The Economic Impact of Globalization on Turkey
Globalization has affected the world in many different ways, including cultural exchange, language development, and information diffusion, along with worldwide economic and financial growth. Here we wish to analyse the costs and benefits of globalisation to the Republic of Turkey. More specifically, we will look at the economic and business impacts globalisation has made on Turkey and its current position with regard to the world economy.
Current Economic Situation
Today’s economic outlook for Turkey is deteriorating. GDP growth has been revised to 3.6% for 2008 (against 4.3% previously) and to 3.0% for 2009 (previously 4.0%). Turkey’s unemployment rate rose to 9.4%. The slowdown in growth in 2007 (GDP growth of 4.5%) and …show more content…
The new policy set forth four related goals for industry: • Upgrading the role of market signals in decision making • Increasing manufacturing exports • Enlarging the private share in manufacturing • Reforming the SEEs to reduce inefficiency
In the early 1990s, a fifth goal was added: privatization of public-sector entities.
It was a difficult adjustment process. The aim was to attain a sustainable growth in the industrial sector. Under the new outward-oriented development strategy, as under the old import-substitution policies, industry was to be the leading sector of the economy. More emphasizes were put on efficiency and export goods. Policy makers were also concerned with obtaining adequate energy supplies and providing enough work for the growing labour force.
Since later 1980s: Growth with fluctuations
Industry grew since the late-1980s, albeit with some major fluctuations. State enterprises were restructured to reduce their government subsidies and to make them more productive and competitive with private firms. Production rose by an annual average of almost 5% until 1993, but fell more than 6% in the recession of 1994. It recovered strongly from 1994 to 1995, rising 30% and then another 4% in 1996. However, many of the problems of import substitution had not yet been overcome. Much progress had been made in spurring private-sector-led industrialization,