Inclusive and Exclusive Economic Institutions


Economic growth in a country increases the amount of goods and services produced within a year. You can provide this increase in many ways. For instance, economic growth can be promoted either by increasing production capacity, by increasing labor productivity, or, most notably, by increasing technological progress, economic institutions, and widespread freedom of expression.

State politics, using the power of the judiciary and the military, tries to legitimize exclusionary institutions. This situation leads to inequality of political opportunity in the country.

Especially we can show that our country, the crises of 2001 ushered in significant institutional changes, especially in the linkages between politics and the economy, the new attempts to insulate the latter from short term interventions in the political sphere. It remains to be seen, however, whether these institutional changes will be effective and durable or whether politics and the institutional changes will be effective and durable or whether politics and the institutional environment will regress to their earlier ways [1]



There are two types of institutions in the economy; They are inclusive institutions and exclusive economic institutions.

Inclusive institutions open up the economic growth of the elite of society by creating an environment that breaks the power and encourages investment [2]

Provides an environment that is conducive to investment and innovation, there are specific economic institutions – property rights, enforcement of contracts, etc. The best way to show the abilities of countries and institutions that can provide equal conditions that will allow you to “inclusive economic institutions” are called.

Inclusive economic institutions in order to guarantee the property rights of not only a narrow elite class, of such rights to be valid for the majority of the population and they are created to be equal, everyone in society.

Exclusionary institutions the institutions are not accidentally created. To use these resources for the benefit of the community by those who are politically powerful few is designed. The power and possibilities of the continuity of such institutions in the hands of the elite that is provided by the exclusionary political institutions. This elite group, in fact, these exclusionary institutions that creates, provides and takes advantage of them to see them live. [3]



The emergence of inclusive institutions causes social mobilization. This to take effect, institutions shouldn’t be in the hands of the social elite. Social mobilization at the request of the people, by the active support of civil society does not survive.

By the people, if not the rights, and without freedom, we lose the potential. This potential is equivalent to being of humanity and to lose it is very hard to countries. This situation time and you continue to live like that.



Equal conditions for everyone, providing equal property rights that encourages investment in new capabilities and support the deployment of inclusive economic institutions; the political elite of the majority in favor of minorities, economic resources outside of exclusive economic institutions in economic growth from more structured upon receiving from the hands of a friend. At the same time, inclusive political institutions support and are supported by inclusive economic institutions. Inclusive pluralistic political institutions in a way by distributing political power and thus encourages the establishment of the rule of law.

Social mobilization, however, may persist by maintaining the rule of law. With the support of civil society, the Law Society should be designed.

Law is being used in a restrictive way by the state. The people that has chosen to get to the top without the right to work law. Over time, the public, will be loved by law.

To illustrate that, Özal preferred to govern by personal decisions and decrees and tended to underestimate th importance of rule of law and a strong legal infrastructure for the effective operation of a market economy. His rather relaxed attitude towards the rule of law had devastating long-term consequences. The significant rise in corruption in Turkey during the 1990s should be considered a direct legacy of the Özal era [4]




However, the law consciously designed to be a core concept you need to base that is desired. This core concept of freedom of expression. In the name of individual Liberty based in this growth is growing.

Individual freedoms, however, by the implementation of the independent judiciary and the protection of contracts is possible. By requesting people which did not have rights, not a right. If we were to bring prosperity to a review but here, as the rest of the people demanded the right, but the state would be crushed between the legitimization device. It is not enough just to demand as a right. This state of social movement and civil society to continue to support the correct behavior will occur.


The law allows the connection between the people and the freedom to express. Freedom of expression, the voices of the people to be heard helps. In this way, social mobilization is formed, and are regulated in the rules of law.

The law allows the connection between the people and the freedom to express. Freedom of expression, the voices of the people to be heard helps. In this way, social mobilization is formed, and are regulated in the rules of law.

It is a wrong policy to strengthen the state. State policy requires expansion with a support from the bottom. In this way freedom can spread equally to all sections of society, but the state is made strong, powerful and has the power of the rulers means that this just manages to make the cut.

Society escape from emancipation, because emancipation also requires responsibility.

If you want freedom for the freedom of a people, to ask for freedom for bread. The freedom of a people to leave, means the collapse



Economic growth and development of institutions in areas where there will be exclusionary but that doesn’t mean under these conditions of growth and development will be limited and at some points, will stop. Because of the growth and development to continue innovation and creative destruction is necessary.

If pluralistic political system, however, would be reflected in economic institutions; open to everyone, is common property rights of individuals say that there will be a conducive environment for innovation and investment. Throughout history institutions in Britain and the United States as the best example of this situation is shown.



You can’t get your political rights to economic rights. Is there a formula to fix the politics of this job because that is where the difficulty lies. The most important point of the rule of law and protected the political order. If this is corrected in the rule of law, Political Rights will also be arranged.

Freedom of expression as it expands, widens the scope of the rights.

The struggle over taken by right. Unversed right is the most difficult right.




Go to think of democracy once a year, the other 364 days, does not lie at the door of politicians. Everyday together with the Law of democracy, freedom of expression is built with.

However, in countries where there are exclusionary institutions, politician’s legitimization of these institutions to increase their own accounts on the device, to provide more concessions to their relatives and society generally, not just a specific partition shall strive to gain the largest share of.

“I’ll be quiet if you don’t touch it in my pocket.” is a false understanding of understanding. People for prosperity and democracy are not exclusive. Should affect the generality of the society.

We are adding women to the economy if we are unable to provide welfare. The position of women in business is very important. Already other men and women are not equal in a society where we can speak of the equality of income distribution and prosperity.

Economic participation has been regarded as a key factor in the process of empowerment of women. It has been argued that women’s wage work will enhance their bargaining power in the family, and will “provide some financial independence from men, promote independence and self-esteem, give women more decision making power in the home, promote more sharing of household chores, and prepare the way for class consciousness” and collective organizing among women” [5]



Corporate development along with economic growth will be stated, in this approach, justice in the distribution of income and, consequently, it is suggested that the social welfare should improve.

Representative democracy freedom of expression, except for very great difficulties. The management of confidence and the absence of freedom of expression, is dominated by exclusionary institutions, and in this case, causes the deepening of income inequality.

If it is set up the right institutions, the unevenness can be prevented. In this case;

1.Inequality of opportunity is  not.
2.Political inequality is not.

To establish a sustainable economy, however, can be achieved with transparency and trust. Most importantly, employment, investment and production unless stipulated otherwise in the economy is not sustainable.

Economic institutions are increasingly seen as the key to the explanation not only of economic growth and long-term differences in per capita GDP, but also the question of how the total pie is divided among different groups in society. [6]



80 after the coup, the military administration resulted in the disappearance of trade unions to be in charge of. In this administration, freedom of expression and freedom of the press to be restricted as in the past went. The quest for Democracy from military rule in the country has been due to the opening of trade unions. However, this is a very small number remained, and became the state monopoly.

Throughout the history of the Turkish, never has not been fully inclusive institutions. In general, Turkey “land of the Kings” as being managed by organizations, top-down way has been designed.

At any time in the history of civil socialization in Turkey was not powerful.

Exclusive of the agencies are managed by the state in Turkey. In addition to the degeneration of institutions this brings. At the same time, lead to the exacerbation of clientelist approach.

Under coalition governments, especially since the 90’s seen in populist approaches, institutions and state officials is intended to serve only under the direction of a certain group of people. In this way, ravaged a large part of the population, and in 1994 the country went into crisis.

The institutions are currently in Turkey is mixed. Both the container and is teeming with exclusionary institutions.




[1] Pamuk, Ş. (2008).  ‘’Economic Change in Twentieth Century. Is the Glass More than Half Full?’’ I in R. Kasaba(ed), Turkey in the modern World’’.

[2] Usta, K., E. (2013). Ulusların Düşüşü: Güç, Zenginlik ve Yoksulluğun Kökenleri. Retrieved from

[3] Usta, K., E. (2013). Ulusların Düşüşü: Güç, Zenginlik ve Yoksulluğun Kökenleri. Retrieved from

[4] Pamuk, Ş. (2008).  ‘’Economic Change in Twentieth Century. Is the Glass More than Half Full?’’ I in R. Kasaba(ed), Turkey in the modern World’’

[5] Erman, T.,  Kalaycıoğlu, S.,  Rittersberger, H.  (2002). Money Earning Activities and Empowerment Experiences of Rural Migrant Women in the City, The case of Turkey

[6] Pamuk, Ş. (2008).  ‘’Economic Change in Twentieth Century. Is the Glass More than Half Full?’’ I in R. Kasaba(ed), Turkey in the modern World’’

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