Abstract:

The abstract 1980s are the times of liberalization and the opening of economies throughout the world. Globalization has been accepted as a unique process with the collapse of the Soviet Union. This situation has caused an economic phenomenon called "transition economies". Turkey is not considered in this respect. However, countries like Turkey, which has earlier expesienced this phenomenon before are evaluated in this category. The main problem of transition economies is what kind of response they give to the globalization process. Because central countries of this globalization process imposes two regimes to peripheral countries. These are democracy in the political area and free market in the economic area. However, efficient work of both democracy and free market economy is very closely related to the historical and social dynamics of the countries. Therefore, the factors preventing the efficient work of these two regimes need a change and this is approached reactionally. On the other hand, in the Orthodox economic approach, the level of development of a country depends on production increase and efficient distribution of resources. The main mechanism providing this is free market. However, there are some factors historically and socially preventing efficient working of free market. These factors are determined as, inefficiences arising from consumption relations, inefficiences from production process and inefficiences from political system. Keywords: Globalisation, Transition Economies, Democracy, Free Market

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