Turkish Economy While Entering 2011
Turkish economy conducted a total of 41% growth rate between 2002-2007. In the world,after China and India,Turkey took place in third line with its growth rate. During this process,European Union's economy collapsed and while even the most powerful country in this union,Germany,showed a growth rate of 8% between 2002-2007,this growth of Turkey made everyone surprised.Despite the global economic crisis,Turkey got over 2008-2009 years without a damage. If we look at the developments in Turkish economy from 2002 to now,we see the graph of success is rising about 5 important issue.
1- The Reform Initiative in Turkish Lira
Turkey successfully performed the function of throwing six zero from Turkish Lira that made in 2002.While our people are still talking about millions,Turkey made Turkish currency important money against the dollar and euro on this issue. European Union and world economists watched this with interest. When we look at the history of the world economy,the number of the country that threw 6 zero and became successful are too few.
2- New Haste With TOKI
We saw a second significiant improvement in TOKI project in Turkish economy.TOKI, made more than a million people own a house by using state lands with construction companies.This,as a first in Turkey,made construction companies developed , provided individuals pass to new , durable houses and decreasing of shanty house in a certain measure.TOKI event is a a rational project and ''win/win'' system's application.
3-Social Security and Health Care Reform
Social insurances crack in many countries of European Union.While negative developments about health are occuring,next to Bagkur,SSK and Retirement Fund are united with Social Security and if we add social developments such as free care of elder people,there is almost no one that stays out of the social insurance system in Turkey. This development,emerged as important occurance in Social Insurances, will be the sample for EU countries that removed ''ial'' and left ''soc'' of Social State.
4- SME Support
If we act like 98% of Turkish economy consists of SMEs,the support for SMEs provided that small and medium trades and farmers are seeing better their future and helped them to keep particular place in economy. Reducing the unlimited support to holdings and directing to SMEs,brought positive developments in the labor market in Turkey. They should provide new centers to such as Denizli,Gaziantep,Kayseri in Anatolia with this support that highlightening Anatolian tigers.
5- The Expansion to Africa and the Near East
Turkey as an element of economic policy,also took concrete steps in foreign policy. It has opened Embassies in Africa and Latin America. In addition,it was possible to see our exports and economic relations to Africa and the Near East has improved with a large extent. The increasing exports to these regions,the share broadcasting is increasing every day.
After this 5 possible developments in Turkey, it is possible to determine negative developments if we look at European Union countries. After 2004-2007 extentions of EU, in European Union,consisting of 27 countries and covering 500 million people today,we saw first trauma in 2009 in Hungary and Romania.Greece that needed help of 135 billion euro followed this. Than Spain,Portugal and Europe Union's sample country Ireland had negative developments.Today, there is an economical need over 85 billion euro for Ireland and despite of these supports,Europe Union's effective parties know that there is no chance of these countries from Greece to Ireland.In addition,in the upcoming years, the condition of South Cyprus,Italy and Belgium will be in critical position. The growth rate that expected for Turkey in 2010 will be realized as 7,5. Generally,for the year 2010,the total growth rate in EU will be around 3%. Besides all these positive developments, what are the economic problems of Turkey in the upcoming period that will occur a headache?
1- The Problem of Sharing
Despite all the positive developments,today Turkey can not compete with EU countries about sharing issue. However,it enters into the same position with Egypt and India. In our country that has 72 million population, while 1% of population takes 49% of national income, the 99% takes 51% . The group that consists of 20% of the lowest income is in the position to take 4% from national income. The biggest problem of this sharing is due to the number of taxpayers do not exceed 7,5 million while 49 million people are voters in Turkey. If we compare Turkey with Germany, the facts will occur. In Germany that have 82 million population,61 million are voter and 65 million are taxpayer. German youth that are over 15 years and training vocational education are also taxpayer. To solve the problem of sharing,Turkey should do a tax reform and should prevent tax leakage. Informal economy is still 55% in the country and this consists the most striking title of the problem. The tax amnesty for these errors takes the responsibility of people to much lower limits.
2-Growth Targets
The spreading of Turkey's growth targets to another sectors have large extent benefits. Today,the growth rate of Turkish economy is based on the housing and automotive sector in particular. Out of these sectors,there have been many sectors that are not in attention mainly textile. In this respect,Turkey should choose 20 sectors for upcoming years and should realize ensurement without based on export-oriented and dependent import.
3- Negative Signals in Animal Breeding Sector
Turkey is not successful country in animal breeding in spite of its 777,000 km2 area. While in Germany, annual meat consumption is 86 kilos,in our Turkey it is not exceed 19 kilos in average and this has negative effects in intelligence and growing up of our people. Turkey should follow an important policy about milk and meat products. In EU countries,1 kg chopsteak is around 18 liras but in Turkey this price is rising to 60 liras. In this respect, we can take EU's Agricultural and Livestock Guarantee Fund as a sample. Europe Union budget that is 130 billion euros provided for 2010,its 45% has been allocated for Agricultural and Guarantee Funds especially very large sums of money are spent for milk and animal breeding.Europe Countries that allocated 60 billion euro of 130 billion euro fund for agriculture and animal breeding are developed countries especially in industry. Despite this,they give a huge support to agriculte and animal breeding.Turkey has neglected this issue and the conflict in Southeastern Anatolia since 1984,make animal breeding finished.
4- Tourism
Turkey is the country that made serious attacks and have supported this with rational policy since 1990s. Very good services are offered in 5 star hotels about this and in this beautiful facilites,tourists are entertained with very cheap prices. Although,unfortunately some Turkish tour operators operating in Europe, have damaged Turkish tourism by using '' all inclusive '' model, absence of such firms and successful Turkish tour operators such as GTI directed to air transport have increased the contributions to country tourism. Turkey has no chance to bring more tourists during the next summer months.However, with a serious price policy,over the middle and upper class sub groups should be routed to Turkey. In addition,winter tourism or third age tourism as Europeans say,has not developed so much. Not only in Bodrum,Marmaris,but also in Antakya,most of our hotels are empty durind winter months. However,European pensioners spend winter between 3-6 months in the hotels of country they go and make great contributions to the economy of their country.The fear against Islam and not enough publicity about it prevents third age group to come to Turkey during the winter months.A serious strategies can be created and elderly people can do ads in their hometowns. In the same way,Turkey could not be successful also in urban tourism. Such a beautiful city like Istanbul,we could not success enough in marketing to foreign countries although it became Capital of Culture in 2010. In 2008,while 12 million German went to Barcelona that has not features so much,the number of Germans that came to Istanbul was only 450 thousand. In this respect,Turkish Airlines and tour operators should make Izmir,Istanbul and Bursa as brand in terms of urban tourism. Especially small attacks for Istanbul can realize this. For Izmir,there can be provided positive developments with the contribution of SunExpress' direct aircrafts.Bursa is a city for urban tourism that will be marketable in Europe with Lufthansa's date of flying from Germany up till winter tourism.
5- Logistic Sector
Turkey is in the first position of Europe especially in road transport. For this reason,Europe Union countries that want to gain prominence of Bulgaria,follow negative policy about everything in Turkish road transport.Germany emerges any difficulty not to give visa to Turkish drivers and wants them to determine the circulation routes and they recommend them to pass from Hungary because transition price is so expensive there. Logistic companies such as Tırsan,EMS are successful in Europe and Istanbul and they will be more successfull and will improve with the support. In the early of 2000s, the International Forwarder Association (UND) created a successful lobbying policy and had concrete steps in the effectiveness of Cetin Nuhoglu. The new management could not catch this success about this.The serious studies about lobbying in United Nations and in the European Union with the support of the state open the way for the Turkish road transport. Turkey has indeed been a number one in air transportation in Europe.Besides the successfull and intelligent policy of Turkish Airlines,first of all Sunexpress,Pegasus,Atlas Jet and Onur Air reinforce the success of GTI Turkish Air Transportation.
6- New Markets,New Relations
Recent statements from EU,show that in the next five years, there will be no positive signals for these countries' economy. Although the European Union mention about Germany's 3,5 % of growth rate ,it has become as union countries of the narrowed economies. However, we see that economies and new markets consist of such as India,China,South Korea and Indonesia countries. India and China market may create interesting markets for Turkey in terms of tourism. Switzerland,that has 7 million of population and 3,5 million people participate in tourism,and seeing that 35 million Indian go holiday on abroad,to bring tourists from such countries will have a great benefit. Also BRIC countries that consists of Brazil,Russia,India and China,with the addition of Indonesia,it became as BRIIC countries.Turkey should follow a rational Far East policy and look at Pakistan and Bangladesh markets that we see as friendly countries. Per capita income is lower in these countries,there are some small percentages including many high income groups as in Turkey. These can create important goals for the Turkish economy. In 21th century that U.S and EU decline as economical,the BRIIC countries have gained more importance as a partner for Turkey.
7- Regional and Social Support
EU reserves %40 of his budget for Regional and Social Infrastructure and it supports SMEs in transition to pluralist structure from monostructre. It have performed this model's the most realistic and the best practise in Ruhr Basin of Germany since 1980 that has applied in many parts of Italy,Spain and Poland. From %40 of regional and social infrastructure funds,it gives a currency to the people who will establish work here,as a SME loan,the first 3 year is without payment and 20 year maturity and 4,5% interest rate. At the same time,if these organizations take young people in the ages between 18-24 and the elderly people and women over the age of 50, they give %50 of the support fund of labor cost that is paid to these individuals.This model is a model that can be applied very well in Turkey.In this respect, Turkey can perform a new model development by choosing Black Sea Region such as Zonguldak,Karabuk, around Diyarbakır of Southeastern Anatolia and a certain portion of Erzurum and its surroundings of Eastern Anatolia as a model project. It is possible to measure efficiency,to prevent certain defects and to change this in the application of this model for 5 years.
8- Resources of TOBB
For today,TOBB consists the richest establishment in Turkey,accepted as a civil society.Besides skyscrapers,they have been helping to the state by buying helicopters,aircraft and making political assistance. Directing of these sources to a productive directions and industrial investments can bring the strengthening of trade and industry chambers in both regions. TOBB selects the specific areas in this regard for himself and may perform the transformation in 3 or 4 cities as we seen such as in Kayseri,Gaziantep and Denizli. This organization is living with its own dues especially.It is time to give an investment support to itsown members and future members.
9-Tax Reform
Turkey is as a country of heaven for self-employed people in terms of tax.While in Europe any doctor or lawyer have no chance to tax evasion,in Turkey it is almost impossible to find self-employed tax paying owners in certain branches.First of all our people should look positive to the state's supports as ''These are my tax moneys'' and should see that tax paying is an economic and religious morality. In this regard,except for officer and employee,the number of individuals that are tax paying is not much more. It is useful to develop this in the upcoming years.
10- Foreign Expansion at Universities
Turkey has 95 state and over 45 private universities.After the selection of foreign student exam is brought to universities' control,the universities in Turkey may be a university center of its region as United States,Switzerland,London and Austria. For today,bringing students from Kyrgyzstan to Georgia,Pakistan to Lebanon and adding the students from Europe and Africa,it is possible to obtain an important source of income.After young people returning to their home countries that studied at these universities,they can be made as lobbying group of Turkey in the aspects of economic and political.Kuzey Kıbrıs Türk Cumhuriyeti bu konuda örnek bir konumdadır. Republic of Northern Cyprus is the example about this. At 4 university of this small country,nearly 50 thousand students are studying. Turkey is seriously thinking this model. 2011 year is a crucial year for Turkey.We will face general elections in June. there are many areas that government been successfull in today's economy but there are many tasks to do also. Likewise,CHP that is a new candidate for the power should create new economic policies and create an idea about 10 issue on the above that we discussed in article.It is possible to expect the same approach from MHP. Turkey should be the country that will realize the economic growth seriously,decrease the unemployment to the lowest rate,providing social justice and Turkey has to regulate taxation properly. Succeeding this,Turkey would be the head country of new TBRIIC that Indonesia will also take place in (Turkey,Brazil,Indonesia,India and China ) and Europe Union countries would look at this successful country a little more jealously.
