Skip to main content

Economic institutions and institutional change in Turkey during the neoliberal era

  • İzak Atiyas (a1)

In the last three decades, the Turkish economy has become much more open and market-oriented. This paper provides an account of the changes in the underlying economic institutions that have accompanied this transformation. In particular, it assesses whether or not new economic institutions have emerged that constrain the discretionary powers of the executive in the area of economic policy and whether institutional change has resulted in a more rule-based and transparent policy framework. The story that broadly emerges is that the first two decades of the neoliberal era were predominantly a period of increased discretion at the expense of rules. By contrast, after the crisis of 2000-2001 one witnesses a substantial delegation of decision-making power to relatively independent agencies, and the establishment of rules that constrain the discretion of the executive. But this transformation is not uniform across sectors, and there are divergences between the de jure rules and their de facto implementation. Moreover, there are also examples that do not fit the general trend, especially in the case of the construction industry. Finally, recent signs suggest that the government may be having second thoughts about the “excessive” independence of regulatory and policy making bodies.

Hide All
Acemoğlu, Daron and Robinson, james. The Role of Institutions in Growth and Development, Working Paper No.10: Commission on Growth and Development, 2008.
Airaudo, Marc, Kemal, Derviş, Daniel, Gros, Faik, Öztrak, Fırat, Bayar and Işık, Yusuf. Stabilising Stabilisation, EU-Turkey Working Papers No. 7: Center for European Studies, 2004.
Alper, C. Emre and Öniş, Ziya. “The Turkish Banking System and the IMF in the Age of Capital Account Liberalization.” New Perspectives on Turkey, no. 30 (2004): 2555.
Atiyas, Izak. “Uneven governance and fiscal failure: The adjustment experience in Turkey.” In Governance, Leadership and Communication: Building Constituencies for Economic Reform, edited by Frischtak, Leila and Atiyas, Izak, 285318. Washington, DC: The World Bank, 1996.
Atiyas, Izak. Elektrik Sektöründe Serbestlesme ve Düzenleyici Reform. İstanbul: TESEV, 2005.
Atiyas, Izak. “Recent Privatization Experience of Turkey — A Reappraisal.” In Turkey and the Global Economy: Neo-Liberal Restructuring and Integration in the Post-Crisis Era, edited by Öniş, Ziya and Şenses, Fikret, 101122. London: Routledge, 2009.
Atiyas, Izak. “Risks, Incentives and Financing Models of Nuclear Power Plants: International Experiences and the Akkuyu Model.” In The Turkish Model for Transition to Nuclear Power, edited by Ülgen, Sinan, 113134. İstanbul: EDAM, 2011.
Atiyas, Izak and Dogan, Pinar. “Glass half empty? Politics and institutions in the liberalization of the fixed line telecommunications industry in Turkey.” In Understanding the Process of Economic Change in Turkey, edited by Çetin, Tamer and Yilmaz, Feridun, 261284. New York: Nova Science Publishers, 2010.
Atiyas, Izak and Ferhat, Emil. “Political Economy of Governance Failures, Crises and Opportunities for Reform.” In Turkey Country Profile. Cairo: Economic Research Forum, 2005.
Atiyas, Izak and Hasan, Ersel. “The Impact of Financial Reform: The Turkish Experience.” In Financial Reform: Theory and Experience, edited by Caprio, Ģerard, Atiyas, Izak and Hanson, James A.103139. New York: Cambridge University Press, 1994.
Atiyas, IzakGürcan, Gülen and Çetin, Tamer. Reforming Turkish Energy Markets. New York: Springer, 2012.
Atiyas, IzakYasemin, Bal GündüzFerhat, Emil, Can Memduh, Erdem, and Didem, Bahar Özgün. Fiscal Adjustment in Turkey: The Role of Quasi-Fiscal Activities and Institutional Reform, Araştırma Inceleme Dizisi No: 22: TC Hazine Müsteşarlığı, 1999.
Bakir, Caner and Öniş, Ziya. “The Regulatory State and Turkish Banking Reforms in the Age of Post¬Washington Consensus.” Development and Change 41, no. 1 (2010): 77106.
Balaban, Osman. “The Negative Effects of Construction Boom on Urban Planning and Environment in Turkey: Unraveling the Role of the Public Sector.” Habitat International, no. 36 (2012): 2635.
Dedeoğlu, Emin. How Does the Fiscal Rule Work? First The Public Financial Management System Shall Be Adapted to Fiscal Rule, TEPAV Policy Note: TEPAV, 2010.
Denizer, CevdetGültekin, Mustafa N. and Gültekin, Nihat Bülent. “Distorted Incentives and Financial Development in Turkey.” (2000),
Dünya, , January 24, 2012.
Ercan, Metin R. and Öniş, Ziya. “Turkish Privatization: Institutions and Dilemmas.” Turkish Studies 2, no. 1 (2001): 109134.
Ersel, Hasan. “Finansal Istikrarın Sağlanması Için Nasıl Bir Mekanizma Tasarlanabilir?” iktisat Işletme ve Finans 27, no. 315 (2012): 3749.
Ersel, Hasan. Managing Financial Liberalization in Turkey: Consistent Banking Regulation, Third Mediterranean Development Forum Financing Development Workshop Paper. Cairo, 2000.
Ersel, Hasan. “The Timing of Capital Account Liberalization-the Turkish Experience.” New Perspectives on Turkey, no. 15 (1996): 4564.
Ersel, Hasan. “Turkish Public Finance in the Post-Crisis Era.” In Turkey and the Global Economy: Neo-Liberal Restructuring and Integration in the Post-Crisis Era, edited by Öniş, Ziya and Şenses, Fikret3449. London: Routledge, 2009.
Ersel, Hasan and özatay, Fatih. “Inflation Targeting in Turkey.” Paper presented at the Workshop: “Monetary Policy and Inflation Targeting,” Tunis, Tunisia, October 2425, 2008.
Gülhan, Sinan T.Devlet Müteahhitlerinden Gayrimenkul Geliştiricilerine, Türkiye’de Kentsel Rant ve Bir Meta Olarak Konut Üreticiliği: Konuta Hücum Birikim, October 2011, 2733.
Hagen, Jürgen von. “Political Economy of Fiscal Institutions.” In The Oxford Handbook of Political Economy, edited by Weingast, Barry R. and Wittman, Donald A., 464478. New York: Oxford University Press, 2006.
Heper, Metin. “The State and Debureaucratization: The Case of Turkey.” International Social Science Journal, no. 42 (1990): 605615.
Heper, Metin and Fuat, Keyman. “Double-Faced State: Political Patronage and the Consolidation of Democracy in Turkey.” Middle Eastern Studies 34, no. 4 (1998): 259277.
Majone, Giandomenico. Regulating Europe. London: Routledge, 1996.
North, Douglass C.Institutions, Institutional Change, and Economic Performance. New York: Cambridge University Press, 1990.
OECD. Competition Law and Policy in Turkey. Paris: OECD, 2005.
OECD. OECD Economic Surveys 2001–2002 Turkey. Paris: OECD, 2002.
OECD. OECD Economic Surveys: Turkey 2008. Paris: OECD, 2008.
OECD. OECD Economic Surveys: Turkey 2012. Paris: OECD, 2012.
Ozel, Isik. “The Politics of De-delegation: Regulatory (In)dependence in Turkey.” Regulation of Governance 6, no. 1 (2012): 119129.
Ozel, Isik and Atiyas, Izak. “Regulatory Diffusion in Turkey: A Cross-sectoral Assessment.” In The Political Economy of Regulation in Turkey, edited by Çetin, Tamer and Oğuz, Fuat5174. New York: Springer, 2011.
Öniş, Ziya. “Power, Interests and Coalitions: The Political Economy of Mass Privatisation in Turkey.” Third World Quarterly 32, no. 4 (2011): 707724.
özatay, Fatih, Sak, Güven, Garber, Peter and Ghosh, Atish. “Banking Sector Fragility and Turkey’s 2000–01 Financial Crisis.” In Brookings Trade Forum 2002, edited by Collins, Susan M. and Rodrik, Dani, 121172. Washington, DC: Brookings Institution Press, 2002.
özgönül, Emin and Sağlar, Fikri. Kod Adı Susurluk ‘Derin’ Ilişkiler Bir Kamyon Bin Kaset. İstanbul: Boyut Yayınevi, 2001.
Sönmez, Ümit. “The Political Economy of Market and Regulatory Reforms in Turkey: The Logic and Unintended Consequences of Ad-hoc Strategies.” New Political Economy 16, no. 1 (2011): 101130.
van Rijckeghem, Caroline. Turkish Debt: How We Got There, [mimeograph], İstanbul: TESEV, 2003.
Yükseler, Zafer. Gayrimenkul Sektöründe Gelişmeler ve Olası Sorunlar. Ankara: Türkiye Cumhuriyet Merkez Bankası, 2009.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

New Perspectives on Turkey
  • ISSN: 0896-6346
  • EISSN: 1305-3299
  • URL: /core/journals/new-perspectives-on-turkey
Please enter your name
Please enter a valid email address
Who would you like to send this to? *



Full text views

Total number of HTML views: 0
Total number of PDF views: 83 *
Loading metrics...

Abstract views

Total abstract views: 384 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 19th April 2018. This data will be updated every 24 hours.