Download The Political Economy of Turkey by Zulkuf Aydin PDF

By Zulkuf Aydin

This publication analyses the political and socio-economic difficulties confronted through Turkey in fresh many years and the country's sluggish integration into the worldwide financial system. because the Seventies, Turkey has confronted probably the most critical crises because the Republic used to be validated in 1923. Social unrest, political and ethnic violence, paralysis of the country paperwork and different associations, expanding international debt, reducing fiscal development, monstrous inflation and lengthening unemployment have all been a part of lifestyle in Turkey's fresh heritage. the writer argues that this situation is symptomatic of a deeper, extra enduring concern bobbing up from the way Turkey has been built-in into the worldwide economic climate. He indicates how, like many different constructing international locations, Turkey has turn into reliant on overseas funding and overseas monetary associations, and he bargains a broader critique of globalisation during this mild. subject matters coated contain democracy, repression, the army, the Kurdish query and nearby inequalities, civil society, human rights and Islamic fundamentalism.

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Foreign currency earnings from the export of primary products, external credits and workers’ remittances, mainly from Germany, were the most important sources of finance for the easy stage of ISI, and continued to be significant in the early days of the secondary phase of ISI. However, the increasing need for higher technology and inputs necessitated a stable foreign currency income, which could not entirely be met by the export of primary goods and workers remittances from western Europe. As the Turkish capitalists continued to expect resource transfers from public sources to the private sector, rather than relying on their own savings and capital formations, the policy-makers had to approach outside sources including the OECD for funds which were accompanied by some conditions (Bulutoklu 1967; Önib and Riedel 1993).

Qxd 16/10/04 1:29 PM Page 30 30 The Political Economy of Turkey US defence considerations during the cold war that forced the US to be lenient in giving aid to Turkey, in conjunction with the Marshall Plan, and giving Turkey room to continue to follow protectionist industrial policies (Hershlag 1968:150–160). The fact that throughout the 1950s Turkey aimed at obtaining as much foreign financial help as possible without due considerations for a ‘sound fiscal policy’ was to get the country into trouble with the international finance institutions.

Policy-makers found it very difficult to completely relinquish the idea of an ‘organically integrated national economy’ which was deemed to be a sine qua non of an independent economy. However, Turkish policy makers were not in a strong position to pursue the notion of the organically integrated economy; a child of the first Five Year Development Plan of 1933 (Tekeli and Ilkin 1982). The 1950s witnessed the strengthening of Turkey’s integration into the world economy. The new government elected in 1950 made every effort to take advantage of the aid bonanza in relation to the reconstruction of Europe.

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