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'This theoretically informing book provides one of the strongest analyses of Turkish political economy. Bu ra and Sava kan decisively dispel myths regarding the new, allegedly self-made and 'small' entrepreneurs who form the backbone of Turkish success. Drawing on original documents, interviews, and statistics, they demonstrate that politics (as practiced by regimes, parties, and associations) has 'made' the Turkish pious business class. No one can think of markets and market actors in the same way after reading this book.'
- Cihan Ziya Tugal, UC Berkeley, US
'This impressive work places Turkey firmly on the map of comparative politics and political economy. It adds intriguing facets to what we know about the relationship between the state, democracy and capitalist development in an age of neoliberalism. It also sheds new light on the role of religion in economic change and class formation in emerging countries on the periphery of contemporary capitalism. Moreover, in emphasizing the role of business associations in the politically sponsored rise of a post-Fordist model of globalized national capitalism, the book provides exciting new insights on a subject that has been regrettably neglected in recent years.'
- Wolfgang Streeck, The New School for Social Research, US
'Power has shifted in Turkey over the last decade, both within business and the state, towards groups with religious-conservative rather than Kemalist-secular sensibilities. This book goes deep inside this transformation to analyze the role of Muslim business networks and their relationship with the state. You will not find a better guide to Turkey s emergent new capitalism.'
- Dani Rodrik, Institute for Advanced Study, US
New Capitalism in Turkey explores the changing relationship between politics, religion and business through an analysis of the contemporary Turkish business environment.
This book focuses on the developments that have transformed the economic, political and cultural coordinates of business activity; led to new forms of interest representation; and changed the relationship between government and business in Turkey in the post-1980 period. Ay e Bu ra and Osman Sava kan argue that political action plays a crucial role in shaping the configuration of the business community, influencing the patterns of business development, and informing the emergence of rival models of capitalist development and political change endorsed by different groups of entrepreneurs. Moreover, the book explores the idea that whilst the use of religion as a strategic resource by some business associations serves to create bonds of trust and solidarity among their members, it also contributes to the polarization of the business community.
This interdisciplinary book will be an invaluable resource for academics, graduate students and researchers interested in political economy, political science, sociology, economic history, and organization studies. It will also appeal to journalists and business people, especially those investing or planning to invest in Turkey or the Middle East.
Contents: Introduction 1. Economic Development and Cultural Modernization in Republican Turkey: A Brief Overview 2. The Changing Place of the Economy and Religion in Turkish Society Since 1980 3. The New Political Economy of Capital Accumulation 4. Business Associations as Political Actors 5. Polarization at the Local Level Conclusion Index
- Sales Rank: #2248337 in Books
- Published on: 2014-06-30
- Original language: English
- Dimensions: 9.25" h x 6.25" w x .75" l,
- Binding: Hardcover
- 224 pages
About the Author
Ayse Bugra and Osman Savaskan, Bogazici University, Turkey
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How Turkey moved from state control to free market.
By B. Wolinsky
In the 1970’s, a Turkish film director made Seytan, a campy, micro-budget movie about a little girl possessed by the devil. Do you think it was based on the Exorcist? Well you’re wrong, it was an outright ripoff of The Exorcist! Ismael Metin Erksan, creator of Suzuz Yaz (Dry Summer) made this cardboard piece of junk, using a copy of the script, smuggled from the USA. Turkey’s government had this insane program to bar American movies from the country, then make their own plagiarized version in Turkey, so that 100% of the revenue would stay domestic. There was a Turkish Exorcist, a Turkish Superman, and I’m told there was a Turkish Jaws. How they filmed the shark scene, I don’t know, and the Superman ripoff features four different stuntmen holding on to a (slowly) speeding car. The bad guys run so slowly that Superman has time to grab them and throw them through the cardboard wall of their hangout.
This is essentially what Turkey’s economy was until the 80’s; low-quality domestic products, protected by tariffs. Years earlier, Ataturk started a policy of government intervention in the economy, mainly to increase industry and agriculture. The problem was, it made the economy dependent on the government. I guess Turkey was a lot like Britain and Argentina, with lots of state-owned enterprises, rather than a free market. At the same time, it wasn’t easy to get loans to start businesses, nor were there a lot of people willing to buy bonds or buy shares. It wasn’t until the 1980’s that a lot of modern economies would take off running.
In the second chapter, the authors credit the removal of protectionism with bringing the economic transformation. I shouldn’t say they blame the old tariffs for the problem, because a lot of small countries like Britain and Italy had tariffs. It was their only way to keep their farms in business and prevent the country from becoming dependent on cheap produce from the USA. However, there’s a point when a country needs to make the farmers compete, so I guess 50 years should’ve been long enough. The chapter also brings Islam into the argument, particularly the religious political parties. How they changed the economy isn’t clear, but I suspect that by having a multiparty state, the “old guard” loses power and becomes more receptive to new thinking.
One thing that isn’t discussed much in this book is the diaspora funding. How much of Turkey’s money comes from Turks living abroad, I have to wonder? There are sizeable Turkish communities in Germany and Australia; do they send money home? Prior to the 1980’s, did money sent home by Turks living abroad contribute to the economy? Bugra and Osman make it clear that foreign investment, heavy tourism, and bond sales would come around much later, so once again we see that funding was scarce in pre-1980’s Turkey. Also, there was a high level of socialism to the economy, similar to the John Maynard Keynes model. The country wasn’t exactly mineral-rich, so there wasn’t much to export, and they didn’t get into light manufacturing the way Japan did. Would that have strengthened their economy earlier?
I guess the main point of the book is that a government can’t prop up the economy forever, and at some point you need to get rid of the tariffs and make the business “leave the nest.” Britain did it in the 80’s, and so did Israel, South Korea, and many other small nations. From reading this book, I think Turkey made a great decision not to go on the Euro. It would’ve left the economy worse than that of Greece. Now that the Eurozone is a shambles, maybe Turkey’s currency will rise in value? I wonder.
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