ABOUT THE PROJECT

Consumers are able to access debt instruments such as credit cards, consumer credit, car loans, mortgages in today’s financialized economy. Households are able to acquire important assets such as house, car, consumer durable, furniture by using credit. Households also use credit to finance emergencies or even everyday consumption expenditures. Household indebtedness is rising with an increasing pace and reaching to historically highest levels in Turkey in the context of financialization following the 2000s.

The project topic is household indebtedness in Turkey. Project’s main aim is uncovering the causes, dynamics, and consequences of household indebtedness in Turkey, finding out best practices from international experiences as well as identifying evidence-based public policy proposals to ensure that indebtedness remains sustainable.

Household indebtedness cannot be merely considered as a financial contract between the individual and the bank. It is an important multifaceted phenomenon that has broader economic, sociological and political implications. 

Project’s main research questions are directed towards understanding why, how, and with which consequences household indebtedness became a problem in Turkey and how to govern it in light of international experiences.

Originality of the project is underpinned by analysis of household indebtedness through the interdisciplinary perspective built by economics, political economy, political science, public policy and sociology disciplines, as well as the utilization of qualitative and quantitative research methods including survey, focus group, archival research, discourse analysis, semi-structured interviews. The project has a comparative dimension with the inventory of public policies and best practices of selected 15 countries. The project will also propose evidence-based public policies.

Project scope is limited to years 2001-2021, a period that corresponds to a noticeable rise in household indebtedness in Turkey. Project duration is 36 months.

Project is funded by TUBITAK-ARDEB 3501 Program under contract no: 121K904.