Advertisement

Turkish Debt and Conditionality In Historical Perspective: A Comparison of the 1980s with the 1860s

  • Emine Kıray

Abstract

After the mid 1950s Turkey embarked on a industrialization strategy which relied heavily on foreign capital inflows to finance its intermediate and capital goods imports. Associated with this strategy were regular balance of payments crises, often leading to exogenously imposed stabilization measures. Such stabilization measures were negotiated with the IMF in 1958, 1970, 1978–79 and finally in 1980. Of these, the 1980 programme stands out as the most radical in terms of the extent of structural change it seeks to achieve. The implementation of the 1980 programme which liberalized and opened the Turkish economy to world markets has been accompanied by unprecedented levels of foreign capital inflows. The performance of private investment, however, has not matched expectations and the debt burden of the economy has steadily increased. There are a number of useful comparative analyses of the 20th-century stabilization programmes (see Schick and Tonak, 1987; Ekzen, 1984). The purpose of this paper is to widen the historical context of the comparative analysis by looking at the period of the Ottoman debt and the stabilization programme of the 1860 British mission.

Keywords

Private Investment Budget Deficit Capital Inflow Foreign Debt Monetary Growth 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Boratav, K. (1988) Türkiye İktisat Tarihi, 1908–1985 (Turkish Economic History, 1908–1985) (Istanbul: Gerçek Yayınevi).Google Scholar
  2. Blaisdell, D. C. (1929) European Financial Control in the Ottoman Empire (New York: Columbia University Press).Google Scholar
  3. Ekzen, N. (1984) ‘1980 Stabilizasyon Paketinin 1958, 1970, ve 1978–79 Paketleri ile Karşılaştırmalı Analizi’ (A Comparative Analysis of the 1980 Stabilization Package with the 1958, 1970 and 1978–79 Packages), in İ. Tekeli et al., Türkiye’de ve Dünyada Yaşanan Ekonomik Bunalım (The Current Economic Crisis in Turkey and the World) (Ankara: Yurt Yayınları) pp. 165–87.Google Scholar
  4. Erdost, C., (ed.) (1982) IMF İstikrar Politikaları ve Türkiye (IMF Stabilization Policies and Turkey (Ankara: Savaş Yayınları).Google Scholar
  5. Hobart, Lord V. H. and E. M. Foster (1862) ‘Report on the Financial Condition of Turkey’, Great Britain: Parliamentary Papers, Vol. 64, No. 2972.Google Scholar
  6. Issawi, C., (ed.) (1966) The Economic History of the Middle East, 1800–1914 (Chicago: The University of Chicago Press).Google Scholar
  7. Kıray, E. (1987) ‘Foreign Debt and Structural Change in the “Sick Man of Europe”: The Ottoman Empire, 1850–1875’, PhD dissertation, Massachusetts Institute of Technology.Google Scholar
  8. Kopits, G. (1987) ‘Structural Reform, Stabilization, and Growth in Turkey’, International Monetary Fund Occasional Paper 52 (Washington DC: IMF).CrossRefGoogle Scholar
  9. Krueger, A. (1974) Foreign Trade Regimes and Economic Development: Turkey (New York: Colombia University Press).Google Scholar
  10. Okyar, O. (1983) ‘Turkey and the IMF: A Review of Relations, 1972–1982’, in J. Williamson, (ed.) IMF Conditionality (Cambridge, Mass.: Massachusetts Institute of Technology Press) pp. 533–62.Google Scholar
  11. Pamuk, Ş. (1984) Osmanlı Ekonomisi ve Dünya Kapitalizmi, 1820–1913 (The Ottoman Economy and World Capitalism, 1820–1913) (Ankara: Yurt Yayınevi).Google Scholar
  12. Schick, I. C. and E. A. Tonak (1987) ‘The International Dimension: Trade, Aid, and Debt’, in I. C. Shick and E. A. Tonak, (eds.), Turkey in Transition: New Perspectives (New York: Oxford University Press) pp. 333–63.Google Scholar
  13. Taylor, L. (1983) Structuralist Macroeconomics (New York: Basic Books).Google Scholar
  14. Tekeli İ., et al. (1984) Türkiye’de ve Dünyada Yaşanan Ekonomik Bunahm (The Current Economic Crisis in Turkey and the World) (Ankara: Yurt Yayınevi).Google Scholar
  15. TÜSİAD (1987) Dış Borçlar: Tahmin ve Analiz (Foreign Debt: Estimation and Analysis) (Istanbul: Turkish Industrialists’ and Businessmen’s Association).Google Scholar
  16. World Bank (1988) World Development Report, 1988 (New York: Oxford University Press).CrossRefGoogle Scholar

Copyright information

© Tosun Arıcanlı and Dani Rodrik 1990

Authors and Affiliations

  • Emine Kıray

There are no affiliations available

Personalised recommendations