This book sketches an institutional political economy framework combining developmental state and foreign economic policy literatures to discuss potentials and limits of developmental governance and developmental foreign policy in the global South with reference to Turkey. The authors argue that although the developmental state framework has commonly been employed to explore domestic economic development processes without analytically focusing on foreign policy dimension, developmental state institutions are highly relevant in terms of the creation and pursuit of effective ‘trading state’ policies in a post-liberal international order. The book develops a two-level institutional political economy framework, called ‘regime coherence framework’ (RCF), to account for the domestic and international dimensions of developmental governance in Turkey. The main argument posits that the post-liberal development regime in Turkey and associated foreign economic policies lack coherence, due to poor overlap with ideational, material, and institutional aspects at the domestic-external nexus.

The economic policies of reactive states such as Turkey and Greece, both of which have shown limited ability to implement institutional reforms in recent years, have paved the way for deep crises. The crises are devastating for both societies' social fabric, but they also open up the opportunity to introduce new economic regimes. They do, however, not always invite changes in dominant paradigms. Despite weak state capacity and deep economic crisis in both cases, substantial reforms were initiated in Turkey whilst an opposite trend prevailed in Greece. Drawing on field research, this book develops a political economy framework that explains reform cycles and post-crisis outcomes in reactive states.

At a time when many governments in advanced or emerging markets are embarking on some form of industrial policy and protectionism, this book looks at how these policies have evolved in Turkey in comparison with other emerging markets. Based on a historical-institutional political economy framework the book examines the main factors domestic and global contributing to the rise, retreat and return of industrial policy in Turkey. It argues that it is not the state's intervention to the market per se, but uncertainty-amplifying interventions of the state because of its weak capacity that conditioned the effectiveness of industrial policy in Turkey. To this end, it also poses broader conceptual questions of relevance to other emerging markets about the role of the state in economic development.

The economic policies of reactive states such as Turkey and Greece, both of which have shown limited ability to implement institutional reforms in recent years, have paved the way for deep crises. The crises are devastating for both societies' social fabric, but they also open up the opportunity to introduce new economic regimes. They do, however, not always invite changes in dominant paradigms. Despite weak state capacity and deep economic crisis in both cases, substantial reforms were initiated in Turkey whilst an opposite trend prevailed in Greece. Drawing on field research, this book develops a political economy framework that explains reform cycles and post-crisis outcomes in reactive states.