Author: mehmetermanerol

Debating 鈥楽tate Capitalism鈥� in Turkey: Beyond False Dichotomies

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Following the 2016 failed coup attempt, and in the context of increasing mistrust towards the West, Turkey鈥檚 president Erdogan reflected his discontent with the EU and argued that , namely the Shanghai Cooperation Organisation (SCO) led primarily by China and Russia. Soon after, despite being a NATO member, to buy the S-400 air defence missile system. Taken together with Turkey鈥檚 other 鈥榓dventures鈥� in its region, these developments were perceived as manifestations of a changing political economy of Turkey, and were deeply disturbing to Western powers. After all, since the end of the Second World War, Turkey had been a close ally of the US-led Western capitalist bloc, it continued to be one during the Cold War; and had remained very close to US and EU interests following the end of the Cold War in 1991.

For some accounts[i], these developments are related to the changing world order and global power shifts following the 2008 crisis, as the decline of the 鈥榣iberal international order鈥� and the rise of BRICS (Brazil, Russia, India, China and South Africa) marked transformations of the global political economy. Hence, there is a tendency to explain Turkey鈥檚 late political economy in this context. It is argued that, in this 鈥榩ost-liberal international order鈥� where two competing political economies come to the fore, Turkey is moving towards the 鈥楨ast鈥� or 鈥榥on-West鈥� – mainly China and Russia. As such, Turkey鈥檚 engagement with non-Western 鈥榞reat powers鈥� (which are generally characterised by 鈥榓uthoritarian state capitalism鈥� as opposed to the 鈥榥eoliberal political economy鈥�/liberal democracy/鈥檇emocratic capitalism鈥� of the West), shapes Turkey鈥檚 political economy and paves the way for 鈥榓uthoritarianism鈥�, 鈥榠lliberal democracy鈥� and 鈥榮tate capitalism鈥�. Put differently, as the legitimacy crisis of 鈥榃estern neoliberalism鈥� makes it less desirable for countries like Turkey, Turkey is regarded to have deviated from neoliberalism and liberal democracy and moved to state capitalism and authoritarianism.

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Assessing the 鈥楻eturn鈥� of the State: Bringing Class Back In

mehmetermanerol1 Comment

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鈥�There are decades where nothing happens; and there are weeks where decades happen鈥�, words famously attributed to Lenin. In the last few weeks the Covid-19 pandemic has led to an extraordinary series of events throughout the world. Our everyday lives, the way our economies are organised, and the ways that we exercise our basic rights and freedoms are being transformed. These changes were unimaginable only a few weeks ago.

A significant aspect of these 鈥榚xtraordinary times鈥� is governments鈥� extraordinary responses to the economic meltdown triggered by the coronavirus crisis. Within the space of just a few weeks, one taboo after another in Western capitalism has been broken, . As monetary policy measures (i.e. unlimited QE, record low interest rates) , unprecedented fiscal stimulus packages including wage and income guarantees came to the fore. In the EU, the so-called ordoliberal principles of competition, free market and a commitment to a balanced budget (that were harshly imposed upon Greek and other peripheral European economies during the Eurozone crisis) appear to have been all but forgotten by the core capitalist countries. 鈥榃e will protect our strategic companies from foreign takeovers鈥� . The infamous 鈥�schwarze Null鈥� budget policy of Germany, for example, was abandoned as the . In the UK, the traditionally austerity-loving Conservative 笔补谤迟测鈥檚 Chancellor of the Exchequer announced an . The Trump administration , amounting to $2 trillion, which includes 鈥榟elicopter money鈥� for the citizens. 鈥�鈥� became the motto of G20 leaders and finance ministers. All of a sudden, austerity ended as the reproduction of the capitalist system became impossible without the protective measures that were introduced. This reflects the fact that austerity was a political choice all along; despite being framed as 鈥�TINA鈥� for years. Read More »