Financial Statecraft

Abstract

This chapter examines the practice of financial statecraft in Turkey over recent decades. It argues that financial statecraft as a notion and institutional practice has yet to be a primary concern of Turkish state and non-state actors. Chronic current account deficits stemming from an import-dependent production structure, poor industrial upgrading performance in a natural-resource-poor country, and low savings have undermined sustainable foreign economic policy activism. Also, state elites have not created adequate insurance mechanisms for Turkish exporters and encouraged market actors to protect themselves against political risks, although some positive steps were taken. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.