Municipal Borrowing Process in Turkey: 1960 - 2006

Abstract

This paper aims to analyse the municipal borrowing in Turkey during 1960-2006 in two subperiods: 1960-1979 and 1980-2006. These subperiods are differentiated on the basis of characterizing regimes of capital accumulation, taking 1980 as the breaking point. In this framework, the capital accumulation model of the import substitution era of 1960-1979 is assessed in the context of national developmental state, while the financial capital accumulation regime in the post-1980 period is studied in the context of financial globalization. Impacts of these two regimes on the debt structures of municipalities are compared using period-specific indices of indebtedness. It is found that indebtedness in real terms increased significantly in the post-1980 subperiod, which can be attributed to the adoption of the financial capital accumulation regime.