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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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- 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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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.
- 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.
- 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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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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