The macroeconomic effects of IMF stabilization policies on the Turkish economicy

240 SUMMARY Turkey has several arrangements with International Monetary Fund (IMF) since it became a member in 1947. IMF policies, which were focused on stabilization until the 1980's, have begun to involve structural adjustment since the 1980's. Turkey's process of transition from import substitution strategy to export led growth strategy has prepared the background for IMF's policies involving structural adjustment in Turkey. Throughout Turkey's history with the IMF, there have been made 19 arrangements allowing for large amounts of IMF lending. Upon analyzing the effects of these IMF-supported programs, they were found to have positive effects on foreign trade balance and negative effects on growth rate of GNP and inflation rate. The IMF does not carry out policies aimed at increasing growth rate in the short run, rather it has the aim of sustainable growth in the medium and long run. Turkey's frequent and continuous requests for IMF arrangements, shows that IMF policies could not achieve stabilization and sustainable growth in Turkey since 1947. The Disinflation Program, which was instituted in 1999, caused and deepened the economic crises in 2000 and 2001. From this perspective, it can be concluded that, in addition to their negative effects, these IMF- Supported Programs can also lead to economic crises.