Long-term growth in Turkey and South Korea A comparative analysis(1960-1980)

Although it realised an average increase in per capita income of 5-6% during thelast century, the gap between Turkey and developed countries could not be narrowed. Inthis study we are investigating the reasons behind this failure by a comparative analysiswith S. Korea. Comparison is made for the period of 1960-1980 and is based on threemain variables, considered important in the process of policy determinatinon andimplementation; natural resources, external factors and social and political structure.Turkey, being a relativly naturally rich country could finance its imports byexporting primary goods and by workers? remittance. Korea, as a naturally poorcountry had to export manufactured goods to pay its import bill. And as a result, Koreacould developed efficient and internationally competitive industries and could reach bigscales by means of exports while Turkey could not.Korean government relied on the coalition among USA, army and industrialists.Land owner class destroyed economically and politically by land reform. Working classsupressed by autoritative government. Decisions could be taken and implemented easilyand rapid responses could be developed against domestic and extarnal economic shocks.In Turkey, land reform could not be implemented and the land-owner class had beenone of the coalition partnerts. On the other hand, interest conflicts betweencommercial and industrials classes made difficult to agree on a common economicprogram and develop rapid responses against domestic and external economic shocks.Special relations of Korea with Japan and USA facilitated external resource flowto this country, transfer of technology and marketing of Korean goods abroad. Neitherthe relations between Turkey and USA nor the relations Turkey and EEC did notprovide similar opportunities to Turkey.Key Words:Growth, natural resources, external factors, social and political structure,capital accumulation.