Spread of Laissez-Faire Capitalism in The World Since 1980s With Neoliberalism and Transition to Open Market Economy İn Türkiye

Abstract

Developing countries are forced to choose the most suitable development paradigm in order to modernise, evolve to capitalism and structurally change. Between 1950s and 1980s Structuralist paradigm and Import Substitution Industrialization (ISI) strategies were applied in developing countries. However since the begining of 1980s Export Led Growth (ELG) model and Neoliberal views are popular in the developing world. Since 1980s many social researchers try to investigate the influences of free market economy, institutions and democracy on economic performance. Although there are limited number of sucessful developing countries with good economic performance, there are many unsucessful countries in the global economy. There is no universal formula for developing countries to manage their open economies economic institutions and liberalization policies. Developing countries who can manage globalization policies wisely are sucessful to achieve development and high growth rates. Within this regard, etatist industrialization in Turkey, which had started during 1930s, ended with January 24 1980 economic measures. Since the beginning of 1980s, Turkey is trying to modernize with Neoliberalism that is, Neoclassical economics. In this study, the relationship between open economy, institutions, democracy and economic performance are tried to be explained by using the approach of economic sociology.