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Economic institutions and institutional change in Turkey during the neoliberal era

Published online by Cambridge University Press:  05 March 2015

İzak Atiyas
İzak Atiyas*
Affiliation:
Faculty of Arts and Social Sciences, Sabancı University, 34956 Orhanlı, Tuzla-İstanbul, Turkey, izak@sabanciuniv.edu
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Abstract

In the last three decades, the Turkish economy has become much more open and market-oriented. This paper provides an account of the changes in the underlying economic institutions that have accompanied this transformation. In particular, it assesses whether or not new economic institutions have emerged that constrain the discretionary powers of the executive in the area of economic policy and whether institutional change has resulted in a more rule-based and transparent policy framework. The story that broadly emerges is that the first two decades of the neoliberal era were predominantly a period of increased discretion at the expense of rules. By contrast, after the crisis of 2000-2001 one witnesses a substantial delegation of decision-making power to relatively independent agencies, and the establishment of rules that constrain the discretion of the executive. But this transformation is not uniform across sectors, and there are divergences between the de jure rules and their de facto implementation. Moreover, there are also examples that do not fit the general trend, especially in the case of the construction industry. Finally, recent signs suggest that the government may be having second thoughts about the “excessive” independence of regulatory and policy making bodies.

Keywords

Economic institutionsinstitutional changeindependent regulatory agenciesdelegationrules vs. discretiontransparency
Type
Articles
Information
New Perspectives on Turkey , Volume 47: Special Issue on Turkey's Experience with Neoliberal Policies and Globalization , Fall 2012 , pp. 57 - 81
Copyright
Copyright © New Perspectives on Turkey 2012

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