The Recent Turkish Crisis: Another Step Toward Free Market Authoritarianism

Abstract

[In February 2001, Turkey experienced her third and deepest economic crisis in fifteen months. The importance of the event far exceeds its Turkish confines for the following two reasons. First, the crisis is closely linked to changes in class relations in Turkey due to internationalisation of production and finance. Second, more generally, the crisis is a consequence of the absence of a world monetary system that could sustain the aforesaid internationalisation of production and finance. Integration of the Turkish capitalist class into the international economy under present conditions has generated enormous economic turbulence within the country, which first surfaced in the foreign exchange market. Crisis subsequently spread to finance, trade, and industry, with profound social and political implications. In this respect, the Turkish crisis is similar to other recent crises in the world economy, including South East Asia in 1997–8, Russia in 1998, and Brazil in 1998–9., In February 2001, Turkey experienced her third and deepest economic crisis in fifteen months. The importance of the event far exceeds its Turkish confines for the following two reasons. First, the crisis is closely linked to changes in class relations in Turkey due to internationalisation of production and finance. Second, more generally, the crisis is a consequence of the absence of a world monetary system that could sustain the aforesaid internationalisation of production and finance. Integration of the Turkish capitalist class into the international economy under present conditions has generated enormous economic turbulence within the country, which first surfaced in the foreign exchange market. Crisis subsequently spread to finance, trade, and industry, with profound social and political implications. In this respect, the Turkish crisis is similar to other recent crises in the world economy, including South East Asia in 1997–8, Russia in 1998, and Brazil in 1998–9.]