Ambiguous break and vague transformation: The changing nature of capitalism during AKP rule in Turkey

In a conjuncture where global capitalism is undergoing changes and industrialised economies have begun moving away from the policies adopted during the last four decades, emerging economies have been adopting new growth regimes for some time. Large emerging economies such as China, India and Brazil have successfully pursued policies with a more intensive role of the state in the economy, which some scholars have explained in terms of a state-permeated capitalism model. During the last decade, Turkey’s political economy has undergone noticeable changes that seem to depart from the neoliberal paradigm that emerged in the 1980s and was reinforced in the early years of the 2000s. While the potential presence of state capitalism in Turkey has attracted the attention of scholars of political economy, the recent dynamics of capitalism in Turkey present a complex picture. Seeking to contribute to a better understanding of the changing nature of capitalism in Turkey, this thesis investigates potential transformations in Turkey’s political economy by analysing it in terms of the state-permeated capitalism framework. Based on an analysis of the model’s main components – namely, coordination mechanisms, institutional domains (corporate governance, finance for investments, industrial relations, education and training, innovation, and domestic markets), and institutional complementarities and clusters – the thesis points to the possible transformation of Turkey’s economy towards a hybrid form of capitalism, that preserves some liberal elements while also reflecting some features of the state-permeated capitalism model.