ABSTRACT
This chapter contextualizes the issue of corruption in Turkey, particularly with comparisons to Meiji-era Japan and India. It is suggested that despite all the differences between the three countries, there was a common driver of corruption—the developmental state. Catching-up by using extensive state intervention had the major downside that it served to facilitate corruption. The Japanese example suggests the building of inclusive political and economic institutions, and consequent trust levels, can help address the problem. Turkey like India has not taken the necessary steps needed to disrupt corrupt practices. The chapter highlights the continuing uncertainties regarding corruption. The very term corruption is ambiguous, because there are many grey areas that result from variations in cultural norms. The historical evidence shows that the existence of corruption does not stop development. In the case of twentieth-century Turkey, corruption has not prevented significant economic growth, but it has had negative consequences, such as poor quality building construction. Its prevalence may be part of the explanation why Turkey has struggled to build innovative businesses.
