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,^.гp OSS/ ^£J 9ЛT ’9 S £ 2" QH . r.;.' . « ^ *,4 · fЧ · γ *^^1. r *■·* » · ^^ к i "'o к ¿Λ 1¿ к '1^' '.χ.' ic?r^·é , ’ *r-Ч7 ^^' \ί r-'i.,'w' ■ .· ’ui..'. U.Ijktw f-'r ¿ Wub (·.” Lj'W .к· b b'h>*■кA'кс·;i »Ä-n tr. ■ '■· *5 ΐ4 '· ^1r^ ;(·“ ·; i L’S: *1íi r. -rS w . ‘V > к·—■ i»r'» ·β * ^ Wvúr^· úf 4· a K »r-« {:\!Í\ ^■.41“ n λ· r U ■* / \·ί(Χ··\: J’.:‘r rt’"'' ■^ ^· ^Ϊγ -νίώ b ύ: "4¿ чУ;: '·.V >¿is л;.· «¿i t i eJc Ь‘i й ·?■■- к β г>-щ İHb; iINTEREST GkOLPS-srATE INTEREACE: THE CASE Ol· TURKISH İNLîLSTR'îALISTS’ AND BUSINESSMEN’S ASSC)l, 1Al ivJN A Thesis Siibm i t'.ed t o i-i'.e ü-eiJiircnienL o i R·;· Li 1 1C.Mİ Science Public Administration of Bilkent University In Partial Fulfilment of the Requirements for the Decree of f Master of Arts by Celal Nazim İrem September l‘ J90 C c \a \ tarafiMd;.a 1, 0 iY| , -w c’i-ir. Hb І ' ^ ’Э Ь -C L , Τ 2 1-ЧЦ ISÎiO ’ li'.' I.'.j L ! l i a \ r e a d IS 1u > 1;· a:K-.|uaLe, l!ii- t hj s IIk-s j !:, and in n:.'.· :;ıinı·)l: in scoiie and in (iin'il i t.y, dC'g.refc· ol' Master ol ;i as a iln.-sis I'ui Arts in I'oJiticaJ S ci en ce and laihlic AdrainiSt r a t i o n . Prof.Dr. Metin Heper 1 c e r i i i ’ v that 1 have reaci Uiis t h e s i s and in m>· op in io n :s t'.iii; the a·.: ·.,'.] 11 a U ' , in scope and in g ua l i i \, as a lijc-sis it ilh (ive;ri,-e o i .Master o f .Arts in i - 'o l i l i c a ] Scienct· and laibd’ c Adfci n i s t ra t. i on . Dr. Jerem\· SaJ t I certit>· tiuat I iiave read this thesis and in my opinion is I'uJly adequate, the in scope and in quality, ii as a thesis lor degree or Master ot Arts in Foliticai Science and Funiic AdniinisT ral ion. Di', A^■se Kadi oglu ABSTRACT İM study between UK· reievancy state since the nature ol tiie overall treiids lu and interest groups Jyüüs description ol‘ the specificly, aimed Kere relevant at wliich analysed. began Ihe a to inquiry interest groups providing î «'iat in the background gain i i;; political begins witli political information Uie system, of liie organizational sciiema ol the business interests dui'ing the ijerioci concerned. 1ÎU/ stratr'^ies of the relevant ¿i^.sociatioiis in princess ol influencing the public j^olicies In state lin.-iness sector c;1ientel isni. were employed, notably ti;e invc-si igaieci. ihr analysis arguments of the ideal-type models of interest r-eiations in pluralism. group- corpoi'at 1sm and tven though none of the models is sufficient b\' tnemsej\es to expiai ^ the interest group-state relations in Turkish politics on sectorial bas is · Iron) t!:is perspt^ctive, wi th regard to TurKisI:. an empiiasis was placed on ihe inter act ion between the stave and business groups. tljat whi l e in Cirr'lain areas A s s o c i a t i o n seemed to be t o l e r a t e d 11 s vi ews, Uie As so cia ti' jn Ujese i t was ciiscusseci most ar-eas o i the p u b l i c p o l i c y making was s l r i c i i \ in contradictory St lai.ugu's. t.hat ccaiJu b·: to w.hijr/ tlje name o l defending tlie ’'st.atL· e\(iress closed au t Moi 1 1 . y . " to fiuis, tendencies lead to the d i \ers 1 1 i c a. 1 1 on o f l u t v i e s t and gr e at ly d i s t o r t i n g an>· one oi rcr i at i (,nis;. i j.' i deal r\-);e eioijed between business gioiips and the slati·' ..'/or liiin'. 11 OZEÎ :JUU 1:ı !oiı:a, . 1:0 •.'MU 11 >'a;M İU:.'İ\ -^ı 'VİK'iH \:l 1;l·''ip i'iI"; •'!:.ii· ■l eu 1 v:^ 1 ! ı.::M ( 1 } !·· · C· M . 1 L t -J Jil «<4 ^ bi'ü ş 1 :.ı\ i “ el a çoğu k a mu k a u a 11 a ş a i *a K , ii î: ^ n li i il i11e! i: i. • Ii!l kollVl j c a l·’ Ls kamu İÜ r k ac j s • i cinci e •· .1.0 r i i is k is i Î./C; i i t i k a s ı ] joİ i L ii; a s ı o u i m a i; r a d ı r a ■’ ç ı k a r ' :ı n lif^veren şnıp U ın ve iıa Kk ll: d a i e .ad a m i. a r i. yo. : r İ n T i e i: o d ' İCİ a l a n ı n ], n Bu ."'J/ i i i a y i v: 1 ı'ik iı' d e \ •1^:: Vury;u î;evan y a ; .il J i n a k v..ı‘;ieİ a* t m e s i i r c; l O r İ l e H i n i ı . · · ; w-, tc e a L IVa i. iL ··‘ a 1 i. i . n u e i - i O î y ö n t e m i e ı •i n ' :.. k * r n v ; y ; U i ç n - s i Lt : en i i i v • s i n e v v n K. e r u n m a s .i ö r n e İv y ·:;! i' . a y İl; ^ * M' len ■...rakı:; a a : i;a iiencıin-- s : ti i e 1 a ı · i I; I a ç liia 1 a r 1 1 1 1 . n y an ı s i r a cievlet arasiiıda zaman Lcınde i^eiişeP t. i.‘:rr:ei: olai: iıerlıani^ b i r modelinde bozulmasına yol a ç t ı k l a r ı 111 ‘c artuş Lİıaaktadır, Acl;nou· J edşemeiıt 1 would like to expr*ess my appreciation to I’t o I'. stimulated '..as \ear an at my interest in 7'urkish politics and even Metin Heper wno more uiii'aijing· source of ad\ice and support throug’hout U jv^ l;i:}:ent l;n ivers it.y; 2‘jeat deal. IV m\· ^raduat«’ and as the re\]evsvr of earliei' oifer''/d extensive and t hou^^ht Cu 1 suggesti ons foi· re\iSiOii; s importantly, drati l owe iiin: a I >u:.· \ :■ ‘ İKijM ('V ·.':i ·. L : 1 ! i . l i -xiiic! i o n hiipt o;· *i C) : C îï.'ipt ei· J lircv : : i ’o j ; t : CO - кс C-liwfT. J ·.; ijo c k ş rc iü i!ü' i i-.R:. rfoiio·.· h.::.i > ; v( i¡1; ci 1‘. /Я0 ! ïu ] і : і í^ii InduKt r i a l i St K ’ ; ііѵ : :·::^ΐί;ι1’.SSni у: П' • : j:;: ' ··. ]Ü Ti.0 0 : 4-1. i c J Ь.'іСк(ІГЧ;|]) у. у. As ;і;і •18 : Cî. • !. : ■i Ci 1. ;>. ■ a»]·: i:■ SiSiri-.-SS.Ti'-rli ' s hç Chapter One INTRODUCTION The stale-society relations may be conceptualized from perspectives, each different based on varying degrees of emphasis either on the state or society. Different spheres. a views advanced on the relation between the two It was emphasized by the classical economists that market was self-adjusting activity were natural of diverse order which social groups.^ coordinated Sheldon Wolin the sponteneous summarized this approach as follows: What was society truly radical in liberalism was its as a network of activities carried on by knew no principle of authority. a sponteneous and justice actors self - adjusting order but a transferred from who condition [Hence] the age-old of distributing goods according to some standard was of Society represented not only untroubled by the presence of authority... function conception the political sphere of and assigned to the impersonal judgement of the market.^ It is assumed that private interests would within society.^ emerge Intervention into the market by outside autonomously authorit>· (read ’’the state” ]> reduced Thus, tu bo had to be prevented. a guardian of private property but no more thought, criticisms were raised against that. this mainstream of which reached to its most elaborated form in the works of Karl Polanyni^. As he stated, togetlnr. SeJf-regulating market was unknown. idea of "regulation and markets, in effect, Then, development of a prcidominaiit- role extra-market free market. trend intervention became the Thus, grew up Indeed the emergence of self-regulation was a complete reversal of the development-.”·^ int than society conceived as the source of general order. Certain the State’s role was the state in the fabric of society through came its to path of of play a interventions the market. Increased importance of the state in contemporary world as being the crucial factor in the institutionalization of the market necessarily brings us to its relations with private interest. On the other hand, state-society relations in different countries provided the backdrop for the extent and scope of the state intervention to the private area of the part icular ist ic interests.^ As civil society is conceived of the sphere of particular interest^, then the politically defined state’s^ gains impoiMance. relation to It was suggested by Metin Heper that and too strong institutionalization pattern of the drastic implications in its relations with civil High its environment a non-political state in Turkey had societal elements.^ degre(3 of stateness^^ fed by strong institutionalization resulted in a specific kind of "interest representation" that was in turn shaped by the confrontations of "state elites" and "political elites." Thus, between was as it was found by Powell Jr., political parties and social groups between 1 9 6 5 - 1 9 7 5 . It also into there exis-ted weak linkages a poinLed out by Heper, that "business group did not class with autonomous economic power and norms. develop They were opportunistic rather than entrepreneurial and constructive. As the crisis of the transition from "state-dominant policy" party-centered policy revealed itself over different periods^^ politicized relations unchanged. between government and to highly associations remained Even though one may talk that some continuities can be observed in the patterns of relation between governments and business it can be asserted that with the emergence of voluntary private business association, TUSIAD, as the first there occurred certain changes in the post 1970 period. In this "government" other the and words, state essay certain "state" features of TUSIAD’s from 1971 till to 1990 relations will be studied what is aimed at is to understand the relations and voluntary sectoral representation and legitimacy on both sides. the with in between patterns of TUSIAD, being the first voluntary businessmen association, constitutes a special case where its relation with the state may provide clues about new societal elements. patterns of relations between Thus, employed for their inclusion, vis the bureaucratic elite. are interesting. began policies During the post- A new type of bureaucrat emerged who offers attitude Thus, On the other hand, it can be said towards the private to erode by the emergence of these new type of technocrats. Here, some changes took place vis-à- his expertise to the political party in office, bureaucrats’ civil deserves special emphasis. as pointed out by Heper, traditional and into and exclusion from the by the authorized agents, 1973 pi-r iod, state the answer to the question of "how TUSIAD is represented in the political order?" criterias the interest officials was namely the post-1980 re-institutionalization of the state around different norms and values assigned new roles to the interest group associations. "legitimation" newly with In a changing political environment and "structuration" of the "political actors" around the formulated values and norms necessarily effected "non the their political bodies" which in turn redirected the towards these values such as "unity" and "order". Thus, relation associations the relations between the government and TUSIAD took new patterns. Focusing relationship on the factors which may influence the between TUSIAD and government, analyse the resources held by the two parties. types of control which government possess nature of the an effort will be made to We will try to show the and may exercise on TUSIAD. by Parallel to this, the strategies used and resources mobilized TUSIAD in order to shape or influence the government policies on the relevant issues will be taken up. Furthermore, kind of channels are used by both parties?" be useful to associations of the question of "what will be looked at. discuss the legitimacy of TUSIAD among other and their relation with political actors with the It will business purpose providing certain arguments on the permittable limits of the "group, autonomy" in the eyes of the government agents. TUSIAD’s 1990 period, TUSIAD the role in the economic system changed drastically in if compared to the previous decade. realm. external TUSIAD intervene But in 1980-1990 period one can talk about leadership of TUSIAD among other business groups. the Between 1971-1980, was an "emerging" business group which began to political 1980- dynamics that This was because were closely related to the anatomy into the of of i.e the sphere of the business activity in which firms belonging to TUSIAD became the leading ones in their respective areas. The particular increased affected, the structure conflict between of government various incentives business in groups. the nature of demands of TUSIAD from the government economy It also whether they were economic or political demands. It can be said that during "transformatory phases" of the realm, the economic every policy making institution becomes highly politicized, and relations between and with business groups take forms deviant from that of the "already established ones." By making a comparative analysis of 1971-1980 and 1980-1990 periods we wish to discuss the changing political factors that economic issues. decisions In this sense, were arrived at effected the the political process in which the becomes important "attributed function" in the political arena. government in terms of TUSIAD’s TUSIAD’s attitude towards involvement in economy turns out to be a major factor in its definition of "the Government-business definition of" state’s relations interest" becomes and an "private important interests." factor the state’s interest" and in terms of for the identifying the business’ weight in policy process. Within this framework, groups organized in the ways in which social and related to each other and to conceptual tools are used: discussed we will discuss chapter two. corporatism, the pluralism, state. Three and clientelisra, How can we conceive the government TUSIAD relations in terms of the above mentioned conceptual tools is the basic question we will try to tackle. The concept of clientelism will be specially handy. personalized superior ideal reciprocal commanding type anonymity and of and n e x u s . W e relationship between an unequal resources, bureaucratic relationship It refers "to a inferior moreover in contrast the norms universalism are largely absent from the of to a the rationality patron-client will look at the nature of exchange relationship TUSIAD and governments. and between Iiiterpst groups must be analysed within the context ol the genei'ai distribution of power thoughout the entire political system. respect, we environment give a brief during the 1970-1980 cliapter we account addilion, politics and delegitimation 1In* attitudes i)oliticized groups of the reasons of this political period in chapter three. will try to evaluate the possible of niuUipart\· inavl\ will In In this the crisis crisis that followed. In of the major political parties towards the will be examined in order to provide a framew(;rk to TUSIAD’s relations with political parties. In tin* int.erface TUSIAD. fourth between chapter, we government and will give a brief business account associations of other the than Our purpose is to determine the resources of different business associations that they can offer to successive governments. Then we will inquire whether in this respect TUSIAD is distinct. TUSIAD’s evaluated in relation with other business associations order to give a brief explanation of its successive governments. businessmen association, TUSIAD, as being the had a significant impact on will relations first be with voluntary politics. So, the reasons which underlined its emergence will be broached. In Third the fifth chapter, we will discuss the role of TUSIAD in Turkish Republic and try to analyse the role of TUSIAD in process. the policy The overall project is designed to show why none of the varieties of corporatist or pluralist paradigm TUSIAD-government relations. is appropriate to characterize Alternative arguments developed around the notion of clientelism will be offered in order to provide a framework to understand TUSIAD-government relation. NOTES AND REFERENCES 1) Eduart Herman, History of Economic Thought. Oxford Universit Press, Harry Landreth, Mifflin, 2) 1960), 3) Houghton Politics and Vi3ion^(Boston. Little Brown, p. 301. of Interest," 4) (Boston: pp. 33-67. Charles N. Anderson, p. pp. 48-52. See also, History of Economic Theory, 1976), Sheldon Wolin, 1962), (London: "Political Design and Interest Representation Comparative Political Studies 10 (April 1977), 129. Karl Polanyi, The Great Transformation. (Boston, Beacon Press, 1957). 5) Ibid. 6) Pierre Society 7) Birnbaun , "The State versus 11 (April 1982), Metin Heper, "Bureaucrats, Corporatism," Politics and pp. 477-501. Politicians and Officers in Turkey: Dilemmas of new Political Paradigm" in Modern Turkey: Continuity ftnd Change, edited by Ahmet Evin,(Hamburg: Deutsche Orient Institu, 1984), p. 69. 8) Political definition of the state does not refer to "human associations that successfully claim monopoly of the legitimate use of physical force within a given territory." Thus, the sovereignity of the state varies from one setting to Могсчлег, tlie associations sovereignity Turkish Political Military Bingham Experience" "Politics and Society in State Democracy Walter de Gruyter, 1980), and Powell Jr., Ahmet Press, 1985), 13) Ibidp. 101. ]4 ) Metin Heper, The "Party Systems and p. 2. Political System Voting Participation Government Stability and Mass 75 (1981), Metin Heper, American Political Science pp. 886-887. The State Tradition in Turkey. (Walkington: Eothen p. 102. "Ekonomik ve Sosyal Gelişme Sürecinde Bürokrasi: Bir Tipolüji^e Bazı Düşünceler," Amme İdaresi Dergisi 13 (Haziran 1980), pp. 73-77. 15) Rene Lemarchand and Keith Legg, Development," the p. 1. State Military and Democracy. Violance in Contemporary Democracies," 12) other typescript. and Evin eds., Preferences: Review vis-à-vis "The State and Pluralism in a Muslim Context: Turkisli Case," 11) state ill Turkey in the 1980s , edited by Metin Heper and 9) Metin Heper, Heper, the see Metin Heper, Eyin, (Berlin and New York: 10) of another. and collectivities assumed to be an emprical question for each individual case. in the question on "Political Clientalism and Comparative Politics 4 (January 1972), p. 151. Chapter Two THEORETICAL BACKDROP AN OVERVIEW Traditional theory of studies on interest groups basicly derived from "group politics" which conceived of politics as a allocation of examining the process of the social values and resources that could be unravelled by groups in which take part in and have potentiality effecting the decisions made in the political process.^ Bentley’s studies ©penned up a new page in group theory of and were attempts later aimed elaborated by Truman and of understanding Latham.^ politics politics Ultimately, rather than to these develop theoretical arguments on "interest groups." A set of concepts and arguments specificly framework provided the theoretical construct for political behavior in general. "any group certain that claims So, the study of the Truman defined interest group as on the basis of one or more upon generated from "group" other groups in society shared for attitudes the makes establishment, maintenance or enchancement of form of behaviour that are implied by the shared attitudes.Truman would emerge spontaneously. wisdom argues that interest group associations He took an optimistic view on the natural of society in that competing groups will spontaneously arise and an "invisible hand" will secure social checks and balances, reasonable share for all, stability, and prevention of special sectional interests being met at the virtual expense of other interest.·* 10 The the assumption basis behind the conventional pluralist approach is that of the interest groups are shared or public policies that reflect these common common interests. attitudes inspire people to join a group. interests Thus, and ’’shared The emergence of an interest group is based on the interaction on the basis of shared attitudes.”^ According not to Truman organizational structure of interest groups do have any relevancy concerning the interest a group has only indicates because about the patterns in which the group members As put by Truman, it operate. ’’the existence of neither the group nor the interest is dependerit upon formal organizations... Organization indicates merely a stage or degree of interaction.”^ Group theorists perceived between various interests, of politics basicly whether organized or not. as an interplay They studied the methods interest groups utilize in order to pursue common interests. From this perspective ”all politics is no more than interest politics.”“ ^ Even though ”it [group theory] has relevancy in terms the analytical design” as emphasized by Мое, that group of ”it says nothing more than politics is being interpreted through the employment of a special coi.ceptual device.”^ In formal power the group theory of politics, ’’government is reduced device for registering the outcome reached in the among interest groups, its independent 11 powers struggle and to a for creative potentials being groups.The subordinated to the function of meeting interests of government is assumed to be the passive-receiptent of the demands of interest groups. As pointed out by sublimation of represented a theoretical trend, Brenner, "reductionist the political order into the world of social some elements of which pluralism continue to Truman’s argument that "interests respond to dominate contemporary writing on pluralist democracy. At the events, same time, interact and exert pressure on government according to the general principles of group behaviour and independent of socio-political conditions"'^ argument raised some criticisms. It was argued that Truman’s neglected the impact of major structural and policy changes in this relationship. The rights, power and expectations of the private economic associations would be different in different cultural and Truman’s model did not take this into account. Thus, emphasized in the importance of political culture settings LaPalombara determining the patterns of interest representation. Structural-functionalism politics. provided Structural another paradigm functionalism to interest group politics as a system of interrelated behaviors, distinguished study conceived of specific functions that must be carried out if the system is to survive. Gabriel Almond provided the schema of five input (recruitment, communication,· and interest aggregation) and three output adjustment). interest articulation, functions Each (rule-making, function is rule performed by 12 socialization, application and a structure. specific rule- Interest groups are structures which perform the interest articulation function.13 Thus, interest groups are the channels in which specific demands are transmitted from social system to the political system. Political parties function as aggregating agents with the task of reconciling the demands articulated legislature, by interest executive groups. and judiciary, Other structures, translate these namely inputs into policy outputs. It was pointed out that when structural functionalism describe politics, dimentional view articulation "there of is interest a implicit tendency groups or at least aspect of what interest groups are, to to attempt take to a one emphasize the what they do and why they are important. In fact, Almond placed the traditional view of interest groups into a more comprehensive concept of interest articulation.^® Interest groups boundary as functional maintenance between parts of a "working system" polity and s o c i e t y . I t provide implied that a certain pattern or type of interest articulation by the associational groups is a norm. It was emphasized that "...the structure and style of interest articulation and society, between the legislatures, define the pattern of boundary maintenance between and within the political system effect various parts of the bureaucracies and courts."^® 13 political the polity boundaries system-parties, Thus, Almond’s understood society. classification of interest groups can be properly wlien it is conceived Almond constant, as a relationship between polity points out that "associationai interest specific, general and instrumental and groups style of with interest articulation contribute better to the boundary maintenance than those of uninstitutionalized, affective, diffuse, nonassociational particular and anomic interest groups with and affective style of interest articulation. It but was argued that their function is not only demand articulation also demand r e d u c t i o n . On the other hand "they inject political or... system diffuse tendencies" penetrate uncompromisingly in the the raw unaggregated demands of turn or revolutionary "specific interests bureaucracy specific and undermine and its into the interests, and reactionary ideological neutral, tendencies instrumental character.i Robert schema of Bianchi Almond Huntington’s and primary marks Samuel the similarity between Huntington’s concern is, relation between polity and society. gaps between mass and elite, linchpin functionalist developmental approach. the role of interest groups in the Huntington focuses on a series of aspirations and participation and rate of institutionalization, forces the capacity, rates of newly mobilized social and the s t a t e . " I n t e r e s t groups" and "the state" becomes the of Huntington’s schema. 14 He argues for the necessity for increasins: the state power confronted with excessive, when of identified with ’’legitimacy the\' governmental the legitimate public order” where the interest of the state. public Huntington interest is argues that of government actions can be sought in the extent to which institutions inst itut ions. ^ Thus, derive their legitimacy and authority not extent to which they represent tlie interests of the people other are the basic problem of modernization is the f*‘flect the interest of the governmental ’’government structures unlimited demands of the social groups. According to Huntington, ’’creation weak or grou[) but to the extent to which they have distinct interests to any of tiieir own apart fr*om all other groups. The effect of participation modernization is the in politics institutionalization. necessary demands for of Huntington, mobilization participation exceeds and the It also means a dispersion of power where it is channeling, newly where increased adopting mobilized groups. party and group and structuring the The critical point is organizations are not the excessive that for means of channeling political demands but rather they function as ’’filters” where the newly participated ones are socialized to the already existing values and practices. The them similarity to Almond’s approach lies in the fact that both conceive mechanisms.^^ interest As groups and parties as demand reducing emphasized by Bianchi ’’...the primary task of and party or-ganizations is to ensure boundary maintenance between 15 of group polity and society in order to prevent what might be called a "performance gap" characterized by underperformance overperformance of 'input conceptualizing Almond contributed to the field by his attempt of interest politics at a higher around the notion of interest articulation. theoretical framework institutionalization their the which around which state. of assertion unstructured pointed that interest notion some cases As pointed out by Bianchi developmental at generalization, Huntington constructed the in level of to lower levels of groups tend to promote the "...the and group theorists are higher levels of development, participation, to the to principle in relatively participation whereas well organized groups tend to contribute need summarized development excessive a political threatens political stability and economic growth, effective the Earlier group theorists discussed the basic premises in intergroup relations, contribution and of 'output f u n c t i o n s . ’ To sum up: strengthen functions’ stagnation at constrict of party- electoral politics and preserve stable inequality."28 The importance of these theories stems from the fact that they make emphasis on interest state-society groups groups as significant structures relations can be conceptualized. perform diverse functions, through Even though structuration of which interest interest representation can be studied through three alternative paradigms, namely pluralism, corporatism and clientelism. 16 PLURALISM Pluralism is defined as "a sociopolitical system in which the power of the state isshared with large number of groups interest organizations and individual members r e p r e s e n t e d . E i g h t e e n t h century contractualist theorists like philosophical justification Locke for and Madison provided pluralism with reference to the natural law.30 Pluralism divided is conceived as a system in which power have any legal status, but they exercise influence on groups mediate between individual and organized state power. regarded as through them narrowed. the the representatives of distance interests between the state and As emphasized by Douglas A. Chalmers," bargaining and confrontation analysis... The pluralist regulatory terms. Few between groups at of government would limit the the center the the importance and extent of regulation. remains external is not a constitutent part of to those interests, incentives."32 17 of its essentially state’s recognize state is pluralism places the to the watchdog role posited by the early liberals the The groups individual behavior model Such individuals; view conceives of the state in pluralists a The groups in question do with the aim of influencing it with their own policy preferences. are is among the branches of government and shared by the state and number of private groups and individuals.3^ not political actual and most But in a pluralist interests. setting boundaries, Rather rules it and With group the shift of emphasis from individual to group behaviour, participation in public policy became significant. emphasis thing on group politics, Growing pluralist view posits that the is competition and participation among the organized not among the individuals. ’’any mode of corporat.ist. .. communication.... control. Thus, organized into competitive, type or interest involve These in an two two of intermediation contrasting aspects can aspects be pluralist mode ’’the unspecified nonhierarchically scope groups but As elaborated by Phillippe C. Schmitter, organized must essential interest) number ordered, categories of pluralist, of political representation and constituent units are multiple, voluntary, and seif determined (as that are not to specifically licensed, recogîiized subsidized, created or otherwise controlled in leadership selection or interest articulation by the state and that do not exercise a monopoly of representational activity within their respective categories. By the attitudes increased salience of the state in towards the state began to change. the economic sphere, Erosion of the negative attitude towards the state coupled with the view that among other social entities, the state alone has the ability both to recognize produce resources that would meet the growing needs of the modern societies. mutation, many It was interests pointed out that as a 18 to contemporary result emerged which depend on the state benefit and subsidies and for its arbitration in their and of for this the competition with other groups. Thus, in the normative sense the pluralist conception of the role of the state was reversed. CORPORATISM Pluralist school of thought largely neglected the role of the state in group state"^^ politics. Multiple groups held together by the is the main theme in the pluralist discussions on Organization essential of drive centered the private sphere by the groups in society led the pluralists approach. "regulatory the which to develop state. hold a Roy Macridis referred to this focus as the society"inputism" and noted: The famous "black box" as graduate students have come to government is at best a filter interests express themselves, transmission mechanism. mechanism and, through at its worst, know which a simple The role of state is reduced to the narrow confines of an organization which channels, reflects and expresses commands and instructions from 'elsewhere*^® Even though corporatism is a rival corporatist concept interest representation in such a way that pluralist framework in policy making, 19 have as pluralism, of theorists regarded broadened the too.37 concept scope it to of the covers the The predominant representation, theory, view Schmitter, favors the representation”^^; delegate Claus their it representative crises '’interest where it refers to a system of in related of representation the other hand, Gerhard to "the the p e o p l e . I t of multiparty systems, On intermediation” in corporatist to "interest which citizen As observed diminishing was suggested role of him, that during "corporatism is of more than a as representation. As peculiar pattern of Rather it is an institutionalized pattern of with other and with public authorities not only in the articulation (or even intermediation) of interest but, authoritative policies. of the such policy-formulation in which large interest organizations cooperate each of between groups and the state. some otlier students of corporatism articulation of interests. by other corporatism permits a special kind Lechraburch had in mind more than a form of by interest bodies especially parties as agents in the formation will interest stated term is of one of the leading figures representatory right to other bodies. Offe, political is that corporatism is a form state traditional allocation in its developed forms, in the of values and in the implementation of such It is precisely because of the intimate mutual penetration bureaucracies concept and of large interest interest organizations representation that becomes inappropriate for a theoretical understanding of corporatism."^^ 20 the quite In Lechmbruch*s approach corporatism is a way of policy-making institutionalized pattern of policy formulation. conceptualized dire ts lattor and corporatism system laisser as an ’’economic system in which refers which to a certain level has of state ^ The development distinct characteristics - faire capitalism; Winkler the controls predominantly privately owned business. definition economic Moreover T. from there would be a highly an of the the early bureaucratized state which extensively intervenes in economy.^*2 Schmitter tried to compare pluralist and corporatist forms placing them in a continuum that is as opposite polar forms of by interest group politics. Two forms may co-exist in varying degrees from one group to another. each type. number Schmitter elaborates a set of characteristics peculiar to in their respective sectors they are singular or multiple in and are organizational voluntary monopolistic or structure membership organized. These licensed, sutjsidized control of the groups may be based on are hierarchically associations or agents. may be or The internal compulsory corporatist is or non-hierarchically officially recognized, created by the state and state may exercise over their selection of leadership and articulation of and supports. form and competitive demands Some groups such as employers associations fit better to form but for especially non-producer groups better s u i t e d , I t was suggested that corporatist functionalin areas of incomes policy and was noted by Wilson; the real world, economic planning. pluralist form is As it ”to cope with these mixed patterns that exist in theorists claimed that corporatism and pluralism 21 are the ideal types on a continuum with the actual practices somewhere between. Corporatism thus in becomes an axis of development instead of situation or c o n d i tion.^ ’’State” occupies a central place in corporatist assumption nuiv not theory. Central of the corporatist view on interest politics is that be an arena for which const.i tut ive element regulating, licensing associations.”^'^ ’’State they [interest groups] compete engaged in defining, and/or distorting, repressing the but a encouraging, activities of Fowekaner underlines the importance of the state follows ’’there is broad agreement that all corporatisms must be as located in the field of relations between the capitalist state and civil society and that of talk of the relationships between the state and civil society... supposes a complex approach to the state itself, which understood not as an instrument of the ruling class nor as a political arena equally unified accessible to all class (and nonclass) subject society. seen the in The its own right which floats forces, freely as above is a civil emphasis made on the state as a principle actor is by some as a clear advantage for corporatist theory as opposed to neglect of the state in pluralist theory especially, in the extreme form'of group theory. To sum representation and up: Corporatism is a term applied to of functional interests in the process of the structured policy-making refers to an exchange relationship with the interdependence of 22 the interest groups content of to the state and vice versa. The nature and the the exchange specifies the relative power of the group and the state, and defines the degree of mutual autonomy Alan Cawson refined the concept with relations. regard to the limited According includes, of government to him corporatism has three micro-corporatism state, meso-corporatism sectors and the sphere varieties. It which involves individual firms and involves state, group interest associations macro-corporatism employer’s and employees’ peak associations, involves the in certain the state, at the national level. This relationship Vjetween the groups and the state also determines the power of the corporatist relative partly state over the groups. theory state autonomy. determined is As it was treated as an actor The structuration of interest by the "public policy emphasized, in itself a in with organizations are associations and towards political culture which means the direct impact of the "State in shaping or initiating group developent and the importance of attitudes and values, certain enduring particularly among the political elite and associational leadership in influencing the group behaviour. the ^ CLIENTELISM Clientelism relationship unequal can between resources" relationship, "the be defined "as a an personalized inferior and superior" the contrary to ideal norms of rationality, 23 type and reciprocal latter of "commands bureaucratic anonymity and universalism are absent from patron-client n e x u s . jt is an informal particularistic exchange relationship between actors of unequal and p o w e r . I t has been suggested, actor of and status that more the state is a visible the political game and penetrate society the more one would come across clientelism based on patronage relations.^"* In terras of group relations clientelism basicly refers to a "posture of personnel dependence on a superior within a status hierarchy for fulfiling assorted social economic and political goals. c:Iicntelism differs from corporatist linking of the organized groups the policy-making personalism As discussed of process. Clientelism characterized the relationship between the patron and by Chalmers "corporatism draws by the attention to the client.^® to whatever specific rights and obligations and norms of behaviour. Corporatist set of arrangements basicly requires the monopolization of interest representation by a noncompeting officially recognized group that is authorized by the s t a t e . I n corporatist relationship between groups and the state is controlled by requirements of informality and personalized and, the law.^^ On the contrary, flexibility. most There importantly, would forms clientelism be the the formal manifests fragmented uninstitutionalized forms and of interest representation at different levels such as at government, party and/or bureaucracy. 24 In the process differentiation Political Weber system an increased mobilization boundaries^® are expected to take and place. system would be structured on the basis of principles of what called ’’officials they of of modernization, ’’legal-rationality.”®^ In Almond’s terminology, and individuals occupying roles in other subsystems do, becaus(i functional of impersonal bonds to the generally duty of o f f i c e . I n personalized act defined as and such a polity no place is left for a and affective bargaining and therefore for clientelistic relations. On the other hand, process may excessive the result as Huntington is already noted modernization in an excessive participation. decrease their deteoriate their complexity and coherence. unstructured politics politically in political which more and more diverse active and attempt to achieve their institutions articulation and difficult.®^ institutions thus it aggregation Moreover, distorts aggregation. loses capable of of autonomy of and The result is a chaotic and various tactics that they can most effectively employ. of words, demands may be an obstacle to the adaptability capacities preexisting political institutions, become In other providing interests delegitimation of social forces goals through The development channels becomes the main for the increasingly political the expected forms of interest articulation and The state may be captured by a set of sectional interest; its autonomy. This LaPalombara’s terminology as clientela 25 process may take place and parentela relationships.®"* in In access other clientela to the bureaucracy, groups parentela relations certain interest in the same groups gain priveleged ministeries or to the political sector may not have such party but access. relations certain interest groups gain privileged policy-making process through the ruling party. In access to The relationship is shaped by the nature of resource the relevant interest groups can offer to bureaucracy and/or to the ruling party in the "exchange" process. The resources over at the clientela form are, respective expertise. In determined rhetoric, by group’s representative capacity sector, organizational strength and its parentela form group’s the nature ofthe to the ruling commitment technical relationship party’s political its voting capacity and financial resources. Then,the critical question turns out to be "who gets what how and when" in therelationship between TUSIAD and government. as is already noted, TUSIAD-government in this essay, relations fit to what extent (if at either interest group politics - pluralism, of the and Thus, all) the three paradigms of corporatism and clientelism. NOTES AND REFERCES 1) Arthur Bentley, The Process of Government. of Chicago Press, 2) David Truman, Knopf, and Earl Latham, 1952). 26 (New York: Alfred A. The Group Basis pX Politics: A SUiJy iri Basing Point Legislation. University Press, University 1908). The Governmental Process. 1951), (Chicago: (Ithaca N.Y.: Cornell 3) Truman, 4) Ibid., p. 33. 5) Ibid., p. 506-516. 6) Ibid., p. 36. 7) Terry M. Мое, The Governmental Process, p.33. The Organization of Interest: Internal Dynamics of Political Interests Groups. University of Chicago Press, 8) Ibid., 1980), and Stanley Rothman, Group Theory," Comparative Politics Ibid. 11) Ibid. 12) See Joseph LaPalombara, 14) Ibid. 15) Мое, 16) Brenner, 2 (October 1969), 54 p. 163. Interest Groups in Italian Politics, Princeton University Press, Ronald H. Chilcote, Colorado: American Political Scrence Review "Functional Representation and Interest 10) 13) pp. 38-51 pp. 15-33. Michael J. Brenner, (Princeton: 54 (December 1960), "Systematic Political Theory: Observations on the Group Approach" (March 1960), Robert Golembiowski, Notes on Analysis and Development," American Political Science Review 9) p. 152. for critism of group theory see, "The Group Basis of Politics: (Chicago: 1964). Theories of Comparative Politics. Westview Press, 1981), pp. 162-168. The Organization of Interest. "Functional Representation," 27 pp. 155-156. p. 114. (Boulder 17) Gabriel Almond and G. Bingham Powell, A Developmental Approach. p. 18) (Boston: Comparative Politics: Little Brown, 1966), 33-34. See Gabriel Almond and James Coleman eds., Developing Areas. (Princeton: The Politics of Princeton University Press, 1960), p. 33. 19) Ibid., pp. 33-•38. 20) Ibid., pp. 35- 37. 21) Almond and Powell, Approach, 22) p. 38. Samuel Huntington, (New Haven: Yale University Press, 23) Ibid., p.7 and 24) Ibid., p. 27. 25) Ibid., p. 24. 26) Robert Bianchi, Turkey. 27) Political Order in Changing Societies. (Princeton: 1968), p.57. Princeton University Press, 1984), p. 10. Boundary maintenance is defined as "shielding the bureaucracy from political demands." Ibid., p. 10. For a critical analysis of the problem of boundary maintenance see, Concept of the Political System: Government and Opposition 28) Ibid., 29) Roberta Prestus, A Textual Critique," 5 (1970), pp. 3-21. pp. 27-28. "The Pluralist Framework" in Frontiers ^ Democratic Theory, House, S.E. Finer, "Almond’s 1970), edited by Henri S. Kariel, (New York, Random p. 280. 28 30) Patrick Dunleavy and Brendan O ’Leary, The Politics of Liberal Democracy. 1988), pp. 13-14. 31) Ibid., pp. 14-15. 32) Douglas A Chalmers, (London, lh)Hs, Westview Press, edited by J. Wiarda, 1985), p. "Pluralism and New Corporatism," (March 1983), pp. 86-102 and 33) 1978), 34) Political Studies Cawson, Philippe C. Schmitter, Chalmers, 36) Roy C. Macridis, Government; 50 (Winter 1983), 37) Modes of Interest Intermediation and 10 (April 1977), The Search for Focus," Frank L. Wilson, (October 1983), Schmitter, Comparative p.9. p. 57. "Comparative Politics and the Study of Comparative Politics p.85. "Interest Group and Politics in Western Europe: The Neo-Corporatist Approach," 38) p.899. "Corporatism in Comparative Politics," 1 (October 1968), "Pluralism, Government and Opposition Models of Societal Change in Western Europe," 35) 31 "Democratic Theory and NeoCorporatist Social Research Political Studies See also M. Martin pp. 178-198. Phillippe C. Schraitter, Practice," 54. Alan Corporatism and the Role of the State," (Winter, Macmillan Press, "Corporatism in Comparative Politics," in Directions in Comparative Politics, (London: Theories of the State: Comparative Politics 16 p.l07. "Modes of Interest Intermediation," 29 p. 10-37. 39) Claus Offe, "The Attribution of Public Status to Interest Groups: Observations on the West German Case," in Organizing Interests in Western Europe and the Transformation of Politics, Suzanne P. Berger, 1981), 40) (Cambridge: Cambridge University Press, 143. Gerhard Leclimbruch, "Liberal Corporatism and Party Government," Comparative Po1itical Studies 10 (April 1977), Also David Marsh and Wyn Grant, Government and Opposition 11) R.E Dahl and J. T. Winkler, State: Myth or Reality?". Policy 1976), 42) Ibid. 43) Schmitter, 12 (July 1977), "Corporatism in Britain" in Corporate (London: Centre for Studies in Social "Modes of Interest Intermediation," (January 1987), p.9. For a Youssef Cohen and "Corporatism and Pluralism: of Schmitter’s typology," Europe," pp. 194-211. p.7. Franco Pavoncello, Wilson, p. 92. See "Tripartism: Myth or Reality?" critique of Schmitter’s perspective see, 44) edited by a Critique British Journal of Political Studies pp. 117-122. "Interest Group and Politics in Western p. 110. For a critique of Wilson’s perspective see John T.S. Keeler "Situating France on a Pluralist Corporatist Continuum," Comparative Politics 17 January 1985), pp. 229- 247. 45) Ibid., see also Gary Marks "Neo-Corporatism and Income Policy in Western Europe and North America," 18 (April 1986), p. 253. 30 Comparative Politics Political Change in Southeast Asia," Science Review 65 (March 1972), pp. 91-114. Rene Lemarchand, "Political Clientelism and Ethnicity in Tropical Africa; Competing Solidarities in Nation Building," 65 (March 1972) , American Pol itical Sc_ience Rev lew 54) Robert P'atton, Making of a Liberal Democracy, Revolution 1975- 1985 , 1987), 55) p. (Boulder, Roberth F. Kaufmann, "Corporatism, Ibid. 57) Chalmers, 58) Schmitter, "Corporatism in Comparative Politics," p. 59. "Modes of Interest Intermediation and Models of 59) Chalmers, 60) Almond and Powell, p. 9. "Corporatism in Comparative Politics," p. 59. Approach, Comparative Politics: A Developmental p. 258-280. David Beetham, Max Weber and The Theory Allen and Unwin, Modern Politics, 1974), especially chapter 3. Elaborated by G. Almond in "Political Development: Analytical and Normative Perspectives," I (January 1969), 63) Clientelism and Partisan University of Pittsburg Press, Societal Change in Western Europe," 62) Lynne Rinner Publ., p. 113. 56) (London: Senegal ’s Passive in Authoritarianism and Corporatism in Latin America edited by M. Malloy,(Pittsburg: 1977), Colorado: pp. 68- 91. 95. Conflict" 61) American Political Huntington, Comparative Political Studies p. 463. Political Order in Changing Societies, p. 198. 32 64) Сох and O ’Sullivan, 65) Ibid. The Corporate State. 33 p. 79. Chapter Three POLITICO-ECONOMIC BACKGROUND, The 1960s 1960-1980 were the years in which Turkey experienced coalition and majority inherited the votes elections JP of party governments. the former both The Justice Demokrat Party defeated Republicans People’s Party Party (DP). (RPP) weak (JP) In which 1965 headed coalition governments between 1961 and 1965. During these years RPP introduced the "left-of-center position" to the political arena - which shifted the new leader emerged in the party, party to moderate left while namely Bülent Ecevit. a The left-of- center position did not result in a victory at the polls in 1965 whereas stimulated new opposition groups in the party. to 27.4 percent in the 1969 elections. JP alienated commitment issues. of to some of the The party’s vote fell Taking over factions in the party big business and by its relative the votes of with moderation its strict on social National Order Party (1973) and National Salvation Party (NSP) Necmettin Erbakan and militant ultra nationalist Nationalist Party DP, of (NAP) of Alparslan Türkeş and the Demokratik Party of Bozbeyli (1971), along with other splinter parties, Action Ferruh also emerged. There occurred the fragmentation and polarization of the political parties which reached to its apex in late 1970s. During these ideological distinction between two major parties, JP and RPP, to the be sharpened that was fed by the emergence of 34 Turkish years began Labor Party (TLP) which had a v i s i b l e impact on the org anize d la b o r movement.^ During the 1960s the main economic concern was that of setting up wide industrial base substitution policy. the state in behind protective measures of an a import Throughout the 1960s a new role was attributed to the economic arena. State had to supervise and back private sector’s growth. State intervention political parties. principle, in the economy was encouraged RPP, expr-essed and the intervention protect etatist private industry. certain In other areas, JP argued it must that state in the economy was necessary because private sector proposed a economic major view that state should operate in not realize the goals of economic development by itself. JP the with its strong commitment to the fields especially in strategic industries. encourage by temporary role to the state. could However, the State’s activity in the sphere would prevent the formation of monopolies and would complementary conditions to state the activities of private sector. Under high would provide commercial leadership in fields be risk where huge capital investments and technical assistance were necessary.^ During 6.7 the period under consideration annual growth rates reached percent in ri^al terms while structural changes took place economy. percent The share of agriculture in the total GNP fell in 1960 to 23 percent by 1976 while industry’s share fr-oni 16 p(‘rcent to 25 percent.·^ 35 in from the 38 increased Throughout the 1960s and 1970s planned development was the axis of the economic policy whicli aimed at creating harmonious relations between public of and private sectors. Industrialization through the production manufacturing goods so that Turkey could be competitive markets, and Community by ultimately integration into the in European the 1990s were the principal goals behind the foreign Economic economic policy making.·* As a private there result sector was of the "developmentalist approach" within the framework of five-year-plans an effort to coordinate all sectors of investments. The model state backed through public and which private was based on expansionist policies which effect resulted in continuously increasing inflation and large in balance- of-payment deficits. As the Iountry reached to the 1970s the picture was blurred. The governments were challenged from many sides. rate reached to high levels, somewhat Unemployment accompanied by severe urban violence of leftist and rightist activists. There occurred two important developments during the 1970s. first one Military government and was the "military coup by Communique" in March forced the Demirel government to resign was driving our country into anarchy, claiming The 12, 1971. that fratricidal strife social and economic unrest with the consequence that the future the Turkish Republic is... seriously threatened."^ 36 "the of Turkey two and was governed by ’’above-party governments” in the one-half years· slowed down. It In 1972, Under the martial law, street was was suggested by Nordlinger that the 1971 coup by communique was exercise) preserving veto power over civilian military exercise (or threaten governments with the social and political status quo.^ resisted the military’s rule in politics. came violence TLP was closed by martial law authorities. a moderator type of military rule i.e., to following to the goal Political of parties The military and politicians a confrontation when in 1973 the military’s candidate for the presidency of the Republic was rejected by RPP and JP." Another important development was the shift that took place in ideological 1973 and in the electoral fortunes of the RPP. general elections RPP emerged as the biggest single party left. but stand In the 1973 elections RPP received 33.3 percent of the the By the on the votes the 1977 elections was a turning point where the votes gathered the party reached to 41.4 percent. trend of the by It was suggested that RPP reversed the votes it received in the past where one can observe significant decrease from 1950 onwards.® In January 1974, basis of government Front” an RPP and NSP formed a coalition government on the agreement on some broad economic programs. But the fell'from power in September 1974 and the first ’’Nationalist government contributions of headed three by JP was formed in other parties on 37 the April right 1975 namely with the National Salvation Party, Nationalist Action Party and the Republicans Reliance Party (RRP). From 1975 unemployment Front onwards and Turkey experienced foreign indebtedness· government rapid Thus, majority was based on only three high Demirel’s Nationalist supported by NSP and NAP and RRP to take decisions necessary for the stabilization parliamentary inflation, could not be able of the economy as its votes· During this period "the conflicts between the coalition members frequently ended immobilism - a characteristic in consequence of a political consolidation crises· RPP emerged for the second time as the biggest single party in June 1977 elections strict emphasis left- of-center distribution RPP’s party program which was adopted on in "social justice" as the principal ideology· 1976 placed component Party argued that just and balanced was a necessary condition for a just social of income order· The measures which party advocated for reducing the income inequalities were based on fiscal economy, to and monetary policies, structural changes reorganization of public services in order to give low income groups and on developing underdeveloped proposed change a land reform program as a means to achieve in the economy· in priority regions· the They structural The notion of "popular sector" introduced the party The sector was supposed to exist as an intermediary between public private. was the second category of the structural change the by program· and It would be based on the economic enterprises established by 38 workers, public enterprises and popularly based corporations. It was expected that the popular sector would contribute to the achievement of high rates of economic development and minimize the inequality in the distribution of i n c o m e . E v e n though the party received 41.4 percent of the votes casted, majority. in terms of seat it was short of a parliamentary RPP could not manage to form a majority government. Thus second Nationalist Front government was established but it was forced to resign in December 1977 by a vote of no confidence in the parliament. Following minority resignation government government October the by a of fluid the support government, in the RPP formed Assembly. That resigned after the defeat of RPP in Assemby by-elections 1979. Then, a JP minority government was formed a which in was ousted from power by the military intervention in 1980. It was characterized decisive suggested by Tachau "fragmentation authority polarization by went and Heper that the 1970s was and polarization and by the on the part of the government.^ The lack of extent of beyond the party system and contaminated the social sectors such as organized labor and civil bureaucracy. The term schema of politics developed by Samuel Huntington "praetorianism" seems to provide a set of concepts in which one can evaluate the political crises of the 1970s. years concerned newly emerged groups in society confronted "nakedly", and without around terms During each the of the other any moderating influence of mediating institutions legal restraints.^^ The picture became close to Hobbessian war 39 of all against all. There occurred a series of crises of legitimacy which appeared in part the product of increased participation. In a praetorian environment being in power is central provides the because it leader the means to control and manipulate the government apparatus and furnishes opportunities for patronage. The regulate tlie incapacity of the already existing political military side to tlie demands of diverse sectors of the society was perceived by as authority. the institutions the "erosion of state’s authority"^^ or "lack of The institutional framework prevented decisive action on of uneasiness the political to the liberal authorities. The provisions of the military 1961 showed constitution its by imposing amendments after the 1971 coup by communique.^^ The exceeded military claimed that the demands of the newly emerged the capacity of governments to satisfy them.^® Thus, groups military backed the above party governments which drew their policy frameworks on the theme that certain sacrificies of political and social rights necessary for the long term rapid industrialization program were and for membership to European Common Market.^** From another view point, to The have developments of early 1970s may be said given the first signs of a change in economic August inward-looking 10 1970 measures were the first steps to external-oriented growth 40 model. of policy a making. shift Economic from policy measures aimed to back big business and stimulate the industries by re- allocative mechanisms.20 The demands values Third for and Five-year plan (1973-1977) required the reduction income distribution and social justice. priorities of JP i.e., rhetoric. The plan It reflected a strict commitment recognized the of imbalances to in a the growth the income distribution but it was noted that redistributive measures would have a negative a effect certain level standard on economic growth rates. of income, It was stated that ”at even if it is were possible to raise of living of certain income groups through measures income distribution, improving such an approach would limit the growth potential of the country by slowing down capital accumulation, and thus the in achievement Consequently, of groups system to and include objectives. everybody a the income the higlier standard of living improvement of income distribution regions and the extension of the In the short run, the future. among various social the entire society are accepted only retard as security long-term however it will be made possible that receive a share of the rising income sufficient to meet his minimum requirements.”2^ The approach inefficient economic of the era was based use of resources would slow growth. The on the observation down capital accumulation plan emphasized the incompability equity and economic growth and gave priority to the latter. 22 41 that of and social Post-1971 economic period could be characterized by changing political priorities. On the political arena new and measures for moderating demands for participation were introduced and new patterns of distribution of resources among the productive sectors were adopted. The measures taken by new military rule were different from the previous ones of 1960 intervention, polit ics "both military, leaders before which encouraged participation. and after the March coup came technocrats to Turkish involve and bureaucrats and party and interest the groups in a subtle bargaining process aimed at fashioning a long term non-authoritarian compromise that would provide institutional mechanisms for consensually moderating demands and allowing a big push towards large scale industrialization and eventually Common Market membership.^ It is also important to note that the attitudes of two parties, each major [RPP and JP] towards "participation" in politics differed from other to such an extent that the consolidation of one of them in power would have changed the picture drastically. It was proposed by Huntington and Nelson that the populist models of development tend to adopt policies that aim at reducing socioeconomic inequalities and technocraticmodel inequality. become tends Thus redistributive democracy’ political to reduce participation participation whereas and instinctively aware of the implications of it is no coincidence that the RPP which clearly policies, based on also a strongly emphasizes a 'more widespread 42 and the increase As Ergun Ozbudun observed "Turkish parties seem to at least models. increase have these favors 'participatory effective political participation.’ towards Similarly, the JP combines conservative attitudes income distributions with a concept of democracy which is more representative than participation. "2“* The policies participation by opportunities for force. On growth advocated by RPP were designed encouraging the popular sector, effective organization and tlie other hand, conjoined and to increase by providing unionization the JP’s strict commitment to with a view of democracy derived from the national sovereignity. person, national labor economic notion Thus, "No group or institution may have a claim to represent will... of According to this view sovereignity belonged to nation and exercised through the elected representatives.^5 other of or become a negative a partner to the right of the national sovereign ity. 6 JP developed associations, of view to the business and trade unions potentiality of influencing the legislature. as an arena for politicians. to be activities which of would voluntary have Politics should remained Once they were elected politicians "were considered as the sole and legitimate representatives nation. bodies the of" the It was pointed out that political activities of nonauthorized create obstacles to the formation of strong and stable governments.27 In passing Nationalist gradually Front became it is important to note that with governments an active the bureaucracy partisan 43 was instrument the emergence politicized of of and governments. Especially increase small their partners control organizational They the over structure increased their of Nationalist bureaucracy of the by Front changing ministries the number of civil service own militants to those posts. Thus, attempted the which posts, to internal they then held. appointed "ministries came to be referred to as citadels of this or that party. The erode norms which bureaucratic of rationality, are the basic relationship.^^ constituency partisanship. characteristics of an and to type" that "the and the extreme emphasis deputies placed service also contributed to bureaucratic Deputies began "ideal It was stated by liter Turan spoil game nature of politics, on anonymity and universalism other officials of decline government and parties wanted to get things done no matter what the broad lines of governmental policy were or what the last might say: and only a partisan bureaucracy could respond favorably to everything they requested. Emergence of mass parties in the political arena accelerated a new kind of of interaction between parties, business organizations impact patterns and labor government and peak associations community. The number of voluntary in Turkey rose from 802 in 1946 to 37,806 in 1968.^^ The of this development on the governmental apparatus openned up new of politicized interaction as many of in a praetorian environment. interest of their members the associations were overly Articulation of the common tended to be a secondary function most of the associations were dominated by small, politically motivated cadr-es and became instruments of polarized political struggle. 44 where Even though interest "articulation" function overpoliticized environment, representatives of the political Nevertheless, associations deteoriated which claimed to in be an the their respective areas flourished as new actors game. The result was a certain degree of of pluralism. the questions of the characteristics of the relationship between government and associations or what kind of benefits accrued and sacrifices and made remained rather obscure. The increased participation which were fostered by the falling rate polarization of economic growth led to the deteoriation of the institutional mechanisms in major sectors of the economy and of the polity. The newly emerged relationship tended to be a clientelistic Government political offered the respective clients a set of incentives gains. politics proper, It is now in order to look at the type. for interest the group the role of various interest group associations and the emergence of TUSIAD. NOTES AND REFERENCES 1) FrankTachau and Metin Heper, Military in Turkey," p. 23. "The State, Comparative Politics Politics and the 16 (October 83), See also Ergun özbudun and Frank Tachau, and Electorial Behavior." Towards "Critical Realignment’s?" International Journal of Middle East Studies pp. 460-479 and Üstün Ergüder, Behavior in Turkey," (1980-1981), "Social Change 16 (October 1975), "Changing Patterns of Electoral Boğaziçi Üniversitesi Dergisi pp. 45-81. 45 8-9 2) Selahattin Özmen, Teşekkülleri. 3) Mine Toksöz, Türkiye’de ve Dünva’da İktisadi Devlet (Ankara; Sevinç Matbaası, Turkey to 1992: Ibid., 5) Feroz Ahmad, Eric A. p. 15. The Turkish Experiment in Democracy. Kestview Press, "The State, 1977)^ p. 205 as cited in Tachau and Soldiers in Politics Military Coups and (Eaglewood Cliffs N.Y.; Tachau and Heper, 1950-1970. Politics and the Military in Turkey," p. 23. Nordlinger, Governments, 7) 1988), pp. 15-19. (Boulder, Heper, pp. 167-168. Missing Another Chance? . (London; The Economist Intelligence Umit, 4) 1967), "The State, Prentice-Hall, 1977). Politics and Military in Turkey," p. 24. 8 RPP gathered 39,9 percent of votes in 1950 elections. 1957, 1961, 1965, 1969, 1973, and 1977 election RPP gathered 34.8 percent 40.6 percent 36.7 percent, 28.7 percent, percent, 33.3 percent and 41.4 percent of the votes, see Walter F. Weiker, (New York; Holmes and Meier, 1981), 145. Metin Heper, "Recent Instability in Turkish Politics; Monocentrist Polity,” 10) respectively, pp. 1-17 and (Winter 1979-1980), 27.4 The Modernization of Turkey; From Atatürk to the Present Day, 9) In 1954, End of International Journal of Turkish Studies p. 103. Ergun Özbudun and Aydın Ulusan eds., The Political Economy of Income Distribution in Turkey. 1980), pp. 69-70. 46 (New York; Holmes and Meier, a 11) Tachau and Heper "The State, p. 24. Politics and Military in Turkey," see also Sabri Sayan, Transition," "The Turkish Party System in Government and Opposition Üstün Ergüder, 12(1978), pp. 39-57. Secim Sistemleri ve Türk Demokrasisi ^ (İstanbul: Boğaziçi Üniversitesi Publications, 1982)^ pp. 97-138. For further evaluations on fragmentation and polarization of Turkish party system,see Ergun Özbudun, "The Turkish Party System: Institutionalization Polarization and Fragmentation," Eastern Studies 17 (April 1981), pp. 228-240. 12) Ibid. 13) Huntington, 14) Ibid. 15) Milliyet, 16) Cumhuriyet, (Istanbul Daily), 17) Heper, 18) New "Fundemental Rights and Freedom Law" Political Order in Changing Societies. (Istanbul Daily), Middle March 1, p. 196. 1971. March 13, 1971. State Tradition in Turkey, p. 125. which would provide an opportunity to put restriction on associational activity was in the agenda of Demirel government. October 10, 19) Meban Semineri Tebliği, 1979), p. 4. Gelişme Strate jileri ve Gelişme İdeolo.iileri. Yurt Yayınları 5, 1987), p. 53. Özbudun and Ulusan, eds.. Political Economy of Income Distribution in. Turkey, 22) 1968. Haldun Gülalp, (Ankara: 21) (Istanbul Daily) B. Balassa "Growth Policies and the Exchange Rate in Turkey. (Istanbul: 20) Cumhuriyet, p. 75. Ibid. 47 23) Bianchi, Interest Groups and Political Development in Turkey, p. 206. 24) Ozbudun and Ulusan, eds., Political Economy of Income Distribution in Turkey, p . 77. 25) Ibid. 26) Electoral Program of JP as cited in Political Economy of Income D istribution in Turkey. 27) Munci Kapani, Özbudun and Ulusan eds. p78. Demokratik Teori Alanında Bazı Yeni Görüşler ve Tartışmalar ^ (Ankara: Ankara University Publications, 1977), pp. 215-219. 28) 29) liter Turan, Republic" in Perspectives on Democracy in Turkey, edited by Ergun Özbudun, p. 93. David Beetham, (London: 30) "Stages of Political Development in the Turkish Turan, (Ankara: Seyinç Matbaası, 1988), Max Weber and the Theory of Modern Politics. Allen and Unwin, 1974), chapter 3. "Stages of Political Development in the Turkish Republic," p. 94. 31) Ahmet Yücekök, Tabanı. Türkiye’de örgütlenmiş Dinin Sosyo-Ekonomik (Ankara: Ankara Uniyersity Science Publications, 32) Ergun Özbudun, 1971), Faculty of Political p. 119. "Deyelopment of Democratic Goyernment in Turkey: Crises Interraptions and Reequilibrations in Perspectiyes on Democracy in Turkey, edited by Ergun özbudun, 48 p. 46. Chapter Four EMERGENCE OF TURKISH INDUSTRIALISTS AND BUSINESSMEN’S ASSOCIATION BACKGROUND Dankwart A. Rustow once suggested that "pressure groups are notably absent from the Turkish political s c e n e . B u t several labor and business organizations entered the political scene and tried beginning by the 1970s to accomplish certain goals through formal and/or informal means, such as party affiliation or party patronage. The industrial characterized by the st-ate patronage, It but sector’s exceptional with protections. the state "They...[enjoyed]... state "Turkish industrialists are not threatened ‘intervention’ in the form of state subsidies protection they receive in exploiting a limited market. enormously high tariffs, not been a Protected by, and by their fear is not state ‘intervention’ but competition in any form whether public or private. has was monopoly opportunities and concentration of power. was also noted that welcome relationship threat but an instrument in The state in Turkey the creation and the protection of a national industrial class. In access of their relationship with the state the business community’s to government was the consequence of state’s initiative because the fI’agmentation of their organizational structure and multiplicity 49 ot' interests among the business sector. As expressed by an Istanbul industriali sts, everybody not should know that the private sector in as influential heterogeneous It is not as it is often thought. and intra-sector jealousies well organized. competition persists. wi t h small industry. Turkey is It is are all persasive. Istanbul versus Anatolia Large industry is always in conflict Some of the Chambers of Industry do not view favorably the Turkish of industrialists and Businesmen’s Association which industrialists. commerce liad they think is an exclusive of big There are no close ties between chambers of and of industry. been club organized Only one third of the within the [Turkish employers Confederation of] Employers’ Association.^ Commercial arid industrial sectors were organized in several associations between 1970 and 1980. these were. The Confederation of Artisans’ and Craftraen’s Association, Turkish Commerce Confederation chambers of of Employers The most influential ones Union, Union use the abbrevations of synonyms in Turkish, of lastly the [Now on, EZDK, TISK, we will TOBB and r’espect.i\’ely.j Artisans’ and Craftmen’s associations began to be spread around the country since 1946. were chambers Industry and Commodity Exchange and Turkish Industrialist’s and Businessmen’s Association. TUSIAD, of among authorized in However, 1965 and in 1978 Confederation 50 wider of organized and associations Artisans’ and Cr'’ftmen’s 68 Associations province-wide representing million and associations estimated Artisans’ membership which include nine occupational and and some 50 per cent Craftmen’s was 400 of federations, local Turkey’s associations appovimately established.^ Until was not compulsory as it was for a number of other 3 1964 interest groups sucii as TOBB.^ Table 4-1 Interest Group Associations in Turkey, Year Artisans and Craftmen’s Associations Employers Associations 1940-1970 Agricultural Associations Professional Associations 1946 103 - 2.0 28 1950 253 - 49 53 1955 1460 2 146 119 1960 2745 23 272 189 1965 3578 260 1970 ca 4000 106assns. 570 (1927 member) 120assns. (10760 members) 1975 108 assns. (89.43 members) 1979 ca 4000 Source: Walter Weiker, 113 assns. The Modernization of Turkey, p. 93. The relationship between state-artisans’ and crafmen’s association was cliaracterized by dependency more than genuine bargaining.'^ of 1964 was associations a turning paint, voluntary because in artisans’ membership, 51 was replaced and with The year craftmen’s compulsory membership. against the turn industrial strategy of In the and associations commercial sought groups. government The protection overall which aimed at rapid industrialization imposed the the interaction between government and these economic parameters associations. Among other business associations Union of Chambers occupied an important place. Gradually, the artisans’ and craftmen’s associations began to have less influence upon policy-making.® The rising stars of the economy were organized within the framework of different business associations. Increasing importance of TOBB was adversely affected artisans’ and craftmen’s associations. As it suggested by craftmen’s association Weiker under law 507 each artisans’ and was given responsibilities such as supervising the licences of taxi drivers or setting the number of establishments of a kind in which can operate in a specific town or district. the hands surprising single of each province association and it that artisans and small merchants particular Authority was was therefore comprised the largest group on the city councils of most communities.® The efforts artisans’ and craftmen’s associations were directed towards not of obtaining resources from government for small scale production units while general economic trends put them in a disadvantageous situation compared to industrial and commercial groups. Justice Party’s strong links with Union of Chambers and its pro-big business economic associations towards fundamentalists. policies pushed establishing the artisans’ close relationship NSP favored ties with Muslim World, 52 and with craftmen’s religious attacked "western imperialism" Market and expressed opposition to Turkey’s ties with the which was essentially conceived as a "Jewish Common /Zionist organization set up by Catholic states. So As already noted, it was aimed at channeling small private savings which RPP introduced the notion of "people’s into were to be organized by the people themselves, economic development. alignments against among the The idea implicity enterprises and stimulating referred to permanent loosers during the deepening of profiting few. In this game artisans’ sector." a broad capitalism and craftmen’s groups were assumed to be loosers. Tiie successive governments’ preferences in economic policy such keeping to themselves the initiative in the organization of production, increasing efficiency, scale as of economy adversely. employment of new technologies and expanding the were Thus, bound to affect the artisans artisans and craftmen became and means craftmen of political manipulation because of the shortage of resources which they commanded. Another Turkish important Confederation initiati\e of back to 19GÜS, actor of in business-government Employers’ Union relations established with the Koç G r o u p . Even though the history of TISK its "political relevancy''^^ was the dated increased in early 1970s. Tin? organizational structure of TISK was different from that of TOBB and TUSIAD. It It was an employer union, neither chamber nor an association. was suggested that while the latter aimed at influencing nationwide macro policy making, the union attempted at strengthening the employers’ 53 amount of sales. Union guaranteed to finance the employers out of this fund during t.he lockouts. Towards the end of the L970s, TOBB. It was TISK became a rival organization to emphasized that stressing ’’the private voluntary specifically industrial character of their organizations. accused TOBB and TISK leaders of surviving only by virtue of mandatory membership of dues of stifling industrial enterprise in bureaucratic formalities, and of i^rMng politically rather than professionally managed. It can be said that the primary goal was that of centralization of business associations in TIS\ and making other business groups impotent. Fragmentation with and diffusion of power in 1973-1980 period were coupled tlie absence of strong central institutions either in public or private. The increasing situation placed great pressure to the the particularistic and contradictory creating any basis for political consensus. governments demands in by without Support for centre and for specific governments had been based on a set of clientelistic exchanges. TOBB’s labour’s causes unions of the governmc^nts economic towards and RPP’s close relations was perceived by the industrialists in TISK erosion of could crises. governments Cliaii'man orientation winked not governmental authority. The take the necessary measures to as with the successive cope with the While neglecting the long term interests of economy at certain groups, as was (d‘ TISK between 1970-1974: 55 noted ’’...because by of Halil the Kaya, one-sided social policies of the governments, among the there emerged a widely shared view workers that since the government is on our side we can do whatever we want to do.”^^ Industrialists who core cadre of TUSIAD. of TISK and harmonious were previously organized in TISK the They were disapproved by the increased militancy JP’s patronage links with class became relations. TOBB. TUSIAD On the other hand, advocated during the more 1970s medium size industrial units became members of TOBB and there emerged conflict rivalry with the so-called big business. within TISK, contrast too. There develop Capital intensive productive units in to labor intensive ones could better resist to the demands high wages on the part of trade unions. Thus, their trade unions were smoother as compared to others. issues also in question associations fostered strengthened the place TUSIAD among the other while deepening the cleavages among business sector. the fluidity of relations of TISK and TOBB of relations with Nevertheless, of a with It successive governments. Turning private sector industrial the Union. of to it has been a nationwide association with a semi-official status. All the It was based on local chambers in every city. dated back significance to the during nineteeth the 1950s of commercial employers with ten or more workers had to be the chambers particular TOBB, member and of The history century.^2 They and Up 1960s. the gained to 1950 industrialists and commercial groups were organized together in chambers but beginning by 1950 industrialists began to organize 56 in different chambers During tough they were still under the control of the Union.^3 the DP governments (1950-1960) the private sector was given authority to form a peak association and TOBB was established in (Act 5590 February 6, In 1958, the Union acquired the right to allocate import concentration favoritism.25 of quotas Also it came to have the right to register importers by issuing certificates to them. and 1952 1952).2“· among industrial ami commercial groups. corruption the The result was Close connections with government and power in the Union were the sources of Union’s power and at the same time its debility vis-à-vis both the government and its member unions. Fol l owi ng 1960 As it was reversed. foreign the currency commodities military intervention pointed out by 5ncii: allocations for the "the idea investment situation was quotas that and while of subject to import restrictions would be decided by relevant ministries in line with the objectives of the developmental actual lists was of task distributing the limied amount of plan, foreign the currency available among individual importers and industrialists would be left to Chambers. Thus ministerial Chambers to of and fierce chamber level. Industry, Nevertheless, Union the during controlled competition would down This is in fact did happen, became very powerful in 1967-71 move period, 1960-1970 JP was able to 57 the period."2® manipulate the administration of the Union.2^ opportunity to intervene to the intra-Union cleavages. and from jp had the the Expansion sector of capitalism caused to a differention within private and the emergence of multiplicity of interests while the formal- legal structure distributed of by TOBB remained u n c h a n g e d . A c c e s s the affiliation.29 Union Furthermore, became rapid possible only to resources through party industrialization and new requirements of industrial sector necessitated a revision of the of commercial Unions. But voting turn weight groups and industrialists in the administration of the because of legal constraints it was not possible for the industrialists to change the representational Commercial input groups monopoly of the dominated the chambers as the law required Union. weighted and designated an upper limit for any single chamber which resulted in Anatolian local units’ majority in Chambers. in About a decade later Hulki Alisbah observed: In the elections, predominant industrial and commercial firms which are in their respective sectors have the same of votes as smaller firms. reasonable I am of the opinion, must be criteria for election such as a minimum employment requirement or number that there qualifications, minimum foreign exchange capacity for being elected to authorized committees or to the executive board of the Union of Chambers and Industry.30 Under obtain these constraints it was difficult for the industrialists to foreign currency necessary for purchasing of raw materials.3i In rOBB industrialists were subordinated to commercial groups. 58 The intersified conflict between industry and commerce and as well as increased inability of TOBB to exert pressure on government vis-à-vis the long term interests of private sector were the general factors the emergence military and of takeover (March 12, 'stability’ changes TUSIAD in 1971. It was stated by Öncü that for "a 1971) aimed at restoring 'law and order’ in the country should immediately be accompanied by the foreign currency quota allocation system indicates what an important source of power and political patronage is involved.^^ EMERGENCE OF TUSIAD The Turkish founded on Industrialists’ April 2, 1971 and on industrialists including Vehbi Koç, Ertuğrul Soysal and Sakıp Sabancı. Businessmen’s the initiation Nejat Eccacıbaşı, In its first Association of the Selçuk was leading Yasar, decade, the Association was headed by Feyyaz Berker of Tekfen Group of Companies. On August 2, 1971, a declaration signed by eighty-six leading figures of the sector designated the goals of the Association. emphasized It was that they aimed at serving "Turkey’s goals of democratic and planned development and lifting the country to the level of contemporary civilization."'^^ Atatürk They ultimately wished to defend the and his laicist conception on the state. principles of It was declared that free enterprise was the pillar of the economic life and guarantee for democratic system of government. Furthermore, they argued that capital and lal)or "were complementary elements: 3·* and "for the maintenance of a 59 a "35 mixod economic order i t i s n ec e ss a ry to provide s o c i a l j u s t i c e . Moreover means to declaration catch up underlined economy which was with the Kest.^e ’’For this considered purpose we find the the attempts which would challenge the unity of the nation dangerous. The declaration came to end that ’’[the industrialists had] decided to carry out all the duties on the Li* part for the realization of Turkey’s goals. In the specified. by-laws of the Association these principles According to the Association’s by-laws, were the clearly Association would be involved in the realization of goals such as increasing capital national market, employer-labor savings and encouraging people towards giving priority to education, directing the collaborations towards the path that would contribute to the development of the country, channeling the investments for towards the areas significant economic growth. As ]970s noled but protections, distr· ibut ion State certain above private enterprises multiplied tlu^ success of the private ctieap of protected credits scarce and resources, during business depended on tax exemptions or particularly 1960s the priority foreign the private business from outside competition mechanisms such as tariffs and quotas put on imports. 60 and state in the currency. through On the other hand, inputs necessary for the production of private sector were obtained from the state economic enterprises at low prices. The spheres structuration of the facilitated resources. the the state in the political and successive governments access to economic the scarce The governments had the "last word" in the distribution resources. For the private enterprise, of it became crucial to obtain the resources distributed by the government as for them it was a matter of survival. Other business manipulated by the business sector. associations JP especially the in order to create trusty Chambers, clients were among the Alignments on party-association nexus were based on strong commitment to the rhetoric of "freedom to private enterprise." As leading The a reaction to this state of affairs concerns shared industrialists led to the idea of establishing an transfer the association. of the control over the foreign currency quota system the ministerial level, TUSIAD’s representing by made the unions useless for the industrialists. distinctiveness lies in the fact that it did not a section of it, to major portion of the private enterprise but mainly the industrialists. aim at rather a That is the section of the private sector underrepresented in Unions organized themselves in the first voluntary businessmen association, TUSIAD has been a small provided association the industrialists. with selective TUSIAD. membership.·*® The membership association a strong financial base as it housed Thus, Feyyaz Berker 61 of Tekfen Group was to the big first chairman between (1971-1980), (1980-1984), Şahap then Ali Koçman of Koçtuğ Shipping Group Koçatopcu, a manager Sakıp Sabancı of Sabancı Group (1985-1987), and of Koç Group (1984-85), Ömer Dinçkök of Akkök Group lastly Cem Boyner of Altinyildiz Textiles became the chairman of the Association. Small and selective membership it was hoped, would homogeneity of interests within the the Association. Asso·.: i ion could develop comprehensive guarantee It meant that the approaches regarding macro economic pelic ies.^^ Indeed, successive necessity capital TUSIAD aimed above-party at providing governments which set of project of proposals which TOBB advocated. TUSIAD Also, proposals generally for policies that would promote capital accumulation could a was in to the emphasized the accumulation. conflict with by TUSIAD the integration to the Common Market only be achived only through harmonious class relations, advanced The was in conflict with TISK*s provocative a view attitude towards labor unions. In the 1971-1978 period TUSIAD supported policies which encouraged labor-capital collaboration. TUSIAD state favored In contrast to other business associations ’’autonomous collective bargaining, expanding and opening new lines of communication with moderate on the lef t. 2 62 welfare politicians -U a meeting' arranged by TUSIAD on March 2, that 1974, it was declared the reorganization of the price system and the attempts of government for emphatically establishing welcomed a "dialogue" with free enterprise by the industrialists.·*^ TUSIAD also conciliatory attitude, Ecevit adopted a towards tlie left-of-center policy of RPP and the latter’s close connection with the labor. The prestige o f TUSIAD among business sector increased Associat.ion convened Free Enterprise Council. council was expressed by TUSIAD in 1974: when the The necessity for such a "The associations which represent the business world should form a common front for the problems of business environment. "‘*·* In the assumed council the representatives from different sectors were to be the equal partners apart from the fact that TUSIAD had special place. a From this perspective two interrelated development took place during 1970’s. Thus, it representative TUSIAD that to minimuras" quite evident that agent of the private sector. TOBB was Then, not wished to protect its "above party" stand and only on certain principles referred such as protection of private property, enterprises and the like. 63 the the reaction TOBB’s attempts to provide political support to TUSIAD alignments became to as JP sole of implied favored of the "common freedom of private Lvfjii though TUSIAD proposed that the private sector should not give support to any political part, consisted of TISK and TOBB representatives who asserted sector had to back JP. easy there was another group in the Hani Kartay stated that, to defend the free regime. Ertugrul Soysal, attacking. Vehbi Koç, and the initiator of TUSIAD, those who gi\e It is now the time to attack. We must make self-criticism. the way out.^·^ said: But "I’am against We know the loopholes for tax The Western social democratic regime is one of the leading industrialists in Turkey pointed out to the minimum condition seek the support of private sector: priority that private "...it would not be one of the founders of TUSIAD, evas. ion better than the state. Council ’’This council will to any party or institution which do not respect for not basic beliefs of the private enterprise. While whether agreed the they representatives of different sectors could would or would not support any political on the point that they will all oppose NSP. NSP injected and had not agree party, they It was noted statist tendencies to the coalitions formed on the to be prevented from becoming the key party in the that right coalition governments.^^ The attitude towards RPP on the part of TUSIAD was not very clear. Some sections of the private sector did not view sympathically the RPP’s entr'ance to S(jcialist International of the artisans, Free Chairman of RPP, and also, Bülent Ecevit, because of the speechs in which he declared that cr-aftmen and small peasants would not take their place in the Enterprise Council because their interest was 64 in conflict with those of big capital. However, the speakers at the Council meeting did not severely criticize RPP as there existed the possibility the party at government. representatives power, how in Thus, the council]: new relations. Trie environment of erosion institutionalized sec;t(;r voluntary pluralism, existing and the patterns of interaction between the association including interest group association] TUSIAD, the government?" criterion such rested with the government· controlled newly business by the government. an of and emerged relationship Here, was whether would it be beneficial to the the in governments The initiative on the decision of whether a place dialogues clientelistic put the business in hesitancy on question of "how to establish and structure its take of coopting absence [read the would in easy access of the pre-existing formal relations debilitating the power. the resources provided them with the means for clients and/or in manipulating the already private of ”If the party we support is not will we conduct our relations with the party in to facing Ali Çarmaklı stated [one Turning to the issue of relations with the government, government of expected to gain with dialogue the primary government. access to From resources In turn governments expected to secure political support. 1977 elections was important both for RPP and TUSIAD. The received 41.4 percent of the votes and became the only political on the left. Bülent Ecevit, the chairman of RPP; power began to follow a new strategy which winked at a ’'national coalition” government. 65 RPP When the of prog'ram of government formed by RPP was the Turkish Grand National Assembly, emphasis was on general principles. submitted to the one could observe approval that the The details were to be shaped by a national coalition government that was expected to emerge on a consensus on the principles set forth in the program. The RPP’s program aimed at not to provoke politically reli'\/int interest groups. any political party or It emphasized the reconstruction of ”pnl.)lic order” and a ’’balanced foreign exchange policy.” implied that whoever came to power had to stop street the disputes on Cyprus question, In general terms, majorproblems of at thebeginning of 1978 there foreign trade balance, 1979, deal and deal solutions to economic crises. by TUSIAD, too.^^ it was stated that, existed three major problems in Turkey, Until violence, these were the problems which were Turkey The program conceived as In a TUSIAD report issued ”As we approach the 1980s political instability, and birth control. TUSIAD did not take a militant stand against social democratic formulas provided that would bring about a harmonious labor- capital relationship. In an interview Vehbi Koç observed: The economy was in a bad situation when the RPP came to power, for a long time state was not able to pay its violence was still rampant. in the red. America and Common question.52 66 and State economic enterprises We had had uncertain the debts relations Market,especially on with the were Greece, Cyprus Koç continued Among these problems which were ail difficult to RPP government handled was followed solve American embargo skillfuly, by the adoption of a reasonable policy Cyprus question. the which to the RPP also took effective steps for delaying the foreign debts.^3 On by the other hand, The Nationalist Front governments initiated Justice Party had problems with the private sector especially with those who were close to the principles advocated by TUSIAD. The small partners for of increasing tlie dissatistaction governments. consensus Necmettin the from the reason arguments [chairman Unions, there emerged an advanced by NSP, of the NSP] in the Front governments too, The the would Nationalist, that a country. invervention business During of community the previous Erbakan had tried to find clients supporting obstacles that had been thus created to big business in ministries attaclied to Erbakan, business Front implicit mainly stimulated by TUSIAD, provoked the big business. the Nationalist business sector and to create a circle of businessmen himself. l.lie TUSIAD the NSP would be good for the benefit of statist Erbakan Nationalist among of was Before the 1977 by-elections, without the through governments among private sector, government Besides coalition not Front bolstered the view that find an opportunity for governments communication in which Erbakan’s party element, 67 was the big with the the key Ill tlie economic sphere, mainly from import substituted great emerged the shortage of foreign exchange which was outcome of policy.^^ Foreign exchange bottleneck difficulties aggravated TUSIAD argued that the problems "by for industrialists. 1974 and recession, concominant with continuation of trade policies geared more towards import than encouragement, deteoriatirig subsequent terms including an exchange created situation shock discmiraged in The oil export the the had the of was world wide trade and substitution rate regime inflows of capital and worker’s remittrances. that Thus, the GNP growth rate fell to 2.4 in 1978 and declined further to -0.9 percent in 1979 and -0.8 percent in 1980. Moreover the rate of inflation reach to 70 percent in 1979 and above 100 percent in 1980."^^ The fragmentation parliamentary souglit a new of majorities the party system and added to the problem. In the government and a new economic policy. Economy was exchange in shambles industry could because of the not work instability with event of TUSIAD As stated by Koç lack of foreign full capacity... Beginning by 1973 and onwards RPP and JP coalitions whether in l)ower or in opposition did not think of the interests of country... partisan Professional politics. associations were involved The party in power did not support associations which did not depend upon them. ... " 68 the in those The began campaign by policy a series of paid advertisements of methods of TUSIAD against the social Ecevit government that is, elicited reaction in democratic major newspapers. the employment from TUSIAD. governments of The RPP policy non-market led to emergence of black market to which the industrialists could not adopted. Besides, lost control over the increasing labor its that union easily militancy.The politicized the Association by taking it the heart of the discussions on ’’regime problems.” the the it seemed that the social democratic government had political crisis Turkey faced, at The RPP government’s policies TUSIAD aimed at could do away asserted with the would also democratic system of government.^^ Tl'SIAD proposed an alternative policy package which guarantee the pillars of the regime. The program advocated by aimed at encouraging private enterprise, intervention, liberalizing the state economic enterprises, TUSIAD eliminating undue government economy increasing efficiency of the and carrying out a tax reform. The mission of the Association was stated as follows: We, as members of private sector, declare that the force that will improve our welfare under a system of democracy always is free prompted productively. the The enterprise; individual developed free enterprise to work nations of harder our age main liberal that and has more reached prosperity under conditions of freedom only through this path. There is no alternative path. 69 Tl'SIAD- social for two reasons. vis other democratic government confrontation was Firstly TUSIAD acquired prestige and legitimacy vis-à- business associations. From 1979 onwards it was seen as an association that toppled governments. had important Secondly TUSIAD’s preoccupation shifted from the sphere of economic policy to the deteoriation of tlie poJit>' in the direct.ion of debilitating pluralism. TUSIAD’s changing react, ion style of to social democratic government was due to Ecevit.^^ Ecevit attempted to change mission of RPP as the ’’protector of the Papa State.” taken by the the earlier Also, measures the government such as nationalization of certain mines were conceived by TUSIAD as the reimposition of etatism.^^ During 1979 Turkey began to adopt IMF policies. {)roducts of State Economic decrease the burden on the treasury. was the 1978 devaluation. IMF that it would The though democrats social advocated would by IMF, secure were increased as to The most important development use the resources of wages and salaries would not rejected to strictly the be exchange sources for the Central Bank increased. adopt they now agreed to implement those fresh so The social democrat government promised to not inefficiently. Enterprises The prices of the the Even policies policies stabilization which of the economy.^^ On the other hand, these policies led to the breakdown of alignment with labor unions. would adopt a In 1976, RPP^s Ecevit had declared that RPP new policy which would be based on Scandinavian social 70 democtatic movena-nt’s policies. prolessional associations; use of labor state power. Thus, it would have been suit with they would be participated in and share New strategy of RPP had aimed at reshaping movement which was fragmented and politicized. RPP’s the the ultimate goal was to unite the workers under the RPP umbrella.®·* For a while, labor - RPP alliance seemed to work. But then in 1978 Ecevit as Prime Minister resorted austerity measures, which were formally announced in the Fourth Five - Year Plan (1978-1982). pointed out that deepening financial crises foreign credit. the labor Parallel to IMF advices, of necessitated Ecevit tried to hold down costs for controlling the inflation. which broke labor-party alliance. Turkey It was It was this attempt As an opposition leader Ecevit taken serious steps in uniting the fragmented labors sector, had but when he became to prime ministry in 1977 the old coalition collapsed. From the point of TUSIAD, the breakdown of this necessitated a fresh look at the problems the regime faced. the dissolution of the labor - government alignment coalition Following Feyyaz Berker (chairman of TU.SIAD) stated: The trio of employees with problems. price and We, wage employers, and the state must cope as employers and employees must bring the increases inflation. 71 under control and stop the As for as TUSIAD was concerned, Sakıp Sabancı, the this was what the economy needed. leading industrialist of Turkey talked along the same Lin^-^s: There can not be development in a country if "vote became superior to economic policies. period, big par-ties policies" During the 1973-1979 of the country could not arrive at a consensus on the vital issues but instead gave priority to the [;o Lic ies. TUSIAD ad'/ocated a National Coalition government of RPP and JP. the By timing of the paid advertisements of issuing between the advertisements TUSIAD towards the end Uie government and IMF, was of So, well-calculated. the negotiations TUSIAD sought to make an impact and aimed at weakening bargaining power of the RPP government vis-à-vis IMF. Ecevit that himself admitted the influence of the campaign and later said "it was not the IMF or USA that undermined us but our own business cir*cles. By tills time, free enterprise coalition which was previously tried to be held together under the patronage of the JP was also broken down. Thus, which aimed TUSIAD at attempted pr-everiting to inject new principles into politics the ’’erosion of the state power." Ali Koçman (chairman of TUSIAD between 1980-82) complained that '^hen we get into trouble or are faced with unfair treatment we often ask as "where is the state?" 72 But if we have the opportunity we, too, treat other unfairly. A wild search for "truth” is going on in the daily life. the state knocking fact, is does becomes freedom... down The dynamites used the ones who are dominant in politics placed at the roots of the state itself. taken as a political party; State Opposing to what Before, everything STATIZATION (emphasis OF is THE mine) else, what is that their in The state and required STATE Millions of states suppose are everybody is against is the only absolute power that can unite for in it... direct. is the the own, STATE flags and economic power are sufficient for self-subsistence...While all these happen reasonable, there emerged a new class in Turkey which is works rationally and productively and is able to leap towards the stages of efficient industrialization and and can understand social development in more practical terms than the ones who are adversely affected by that development. untiring warriors of the private sector who create The miracles constitute this class. Turkish private sector must get under heavy for responsibilities mentioned picture. or even service concerning the rearrangement of It must consider it its duty to reconstruct the state. through the politics key is functions, if necessary, 73 above restore We will be politicians unavoidable. that is, commodity production and providing services, duty and, the At if least, encouraging we should be on be an officer [of the state]. The new erosion of mission TUSIAD set for itself was that of preventing state’s authority in Koçman’s words ’’statization state/’ As the polity had become more politicized, access to scarce resources were more blurred party governments the of the the criteria for at the hands of different and particularly weak coalitions, economic decision making had been completely politicized. Thus, could channels through which TUSIAD interact with the government be no more than informal, one - to - one relationships members of tlie TUSIAD rather than government. Thisprovides dealing successive governments. with Association itself of the with the in its a flexibility to the Association But the individual members as members could more easily be manipulated by the governments. Following elections, the JP fall of Ecevit took the office. government after the 1979 The new JP government began byto implement a new set of measures known as the January 24(1980) Decisions. It was a stabilization program which aimed at structural adjustments the Turkish economy. TUSIAD supported the new policy package. in As Vehbi Koç observed: These decisions obtained. dynamism are correct in principle and results would But the industry and economy in our country have a of its ov;n. hindei* developments, January be Interfering with if not today, that dynamism may be tomorrow... 24 decisions lias to be implemented by making So certain adjustments which will better adopt them to our economy. 74 may f-ieturning to the basic query of this study, consideration transmitted from tlirough to 1973 which mechanisms the during the period under demands of the economic decision-making centers. TUSIAD were As noted onward a new type of bureaucrat had emerged in above Turkish civil service who gave his expertise to a certain party or rhetoric."^ These newly interaction emerged technocrats were the pillars of the between government and the Association. From example. this perspective Gzai was during Demirei served as he found stayed Ozal is the undersecretary of State Planning l>;veinment v ict:*-min ister established the career of Turgut (November 12, typical Organization 1979 - September 12, 1980) and for about two years soon after September 12, a under Ulusu government 1980 military intervention. Then Motherland Party and became prime minister in 1983 where he at office till 1989 when he was elected as the President of the Republic. In his community, among He life career Ozal developed close relations he was also a TUSIAD member. with business But Ozal gained predominance business s<-ctor as the general coordinator of the Sabancı became Melal Works Industry which was known by its tough and militant stand against labor \mioris. By tl.»e end of 1970s, shape TUSIAD’s policies, as a member of TUSIAD, and, of he was able to to the undei’secretary of state in charge of economic affairs in late 1979, he became the Llie chairman of the Employer’s Association Group. when he was appointed virtually the sole architect of the 1980 stabilization 75 program. ''lien tlie 1980 military takeover took place Vehbi Roc recommended Ozal to General Kenan Evren, the head of the Junta, and asked him "not to change Ozal."'i During the end of the fragmentation of the earlier formal and the emergence political easy environment access to loosen-; hand; of of a new type of bureaucrat ixi the politicized provided TUSIAD the chance to have a resources particularly when compared to the game namely the artisans and craftraen. relations relatively the On permanent the other politization of the polity in a centre-dominant system meant that favoritism, uncertanity and unpredictability would become widespread issues about which members of TL'SIAD always complained. In 1970-1980 period, the polity was characterized p o l a r i z a t i o n and politization. in the During increased of 1971-1977 period TUSIAD was competition with other business associations. end by 1977 with the Free Enterprise by This period came Council. From 1977 to onwards TUSIAD acted as a peak association among the business community but only as the sector representative of of the big business which became the tlie Turkish economy under the parameters introduced dynamic by new economic policies. These developments signified drastic changes within l)usiness community which unions. The the name was formely represented by semi-official answer to the question of "who would say the last word in of Tur.kish private enterprise during the was now quite evident: it was going to be TUSIAD. 76 following decade?" NOTES and REFERENCES 1) Dankwart A. Rustow, "Turkey; The Modernity of Tradition" in Political Culture and Political Development , Lucien Pye and Sydney Verba, Press, 2) 1965), (Princeton: edited by Princeton University p. 196. İlkay Sunar, State and Society in the Politics of Turkey’s Development, (Ankara: Science Publications, Ankara University Faculty of Political 1974), p. 112. 3) Ibid. 4) Ertugrul Soysal, "Government and Private Sector" April 30, cited in Metin Heper, 1974, in Milliyet, "The Recalcitrance of the Turkish Public Bureaucracy to 'Bourgeois Politics’: A MultiFactor i^olitical Analysis," 1976), 5) Keiker, 6) Ibid. 7) Bianchi, Turkey. 8) Middle East Journal p. 497. T_h^ Modernization of Turkey, p. 93. Interest Groups and Political Development in p. 248. Yeni Ortam May 21, 1973. Since the goal of indiistrial sector was integration to Common Market, existed a beginning. conflict with it can be said that there artisans’ and On the other "protectionism" Weiker, 10) Ibid. The Modernization of Turkey, 77 craftmen’s from was a polity favored by the both parties. 9) 30 (Autumn, p. 94. the 11) Jacop M. Landau, E. J. Brill, 12) 13) 1974), Mustafa Sönmez 1990), Radical Politics in Modern Turkey. (Leiden: pp. 188-193. Kirk Haramiler (Ankara: Arkadaş Yayınevi, p. 160. Politically relevant group is conceptualized as those who do not control central government authority such as ministeries and Prime Ministry but tliose activity may be important for the operation of the political system. See Eldon banning American Political Systems," 1974), 14) Sönmez, 15) Ibid., 16) Bianchi, Comparative Politics Kirk Haramiler, p. 149. p. 160. Interest groups and Political Development in p. 266. Sendikacılığı, see also Pars Esin, (Ankara: Ibid. 18) TISK Annual Report, April 1978, (Ankara), 1977, Bianchi , April 4, Türkiye’de İşveren Sevinç Matbaası, 17) Turkey, 6(April p. 372. Turkey, 19) "A Typology of Latin 1974). pp. 78-79 see also Yankı July 4, 1977. Interest Groups and Political Development pp. 267-268. 20) Yankı, April 22-28, 1974. 21) Yankı, April 15-21, 1974. 22) Weiker, The Modernization of Turkey, 23) Sönmez, Kirk Haramiler, 24) Weiker, îte Modernization of Turkey, p. 95. p. 154. 78 p. 96. 25) Ayşe üncü, ’’Chambers of Industry in Turkey. An Inquiry to State - Industry Helati^>ns as a Distributive Domain" in ^litical Economy Ci' Income Distr ibut ion i_n Turkey edited by Ergun Ozbudun and Aydın Ulusan, (New York: 26) Ibid., 27) Kemali Saybaşii, Holmes and Meier, 1980), p· 467. "Chambers of Commerce and Industry, Parties and Government: Turkish Cases," Developmen i. Midd1e East Technical University Studies in 11(1976 ), pp. 117-133. Ibid. 29) Yankı April 22-28, 30) Hulki Alisbah "Sanayide Kurumlaşma” 11. Tebliğleri , to Nisan 1974. (Ankara: İktisat Kongresi Devlet Planlama Teşkilatı Yayınları, Even thougli the speech was made in 1981, an important industrialist, problem. Sakıp elected only twice. Ibid., 32) Ayşe Öncü, 33) Yankı, 3-1) Ibid. 35 ) Hi id . 36) Ibid. it pointed out Sabancı, proniinant Mustafa Sönmez, in the same way Vehbi Koç Kirk Haramiler, p. 155, "Ciiambers of Industry in Turkey,” August a elected to the Executive Board of TOBB only within 30 years by a court decision, 31) Political A Comparative Analysis of British an 28) 1981). pp, 455-180. 2-8 1971. 79 p. 470. p. 157. once 37) Ibid. 38) Ibid. 39) See article 3, By-laws^ TUSIAD, (Istanbul: TUSIAD Publications, 1984. ) 40) Ibid, article 5. 41) Yeşim Arat, 42) Bianchi, Turkey, "Politics and Big Business," typscript. Interest Groups and Poli t ical Development in p. 269. 43) Yankı, April 8-14, 44) "Iş Alemi Hükümet İlişkilerine Evrensel Bakış," (Istanbul: 1974. TUSIAD publications, January 24-30, TUSIAD 1974), p. 31. 45) Yankı. 1977. 46) Ibid. 47) Ibid. 48) Ibid. 49) Ibid. 50) "1978 Yılına Girerken ve 1980’lere Doğru Türkiye’nin Temel Sorunları Üzerine Görüş ve öneriler," TUSIAD publications, TUSIAD. (Istanbul: 1978). 51) Ibid. 52) Yankı, 53) Ibid. 54) Yankı. 55) "1978 Yılına Girerken ve 1980’lere Doğru Türkiye’nin Temel December 11-17, 1978. July 4-10, 1977. Sorunları Üzerine Görüş ve Öneriler," TUSIAD publications, 1978). 80 TUSIAD. (Istanbul: 56) Ozbudiin, Perspectives on Democracy iji Turkey, 57) Yankı, October 16-22, 58) Yankı, May 21-27, 1979. 59) Yaukl) June 4-10, 1979. 60) "1979 Yılı Çalışmaları," 1978. TÜSIAD, "Politics and Big Business," Yankı, December 11-17, 1978. 62) Yankı, November 16-22, 1979. 63) Yankı, June 25, 64) Yankı 1 January 19, 65) Yankı 66) Yankı November 16-22, 67) C. 68) as cited in Yeşim Arat, typescript, 61) p. 11. 1979. 1976, January 4-10, Arcayiirek, Yayjnevi, pp. -43-44. 1976. 1979. 1979. Cüneyt 1986), and January 26, Arcavürek Anlatıyor. Bilgi p.320. 1979 Yılına Girerken ve 1980’lere doğru Türkiye^nin Temel Sorunları Üzerine Görüş ve Öneriler," Publications, June 28, TUSIAD, (İstanbul: Nokta 70) see. Heper "Ekonomik ve Sosyal Gelişme Sürecinde Bürokrasi: Bir Tipoloji ve Bazı Düşünceler." Hulusi Turgut, 1986). TUSIAD 1978). 69) 71) 8 (Ankara: 1982. 12 Eylül Partileri. p. 182. 81 (İstanbul: ABC Ajansı, Chapter Five TURKISH INDUSTRIALISTS’ AND BUSINESSMEN ASSOCIATION IN THE 1980s TOWARDS A NEW POLITY Ttif' m i l i t a r y 1961, 1971 in Turkey intervened in p o l i t i c s three times, and 1980-1983) s tr u c t u r a t i o n o f the s t a t e 1980 p er io d, :nter';*st. new group in t er ve n t io n s led to important i n t e r e s t group r e l a t i o n s . changes in Throughout groups emerged and attempted at shaping the interface. in which (1960- Turkey It was noted by Heper did ciiuse n e i t h e r that authoritarian the the 1960- statemilitary regimes as happened in Latin America nor c r e a t e regimes s tr u c t u r e d on c e r t a i n c l a s s formations. Military aimed at r e s t r u c t u r a t i o n o f democracy so as remov<^‘ those f a c t o r s which c o n t r ib u t e d to the emergence o f democracy. ( 1 ) The s t a t e , whicli however, among other things, The 1961 National new had an impact on i n t e r e s t group a c t i v i t y . c o n s t i t u t i o n s tr u c t u r e d the s t a t e in uleologv; has tutelle 1 h<-*ir· been ].)O w ers civil bureaucracy The l a t t e r c o n s t i t u t i o n to the President o f the Se c ur it y Council, It exercise powers debilitating continued to have a s a l i e n t r o l e , 1982 c o n s t i t u t i o n strengthened the e x e c u t i v e . granted to Rep ub lic, and the m i l i t a r y became the *’ c o - l o c i suggested that " n e i t h e r o f over jurisdiction was 'p o litic s ’ in terms them of through of expected an the to official r*estricted to that o f safeguarding the t er r i tor i a ] i 11 tegr i ty . ^ 82 The distinctiveness of post 1980 period lied on the fact tfmt state" and "politics" were now two distinct spheres witii a between state "compromise" and that elimination of continuously political emerged elites."^ in uncertanities It can be the post-1980 period in politics which "the "compromise suggested resulted were that in generated changing political dynamics of praetorian politics of the by the 1970s. As noted above,the 1982 Constitution strengthened It also granted new powers to the Prime Minister. responsible Minister.“ ^ not only executive. The relations of the Prime Minister· with his ministers took new forms; now the the ministers were to the Parliament but also It was argued by Heper that "the framers to the the Prime constitution considered bringing the state back in indispensable.’ The new Constitution restructuration of the state to the e\ents of the previous things, brought groups. with its emphasis around new norms, decade. on the revival emerged as The Constitution, group associations were faced of interest with certain limitations and at times even banned. activities decreeissued by the Council of which were permitted by classified On the other hand, TUSIAD among the associations promoting interest, 83 a reaction among other some restrictions to the structuration Interest and TUSIAD’s Ministers, the "public The control of the state over the associations firstly by increased control on raerabership selection. associations parties. was bolstered Secondly, were barred from establishing* linkages with the Thirdly, a related measure, engage in politics. the political the associations could not be They could act as an ’’interest group” but not as a ”pr-essur-e group. "" The post-UiBO period was characterized not only by the ’’revival of the state" but also by ’’the debureaucratization of the government.”^ The decade was characterized by the emergence of a personalistic and particularistic form of relationship between government and TUSIAD. After the 1980 military coup, The Motherland Party, first elections were held at 1983, advocated economic policies with emphasis on the regulatory r()le of the market forces came to power. policies for enunciated business emphasis on At first sight the by the party seemed to provide news sector. The program of the party the market forces and weakening the opportunities aimed role of at placing traditional bureaucratic elements in the public policy making.^ A liberalization program of foreign exchange regime was accompanied by that a discourse which signified the end of the "mixed economy” had been bureaucratic the earlier defended by the political and elites and still found its proponents within the ranks parties in the opposition. of The new approach allowed for a minimum amount of government involvement in economy, credits, pre-1980 rhetoric tax incentives and the like. 84 tlirough subsidies, cheap The MP governments encouraged of partnerships between firms in Turkey and abroad. The the result state’ s became a goal was the a n t i - e t a t i s t p o l i c i e s which aimed to r o l e in pr o du cti v e E x p o rt - o r i e n t e d growth not only a means f o r the r e a l i z a t i o n o f c e r t a i n p o l i c y goa ls but in i t s e l f . It must not be foi’gr^tten, were activities. reducing carried however, that the most radical measures out during the interregnum of 1930-1983. Reducing the demands of the politically relevant groups become part and parcel of the stabilization solution According to pr-ogram the implemented by the military’s economic to Nordlinger, and political crises government of the late the 1980 coup was a "ruler type." as a 1970s. In this type of military takeo\ers military does not seek to maintain the status (JUG but wishes to impose changes in the economic, political and social spheres: They in v a r i a b l y monarchies, p a r t i e s . .. powered bring more attempt the root-an d-br anc h traditional Praetorian oligarchies, destruction and of political r u l e r s . . .commonly.♦. b e l i e v e that high investment and modernization programs are required to about steady economic g r o w t h . . . Repression i s e x ten siv e.. . Pollty, penetrated from above. 85 economy and g e n e r a ll y s o c i e t y are to be to Political rr^slructuration was completoi before Ozal government came power. than Consequently, economic restructuration rather politirai cuie became the main axis of the policies adopted during the MP rule. Beginning of the privatization of state economic enterprises and the creation of new bureaucratic agencies^where people from outside were appointed ^ were some of the attempts traditi')nal bureauci’atic cadres. to decrease In the process, the role of political executive came to occupy a more prominent place in the polity, Economic measures liberalization of economic and economic growth the adopted by the MP governments economy was resulted in the development as a problem of the decade increasing those which operated in the key sectors of the economy could contribute to the export capacity of the country. continued and engaged in took and which The government t(; iiave the initiative as it controlled credits the exporters industrialists were in need of. extremely of exports. Governments encouraged the establishment of foreign trade companies supported the ’’concentration political p o w e r , P o l i c y - m a k e r s of and for important especially The government’s for those firms which policies were now were also exporting since it was a matter of survival for them,^^ Moreover, as indicated by Oni^ public investments still surpassed those made by the pi-ivate sector. Through the financial system public sector continued to control the capital market,^** 86 Il cuuld Western or i c m ted » approaches be expected that the anti-etatist, elites commitment and pro-market anti-protect ionst would correspond with the businessmen’s concerns who operate in the dynamic sectors of the economy. corresi)ond give political but, as To a certain degree, It was argued that most the channels to government were even more blocked than before uric li « .anie inner executive did indicated by Heper '‘central elites continued to shc^rl shrift to the social groups. iV: it across in government circle’ made 'the up of che prime of "because autonomization minister and of a an few tecliiiGcracIs ;iround him. The division accurately elites and responsibility for handling economic elites independence the labor between state political reflected in the area of public policy had state of primary was to of the country and, nation. sphere. functiori The Here, elites making. matters safequard the Political whereas the security and the indivisibility and integrity political elites dominated the former metfiod bureaucracy neither the state elites nor civil societal elements was introduced secure. which made the posts As already noted, wer^> -^.M'iected the public buja?aucracy. acted were of governmental The I'Ublic Ijureaucracy became subordinated to the governing Contract was in tiie party. public important transformations New units were established which as eniaiicialions of the government. Certain critical Iransfei’rcd to these newly-created units. For example, functions to Undersecretary for Treasury and Foreign Trade were transferred some 87 the to f un c t io ns wiiich were e a r l i e r performed by the M inistry o f Finance. cadr es o f o f f i c i a l s emerged who headed c r i t i c a l ag enc ie s such as banks, the Central Bank, New state the State Planning Organization and some o f tlie s t a t e economic e n t e r p r i s e s and who were d i r e c t l y r e s p o n s i b l e to Prime M ini ste r, The effects association As it was Ozal, hims el f. of these developments upon government-interest interaction noted institutionalized the by was a Heper domination-subordination "there [neo-corporatist] social groups and the government. was hardly group relationship. pluralistic give and take between the or weigthy The relationship that existed was of a clientelistic type but as it was of a parentala variety and therefore no government consultation and the let alone bargaining took place between the ’’interests", the former often dictated its wishes to the latter."^^ THE ROLE INTEREST GROUPS SHOULD PLAY: TUSIAD’S VIEWS Within this context, the answer to the question of "whether Turkish polity was now moving moving towards a political system in which there would be greater participation inpolitics on the part societal elem'ents?" gains vital importance. of civil Second question would be about the limits of TUSIAD’s access to and influence upon government. TUSIAD 1970s. Due come to to the have i n c r e as in g p o l i t i c a l relevancy by reasons dis c us s e d in the pr evious relevancy was bound to be high in post-1983 p e r i o d , 88 too. the chapter, late its However, as already noted, during the 1980s the economic policy making was monopolized by the political elites. necessary meetings were arranged for the announcement of the taken by the ’’inner circle.” and Then if it was deemed TUSIAD met decisions It was suggested that even when government it was an opportunity for the governmental elites to communicate tliat directives to the members of TUSIAD. It can be said that the lack of an overall strategy and presence of a great deinslitutionalization TUSiAD. degree of the Uiiiristitutionalized advantages to the of uncertain!ty resulted relations between the patterns government. of relations There was sector differeril and its representation types in further government provided and several ’’flexibility” formulation and implementation of the policies. private therefore in the The fragmentation of by several associations with legal status’ and orientations enabled governments to manipulate the situation. It can be implementation relevant close the flexibility in of the uninstitutionalized patterns ties politics.^^ one of with Necessity of of an 89 keeping A Schmitter in his analysis of resources. members of TUSIAD and one time observed, the unforeseen The business groups were be subordinate the and relationship. through availability or absence of financial Kocatopçu, formulation policy obliged TUSIAD to keep close point was elaborated by Pliilippe Brazilian the ’’integrated” TUSIAD to the system which was crnisequeiice state of that ’’centre” where the decisions were made. ties similar said its to the Sahap chairman If we wish TllSIAD the dialogue with the government to should take up the problems to government discussing them in the open. to keep its mouth shut. views TUSIAD should In other words, continue, instead of it should know Instead of letting the media know its take them to the government, if ‘necessary fight for them and when agreement on a certain view is readied, it should be announced view...Many persons in TUSIAD, as the government's who are in fierce competition with each other in many fields of business, have agreed on a common denominator. The points that are agreed upon are:(l) Dt^t^Miding democracy; (2) political party; Staying outside the orbit of (3) giving priority to country’s long a term intei'ests.^ ^ In the introductory part of a book published by TUSIAD the following point was made: Formally TUSIAD recognized as an ‘Association of National plays enterprises large and important role in the presentation Interest’ of private views and in its recommendations to the public to government and all those others with at economic policy and T u r k e y e c o n o m i c well being.22 Defending economy" ar*e the long terra two important "national interest" themes which are distinguishes it from other business associations. 90 and "free important for market and Let us reiterate: expansionist p r iv a t e the post-1980 period was characterized by economic goals TUSIAD enterprise. with emphasis on the its encouragement members mostly operated in most of dynamic sector of the economy. TUSIAD members, uncertainities projt." tions have to Ihey however, faced: continued "...free to complain enterprise can not about make the healty because it does not know the exact amount of taxes it pay."^4 bureaucrats, They argued that creative "besides the will politicians and ideas and practices in the industry would come from by those in the private sector. They thus pressed for dialogue with the government: market "A transparent economy based on dialogue with the government is not a dream utopia. Administrators knows everything’, who thought for a long time that *Papa must not conceive the consultations with or State private sector as a weakness on their part."^^ TUSIAD longed for influencing the policy making process during its formulation phase. For the sake of establishing institutionalized and formal relations with government, advisory' commitees in TUSIAD offered to establish which public private TUSIAD posHive in "decreasing tension" and "egoism of the Such a were responsible 1982, such a dialogue in sector collaborate.2’ effect justified and terms demand had also been transmitted to the authorized Ali Kograan, for the preparation of the 1982 could of its groups. agents Constitution. the then chairman of TUSIAD said that "in 91 certain who In advanced industrialized countries governments witli civil societal elements. institutionalized consultations We liope that our government too, soon terms of realization such a system the establishment of a "High develops such mechanisms.^ In Economic Consultative Council" was proposed, the Council would have members from private and public sectors as well as the academe. We propose the establishment of a High Economic Consultative Council which private and would public have as its sectors members as v;ell as people the from the universities, would meet periodically and which would be used by governments as a sounding board. It was evident that TUSIAD was wary of interest groups-government interface. government private to be sector come out rather than in the They make the contact with the by an association the confusion representing the whole by sectoral associations or by the firms themselves : Instead of contacts with government by individuals, sectorial the associations it would be better to have government private sector. beneficial to by an Such everyone realize it.^^ 92 association an access representing the arrangment would concerned and firms or everyone be far would to whole more soon Unstructured governmental and unroutinized relations with ministries and agencies have been the basic features of the relationship between government and TUSIAD. to government, circle” the other Even though TUSIAl) had an easy agencies through its close connections with nature of the relationship in the last access the ’’inner analysis was personalistic and particularistic and could break down at any moment. As noted al)ove, Turgut Ozal, the Prime Minister of the time was a member of TUSIAD and sixteen of the cabinet ministers appointed in had earlier worked in the private sector. establish, Thus, 1983 TUSIAD was able to in Scott’s terminology ’’personal and diffuse linkages” with the government. TUSIAD government. insisted on formal, TUSIAD argued, oppor'tunity to institutionalized relations with it would among other things, that membership would enable Thus, to Union of Industry Employers TUSIAD to collect valuable to the an unlike it was pointed out Confederation information about economy and politics and the Association would contribute, things, provide furnish government on some critical matters not the situation in Japan^^ and West Germany.^"* the (UNICE) European among other acceleration of Turkey’s integration to the European Community. TUSIAD would also act in UNICE with government when a decision to be made concerning the Community affairs. It is important to that membership to UNICE became a matter of competition TISK and TUSIAD. between is note TOBB, UNICE could not decide on the matter and took the 93 matter to its executive council. It was announced association Where TUSIAD was selected as member. by TUSIAD that UN ICE recognized TUSIAD as among business community and underlined its the peak central place among other business organizations.^^ So, process for TUSIAD had tried hard to have a word in policy formulation on certain topics such as the strategies which will be the integration of Turkish industry to the European general economic policies. On the other hand, adopted one and on TUSIAD has not sought to have responsibilities for the implementation of the public policies even those For assumed to be in the direct area of interest of the TUSIAD, policies a consensus among the public and private sectors about the to consensus Association. implementation was crucial: ”It is necessary on the economic problems facing Turkey, to policies to have tackle them and on the implementation of those policies. TUSIAD sectors, also wished collaboration between the public clarity concerning the rules and, and private transparency and predictability in policies: As is the case in many developed countries including Japan in those areas characterized by serious economic problems should made be debated and solutions sought in commitees or forums of public and private Entrepreneurs cannot be successful up principles JviSt issues as governing sector unless economic policies and representatives. they know business the life. the economy is openned up to outside there sliould 94 be transparency in governmental operations too. It would be far better to consult relevant public sector associations, media and and the universities before making laws, to have an pursued in laws, they are It is the most natural rights of businessmen idea of the economic strategies the years to come. transparent and degree regulations than frequently changing them once put into effect. mass and A market that will be economy that is paralleled by a dialogue between government private sector will help to realize Turkey’s aim to open the economy outside.^® TUSIAD again and again demanded that uncertanity arbitrariness surrounding economy should be eliminated. Bczacıbaşı if Thus, (presently member of the Administrative Council of not Bülent TUSIAD) stated : Suggestions made by Yusuf Özal, for economy, Ozal was was State Minister a flicker to hope for the industrialists. going to hold monthly meetings with TUSIAD and other business associations. TUSIAD, among leading role responsible the heads Ömer Dinçkök, head of the spokesmen of private sector groups had in trying to establish of such a a dialogue. Although such meeting provided an oportunity for both sides to listen problems to the of other the no lasting industry meeting. 95 could solutions be for formulated the basic at those irsIAD has seen the existing patterns of the dialogue as one side talks over the head of the other. each TUSIAD wished to replace it a genuine dialogue based on exchange of knowledge on crucial issues. In a state-dominated polity TUSIAD has been able to transmit its demands to the but in government economic could decision-making. government not in general have an It is now in order effective to role look at TUSIAD- characteristics of TUSIAD- relat.ions more closely. TU SIAD -C X) VERNMENT 1 NTERFACE It can government be said that the nature and relation substance a/)d conceived a form to a large extend depended on the changes of the national policy making. in TUSIAD the itself broad area of public policy making as appropriate for its involvement. As noted above, characterized the during 1980s, economic policy making was to be by strict commitment to the self-regulatory market forces. adequate of the resources 1983 But in the changing political post-1983 period the market forces for limiting state MP came to power in 1983, elites patronage. Parliaments 1987 were enabled dominated by the 96 did And, not after the traditional bureaucracy’s and the influence in polity was drasticalJy reduced. and of The expected consequence of such a shift would be the growing autonomy of the market place. environment capacity the governing government political have the state The Parliaments of party. elites The two to control economy through tlie decree laws. Thus> governments had had the opportunity to dominate the private sector and prevent them to use their 1't'sourc-es for sabotaging the economic policy of the government. The members of TL'SIAD association where governnu-nt spheres the inter\ention was less visible in comparison to actors associations. operated in an economic sphere of which were represented by other other business The association tried to keep its autonomy by distancing itself from the governing party and lias for along time engaged in "above party rhetoric.” Cem Boyner, chairman of TUSIAD, stated: "I do not find if r*ealistic on the side of businessmen to express and defend their political views in a country like Turkey where state and government have enormous powt-r. As al^^'eady noted, TUSIAD became one of the most prestigious businessmen associations in the decade following the 1980 military coup. In 1985, within the top one hundred industrial firms the share TUSIAD members in production and employment reached 80 percent. share of the private sector in the value added of of The manufacturing is around 70 percent and TUSIAD members share in production and employment of private Association companies the manufacturing represents industry about one is about thousand 50 percent. companies. And The these represent a significant portion of private sector as most members (operate in banking as well insurance, ice sec:tor*s.'^ 97 construction of and The relations different from and MP TUSIAD with MP governments those of other compulsory business tradit wnially TUSIAD, of have had followed a path associations linkages with other parties on which the right. by its strong commitment to reforms in foreign trade, taxation foreign exchange system became program. a one of the ardent advocate of the But the distinctiveness of TUSIAD’s support to the program lies adopted in in the fact that the Association evaluated terms of overall economic necessities and the the MP ’s policies long-term interests of the community. The e f f e c t s reflected in exporters. period, of tlie economic policies pursued by MP governments were the deepening cleavage between industrialists In the overall development of the economy in the credits and and post-1980 subsidies became the means for manipulating the exporters. For a long time these resources were controlled by the bureaucratic state. the elites However, for the sake of defending the of an by aJlocating the The bureaucracy’s was replaced by the traditional governmental iriitiati\e mainly the that of Prime Minister himself. 98 the changed of The anti-bureaucratic attitudes of the MP TOSIAD.'^^ resources of What happened was inner circle and the debureaucratization government took place. well-comed interests as noted above the post-1980 developments overall authority structure in government. automization traditional role the the was in elites, By early 1980s TUSIAD was advocating* policies which would provide cheap credits and bringing to the governments attention member companies which had to adapt to the new rules of the game imposed by the new pc'onomic stabi 1 izat ion program. ^^ Since the late 1970s on the other hand, growth rates had continously increased. the volume of public investments had increased and the public had been investing for more than the sector. The relative share of private sector in the But also private total fixed capital investment decreased to 42.9 percent in 1985 from 45 percent 1984 remained at the level of 42.9 percent in 1 9 8 6 . The in imbalance had effects on government - business relation because of the variety of means which government could employ in their relations with the business community. vis-à-vis Public investments strengthened the hand of the government business. infrastructur‘e and It had been noted that MP government invested communication both at the state level through the municipalities. of half of the as well in as Special off-budget funds with a net income consolidated state budget increase its discretionary spending of the helped MP government to public funds for politically advantageous purpose to maintain its center-right coalition. Export-oriented new power to the growth model of the post-1983 governments provided governments under the ’’liberalization program.” Export incentives and tax rebates provided to the governments new over the exporters* incentives. The 1984 ’’Export Promotion means Decree” lodged the responsibility for to providing those incentives to the prime minister’s office. 99 On cheaper tho other hand industrialists organized credits and lower interest rates. importance wfiich provided opportunity for patronage. it the MP with in Central TUSIAD, sought bank credits gained enormous discretion and A report prepared for TUSIAD argued: is true that in market economies the central banks do have passive roles. They are in fact obliged to economic trends both in their own country determine the most appropriate medium and long-term policies. In order central banks to perform these should have and not monitor abroad, functions, their autonomy and monetary however, from the govef'nment. ^ TUSIAD pri^■ate pi'oposed a new status for the Central Bank so that the sector would not be subject to politically motivated government inteventions. It is obvious that TUSIAD was pleased of the privileged access to government but was unhappy about the unpredictability stemming from the way the economy was run. Furthermore, should The same report continued: monetary targets the Central Bank has mind be disclosed in the beginning of every year ad should not be revise unless there is an absolute necessary. absolutely necessary for the private sector to This is effect sound investment planning. ^ From policies 1985 as stratiigy of onwards TUSIAD became more critical of came Uie to have a critical place in the government, but at the same time 100 the government overalleconomic TUSIAD did not disagree with policy. It the general parameters of the government’s was because of the very characteristics of the economic relations between TUSIAD and government which prevented TUSIAD openly so critical. In a political and economic environment where political power critical for the destruction or success of the firms, way for TUSIAD, industrialists, this reason, critical, with deepening cleavage is the only possible among exports seemed that of remaining loyal to the government. and For pei'sonalized relations with government became extremely It was a matter of survival. Despite the cleavages that arose among the member companies, sectoral basis, the measures on taken by the government was referred by TUSIAD as the ’’necessary measures for the welfare of the country. As Koçman, chairman of TUSIAD in 1984, said: Different preferences of various sectors will birtli the to debates. But we all know continue and accept give the necessity of placing emphasis on exports. Koçman added. If the there model takes businessmen as the should not be differences of proponents of the model and businessmen. that a creative opinion force between the It is for this reason dialogue between the two is more critical than 101 then ever. we earnestly hope that the i^overnnient too would think along and rule” the same lines.^^ There were strategy. also complaints about government’s ’’divide Istanbul Chamber of Industry stated: ...Who is the boss of export incentives? in the State Undersecretary said Organization and there for Treasury and Foreign Trade. is the It is being that a new office at the undersecretariat level will formed. divide Planning There is a coramitee There is an indeterminancy. and rule. policy-divide That can not be. and rule. be Ankara is trying That was late to İnönü’s We must be careful against this, and stick together. ’’Collaboration” among business criticising as with it government has been provided government’s policies. economic the favorite advantages In a study made by strategy compared TUSIAD to which covered selected among 6347 members of the Istanbul Chambers of Industry (sample represents a major portion of private sector in Turkey) it was found that some sort of governmental action was conceived necessary for the solution of tlie problems faced by the private sector. NOTES and REFERENCES 1) see Metin Heper, ’’The State, Military and Democracy in Turkey,” The Jerusalem Journal of International Relations pp. 52-64. 102 9 (1987), 2) Metin Heper, "The State, 1983 Turkey," Political Party and Society in Post- Government and Ooposition 25 (1990) pp. 321- 333. 3) Metin Heper, 1989,” "Executive in the Third Turkish Governance: Administration Republic, 1982- International Journal of Policv and 3 (1990), p. 308. 4) Ibid., p. 307. 5) Ibid. 6) Sr-imev., 7) Elaborated by Metin Heper in "Interest Group Politics in Turkey: K_i rk Haramiler. p. 152. A Theoretical Perspective." Paper Presented for submission at the International Conference "Government and Organized Interests." (Zurich, 8) Switzerland September 27-30). Metin Heper, Case," "The State and Debureaucratizations The Turkish International Social Science Journal. 9) Motherland Party Government Program, 10 ) Eric A Nordlinger, Governments. Ankara, forthcoming. 1983. Soldier in Politics Military Coups and (Eaglewood Cliffs, N.J.: Prentice-Hall, 1977), pp. 22-23. 11) Heper, Case," 12) "T)ie State and Debureaucratization: The Turkish typescript. Ziya Onis, "Evolution of Privatization in Turkey: The Institutional Context of Public Enterprises Reform" Paper presented for submission at the Conference and Society in Middle East," "Dynamics of State Egypt June (1989), 103 p.l2. 13) Gpxiis, (Istanbul, TUSIAD Publication) 14 September, 1986 and February 1986. 14) see Önis, "Evolution of Privatization in Turkey: The Institutional Context of Public Enterprises Reform." 15) Heper, "The State, 1983 Turkey," 16) Political Party and Society in Post- typescript, p. 12. Heper, "The State and Debureaucratizations: The Turkish Case," typescript, 17) Ibid. 18) Heper, p. 12. "Interest Group Politics in Turkey: A Theoretical Perspective " typescript, p l2.. 19) Ibid. 20) see Phillippe C. Schmitter, Change in Brazil, 21) Tercüman, Interest Conflict and Political (Stanford: (Istanbul Daily) August 24, was expressed by Cem Boyner, (Istanbul Daily) June 24, 22) Stanford University Press, 1971). A Brief Who’s Who of Leading TUSIAD Publications, 23) Ibid. 24) Ekonomide Kesimlerarasi Diyalog ve Şeffaflık; TUSIAD, 1988). 25) Ibid. 26) Ibid. pp. I-II. 27) Ibid. Hürriyet 1990. (Istanbul: Japonya’daki Uygulama," A similar view Chairman of TUSIAD, TUSIAD Member’s Company Profiles’: Turkish Companies, 1985. p.l. 104 1984) AT Ülkeleri ve (Istanbul: TUSIAD Publications, 28i Ibid, p .1. 29) Ibid. p.2. •İÜ) Ibid. p.3. 31) Ibid. 32) Scott, "Patron Client Politics and Political Change in Southeast Asia." 33) Görüş. 12 (November, 34) Görüş. 14 (January, 35) Ibid. 36) Hürriyet (Istanbul Daily) 37) Görüş, 38) Görüş. 17 (January 1989). 39) Ibid. 40) Hürriyet, 41) "TUSIAD 1986). July 28, 1987. 18 (January 1990). June 24, member’s Publications). 42) 1989). 1990. Company profiles," Also Yeşim Arat "Kamu Bürokrasisi", TUSIAD, (Istanbul: "Politics and Big Business", typescript. (Istanbul: TUSIAD Publications, 1983). 43) Görüş, 13 (March 1985), 14 (February 1986) and 8 (August 1987). 44/ Arat, 45) Ibid. 46) 'loksöz, 47) (lörüş, 48) Ibid. "Politics and Big Business," typescript, p. 12. Tyxkey to 1992: Missing Another Chance, p. 51. 18 IJanuary 1990). 105 TUSIAD ■19) Ibid. 50) Görüş 51) Ibid. 52) Cumhuriyet, 53) Esmer Y, 12 (. Fisek H., F Kalaycıoğlu, E., Sorunları: S orunları: Öncelikler, İstanbul: (İstanbul: TUSIAD Publications, Özmucur, Beklentiler ve Çözümler, 106 1987). S., İş Dünyasının TUSIAD, CHAPTER SIX CONCLUSION The present essay aims of providing a set of arguments on the exchange relationship between the central governmental authorities and a politically relevant relationship there group,^ namely may TUSIAD. be different patterns In each this exchange corresponding distinct forms of the government-group structurations (1) "The may domiiifitc or control the "politically government and politically relevant group "may be relatively activity group (4) but of "a "The group"(3) power: the domination group"{2) mav in under government govcrniiieni equ; 1 be relevant to politically each capable of maintaing a sphere government may be autonomous from of relevant independent politically relevant associations may effectively influence the relevant public policies.^ It - group political iias been suggested that the last three categories of government relations had stemmed from the experience of systems and refer to "state corporatism, (societal corporatism) and pluralism respectively. lias been polity. there suggested as Western the one which fits best European neo-corporatism The first category the Ottoman-Turkish The distinctiveness of the latter polity lies in the fact that emerged interest, an autonomous government having tenuous groups'* interiiied iai V s:;>cial in the absence of structures. 107 corporate and relations with autonomous and Th^.* relationship between successive governments and TUSIAD has gone through forms t)ecause of different from those the respective periods. issues in power the government before experienced the nature of effected the ’’tone" of the the industrialist, who The organized in TLSIAD in 1971 originated from the role the state the management of the economy. some associations and drew limit of TUSIAD’s influence on public policy.^ of control business On the other hand, which TL'SIAD was involved in, themselves in other the economic and political changes that Turkey during dialogue of Government tried to played maintain its which led o\‘*r business associations through certain means, of the students of Turkish politics to analyse the above mentioned relationship in terms of corporatism and pluralism. that pluralist coexisted and two models of Thus, corporatist in modern Turkey. interest group politics Bianchi arrived to the conclusion forms Moreover, of interest representation Bianchi asserted that there exists a tendency of the consolidation of the latter.^ Above, making business it through and/or participants in was noted that corporatism is a pattern institutionalized labor contacts organizations. decision-making are between The relative determined by of policy- government status of ’’law.” corporatism, policy is made through collaboration between the state groups; in the pluralist version such formal institutionalized are absent. 108 and the In and contacts The formal-legal design of TOBB seemed to justify one to designate the relationship between the state and groups as corporatism. uncertainity generated environmetit, doubt by the continuously, system made the system less corporatist, the first state place. in changing a reflection of praetorian polity of the on the validity of that conclusion. But the political 1970s, casts Fragmentation of the party if it was a corporatist one in As it was suggested "the nature and autonomy of Turkey also means that the cost of being out of the power are extremely liigh. Because of high degree of governmental centralization and of large role the Turkish government have access, state in the economy, those in directly or indirectly to an immense amount of resources in relation to the resource base of society, which they' can distribute. The decade saliance of of small the 1970s was parties where political survival were closely interrelated. is further manii)ulate characterized power by and the increasing organizational In an economy where private sector diversified the parties would have more effective means the situation. In contrast to the corporatist to principle which postulates organized linkage between the state and group the 1970s were characterized by fragraentalized forms of interest Conflicts Commerce within TOBB, plus commitment the actors to the representation. between Chambers of Industry and Chambers emergence of a new type of of bureaucrat® with changing political goals and the informal links between renders the corporatist model inappropriate to situation in Turkey of the 1970s. define the Informal contacts between government 109 and the members of private sector became even more salient during the 1980s. TL'SIAD’s on foundation in 1971, the business side of the game. signified an important development Alongside the compulsory group associations, TUSIAD emerged as the first group association. In fragmentation the state a decade of interest voluntary debilitating interest democracy with and polarization of the polity and the gradual erosion of power and decomposition of the government, TUSIAD has undertaken unto itsc'lf the mission of eliminating the uncertainities so generated. Tliese years witnessed the emergence of RPP’s left-of-center policy. TUSIAD hoped that RPP could control the militant worker movement bring about some order to otherwise a very confused situation. and That is why initially TUSIAD has not adopted a confrontationist strategy against this Social Democratic Party. part of When RPP could not stop militancy on the worker’s movement and in fact seemed to encourage it, there occurred the "TUSIAD-RPP confrontation" in 1979. Even pluralism, to with though during these years tliere was a certain degree of tlie autonomy of groups varied depending upon to their links government. TUSIAD, as a voluntary interest group association, independent resources and organization skills of its own was to distance itself from the political parties. no able Ill general terms, however, TUSIAD-government relations till 1979 were characterized by government initiate and TÜSIAD reaction. sound It may a paradox to talk about government initiative with the erosion of governmental power. Government initiative meant that in its relation to newly emerging groups, the latter. which they governments could establish control Government continued to have control over could perspecL ivf-, always divert to this or RPP*s hope that the group. over resources From this to mobilize the labor movement through party apparatus and JP ’s reaction to Erbakan in the latter’s attempt find new clients among the Union members were typical types of its to control mechanisms and interaction patterns between political parties and social groups. This particular strategy on the part of successive governments viewed somewhat differently by TUSIAD as compared to reaction of was other business associations TUSIAD tolarated Social Democrat - labor alignment at least until 1979. a political Stability With the breakdown of the alignment last hopes for stability and predictability have gone down the and predictability were indispensable for the economic drain. growth model advocated by TUSIAD.^ TUSIAD also tried to bring some order to the private sector vis-à-vis the government. eliminate the fragmentation. Thus, convene the Free Enterprise Council. Ill Here, representation too, of it wanted to TUSIAD took the initiative to During the 1970s, governments* role in the economy was conceived as supporting private sector as long as they contributed to the growth as designated by the governments. arguments developed economic policy. groups. be by RPP economic TUSIAD’s reaction to and NSP led TUSIAD searching etatist for a new RPP’s philosophy led to attempts to create new social People’s sector was the prominent example. If the policy could implemented newgroups in question would have an easy access to government compared to the there existing business associations. TUSIAD RPP. did Still, not show resistance to the new policies developed it was not considered a partner in policy-making. by It did not have formal and institutionalized access to the government. P\)l lowing government the in restructuration TUSIAD 1979, of confrontation with the social TUSIAD’s first item on its agenda the state, and political order. there was a need for a strong state. labor-Social social severe Democrat was that of According to It was for alignment was seen as a necessity democrat this for peace so that newly emerged groups could be smoothly reason securing integrated to the political system. Wheji the military intervened in September 12, stabilization implemented. of the program advocated by TUSIAD began 1980 the economic to be strictly In 1981 the status of the Association was changed to that an association working for the public interest by the Council of Ministers. decision of But the nature of relations between TUSIAD 112 and authorized agents of the state still remained cool and therefore, personalistic and informal. From 1980 onwards, TUSIAD became a "peak association" among other business organizations. The political goal for TUSIAD turned out to be t.lie formation of a center-right coalition. The p o s t - 1980 jjeriod was c h a r a c t e r i z e d by the emergence o f an inner ex ec u t i v e c i r c l e in government. p o l i t i c a l exer;utive, making became government an With the c o n c e n t r a t i o n o f power in the dominated by a small group, a c t i v i t y which TUSIAD could not e a s i l y i n f l u e n c e . contributed to the c le ava ges that betwi>(>n e xpo rt er s and i n d u s t r i a l i s t s . rules turned the economic p o l i c y out arose within The TUSIAD, The d i s c r e t i o n a r y a p p l i c a t i o n o f to be the means f o r f o s t e r i n g the fragmentation of implementation of i n t e r e s t s represented through the A s s o c i a t i o n . In addition, economic lack of coordination in the policies formulated by the inner circle, and bureaucracy out of the picture. let the ministries The latter were no longer points to which it was wortwhile to have access. In the post-1980 period, although institutionalize its relations with government continued to relations personal to be a more effective channel to transmit the relevant governmental agents. of clientalia type. TUSIAD informal to connections specific demands The result was sets of informal The inner circle exploited pattern of interaction with members of the private sector. hand, tried such a On the one channels increased the importance of the inner circle. 113 At the Not same time it enabled them to manipulate able with to do anything else for the most the inner government circle. clients part, more TUSIAD Sabotaging of the economic easily. cooperated policy of was never thought of because of the multiplicity of the rewards that go\ernment could bestow. Ill fact, criterion loyalty to the center-right ideology of the MP became a for privileged access to resources. circle largely subordinated TUSIAD to its TUSIAD called for predictability, The inner wishes. executive However, institutionalized still contacts, and consensus on tlie parameters of the economic policy making. It can be suggested that interest group-state interface in hardly developed lines. As it through was corporatist, emphasized neocorporatist ’’...the absence or of Turkey pluralist powerful, economically dominant interests able to capture the state and use it for their own purposes and the weakness or absence of corporate intermediary structures, First, had it important consequences for subsequent modernization. led to what is known as the ‘autonomy of the state* meaning that the state apparatus is not captive or handmaiden of any social that class, can change, autonomous capacity but state, to possess sufficient autonomy to eliminate unhampered accumulate or create by class 114 decisions, relationships. corporate structures and expand political modernization of society. make particular power and has bring This a high about The praetorian politics of the 1970’s prevented the emergences neither corporatism nor neocorporatism. of For corporatist forms to emerge the ’’minimal condition” is ’’coopérâtion” rather than ’’confrontation.”^^ The restructuration debureaucratization of the state during the 1980s accompanied of the government led to the emergence of an executive which dominated policy-making. hardly impringe on the inner interest groups could alone participate In contrast the government which groups to support (exporters). though Thus, government (pluralism) let decision-making (neo-corporatism). clients’ by in decided Exporters became the *government’s they too at any moment could be faced with decision that would have adversely affected their interests. NOTES and REFERENCES 1) The phrase was borrowed from banning in order to illustrate the ’’actual” place of TUSIAD in the political arena. relevancy in the political system, of course, TUSIAD’s depends on the nature of its exchange with the central governmental agencies. But it is also apparent that through the reports and/or speeches of the predominant figures, it has some impact on the governments and sometimes determines the political agenda. Cumhuriyet May 30, 2) Metin Heper, 1990, May 31, Ibid. 4) Ibid. 1990 and June 1, see 1990. ’’Interest Group Politics in Turkey: A Theoretical Per’spective^ ” typescript. 3) For example, 115 5) In his discussion of pattens of government and business relations in USA Theodore Lowi pointed out that the "type of issue" affects the government - business relations Lowi argued that in different areas one would to different patterns decision-making across the proposed that not only there existed different patterns in different patterns of influence and locus of power. Theodore Lowi, ’’American Business, Studies and Political Tlieory," 1964), 6) Bianchi, see Public Policy, Case World Politics 16 (July pp. 677-715. 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