Towards a Synthesis of Islam and the Market Economy? The Justice and Development Party's Economic Reforms in Turkey

Abstract

Turkey has some unique characteristics, one of which is that it is the only Muslim country seeking to join the European Union. Internally, it has been going through a new and challenging experience in recent years: implementing free‐market economic policies under a ‘Conservative Democrat’ government, the leadership of which comes from moderate Islamism. Many observers think that Turkish experience shows how Islam and the market economy are compatible. This article critically evaluates these reformist economic policies implemented since late 2002 and highlights the major factors behind Turkey's success story.

How Can Bank Reforms Assuage Socioeconomic Ordeals in Emerging Economies?: Lessons for Egypt from the Turkish Experience

“…Thus, the commonsensical policy implication is to encourage the expansion of domestic private banks, whilst discouraging mergers and acquisitions beyond the mean-sized banks. It might also be advisable for state-owned banks to consider going into joint ownership with private banks as a means of enhancing their efficiency (Acar, 2009). …”

“…Hirschl (2004) explains that in spite of the fact that both national characters may differ in some ways, with Turkey adhering more to the European paradigm, the openness of the majority of the young Egyptian population to western media and social networking in addition to the strict constitutional division between the state and religion renders both collective identities rather similar. To ensure cohesion of all societal factions, both governments have taken strides in harmonising Islamic traditions with a market economy (Acar, 2009). Another similarity between Egypt and Turkey is the selection of both nations among the "Next-11" EMEs that are apt to catch up with the rapid and robust macroeconomic growth of the so-called "newly industrialized nations" (Wilson and Stupnytska, 2007).…”

The Historical “Stickiness” of Nationalism Inside Turkey's Political Field

“…All these actions supplied AKP with considerable political capital within the field, which allowed the party to accumulate enough social credibility to carry it successfully through two national elections, two municipal elections and the contentious referendum of September 2010. 50 Yet, on the other hand, the electoral and democratic success of the AKP in office does not mean that the whole field has been transformed and its nationalist modus operandi has shifted toward a more liberal logic of constitutional citizenship. While the AKP policies have, intentionally or not, created opportunities inside the polity for pushing the government (especially via civil society and social movement organizations) toward deeper democratic reform, after seven years, the AKP's actual, though unintended function has been the completion of the absorption, and thus neutering, of the Islamist challenge to the hegemonic logic of Turkey's political field.…”