Turkey: A Promising Outlook
Turkey today is a
large country with a promising future. Covering an area only slightly
smaller than Germany and France combined (780,000 square kilometers),
Turkey has a population of 65 million, projected to grow to over 70
million by the year 2000.
By aiming to build
a strong economy and join the European Union, Turkey has made great
strides in increasing its attractiveness as a place to live and work.
Since 1980, it has had one of the fastest annual GNP growth rates in the
OECD, i.e., about 5.5% (1980-91). Its GNP in 1993 was about US$1 70
billion; resulting in per capita GNP in 1993 at about US$ 2,850.
The government's
commitment to development and growth is also evident in its active
efforts to liberalize economic policy. A few highlights for investors:
- Convertible
currency (Turkish Lira)
- 100% foreign
ownership permitted
- 100%
repatriation of profits and dividends
- Foreign
management allowed and welcomed
- Focus on exports
- Tariffs and
non-tariff trade barriers lowered to match EU standards
- Active financial
sector (istanbul Stock Exchange)
- Ongoing
privatization of state-owned enterprises
Little wonder
that Turkey has been able to rapidly increase both its total exports -
about half of which go to the EU - and the share of manufactured goods
it exports. While th eublicsectar still accounted for nearly a third
of total manufacturing in ustry sales at the end of the 1 980s, the
privatization program started in 1 985/86 has had a positive effect
and the experience gained has induced the government to redouble its
efforts to enlarge the private sector.
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Turkey's Growing
Domestic Market
- Best performing
emerging stock market in the world for the first quarter of 1995 -
over $400 million traded per day and an increase of 47% in dollar
terms.
- Economic growth
of 7.6% in 1993 and an average of 5% per year since 1981.
- Long-term
promises of 6-8% real growth rates once Turkey overcomes its current
economic constraints.
- Expanding
domestic market comprised of 63 million people, 50 percent of which is
under the age of 30.
- Good market for
raw materials and industrial machinery.
- Excellent new
market for consumer products as per capita income increases.
- Markets in major
cities include a wealthy, entrepreneurial, Western-oriented upper
class.
- Sizable and
growing middle class becoming major consumers of imported goods and
services.
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Turkey - An
Excellent Base For International Business
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Situated in the fertile crescent and the cradle of civlization, Turkey
is strategically positioned at the crossroads of Europe, the Middle
East, the Black Sea region, and the Turkic-speaking republics of
Central Asia. It thus offers an excellent base for economic activities
throughout the region. Turkey is a historical gateway from the ancient
Silkroad to new markets and is becoming a powerful focal point as a
cultural and a political intermediary as well as a trade center of
growing importance.
Turkey: Important
to Regional Trade / Investment Influence
- Oldest democracy
in the region. .
- Only secular
Muslim country in the world. .
- Democratic
government since 1923. .
- Rapidly-growing
free market economy. .
- Ability to serve
as a regional base. .
- A cultural
bridge for: .
- Europe, Asia
and the Near East
- Russia and the
Newly Independent States to the north
- Middle Eastern
countries to the south and east
- Balkan states
to the west .
- Strong links
with neighboring Arab countries..
- Growing trade
and other commercial links with the Central Asian Republics. .
- Influential as a
political and economic role model for the region. .
- Closer ties with
Europe after Turkey officially joins the EU Customs Union. .
- Commonality with
Turkic states - there are more Turkic language speakers in the world
than French speakers.
Turkey: An Active
Ally of the West
- Member of the
United Nations and NATO.
- Founding Member
of:
- Council of
Europe
- International
Bank for Reconstruction and Development
- International
Monetary Fund
- Organization
of Economic Cooperation and Development
- Organization
of Security and Cooperation in Europe
- Associate Member
of the European Union.
- Member of the EU
Customs Union (expected 1995).
- Member of the
General Agreement on Tariffs and Trade (GATT).
- International
Finance Corporation (IFC).
- Shareholder in
the European Bank for Reconstruction and Development.
- Existence of
Relatively Advanced Market Economy Rules.
- Freer
circulation of capital than some EU countries.
- Reduction of
trade barriers & deregulation of markets.
- Conformance to
international legal/accountancy rules.
- Liberal foreign
investment policies.
- Full commercial
banking infrastructure.
-
Internationalization and growing role of the private sector.
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Solid Platform for Access to a Wide Diversity of Markets
An investment in
Turkey today is an investment in the future due to its location and
trade relations, its level of development as an emerging economy, and
its stable political system backed by a solid commitment to
international cooperation and development:
Superb access to
wide diversity of markets. Turkey provides access - geographic
proximity and well-established relations and contacts- to a wide range
of markets. While nearly half its exports are now directed at the
European Union (EU), Turkey also enjoys excellent relations with the
Commonwealth of Independent States, Central and Eastern European
countries, the Turkic-speaking republics of Central Asia, the Gulf,
and the Middle East, making it a perfect base from which to access and
serve these markets.
Emerging
commercial and financial center. Turkey's own business environment is
becoming an increasingly attractive and a substantial platform for
free enterprise. With its liberal foreign investment law, free trade
practices, dynamic stock exchange (one of the world's fastest-growing,
up 210% in 1993), and numerous incentives for investors and exporters,
Turkey is set to become a major commercial and a financial center for
the region.
Commitment to
international cooperation. Turkey is a stable democratic, secular
parliamentary republic with a proven commitment to international
cooperation. A member of major international organizations (UN, NATO,
IMF/World Bank, OECD, European Council), Turkey is actively engaged in
meeting the requirements for the customs union with the European Union
and, to be followed by full membership. Turkey played a pioneering
role in establishing the Black Sea Economic Cooperation and has
agreements with the International Center for Settlement of investment
Disputes (ICSlD) and Multi-national Investment Guarantee Agency
(MIGA).
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