Turkey: Making a difference

Turkey has been more and more in the international news. Westerners who have never traveled to Turkey usually do not know much about the country. Turkey is a nation that has worked hard to improve its economy.

 Turks have been trying to become part of the EU for a number of years. More recently, the number who hoped for this has been decreasing. In recent decades Turkey’s political evolution has been distinct from Arab and Slavic neighbors. Over the past two decades there has been an emergence of Islamicism as a political ideology and an impact is being made in many ways.

Here is an overview of Turkey:

Turkey’s dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for more than 35 percent of employment. It has a strong and rapidly growing private sector, yet the state plays a significant role in basic industry, banking, transport, and communication.

Maybe you have purchased some sheets or clothes and noticed a label with the words “Made in Turkey” written on it. Turkey’s largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment; it faces stiff competition in international markets with the end of the global quota system. The funniest thing happened while I was back in the US last summer. A relative gave me some bed sheets and when I was packing my bag to leave I noticed the sheets had just that written on them! The sheets were made in Turkey and were given to me by family in America!

Turkey also has a highly competitive automobile production market. In May 2011 the Reuters news agency reported that Turkish company Karsan Otomotiv was an early favorite to win New York City’s decade-long contract to build taxis for the Big Apple in a deal estimated to be worth $1 billion. This was due to Karsan’s unique handicap-accessible design and full-panel glass roof. Reuters states that the Turkish automaker had also planned to assemble the vehicles in Brooklyn with union labor. Sadly, when the official announcement was made Nissan won the bid for New York taxis instead of Turkish company Karsan Otomotiv. If you live in the United Kingdom you may have a Turkish-made white appliance in your home. The home appliance company Beko, a subsidiary of Arçelik, boasts of being one of the fastest growing brands in this field in the UK. Notably the automotive and electronics industries are increasing in importance within Turkey’s export mix. Other major industries in Turkey are textiles, food processing, electronics, mining (coal, chromite, copper, boron), steel, petroleum, construction, lumber and paper.

According to the World Fact Book 2008, real gross domestic product (GNP) growth has exceeded 6 percent in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. The economy has been turning around with the implementation of economic reforms, and 2004 GDP growth reached 9 percent.

More recently, inflation, according to the Central Bank of Turkey, climbed to 10.45 percent by the end of 2011, and the central bank reports that inflation was significantly above October forecasts. A revision of economic forecasts has been made bearing in mind the uncertainty of the Euro.

Inflation problems are not new to Turks. During the three decades that I have lived here there have been many ups and downs. Inflation fell to 7.7 percent in 2005 -- a 30-year low. Strong economic gains in 2002-05 were made, which were largely due to renewed investor interest in emerging markets, IMF backing and tighter fiscal policy.

The public sector fiscal deficit exceeds 6 percent of GDP -- due in large part to high interest payments, which accounted for about 37 percent of central government spending in 2004.

Here are a few facts for your information:

GDP -- per capita (PPP (purchasing power parity)): $7,900 (based on a 2005 estimate)

GDP -- composition by sector agriculture: 11.7 percent; industry: 29.8 percent; services: 58.5 percent (based on a 2005 estimate)

Labor force: 24.7 million; note: about 1.2 million Turks work abroad (based on a 2005 estimate)

Labor force -- by occupation: agriculture 35.9 percent, industry 22.8 percent, services 41.2 percent (third quarter of 2004)

Unemployment rate: 10 percent plus underemployment of 4 percent (based on a 2005 estimate)

Population below poverty line: 20 percent (2002)

Overall, the economy appears sound. The nation has strong economic growth and foreign direct investment. Some economists have expressed concern for Turkey’s high current account deficit. This can leave the economy vulnerable to destabilizing shifts and affect investor confidence.

Anyone considering moving to Turkey or doing business in Turkey should remember that Turkey is different from the rest of the region: The Turkish government is striving to make a difference in current events and current affairs in the evolution of the Middle East and globally.
 
Note: Charlotte McPherson is the author of “Culture Smart: Turkey, 2005.” Please keep your questions and observations coming, I want to ensure this column is a help to you, Today’s Zaman’s readers. Email: This email address is being protected from spam bots, you need Javascript enabled to view it

17 February 2012, Friday

Source: http://www.todayszaman.com/columnistDetail_getNewsById.action?newsId=271730