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Stabilization and restructuring during the 1980s

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Chapter Summary

This chapter provides an in-depth look at Turkey's 1980 program and the key events that gradually led to it. A brief overview of stabilization and restructuring experiences of other countries during the 1980s is followed by chronological details of political and economic developments in Turkey before the program's introduction. Finally, another situation adversely affecting capital formation was the withdrawal of public investment from the manufacturing industry. The study also points out the complications that might arise if such policies were to be introduced in an economic and policy environment that was a creation of the 1980 policies, where compliance with the international financial system's requirements are an issue. The chapter concludes with an assessment of Turkey's stabilization and restructuring efforts that dominated the 1980s, and highlights of the program's performance, particularly with respect to its impact on inflation, investment, and economic growth, are discussed.

Keywords: economic growth; inflation; manufacturing industry; public investment; restructuring; stabilization



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