A Comprehensive Examination of the Turkish Economy with Recommendations and Rationale for Economic Growth
2005 Words9 Pages
As international security threats and global economic crises threaten defense and fiscal structures, countries are seeking to secure geostrategic and economic importance to better weather the storm. As an emerging economy with high geostrategic value, Turkey is attempting to redefine its foreign and economic policies and increase their position as an international actor. Sitting at the crossroads of Europe and the Middle East, Turkey’s value has historically been defined as geostrategic. However, Turkish leaders have undertaken bold plans, both domestically and internationally, to develop the economy and raise Turkey’s position as a political leader. This is not an easy task as Turkey faces many challenges. The Turkish economy has grown at a rapid pace placing huge demands on infrastructure, energy supply, and agriculture. Threats from Kurdish separatists and Islamic extremists have threatened the on-going process of democratization. Strained relations with the European Union (EU) over Turkey’s treatment of the Kurds and Greek Cypriots have threatened to derail a decade’s long pursuit of membership in the EU. These challenges have necessitated social, cultural, and economic reforms.
To better understand the economic challenges Turkey currently faces it is important to first understand the Ottoman influence that paved the road for the Republic of Turkey. History, particularly in Turkey’s case, still informs the modern environment. This paper will address the Ottoman influence on the Turkish economy and will then proceed with a comprehensive examination of the present economy. The paper will conclude with recommendations and rationale for economic improvement.
...ore accurate assessment of the health of the economy. Turkey’s real GDP grow rate of 2.9% in 2012 falls within an ideal range. “The general consensus is that 2.5-3.5% per year growth in real GDP is the range of best overall benefit; enough to provide for corporate profit and jobs growth yet moderate enough to not incite undue inflationary concerns” (Barnes, 2013). There are stark differences in real GDP value over the five year period that is indicative of not only external factors, but internal ones as well. Internationally, this five year period saw a cooling off of investor confidence as a result of the global economic crisis. Furthermore, increased civil unrest throughout Turkey and neighboring countries greatly affected investor confidence. The rapid change and then recovery of real GDP indicates both the volatility and resilience of the Turkish economy.