The 2000-2001 Financial Crisis in Turkey: A Crisis for Whom?

Abstract

In this paper, we study the consequences of the 2000-2001 financial crisis in Turkey to identify the impacts of the crisis on capital and labor. We uncover three significant empirical effects of this crisis. First, international capital benefited from the crisis by both increasing its total assets in Turkey and income flows from these assets, while large domestic financial capitalists also increased their profits in the aftermath of the crisis. Second, industrial capital benefited via a repression of labor. Third, the attempt to ‘remedy’ the economy by imposing structural changes furthered the interests of capital in general.: financial crisis, finance capital, IMF, external debt, precautionary cost, Turkey