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Submitted by Efe Savas on

I agree with Ali that Turkey's growth experience can not be held as a case of inclusive growth considering lack of any significant improvement in the 'relative' income of bottom 40% and the persistence of huge income gap even despite the constant growth that Turkey has been experiencing throughout the post 2001 period. The fact that Turkey can not be considered as a text-book example of 'inclusive growth', nevertheless, should not keep us away from recognizing that more people has been 'included' thanks to the improvement in absolute terms. Yet I still think there are two parameters that should be kept in mind before evaluating government's policies for the poor and middle income people. First, one should be cautious before so readily attributing such improvement to the government policies alone, as the temporal enhancement in the global liquidity which in turn stimulated consumption not only in Turkey but in all developing countries. Credit bubble, and the construction sector that has been built around that bubble with the help of ever declining labour costs surely helped. In that regard, it is blatantly obvious that Turkey has failed to capitalize well enough on this exceptionally helpful global conjuncture when compared to Brazil and China.. Second, institutionalization of short term labour contracts and flexible and informal employment, though, seem to help as a cushion against economic downturn in the short-term, for the long-term, lay the foundations for increased inequality by rendering labour market regulations less and less friendly for employees..