Globalization - Turkey

Only available on StudyMode
  • Download(s) : 55
  • Published : April 8, 2013
Open Document
Text Preview
Globalization: the Turkey case

II)Introduction

The term "globalization" has a strong emotional charge. Some see globalization as a beneficial process - which will contribute decisively to global economic development - inevitable and irreversible. Others are hostile to this process, if not fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. The objective of this study, which is an overview of certain aspects of globalization, is to indicate how a country can take advantage of this process, while realistically assessing the potential and risks.

That globalization offers great opportunities to achieve a truly global development advance erratically. Some countries are integrating into the global economy more quickly than others. In those who have integrated, growth is stronger and reduces poverty. Under the influence of outward-oriented policies, the countries of East Asia, who were among the poorest in the world 40 years ago, are mostly made ​​dynamic and prosperous. As living standards rose in these countries, they were able to open up to democracy and economic, progress in areas such as environment and working conditions.

"Globalization" is a historical process which is the result of human innovation and technological progress. She spoke about the increasing integration of economies worldwide, particularly through trade flows and financial flows. The term sometimes also refers to international transfers of labor or knowledge (technological or labor migration). Finally, globalization has its cultural, political and environmental larger that are not addressed in this study.

Basically, globalization is nothing mysterious. The term is commonly used since the 80s, that is to say, since technical progress allows for easier and faster international operations (commercial or financial). It refers to an extension beyond the borders of the countries of market forces that have operated for centuries at all levels of economic activity (village markets, urban industries or financial centers).

Markets promote efficiency through competition and the division of labor (specialization allows workers and economies to focus on what they do best). With the globalization of markets, it is possible to exploit more markets and more extensive in the world. This means that one can have access to more capital and technological resources, as cheaper imports and the export opportunities are expanded. However, markets do not necessarily guarantee that this increased efficiency benefits everyone. Countries must be ready to launch the necessary political and, in the case of the poorest, they may need to do to support the international community.

III)Turkey Economy

The Turkish economy displays eight years of outstanding performance characterized by continuous growth. With a solid macroeconomic strategy accompanied by prudent fiscal measures and major structural reforms in place since 2002, the Turkish economy has become integrated in a global environment and transform the country into one of the most popular destinations in the region for FDI.

Structural reforms, spurred by the accession process of Turkey to the EU, have paved the way for comprehensive changes in many areas. These efforts were primarily aimed at increasing the role of the private sector in the Turkish economy, improve the effectiveness and resilience of the financial sector and strengthen the foundations of the social security system. Thanks to the reforms that have strengthened the macroeconomic fundamentals of the country, the economy posted an average growth rate of annual GDP by 5.2 percent over nine years, between 2002 and 2011.

Average of annual growth GDP(%) 2002-2011

Supported by stable economic growth, Turkey has also mastered its public finances, public debt rated general defined by the EU fell from 74 percent to 39.4 percent in nine years (2002-2011)....
tracking img