The Gini illusion of Turkey
Please cite the paper as:
“Emine Tahsin, (2013), The Gini illusion of Turkey, World Economics Association (WEA) Conferences, No. 4 2013, Neoliberalism in Turkey: A Balance Sheet of Three Decades, 28th October to 16th December 2013”
Without any doubt, under JDP (Justice and Development Party) era, the neoliberal policies have also specific characteristics that could be distinguished from the previous decades. After the 2001 crisis (one of the deepest crisis in the history of Turkish economy), the increase in the average growth rates and the GDP per capita has been realized. In addition to these inequalities and macroeconomic imbalances accompanies to this growth process.
Due to these, the redistributive policies and social policies during this period is among the most discussed topics especially after one of the deepest crisis of Turkish economy in order to decrease the inequality gap and poverty. New social policies came into the agenda in some cases on the basis of faith based initiatives but in general it could also be called as neoliberalism with human face.
Under these circumstances the political roots of the JDP and the phase of the neoliberal policies should be analyzed and the relation among them should be defined. Within this framework first of all the paper would try to analyze the specific characteristics of neoliberal era under AKP period. Secondly a brief summary of the redistributive policies and social policies would tried to be defined.
In doing so, the paper would discuss the approaches to inequalities on the basis of the Gini coefficient in real terms. Although there are specific improvements on the basis of the Gini coefficient of Turkey, the approaches to inequalities need to be investigated. Considering the TurkStat and OECD data related with Turkey, the Palma ratio (2011,D10/D1-D4)/approach to inequalities would tried to be applied to Turkey case. After the balance sheet of the last decade on the basis of the Palma ratio, the relationship with the related social and redistributive policies would also included to the analysis. Since the Palma ratio provides to focus on the top, the bottom and the middle income groups, the evidence suggest that it would provide to develop a deeper analysis on the basis of inequalities and neoliberal policies during the last decade.