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The right strategy for economic development and actors in industrialization are two important issues for developing countries. The role of state and private sector in investments characterize the national economic system of a country. Whether state should invest in national industry as a sole actor or has a role of facilitator and controller is a significant issue discussed earlier by political economists. Turkey and Korea are good examples to show how the degree of government intervention can influence the formation entrepreneur class and establishment of private industries. This paper will try to compare and analyze main political economy of Turkey and Korea from earlier years of proclamation of republics to 1990s. Special focus will be given to causes and effects of economic crisis on national political economy. [ABSTRACT FROM AUTHOR]

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