The GOVERNANCE blog

Governance: An international journal of policy, administration and institutions

Economic crisis and the establishment of Turkey’s independent central bank

In the October issue of Governance, Caner Bakir of Koç University explains a “radical policy reform” — the establishment of Turkey’s independent central bank in 2001.  Bakir focuses on the critical role of a policy entrepreneur — Kemal Dervis, a World Bank official newly appointed as Turkey’s treasury minister — and his success in seizing the opportunity presented by Turkey’s 2001 economic crisis, the most severe in its history.  Dervis, says Bakir, built a powerful reform group centered on the Ministry of the Economy, and “was also instrumental in utilizing coercion by conscious manipulation of incentives by the IMF to press for the implementation of the program.”  Read more: Policy Entrepreneurship and Institutional Change: Multilevel Governance of Central Banking Reform.

Written by Governance

October 3, 2009 at 7:37 am

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