Fiscal Policy Case Study

Turkey's Economy: The Turnaround Miracle

OR

Abstract:
Modern Turkey was founded by Mustafa Kemal, the father of the Turks, after the First World War. Under his leadership, Turkey adopted secularism and democracy, and embraced legal, social and political reforms. After his death in 1938, the predominant feature of Turkey's politics was the considerable power enjoyed by its military. The military successfully staged three coups (between 1960 and 1980), effectively destabilising Turkey's political and economic environment. In addition to the unstable political scenario, the country's growth and development were further hampered by four major crises that hit Turkey, between 1989 and 2002, destroying its financial structure. After each crisis, Turkey borrowed heavily from the International Monetary Fund (IMF), making the country one of the Fund's largest debtors. In such conditions, the Justice and Development Party came to power in November 2002.

Pedagogical Objectives:

• To discuss the turnaround of the Turkish economy by Prime Minister Recep Tayyip Erdogan
• To discuss the challenges Turkey is facing to sustain its growth.

Keywords : Economic Crisis Case Study, Republic of Turkey, Turkey’s economy, Political reforms, Justice and Development Party (AKP), Fiscal policy, Labour market reforms, Economic crisis, Political environment, International Monetary Fund (IMF), Banking Regulation and Supervisory Agency (BRSA), Savings Deposits Insurance Fund (SDIF), Economic turnaround, Taxation system, Structural reforms, European Union membership