chapter  6
24 Pages

Turkish etatism: creation of a non-competitive economy

From its formation in 1923 until 1980, the Turkish Republic followed a national economic policy that was intended to open a new era of prosperity for the Turkish people. The chosen development strategy, however, conflicted with the populist objectives of Kemalism. Under this strategy, known as etatism (Devletcilik), the state assumed direct control of resource allocation by means of economic planning and public enterprise. The result was a non-competitive, corporatist economy (Tachau 1984) with a strong capital and pro-urban bias. Etatism also failed to promote equity in income distribution. The roots of the Islamic resurgence in Turkey are to be found in the failure of the nationalist development strategy to deliver social justice.