ABSTRACT
This chapter examines the interaction between policy and business, and their reciprocal influence on each other. It also emphasizes the heterogeneous nature of both the business and public sectors. The long-run Turkish experience is placed in a comparative perspective. Compared to other countries, the chapter shows that the reciprocal influences between government and business were asymmetrical both before and after the first privatizations in the 1980s. Before the 1980s, the state was broadly dominant. Subsequently the growth of political Islam facilitated the growth of pious capitalism.
