The role of government
Regarding the role of government, in the glass, auto-mobile and flat steel industries, which are all capital intensive, the role of Turkish government has been rather direct. It could be argued that this is, in fact, in line with Porter’s argument since he envisages a more direct role for government in developing countries. However, the role the Turkish government played, particularly in the glass and flat steel industries, was arguably even beyond that extended role. In Porter’s view, a more direct role for government involves direct support like sudsidies and temporary protection. The Turkish government, however, did not only support or protect but it initiated the founding of a large scale glass industry in Turkey. This was probably the right decision since the level of technological competency and capital accumulation in Turkey. At the time (in the 1930s) did not allow the exploitation of the existing opportunity by the private sector alone. It iss very interesting, in terms of Porter’s ideas, that it actually turned out to be a success story. Similarly, it is not possible to fit the case of the Turkish flat steel industry to the diamond framework with regard to the role of government . Apart from establishing and protecting the industry for along while, the government owned half of Erdemir (the only producer in the industry) , and was actively involved in its administration. The role of government here is much more direct than one envisaged by Porter, even for a developing country