The Turkish Neoliberal Unshared Growth Regime of the Post-2001 Period
Please cite the paper as:
&lquo;Zeynep M. Sonat Hansjörg Herr, (2013), The Turkish Neoliberal Unshared Growth Regime of the Post-2001 Period, World Economics Association (WEA) Conferences, No. 4 2013, Neoliberalism in Turkey: A Balance Sheet of Three Decades, 28th October to 16th December 2013&rquo;
This paper questions the sustainability of Turkey’s growth performance in the post-2001 period. After the 2001 crisis, Turkey continued to pursue a radical market reform strategy following the philosophy of the Washington Consensus. A “jobless” growth due to
high productivity increases which were to a large extent caused by intensifying the work process and not always by technological advancement, financial sector fragilities and very high inequality have characterized the Turkish economy in this period. This paper asserts that Turkey’s macroeconomic regime in the post-2001 period has been a handicapped one, which might not sustain a stable growth performance in the long-term and at least is risky because of its inherent social and economic fragility. Recommendable is a new development regime with selective capital controls, a balanced current account, an active government policy to support certain industries, a strengthening of unions and employer associations, a coordinated wage bargaining on the sectoral level, and last but not least policies to achieve a more equal income distribution.