Chapter 7: Richer than Croesus? Understanding the Subordination of State and Banks to Emerging Finance Capitalism in Turkey
The approximation of neoliberal social rule in Turkey since the 1980s had proven unrealistic by the late 1990s. To better institutionalize neoliberalism the coalition government embraced the 1999 disinflation program that, rather than resolving neoliberal financial instability, ushered in two new and more severe banking crises (Cizre and Yeldan 2005; Erbaş and Turan 2009). The impact of the crises did not lead state and government elites to reject neoliberalism. Rather, the crisis served as an opportunity to consolidate neoliberalism’s progressively finance-led form via a state-led rescue. Following the rescue Turkey’s new ruling elites and state authorities maintained their political commitments to internalizing the social logic of financial capital as the state’s own social logic. The consolidation of Turkey’s emerging finance capitalist state form has meant that the popular and laboring classes disproportionately bear the costs of this accumulation strategy without sharing in the benefits. This argument is developed in four sections. Section 7.1 examines the 2001 crisis and how the state-led rescue internalized new financial imperatives. Section 7.2 details how the incoming Adalet ve Kalkınma Partisi (AKP; Justice and Development Party) government continued to restructure the state apparatus in ways beneficial to financial capital in Turkey. Section 7.3 analyzes the changing structure of the banking sector from 2001 until the present, and Section 7.4 looks at how and why the Turkish banks weathered the 2008 crisis. A brief conclusion follows. 7.1 THE 2001 STATE-LED BANKING RESCUE: SAVING NEOLIBERALS FROM THEMSELVES, AGAIN Far from severing ties to neoliberalism the state-led...
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