The Economic Stall in Turkey: Causes and Impacts

Abstract

In recent years, multiple dilemmas in regards of politics, security, diplomacy and economy, especially the lasting economic stall are faced by Turkey. Why did Turkey fell from the dazzling emerging economy into a stagnant economy? It cannot be ignorable that the stalling economy has highlighted the internal contradictions in domestic political and economic systems. The reasons why Turkish “economic miracle” suffered crisis mainly are the weakening of internal momentum, over-reliance on foreign investment, declining of the driving force of reform, as well as multiple internal and external crises. The stalling economy has largely weakened the economic foundation of the Turkish model, promoting the turbulence and conservative trend of domestic politics and speeding up the authoritarianization of Turkish president Erdoğan. The stalling economy, coupled with worsening diplomatic dilemma and dim democracy, led to the crisis of the Turkish model. The crisis of the model has impacted on Turkey’s international influence and its relations with other powers as well. It is also important to explore Turkey's economic problems for understanding the current Middle East and the changes of emerging economies in the world.

Keywords: Turkey; Economic stall; multiple dilemmas; the Turkish model