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The Causes and Consequences of Economical Disturbances in Turkey ...

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The Causes and Consequences of Economical Disturbances in Turkey (as of 2002)

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  • December 9, 2003
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The Causes and Consequences of Economical Disturbances in Turkey

The lands of Turkey are located at a point where the three continents making up the old world. Asia, Africa and Europe are closest to each other, and straddle the point where Europe and Asia meet. Geographically, the country is located in the northern half of the hemisphere at a point that is about halfway between the equator and the North Pole. Turkey is roughly rectangular in shape and is 1,660 kilometers wide.

Because of its geographical location the mainland of Anatolia has always found favor throughout history, and is the birthplace of many great civilizations. It has also been prominent as a centre of commerce because of its land connections to three continents and the sea surrounding it on three sides.

Today, Turkey has a free market economy oriented to Western markets. The share of agriculture in the economy is decreasing as industry and services continue to expand rapidly. In Turkey, 43 percent of all employed persons work in agriculture. However today, agriculture only contributes 18 percent of the gross national product. The country has undertaken economic reforms over the past 15 years that have reduced the government's role in the economy and permitted the private sector to thrive. An export-led growth strategy and free-market principles catapulted Turkey into the ranks of the fastest-growing economies in the Organization for Economic Cooperation and Development (OECD) .

Turkey's leadership, however, failed to complete the reform program that was initiated in the early 1980s. This has accelerated Turkey's economic problems in those days. Large public sector deficits and the high inflation still continue to hamper the economy. Turkey continues to examine ways to improve its investment climate through changes in its IPR Legislation and taxing policy. The Turkish privatization board continues to evaluate a series of significant privatization opportunities including...