There is widespread agreement among economist that society has became an organization through the institutions. However, there is not a consensus about definition of institutions and in which way institutions affect countries economic performance. With pioneering paper Acemoğlu, Johnson and Robinson (2001) , defends a new perpective about role of institutions in development process. By using Schumpeterian creative destruction point of view, they have mentioned the importance of power relations and redustribution in order to explain development process. Aim of this paper is to explain social conflict and political institutions role on economic development from the the period nineteenth century to today for Turkey where founded as a secular, nationalist Rebuplic that inheritor of multinetional theocratic Ottoman Empire. Founder philolosphy of Rebuplic was inhereted from collapsing period of Ottomans accompanied with political power relations formed by political institutions. Military- bureaucratic elites whose point of view is positivist, nationalist and Westernism created political institutions supporting their ideas. Political institutions as a main determinant of economic institutions supported their follower. New Republic foundation periods raised their own bourgeois and put constraints other groups. Therefore, social conflicts did not solved by political elites who do not want to lose their political power. This historical period have effected todays society because of cumulative causation too.
Keywords: instutions, social conflict