Turkey AK Party Marks 24 Years in Power

The party’s rise came out of a period of deep instability. Turkey was emerging from a severe financial crisis in 2001 and a succession of fragile coalition governments when Recep Tayyip Erdoğan’s movement won 34.28% of the vote in its first election in 2002, enough to secure a parliamentary majority. That ended years of coalition politics and set in motion a period in which the AK Party repeatedly won national elections, local governments and constitutional changes that reshaped the state.

That political continuity has been a double-edged force for the economy. On one hand, the market has generally rewarded periods of predictable single-party rule with clearer policy direction, faster infrastructure spending and a more coherent reform agenda. On the other, the same concentration of power has raised concerns among some investors about institutional checks, policy transparency and the durability of economic orthodoxy when growth slows or inflation rises.

The party’s record also mirrors Turkey’s broader economic transformation: rapid urbanization, large-scale infrastructure buildout, social spending expansion and a shift from parliamentary government to a presidential system in 2018. Erdoğan won the first presidential election under the new model in 2018 and was re-elected in 2023, while the AK Party remained the largest force in parliament through the Cumhur İttifakı alliance.

That political framework now matters as much for markets as ideology does. Turkey has spent much of the past few years trying to restore policy credibility after bouts of currency weakness and high inflation, and investors are watching whether the government can sustain tighter monetary policy and more orthodox macro management without sacrificing growth. The presence of Treasury and Finance Minister Mehmet Şimşek at the anniversary panel in Ankara underlines how closely the party is tying its political narrative to economic stabilization.

The longer-run bull case is that 24 years of uninterrupted rule has given Turkey a degree of policy consistency rare in its modern history, allowing it to pursue infrastructure, security and strategic projects without the frequent reversals that marked earlier decades. The bear case is that longevity can breed rigidity, especially if economic performance weakens or external tensions intensify, from regional diplomacy to domestic political strains.

For investors, the anniversary is less about commemoration than calibration: Turkey’s political stability remains a core asset, but its market value depends on whether that stability continues to support credible macro policy, rather than merely preserving the status quo.