IR 4109 Issues for Turkey in the Global Political Economy Spring 2015



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IR 4109 Issues for Turkey in the Global Political Economy Spring 2015 Class time: Wednesday 09:40-10:30 and Friday 10:40-12:30 in A331 Contact Information Pınar Đpek Office Hours: Wednesday 11:00-11:30 and Friday 15:00-15:30 or by appointment Office: e-mail: A325 pinari@bilkent.edu.tr / web page: www.bilkent.edu.tr/~pinari or http://bilkent.academia.edu/pinaripek Moodle info: Moodle will be used for this course. You can access Moodle by logging into STARS/SRS. Once you open your course schedule you will see the link to access Moodle. Course materials and weekly course schedule will be posted on Moodle. Aims and Objectives This course aims to introduce you to the issues important for Turkey in the global political economy. The course topics are grouped through a historical overview of the political economy of Turkey in relation to structural economic transformations and political developments in the globalization process. The course is divided into three sections. Section one briefly introduces the relationship between the institutional legacy of the early modernization, industrialization during the Ottoman Empire and state-led development in Turkey between 1908 and 1960s. Section two examines the economic crises and market liberalization period between 1980 and 1991. The issues for these sections can be seen in the weekly topics. Section three will cover student presentations about major changes and continuities for Turkey in trade, production/foreign direct investment, and human development in light of the twin processes of regionalization (specifically accession to the EU and increasing trade with the Middle East and North Africa) and globalization. At the end of the this course, you will Know historical developments of Turkish political economy Understand structural and actor/social forces driven challenges in trade, transnational production, global financial system, and human development for Turkey in global political economy. Be able to apply the acquired course knowledge and theoretical perspectives to discuss and research on the changes and continuities for Turkey in the global political economy. Readings and Resources Required and recommended readings are listed under the weekly schedule. While journal articles can be accessed on Moodle, book chapters are available at the Bilkent Library.

Weekly Schedule Week 1: Introduction to the Course (February 4, Wednesday, February 6, Friday) SECTION ONE: State-led Development (1908-1980) Week 2: Ottoman Legacy, Modernization and Economy (1908-1923) (February 11, Wednesday, February 13, Friday) 1. Mehmet Genc, State and the Economy in the Age of Reforms: Continuity and Change in Kemal H. Karpat (ed.) Ottoman Past and Today's Turkey (Leiden: Brill, 2000), pp. 180-187. 2. Serif Mardin, Transformation of an Economic Code in Ergun Ozbudun and A Ulusna (ed.s) The Political Economy of Income Distribution in Turkey, pp. 23-54. 3. Erik J. Zürcher, Turkey A Modern History (London: I.B. Tauris, 1997), Chapter 8 Finance and economics: from liberalism to nationalism, pp. 123-127. - Korkut Boratav, Turkiye Iktisat Tarihi (Ankara: Imge Yayinevi, 2006, 10 th edition) Chapter 1, pp. 19-39. - Sevket Pamuk, The Recovery of the Ottoman Monetary System in the 18 th Century in Kemal H. Karpat (ed.) Ottoman Past and Today's Turkey (Leiden: Brill, 2000), pp. 188-211. - Sevket Pamuk, Institutional Change and the Longevity of the Ottoman Empire, Journal of Interdisciplinary History 35: 2 (Autumn, 2004): 225-247. - Sevket Pamuk, The Ottoman Empire and European capitalism, 1820-1913: trade, investment, and production. (Cambridge: Cambridge University Press, 1987) - Zafer Toprak, Türkiye'de Milli Iktisat, 1908-1918 (Ankara : Yurt, 1982) - Zafer Toprak, Đttihad-Terakki ve Cihan Harbi : Savaş Ekonomisi ve Türkiye'de Devletçilik, 1914-1918 (Đstanbul : Homer, 2003) Week 3: Etatism and Liberalism and Economy (1923-1929, 1930-1950, and 1950-1960) (February 18, Wednesday, February 20, Friday) 1. Erik J. Zürcher, Turkey A Modern History (London: I.B. Tauris, 1997) Chapter 11 Economic developments in the one-party era pp. 195-200 and Chapter 12 Economic developments in early multi-party era, pp. 225-230. 2. Henri Barkey, The State and the Industrialization Crisis in Turkey (Boulder, Westview Press, 1990) Chapter 3 The Historical Antecedents of Import Substitution in Turkey pp. 39-58. - Korkut Boratav, Turkiye Iktisat Tarihi (Ankara: Imge Kitapevi, 2006, 10 th edition) Chapters 2-6, pp. 39-116. - Nevzat Evrim Onal, Osmanli Imparatorlugu ndan Cumhuriyet e Geciste Buyuk Toprak Sahiplerinin Sinifsal Rolu ve Donusumu, METU Development Studies 39 (April 2012): 137-169. - Mustafa Turkes, Kadro Hareketi: Uluscu Sol Bir Akim, (Ankara: Imge Kitapevi, 1999) In-class discussion #1 Week 4: Import Substitution Industrialization and Private Sector (1960-1980) (February 25, Wednesday, February 27, Friday) 1. Erik J. Zürcher, Turkey A Modern History (London: I.B. Tauris, 1997) Chapter 14 the economy: planning and import substitution, pp. 264-273. 2

2. Henri Barkey, The State and the Industrialization Crisis in Turkey (Boulder, Westview Press, 1990) Chapter 4 Planning and Implementing ISI in Turkey, pp. 59-74. - Korkut Boratav, Turkiye Iktisat Tarihi (Ankara: Imge Kitapevi, 2006, 10 th edition) Chapter 7, pp. 117-144. Week 5: State and Society: The role of business/private sector (March 4, Wednesday, March 6, Friday) 1. Metin Heper, (ed.) Strong State and Economic Interest Groups: The Post 1980 Turkish Experience (Berlin and New York: Walter de Gruyter: 1991): pp. 12-20. 2. Ayse Bugra, State and Business in Modern Turkey (Albany, N.Y.: State University of New York Press, 1994) Chapter 2 Private Business in Turkey: Past and Present, pp. 35-68. 3. Henri Barkey, The State and the Industrialization Crisis in Turkey (Boulder, Westview Press, 1990) Chapter 6 Private Sector Cleavages pp. 109-148. - Ayse Bugra, State and Business in Modern Turkey (Albany, N.Y.: State University of New York Press, 1994) Chapter 3 Political Context of Business Activity pp. 95-169. - Nilufer Gole, Muhendisler ve Ideoloji: Oncu Devrimcilerden Yenilikci Seckinlere, (Istanbul: Metis Yayinlari, 2004, 3 rd edition) In-class discussion #2 Week 6: State and Society (March 11, Wednesday, March 13, Friday) 1. Ayse Bugra, State and Business in Modern Turkey (Albany, N.Y.: State University of New York Press, 1994) Chapter 5 Business Associations in Turkey, pp. 225-262. 2. Gul Berna Ozcan and Murat Cokgezen Gezen, Limits to Alternative Forms of Capitalization: The Case of Anatolian Holding Companies World Development 31:12 (2003): 2061-2084. 3. Maksut Mumcuoglu, Political Activities of Trade Union and Income Distribution, in The Political economy of income distribution in Turkey, Ergun Ozbudun and Aydin Ulusan, eds. (Holmes and Meier Publishers, 1980): pp. 379-408. SECTION TWO: Market Liberalization and Economic Crisis (1980-2001) Week 7: Export-led Growth, Inflation and Crisis (No Classes on March 18, Wednesday - Official Holiday, March 20, Friday) 1. Erik J. Zürcher, Turkey A Modern History (London: I.B. Tauris, 1997) Chapter 15 Economic Restructuring: export drive instead of import substitution pp. 306-316. 2. Ziya Onis, Turgut Ozal and his Economic Legacy: Turkish Neo-Liberalism in Critical Perspective, Middle Eastern Studies 40:4 (January 24, 2007). - Korkut Boratav, Turkiye Iktisat Tarihi (Ankara: Imge Kitapevi, 2006, 10 th edition) Chapter 8, pp. 145-169. - Ziya Öniş. 1998. State and Market: The Political Economy of Turkey in Comparative Perspective (Đstanbul: Boğaziçi University Press), Chapter 26: Democracy, Populism and Chronic Inflation in Turkey, pp. 495-512. In-class discussion #3 3

Week 8: Financial Crises and IMF (March 25, Wednesday, March 27, Friday) 1. C. Emre Alper and Ziya Onis, Financial Globalization, the Democratic Deficit, and Recurrent Crises in Emerging Markets: The Turkish Experience in the Aftermath of Capital Account Liberalization, Emerging Markets Finance and Trade 39:3 (May-June 2003): 5-26. - Korkut Boratav, Turkiye Iktisat Tarihi (Ankara: Imge Kitapevi, 2006, 10 th edition) Chapter 8, pp. 171-203. Week 9: Financial Crises and IMF (continued) (April 1, Wednesday, April 3, Friday) 1. Z. Öniş and E. Alper, Emerging Market Crises and the IMF: Rethinking the Role of the IMF in the Light of Turkey s 2000 and 2001 Crises, Canadian Journal of Development Studies, Vol. X. No. 2 (2003). 2. Yilmaz Akyuz and Korkut Boratav, The Making of the Turkish Financial Crisis, World Development 31:9 (2003): 1549-1566. - Erinc Yeldan, Neoliberal Global Remedies: From Speculative-Led Growth to IMF-Led Crisis in Turkey, Review of Radical Political Economics 38:193 (June 15, 2006): 193-213. - Caner Bakir and Ziya Onis, The Regulatory State and Turkish Banking Reforms in the Age of Post-Washington Consensus, Development and Change 41:1 (2010): 77-106. Week 10: State, Society and Business: Income Distribution (April 8, Wednesday, April 10, Friday) 1. Umit Cizre-Sakallioglu and Erinc Yeldan, Politics, Society and Financial Liberalization: Turkey in the 1990s, Development and Change 31 (2000): 481-508. 2. Ziya Onis, Crises and Transformations in Turkish Political Economy, Turkish Policy Quarterly 9:3 (2010): 46-61. 3. Omer Demir, Mustafa Acar and Metin Toprak, Anatolian Tigers or Islamic Capital: Prospects and Challenges, Middle Eastern Studies 40:6 (September 8, 2010): 166-188. - Sumru Altug, Alpay Filiztekin, and Sevket Pamuk, Sources of long-term economic growth for Turkey, 1880-2005, European Review of Economic History 12 (2008): 393-430. - Ayse Bugra, Kapitalizm, Yoksulluk ve Turkiye de Sosyal Politika (Istanbul: Iletisim Yayinlari, 2008) In-class discussion #4 4

SECTION THREE: Continuities and Changes for Turkey in Global Political Economy Week 11: Regional Trade (April 15, Wednesday, April 17, Friday) 1. Kamil Yilmaz, The EU-Turkey Customs Union Fifteen Years Later: Better, Yet not the Best Alternative, South European Society and Politics 16:2 (June 21, 2011): 235-249. - Leyla Bastav, Disa acik buyume modelinde sanayi politikalarinin gelisimi: Turk imalat sanayiinin yapisi ve rekabet gucu (1980-2011), METU Development Studies 39 (December 2012): 303-322. Student presentations Week 12: Foreign Direct Investment (April 22, Wednesday, April 24, Friday) 1. Ricardo Bustillo Mesanza and Carlos Rodriguez Gonzalez, An assessment of trade and investment flows between Turkey and the European Union: Perspectives on future political integration, METU Studies in Development 36 (June 2009): pp. 197-206 only. 2. Umit Izmen and Kamil Yilmaz, Turkey s recent trade and foreign direct investment performance in Ziya Onis and Fikret Senses (ed.s) Turkey and the Global Economy: Neolibreal restructuring and integration in the post-crisis era (New York, NY: Routledge 2009), pp.173-203. Student presentations Week 13: Human Development and Foreign Aid (April 29, Wednesday, No Class on May 1, Friday) 1. Ozlem Onaran, Crises and post-crisis adjustment in Turkey: implications for labor in Ziya Onis and Fikret Senses (ed.s) Turkey and the Global Economy: Neo-libreal restructuring and integration in the post-crisis era (New York, NY: Routledge 2009), pp. 243-261. 2. Pinar Ipek, Ideas and Change in Foreign Policy Instruments: Soft Power and the Case of the Turkish International Cooperation and Development Agency, Foreign Policy Analysis (2013): pp. 7-16 only. - Nurhan Yenturk, Turkiye de yoksullara yonelik harcamalar, ODTU Gelisme Dergisi 40 (2013): 433-464. - Nergis Mutevellioglu and Sayim Isik Turkiye Emek Piyasasinda Neoliberal Donusum in Kuresellesme, Kriz ve Turkiye de Neoliberal Donusum, editors Nergis Mutevellioglu and Sinan Sonmez (Istanbul: Bilgi Universitesi Yayinlari, 2009), pp.159-204. Student presentations Week 14: (May 6, Wednesday, May 8, Friday) In-class discussion and review Week 15: (May 13, Wednesday, May 15, Friday) 5

Policies and Procedures General Rules: - Students are expected to check Moodle and Bilkent e-mail every week before class time. - Attendance will be taken in the first hour of every class. Excluding weeks 1, 42 the total number of formal attendance hours is 36, and more than 40% absence from these hours will result in a FZ-grade (see below). Note that this attendance requirement is unaffected by medical reports and other forms of documentation related to legitimate absences. Note also that students signing attendance for other students will be reported to the FEASS disciplinary committee. - This is an elective course. Students are highly expected to participate in class discussions. No participation will result in zero point. - Students must submit the essay on due date. Late submissions will not be accepted and will not be graded. The only exception is for ill students, who must provide a medical report for the due date. The report must be approved by the Bilkent Health Centre. Both the medical report and the essay must be submitted to the instructor the next class following the expired period of the medical report. - Students are not allowed to use their cell-phones during class and exams. Grading Policies: Assignments and participations: 70% of final grade (70 points). - One essay (25 points) - 4 in class-discussions and 5 points for readings (20 points, (3+2)x 5) - One in-class presentation and research report (25 points) Final exam: 30% of final grade (30 points) 5 points assignments and in-class discussions: There are four in-class discussions. In-class discussion questions will be posted on Moodle for the related week. No participation in class discussion will result in zero point. Students should be able to demonstrate course knowledge during the discussions. The students must read the selected and assigned article(s) for the related week(s) and facilitate their reading in the discussions. The major argument of and interesting facts in the assigned article(s) must be demonstrated in 5 points. The 5 points should be minimum half page or less than a page (A4 size). It should be hand written clearly. The 5 major points can be changed during the in-class discussions and must be submitted at the end of the class. Essay, in-class presentation and research report: The guidelines explaining the details will be posted on Moodle. Final examination visa (FZ rule): In order to qualify for the final examination, a student must have (i) attended minimum 60% of the 39 formal attendance hours (approximately 24 hours, see above), (ii) submitted the essay, (iii) submitted at least two 5 points for readings, (iv) participated at least one in-class discussion, and (iv) completed in-class presentation and research report. Students not qualifying for the final examination based on these visa requirements will receive the grade FZ after the last day of classes. 6