Debating ‘State Capitalism’ in Turkey: Beyond False Dichotomies

Following the 2016 failed coup attempt, and in the context of increasing mistrust towards the West, Turkey’s president Erdogan reflected his discontent with the EU and argued that Turkey should instead join the Shanghai Five, namely the Shanghai Cooperation Organisation (SCO) led primarily by China and Russia. Soon after, despite being a NATO member, Turkey signed a deal with Russia to buy the S-400 air defence missile system. Taken together with Turkey’s other ‘adventures’ 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 ‘liberal international order’ 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’s late political economy in this context. It is argued that, in this ‘post-liberal international order’ where two competing political economies come to the fore, Turkey is moving towards the ‘East’ or ‘non-West’ – mainly China and Russia. As such, Turkey’s engagement with non-Western ‘great powers’ (which are generally characterised by ‘authoritarian state capitalism’ as opposed to the ‘neoliberal political economy’/liberal democracy/’democratic capitalism’ of the West), shapes Turkey’s political economy and paves the way for ‘authoritarianism’, ‘illiberal democracy’ and ‘state capitalism’. Put differently, as the legitimacy crisis of ‘Western neoliberalism’ 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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