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181. Turkey's Response to the Global Economic Crisis

Author:
Ibrahim Turhan and Zubeyir Kilinc
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Turkey was not affected by the financial crisis as much as the advanced economies and managed to rapidly exit the turmoil. The reasons behind the strong response and quick recovery of the Turkish economy were its low country risk and low currency risk premiums. This study shows the foundations of these low risk premiums and compares some measures of these risks of the Turkish economy with peer countries. Second, this paper demonstrates that all of Turkey's economic sectors were very strong before the crisis and sustained this strength during the course of the crisis. Finally, it discusses the policies that have already been taken and planned to be taken by Turkey's economic authorities. The government seems to be very determined in keeping fiscal discipline as tight as necessary while not being excessive.
Topic:
Financial Crisis
Political Geography:
Turkey

182. Multiple Faces of the "New" Turkish Foreign Policy: Underlying Dynamics and a Critique

Author:
ZİYA ÖNİŞ
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
The “axis-shift” discussions on Turkish foreign policy activism over the last couple of years have attracted remarkable international attention. Some pundits have attempted to place Turkey's increasing relations with its neighbors within the context of an ideological and identical reshuffling of Turkish foreign policy principles. While finding the “shift of axis” argument a rather crude characterization, the paper nevertheless argues that there are subtle shifts in Turkish foreign policy orientation. In this context, the paper aims to identify both the elements of continuity and rupture in the style and behavior of Turkish foreign policy. In fact, there are solid political economy fundamentals and legitimate reasons for Turkey to pursue a multi- dimensional and more assertive foreign policy in the emerging multi-polar world system. However, the present paper underlines that Turkey's multi-dimensional foreign policy activism with no firm axis may have potentially counterproductive consequences regarding Turkey's long- term national interests as well as its ability to play a stabilizing role as a pro-active and benign regional power.
Topic:
Foreign Policy
Political Geography:
Turkey

183. Economy as the 'Practical Hand' of 'New Turkish Foreign Policy': A Political Economy Explanation

Author:
Mustafa Kutlay
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Turkish foreign policy activism during the last decade has attracted widespread international attention. As a result, scholarly literature on the issue has expanded noticeably. If one makes a general categorization, the literature on the new Turkish foreign policy has mainly concentrated on “security-based” and “identitybased” explanations. The role of the changing economic dynamics in Turkey and the transformation of Turkish financial and industrial capital, however, are not adequately addressed in the existing literature. This study aims to contribute to the recent debates from a political economy perspective with reference to the functionalist and interdependence approaches. It is argued in this paper that the bifurcation within the financial capital in Turkey in the post-2001 period and the internationalization of the 'Anatolian tigers' have turned out to be the 'practical hand' of Turkish foreign policy. In addition, this study argues that there are certain limits and constraints of employing political economy factors as a driving force in the Turkish foreign policy activism.
Topic:
Foreign Policy
Political Geography:
Turkey

184. Turkey's Neighborhood Policy: An Emerging Complex Interdependence?

Author:
Kadri Kaan Renda
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
In this paper, I argue that a fuller understanding of the recent activism in Turkish foreign policy, and in particular the changing nature of relations with its neighbors, requires us to engage in the study of the increasing economic interdependence and the analysis of broadly redefined national interests. Therefore, this paper aims to explain Turkey's relations with its neighbors through the neo-liberal theory model put forth by Robert O. Keohane and Joseph S. Nye, which underlines the importance of interdependence and cooperation among states. I argue that recent developments in Turkish foreign policy, particularly Turkey's relations with its neighbors, resemble the characteristic features of complex interdependence. The new activism in Turkish foreign policy facilitates international cooperation among regional actors and creates a “complex interdependence”.
Topic:
Foreign Policy
Political Geography:
Turkey

185. Businessmen as Diplomats: The Role of Business Associations in Turkey's Foreign Economic Policy

Author:
Altay Atli
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Research on state-business relations has traditionally focused on business associations' lobbying activities. However, as these organizations started to assume a more active role in their country's economic life, scholars began to look at another distinct role of business associations: their formal participation in policy making. This article examines to what extent Turkish business associations are taking part in the foreign economic policy-making process, which, in turn, leads to two sub-questions: (1) Through what kind of mechanisms is a pattern of interaction established between the state and the business associations? (2) Does the state transfer a part of its administrative functions to the private sector? This article examines the institutional setting established during the liberalization wave of the 1980s and has gradually evolved up to the present, through which the state has maintained its role as the policy maker yet has allowed the private sector to play a role in the process because it is deemed to be capable of administering specific functions more efficiently than the state.
Topic:
Foreign Policy and Diplomacy
Political Geography:
Turkey

186. Whither an Axis Shift: A Perspective from Turkey's Foreign Trade

Author:
Mehmet Babacan
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Our analysis will discuss Turkey's changing direction, if any, in terms of its trade orientation. This paper argues that Turkey's trade sector has maintained its long-standing direction towards the major European Union (EU) member countries with only minor setbacks, while new dimensions in bilateral trade have emerged not only due to Turkey's changing foreign policy considerations but also global economic transformations. Moreover, this paper argues that Turkey's trade partners are subject to these changes, as the epicentre of the global economy shifts, i.e. to the East. In the first section, a brief introduction with regards to Turkey's foreign trade under the AK Party's administration -since 2002 will be provided. The second section will discuss the scope of regional and worldwide changes in trade patterns and analyze the recent shift in Turkey's trade orientation in the context of Asia's economic and political rise in early 21st century. The Third section will focus on the role of political dynamics in Turkey's trade sector and structural issues.
Topic:
Foreign Policy
Political Geography:
Europe and Turkey

187. Turkey-GCC Relations: Is There a Future?

Author:
Birol Baskan
Publication Date:
02-2011
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
The historical solution to the security problem in the Persian/ Arabian Gulf, that is, the active military protection of a super power, is no longer sustainable as the unipolar world gives way to a multipolar one and the credibility of the United States to provide military security is being increasingly questioned. This paper addresses a question neglected by both international and regional analysts: can Turkey play any role in the future Gulf security architecture? The paper argues that Turkey can help the GCC states develop effective state institutions and build regional institutional mechanisms to solve potential crises and alleviate the security dilemma in the Gulf. It can deliver this public good to the region precisely because Turkey has strong economic and political interests to have good relations with all sides concerned with the Gulf security.
Topic:
Security
Political Geography:
United States and Turkey

188. Editor's Note

Author:
Ihsan Dagi
Publication Date:
10-2010
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Turkey's history of democratization is also a history of constitutional amendments. This is so because the last two Turkish constitutions of 1961 and 1982 were penned under the military regimes. As such, a restrictive civil rights regime and institutionalization of the power of the unelected bodies vis-à-vis representative organs characterized these military-made constitutions.
Political Geography:
Turkey

189. Turkey's Role in the Middle East: An Outsider's Perspective

Author:
Volker Perthes
Publication Date:
10-2010
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Owing to a changing geopolitical environment and a new foreign policy approach, Turkey's policies towards and role in the Middle East have undergone substantial changes since 2003. The most important facets, from a European perspective, are Turkey's efforts to improve relations with its direct Middle Eastern neighbors, and to play a mediating role between different, sometimes quite difficult, players in the Middle East. In general, Turkey has been more successful in improving its relations with proximate neighbors than in settling disputes between other states and non-state actors in the Middle East. As long as Turkey maintains good relations with all players in the Middle East and understands the limitations to its role, it can substantially contribute to positive change in the Middle Eastern landscape. This will also allow more coordination and cooperation between Turkey and the EU with regard to their overlapping Mediterranean and Middle Eastern neighborhoods.
Political Geography:
Turkey and Middle East

190. United States and Turkey: Allies at Odds?

Author:
Robert Wexler
Publication Date:
10-2010
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Much has been said and written about US-Turkish relations recently. The main reason for that is the fact that the relations have gone through a difficult period when clear disagreements over several issues have emerged. The “flotilla incident” and Turkey's “no” vote at the United Nations Security Council as a nonpermanent member of the Council have given the appearance of a major row between the US and Turkey. Part of the reason for that is Turkey's ambition to make decisions independently as a sovereign nation, which should be respected by her allies. The US and Turkey may have differences of opinion with respect to Israel and Iran. However, I would argue that the areas of cooperation, especially in Iraq and Afghanistan, can only be described as exceptional. Instead of focusing on differences, we need to strengthen and highlight areas of cooperation based on our mutual inter.
Political Geography:
Afghanistan, United States, and Turkey