Turkey's economic model and historical roots of dependency

An analysis of Turkey’s economic structure examines the historical roots of its current economic model and the concept of dependency. While contemporary criticism often focuses on the AKP’s policies, such as the weakening of institutions and legal erosion, the current system is viewed as a culmination of a neoliberal transformation that began with the January 24 decisions, deepened through 1990s privatizations, and was shaped by IMF programs and the post-2001 crisis framework.

This economic dependency has historical precedents dating back to the Ottoman Empire. During the reign of Abdul Hamid II, the empire faced significant external debt and a state of ‘semi-colonialism.’ Historical analyses, including those by Rosa Luxemburg, highlight how foreign capital, such as German investments financed by Deutsche Bank, utilized Ottoman infrastructure projects like railways. These investments were often guaranteed by the state, placing the financial risk on local taxpayers while ensuring profits for foreign entities, illustrating a long-standing pattern of capital and risk distribution.