How will Turkey enter the ‘Narrow Corridor’?

Last week, the Turkish-born American economist Daron Acemoğlu paid a visit to Turkey. As usual, we all listened to him intently. That’s because Acemoğlu is a star in the academic world. A professor at the Massachusetts Institute of Technology (MIT), he’s one of the top ten most cited economists and has been poised to win the Nobel Prize in Economics for years. 

After having graduated from Istanbul’s Galatasaray High School, Acemoğlu pursued his education in the UK. Despite that, he married a towering Turkish scientist who also lectures at MIT and frequently visits Turkey to maintain ties with his homeland. Acemoğlu retains a deep interest in Turkey – which of course, pleases us all. His criticism of the country’s plummeting economy in the past few years has also led him to gain a certain popularity amongst the opposition. 

Acemoğlu’s international fame stems from his scientific work and, in particular, his elaboration of a unique model. His first book, co-authored with James A. Robinson and entitled “Why Nations Fail”, features consistently in the reading lists of both Economics and Political Science departments. Just in Turkey, it has reached more than 100,000 readers. The book tackles the age-old question of why some countries are rich while others are poor. Beyond war and expansionist occupations, Acemoğlu focuses on institutions – which he says, destine countries and societies to wealth or poverty. In “Why Nations Fail”, Acemoğlu and Robinson scan world history, from the Epic of Gilgamesh to the Arab Spring, and review the political and economic traditions of a host of countries to develop their theory. 

Their theory establishes a distinction between “extractive” and “inclusive” economic and political institutions. In countries ruled by despotic kingdoms, colonial administrations or autocratic élites, which do not allow for a participatory and democratic culture to blossom, institutions are referred to as “extractive.” In other words, such institutions capture the wealth for their interests and that of the rulers. On the other hand, “inclusive” institutions provide incentives for the generation of wealth through a framework based on the predictable rules and laws. “Inclusive institutions” allow for the generation and sharing of wealth. 

Daron Acemoğlu’s theory is embedded in the dominant discourse in liberal economics and political science. Essentially, his thesis is that economic development can only occur in democratic regimes. To prop up this theory, he uses historical examples and economic data. 

Even as authoritarian regimes emerged in democratic countries and the gap between the rich and the poor rises rapidly across the world, Acemoğlu calls for the more equal distribution of wealth whilst continuing to praise democracy. 

In their new book, “The Narrow Corridor”, which was published last month, Acemoğlu and Robinson pretty much continue from where they left off in “Why Nations Fail”. Yet this time, the authors devise a political economic model. They contend that civil society ought to rein in the state so it protects and promotes the liberty of the people. Both a strong state and a strong civil society are necessary conditions for prosperity. 

The authors refer to Thomas Hobbes’ “Leviathan” concept in which the state is likened to a monster. They use Hobbes’ political metaphor of shackling and struggling to control this monster as well as several historical examples. 

In the prefac, Acemoğlu and Robinson sum up their book as follows: Our argument in this book is that for liberty to emerge and flourish, both state and society must be strong. As a strong state is needed to control violence, enforce laws, and provide public services that are critical for a life in which people are empowered to make and pursue their choices. A strong, mobilized society is needed to control and shackle the strong state…”

The authors confide this is no easy feat. It is a journey, they contend: “What makes this a corridor, not a door, is that achieving liberty is a process. You have to travel a long way in the corridor before violence is brought under control, laws are written and enforced, and the state starts providing services to its citizens. It is a process because the state and its elites must learn to live with the shackles society puts on them and different segments of society have to learn to work together despite differences.”

Acemoğlu and Robinson refer to those governments that deny the right for societies to choose “Despotic Leviathans” and to those regimes that are unable to secure the rule of law as “Absent Leviathans”. Neither of them can generate sustained development and prosperity in the long run. That is why, Acemoğlu suggest the concept of the “shackled Leviathan” in which civil society wields some clout. This form of government should walk through the “narrow corridor”, he argues.  

Last week, Daron Acemoğlu delivered two speeches in Istanbul during which he explained the concepts featured in his new book. At a speech at the Bosphorus University, he focused on the economic aspect of his theory, emphasizing productivity and development. The following day, he gave a speech at the Orjin Conference Hall for the 20^th anniversary of Social, Economic, Political Research Foundation of Turkey (TÜSES). The topic was Turkey’s economy and politics.

Based on his writings and talks, it is fair to say Acemoğlu is one of the world’s more convincing advocates of democracy. As authoritarianism steadily gains ground throughout the world, democracy should be defended more than ever. Acemoğlu has become one of the most influential names in that regard. 

His studies on institutions stress the benefits of democracy as well as its sustainability. It is something he champions in speeches and books that are catered to the general public. For instance, in the meeting organized by TÜSES, Acemoğlu compellingly refuted some of the recent and popular critiques of democracy. He slammed the world’s current despotic trends and anti-democratic views. The economist clearly lays out why democracy is necessary for growth and well being. He pointed out that nations that moved to democracy in the 1990s have reached a growth rate of 20 per cent. The main reason for this growth, he explained, was better a distribution of resources that included everyone. 

Democratic rule is conducive to advancement in the fields of health and education. Yet after having opted for the democratic route, such advancements ought to be deepened and adequate institutions should be built to protect them. Such countries as Turkey, Argentina and Venezuela remain subject to fluctuations, as they were unable to deepen democratic institutions. While Turkey was on a path of economic recovery in the 2000s, it failed to achieve a productive and permanent growth as it distanced itself from a process of democratization. According to Acemoğlu, an economy dependent on loans and construction is unsustainable in the long run. A country that fails to achieve technological advancement, attract foreign investment, establish a sound education system, in which inequality is high and where journalists are jailed are freedoms are restricted, cannot break out of its shell. 

In other words, Acemoğlu does not speak optimistically of Turkey. Still, as he does to all of the world’s nations, he suggests a particular path to Turkish citizens, that of getting organized and defending their rights and democracy. It is in this way that we can shackle our own Leviathan and enter the “narrow corridor” that portends well being and prosperity. Acemoğlu says it is still possible for Turkey to achieve this.