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Turkey: Role of Government in the Economy
Country Study > Chapter 3 > The Economy > Role of Government in the Economy

ROLE OF GOVERNMENT IN THE ECONOMY


The Ottoman Empire established a strong tradition of government direction of the economy. Ottoman economic doctrine ascribed to the state both the right and the duty to control the economy for the common good. The state controlled a large proportion of the land and suppressed power centers, blocking the development of a landed aristocracy. One's position in the imperial hierarchy was the primary determinant of income. Because the sultan confiscated his functionaries' wealth when they died, status could be passed on only by means of education. For example, candidates for positions in the bureaucracy were required to have command of the Ottoman language. Peasants and artisans also claimed and received protection from the state, often at the expense of economic modernization. The bureaucracy had little interest in economic growth, which might lead to the rise of a new class that would challenge its dominance. To ensure control of certain urban-based production and service functions, they were reserved for minority groups.

Republican Turkey inherited attitudes and memories from the Ottomans that continue to play a key role in the country's political economy in the late twentieth century. Republican leaders believe that the state has a duty to intervene in the economy, not only to strengthen the nation against foreign intervention but ultimately to further the well-being of the people.




Last Updated: January 1995


Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Turkey was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on Factba.se.

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