Biology of Business

Turkey

By Alex Denne

Turkey's 2017 constitutional referendum transformed the parliamentary system into an executive presidency, concentrating powers that were previously distributed across prime minister, president, and parliament into a single office. President Erdogan controls judicial appointments, can issue decrees with the force of law, and faces no effective parliamentary check — a structural shift that replaces institutional friction with executive speed. The economy operates in a permanent tension between orthodox monetary policy and Erdogan's heterodox insistence that high interest rates cause inflation — a position that conventional economics rejects. The lira lost over 80% of its value against the dollar between 2018 and 2023, demonstrating the cost of overriding institutional expertise with political conviction. Turkey's geographic position — bridging Europe and Asia, controlling Black Sea access through the Bosphorus — gives it leverage disproportionate to its economic weight, allowing it to extract concessions from both NATO allies and non-aligned states. The governance model is a dominance hierarchy: speed and decisiveness when the leader reads the environment correctly, catastrophic error accumulation when they don't.

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