TURKEY encountring macroeconomic stability

TURKEY encountring macroeconomic stability - TURKEY...

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Table 1.1 Revenues from privatization (million dollars) Table 1.2 World Bank Data for 2005 TURKEY ENCOUNTRING MACROECONOMIC STABILITY The economical development in Turkey during the post cold war period had always been interrelated to the political developments due to the radiply changing
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political climates.The existed political culture with “clientelistic patterns” was inadequate to implement necassary measures for economic development and failed to manage a sustainable economy with high rate of growth. The low performance of the political economy in Turkey gave rise to different crises and social conflicts due to unequal distribution of the income. On the other hand, necessary changes had been taken by the Turkish Government always had been initiated by the international bodies like IMF and European Union. In the postcold war period, the changing international order, the increasing transnationalism of economic and cultural and most importantly the political issues associated with the EU membership played crucial role in the shaping the Turkish economy. This report will analyze Turkey’s foreign economic relations with special emphasis on the European Union’s economic criteria established under Copenhagen agreement. Turkey started to implement neo-liberal measures in 1980s under the Turgut Özal’s presidency 1 . “Neoliberalism” is a new label for the economic liberalism which has become increasingly important in international economic policy discussions from the 1970s onwards. It is defined as the policies of privatization, austerity, and trade liberalization dictated to dependent countries by the IMF and the World Bank as a condition for approval of investment, loans, and debt relief 2 . In its dominant international definition, neoliberalism refers to a political-economic idea which ignores or rejects government intervention in the domestic economy. The aim was liberalization of the economy with minimum government intervention in the economy. The liberalization 1 Ziya Öniş, “Domestic Politics versus Global Dynamics:Towards a Political Economy of the 2000 and 2001 Financial Crises in Turkey”, Turkish Studies Special Issue, Summer 2003, 6 2 Marc Becker, eds. Terms and Definitions Glossary of Illinois State University, History Department, (21 December 2006).< http://www.ilstu.edu/class/hist127/terms.html> 2
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progamme iniated with the Özal’s political influence and collaboration of both IMF and World Bank, had intention in both short-term stabilization and long-term structural reforms since in the beginning of 1980s and as a consequence Turkey received five consecutive structual adjustment loans from IMF 3 . The liberalization process brought a export-led, sustainable growth around five percent per year in Turkey for a decade thanks to the export incentives and special tax breaks for exporters. Eventhough country experienced strong growth, the liberalization reforms failed to manage state-society relations due to the continuation of “clientelistic patterns” in politics. So, we can clearly
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TURKEY encountring macroeconomic stability - TURKEY...

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