Globalization and Employment Policies in the Turkish Economy

Gökhan Oruç Önalan
Karabük University
https://orcid.org/0000-0002-6290-414X

Synopsis

Within the framework of the basic problematic of economic history, the aim of this study is to evaluate the impact of increases in the quantity and productivity of the labor factor on the long-term economic development trend of the Turkish economy within the framework of causality through the change and transformation of the economy during the period of globalization and neoliberal policies that have been effective since 1980. After the first experience of the world economy in the XIX century, the second experience of globalization has been felt since the 1970s. In this period, states emphasized the functioning of the market mechanism, barriers to international trade were eased within the scope of neoliberal economic policies, and the control over global capital movements was reduced. However, the fact that the movement of labor between economies continued to be restricted in this period reveals the realities of the globalization phenomenon regarding income inequality.

The Turkish economy has also joined the globalization adventure by adopting neoliberal economic policies since January 1980. This globalization story can be analyzed in three sub-periods. The first period is 1980-1987. The main objective of economic policy in this period was to replace the interventionist and domestic market-oriented economic model with an economic model that emphasized the market mechanism and tended to improve export performance. The second period covers the years 1987-2001. This period is characterized by economic and political instability. Since 1989, the liberalization of global capital movements facilitated the state's access to external sources of financing, while coalition governments abandoned fiscal discipline in favor of short-term political preferences. As a result, the Turkish economy became more vulnerable to external economic shocks and more fragile. The period from 2001 until today is the third period in the globalization adventure of the Turkish economy. Although political stability was achieved in this period, the structural economic problems of the economy such as low domestic savings, current account deficits, high unemployment rate, etc. could not be solved.

In the words of the German Historical School, unless economic theory and policy are shaped around historical realities, they cannot go beyond being utopias. In other words, theories and policies to be put forward for the solution of economic problems faced by societies can only be built on historical experiences, which are subjective, not universal.  Since theories that are confined to time and space cannot have universal validity, the aim of this study is to propose a solution to the unemployment problem of the Turkish economy that is shaped in the context of historical realities that predate Türkiye.

How to cite this book

Önalan, G. O. (2023). Globalization and Employment Policies in the Turkish Economy. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub185

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Published

July 12, 2023

ISBN

PDF
978-975-447-673-6

DOI