Economics.
    2. Tollison, Robert D, 1982. "Rent Seeking: A Survey," Kyklos, Wiley Blackwell, vol. 35(4), pages 575-602.
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    Cited by:

    1. André Bank & Roy Karadag, 2012. "The Political Economy of Regional Power: Turkey under the AKP," GIGA Working Paper Series 204, GIGA German Institute of Global and Area Studies.

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