This volume provides a comprehensive study of Turkey’s financial transformation into one of the most dynamic, if not trouble-free, emerging capitalisms. While this financial evolution has underwritten Turkey’s dramatic economic growth, it has done so without ameliorating the persistently exploitative and unequal social structures that characterize neoliberalism today. This edited volume, written by an interdisciplinary range of political economists, critically examines Turkey’s financial transformation, contributing to debates on the nature of peripheral financialization.
Eschewing economistic interpretations, The Political Economy of Financial Transformation in Turkey underscores both the quantitative significance of exponential growth in financial flows and investments, and the qualitative importance of the state’s institutional restructuring around financial imperatives. The book presents today’s reality as historically rooted. By understanding the choices made under the new Republic (from 1923 onwards), one can better locate the changes launched as a newly liberalizing society (since 1980). Likewise, the decisions made in response to Turkey’s 2001 financial crisis spurred a tectonic break in state–market–society financial relations. The waves of change have reached far and wide: from corporate strategies of accumulation and growth to small- and medium-sized enterprises’ strategies of financial survival; from how finance has penetrated the provisioning of housing to how households have become financialized. Put together, one grasps the complexity and historicity of the power of contemporary finance. One also sees that the changes made have not been class-neutral, but have entailed elevating the interests of major capital groups, particularly financial capital, above the interests of the poor and workers in Turkey. Nor are these changes constrained to its national borders, as what transpires domestically contributes to the making of a financialized world market. Through this ‘Made in Turkey’ approach the contributions in this volume thus challenge dominant understandings of financialization, which are derived from the advanced capitalisms, by sharing the specificity of emerging capitalisms such as Turkey.
Foreword – Oktar Türel
The Editors and Contributors
1 Introduction: Debating Financial Transformation in Turkey
Galip L. Yalman, Thomas Marois and Ali Rıza Güngen
2 Putting the Turkish Financial System into Historical Perspective 1923-1980
Galip L. Yalman
3 The Neoliberal Transformation of State and Market in Turkey: An Overview of Financial Developments from 1980 to 2000
Galip L. Yalman
4 A Tale of Three Crises Made in Turkey: 1994, 2001 and 2008-09
Hasan Cömert and Erinç Yeldan
5 The Transformation of the State Financial Apparatus in Turkey since2001
6 The Neoliberal Restructuring of Banking in Turkey, 2001 to the Present
Thomas Marois and Ali Rıza Güngen
7 The Neoliberal Emergence of Market Finance in Turkey
Ali Rıza Güngen
8 The Turkish Corporate Sector in the Era of Financialization: Profitability and M&As
Demir Demiröz and Nilgün Erdem
9 The State, Crisis, and Transformation of Small and Medium-sized Enterprise Finance in Turkey
10 Financial Transformation and Housing Finance in Turkey
11 Restricted but Significant: Financialization of Households and Retail Banking Activities in Turkey
İpek Eren Vural
The Europa Emerging Economies series from Routledge, edited by Robert E. Looney, examines a wide range of contemporary economic, political, developmental and social issues as they affect emerging economies throughout the world. Complementing the Europa Regional Surveys of the World series and the Handbook of Emerging Economies, which was also edited by Professor Looney, the volumes in the Europa Emerging Economies series will be a valuable resource for academics, students, researchers, policy-makers, professionals, and anyone with an interest in issues regarding emerging economies in the wider context of current world affairs.
There will be individual volumes in the series which provide in-depth country studies, and others which examine issues and concepts; all are written or edited by specialists in their field. Volumes in the series are not constrained by any particular template, but may explore economic, political, governance, international relations, defence, or other issues in order to increase the understanding of emerging economies and their importance to the world economy.
Robert E. Looney is a Distinguished Professor at the Naval Postgraduate School, Monterey, California, who specializes in issues relating to economic development in the Middle East, East Asia, South Asia and Latin America. He has published over 20 books and 250 journal articles, and has worked widely as a consultant to national governments and international agencies.