Turkey's political economy in the age of financial globalization: the significance of the EU anchor

Abstract

The recent Turkish experience clearly illustrates how markets and politics can interact ill producing significant economic transformation. Focusing oil the new phase of neo-liberal restructuring in Turkey in the post-crisis era, we highlight the importance of the European Union (EU) and International Monetary Fund (IMF) anchors and the specific domestic and external linkages through which these double external anchors have operated. We argue that the anchors played significant and complementary roles in the recent transformation process in Turkey. We also underline some of the tensions that are likely to arise in the new era of accession negotiations with the EU given the incomplete transformation accomplished so far.