Economic Governance

Abstract

This chapter analyses Turkey’s economic governance performance in historical terms. It documents the enduring institutional and political problems that have impeded the formation of pro-development policy coalitions. It then focuses on the post-2000 era to highlight the strong continuity of reproducing ineffective economic governance practices. Next, it concentrates on R&D policies between 2002 and 2010, when Turkey was generally considered a promising “trading state” built on strong economic performance and foreign policy activism. Finally, it examines the consequences of weak economic governance: relatively mediocre industrial upgrading performance and low “exit costs” for preserving trade interdependence with neighboring countries. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.