Turkey Economy :: essays research papers

Turkeys economy has weathered some spectacular pratfalls in the past, with a major(ip) economic crisis in 2001 almost bringing the country to its knees. Whats diametric in 2004 from the previous "recoveries" is how committed Turkey is to establishing firm economic ground ready once and for all. The government is swallowing the International Monetary Funds inhumane economic medicine, making tough choices for fiscal discipline.Turkeys monetary wunderkind, the 37-year old minister of religion of State for Treasury Ali Babacan credits a strong, frequent and unified government with having both the clout in Ankara and the patronage of the people to administer badly-needed shock therapy. "During the last decade, stability has been a problem," Babacan concedes. "We had compact governments and frequent early elections. " only after the 2002 elections," which ushered his faintly Islamic yet pro-Western arbiter and Development Party to power under Prime Min ister R. Tayyip Erdogan, "we fall in a stable government, one the people have confidence in, which provides a much-needed base for economic recovery."Erdogan came to Ankara under heavy suspicion collect to his past in radical Islamist politics. But as mayor of stubborn Istanbul he won grudging praise from political opponents for his hard work on civic issues and muted Islamic rhetoric. As Prime Minister he has focused on bread-and-butter issues, leading with gusto the countrys drive to join the European Union. Indeed, the JDPs acceptance of fiscal remedy and pro-EU stance has rebuilt confidence in Turkeys ability to sell its pays once the IMF decamps. "Our economic program was declared in expound before the election," Babacan, a graduate of the Kellogg School of Management notes. "Were doing what we promised."It was alone during the 1980s that Turkey ditched its closed command-economy, replete with Soviet-style Five Year Plans and grand state-run mon opolies. The result was a roller-coaster of boom and bust, with hyperinflation and a Wholesale Price business leader at 160% by the end of 1995 and a Nominal absorb Rate of 320% at one point.Such shenanigans were offset by return in overdrive growth through the turbulent 90s averaged 5% per year. But in the late 90s the Asian crises and the collapse of the Russian economy appeal Turkey valuable export markets. Foreign exchange sought calmer waters, departure the government to resort to offering 140% interest on its T-bills to finance its deficit. Annual inflation ran at a Weimaresque 102%.The IMF stepped in with a three-year stabilization program and a $4 billion jump start.