Study On Economic Conditions Of Turkey

Added on -2020-02-14

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Turkey: a work in progress?
TABLE OF CONTENTSChapter 3: Problem statement and Plan of Analysis............................................................................13.1 Plan of Analysis..............................................................................................................................13.2 Problems.........................................................................................................................................1Political Problems.................................................................................................................................1Turkey political issue:..................................................................................................................1Constitutional Reform:................................................................................................................2Terrorist Attacks..........................................................................................................................2Models.........................................................................................................................................2PESTLE Analysis........................................................................................................................2Turkey’s Pestle analysis linking to Porter’s diamond.................................................................4Economic Problems..............................................................................................................................4Current account balance...............................................................................................................4Savings investment balance.........................................................................................................5Energy Supply..............................................................................................................................5Education sector...........................................................................................................................5Global Competitiveness Index Model.........................................................................................5Religion Problems................................................................................................................................6Secularism issue and Freedom of Expression..............................................................................7Kurdish problem..........................................................................................................................7Cultural issues..............................................................................................................................7Hofstede Model............................................................................................................................8Chapter 4: Analysis and Findings.......................................................................................................104.1 Introduction..........................................................................................................................10Political problems......................................................................................................................10
Religious Problems....................................................................................................................13Chapter 5: Proposed solution to problems/ recommendations, limitations of the Analysis...............155.1 Solution to Political Problems.............................................................................................155.2 Solution to Economic Problems..........................................................................................165.3 Solution to Religion Problems.............................................................................................17References..........................................................................................................................................18
CHAPTER 3: PROBLEM STATEMENT AND PLAN OF ANALYSIS3.1 PLAN OF ANALYSISIn the present given case study, researcher focuses on evaluating the economic conditionsof Turkey which has suffered major setbacks in past but after the 2009-10 post recession period,country is able to enhance and maintain its position. Herein, plan of analysis is to evaluate variedproblems that are associated with the economic conditions of Turkey according to the given caseso that use of effective economic conceptual tools and models proper analysis can be made anddesired enhancement can be made in different areas. Considering the formal economy of Turkey which was mixture of modern and traditionalindustries. In which, services accounted for 64% of the economic activity whereas,manufacturing contributes 27% and remaining 9% is from agriculture. Thus, the main focus onthis study is to analyze the major problems associated with the economic prospects of theTurkey. Furthermore, on the basis of given case study, researcher has evaluated varied problemsthat affects the course of economic conditions of the country. 3.2 PROBLEMSFollowing are the problems identified through given case scenario:POLITICAL PROBLEMSTurkey is not only economically bound but politically as well as they are trying tomodernize the country and to become a powerful and a significant within the world. Turkeyimplemented a policy of «zero problems with neighbour countries» but unfortunately this failed.For Turkey to think this was achievable illustrates that their government was too confident in itsability to bring stability to its region where there are no agreements and a lot of parties inconflict. So their policy failure was inevitable given these factors and the relationships they havewith countries they boarder with.Turkey political issue:According to the given case study, the distinguished issue in Turkey is role of Islam. Inpast, modernization and Islamization were intermingled in the evolution of Turkish nationalism.It is because of the fact that there are some parties who thinks that issue of women’s headscarvesis a testing ground to the commitment to the secular state. However, to have stable political1
environment it is important for the government of Turkey to promote the thought of neverinvolving religion into state because this will help in better social living standards. Constitutional Reform:Within the country, constitutional reform remains the pressing challenge faced by thegovernment. Despite of efforts made by the government parties to introduce more civilianfriendly constitution than the current one but still they are failed to protect minority and civilrights.Terrorist AttacksCurrent political challenge that Turkey is facing is related to terrorist attacks which hadtaken place due to Islamic extremist, Kurdish radicals, Turkish Militants that may have link withAl-Qaeda. ModelsIn order to understand the political problems it is important for the researcher to make in-depth analysis under the constitutional reform of Turkey. In this regard, models like Pestle,Porter’s and SWOT analysis has been used. The main purpose behind using these models is thatthey will help in evaluating and analysing the external market of Turkey in appropriate andreliable manner. Further, each and every aspects will be covered in detailed manner. PESTLE AnalysisIn general, Pestle analysis can be defined as the model of external analysis of the country.Herein, researcher has used this method to understand the external market of Turkey so thatproblems related to political environment can be resolved in the appropriate manner. Political: Looking at the current political environment of Turkey it can be said that one ofthe current political strength in the country is that its government have polices onliberalisation. However, it is was one of the major supporter of liberal trade andinvestment policies which allow open trade between different countries in EU (Ozbudun,2015). Export in the country has been raised with the average rate of 10% every yearwhich will assist fashion industry to flourish with the exports produced in the Turkishplant. Economical: Considering the present condition, economic strength in Turkey is related tohigh inflow of foreign investment from abroad. However, this investment source playssignificant role in speedy expansion of country’s economic growth. From 2008,2
privatisation program in Turkey has encouraged the sale of major bridges, highways,electricity grids and share in the partly commercial bank. The main purpose of foreigninvestment is that it will assist in course of expanding the infrastructure of the country.By the means of this, government could bring more civilian friendly constitution than thecurrent which promotes better growth in the market. Social: The social strength of country is related to youth power because half of thepopulation in Turkey is aged below 30. By the means of this, country can improve itsemployment rate because young people are enthusiastic and highly motivated to workand this will enhance young labour force. High percentage of skilled labour willencourage industrialisation in the country that directly improve the overall economicconditions of Turkey (Öniş and Kutlay, 2013). Contrary to this, at present country issuffering from high level of unemployment because of high percentage of Islamic peopleor Kurds are located in rural areas as well as they are poor people. Technological: From the current situation of Turkey it can be said that its technologicalstrength is significant development in the ICT sector. In recent past, the ICT sector ofTurkey has shown rapid extension just because of the sharp increase in Turkishtelecommunication sector as they have been privatized by the government. But on theother hand, one of the major problems related to technological aspect of country is lowexpenditure costs on the research and development. Legal: Looking at the present legal system of Turkey it can be said that Turkey havecomprehensive legal structure. However, the judicial system is made up of general courtswhich deals with domestic cases, heavy penal courts which deals with more seriouscases, military courts deals with military cases and the constitutional courts which are athighest level of courts that deals with the essential cases related to Turkish governmenti.e. war crimes (Guney, 2013). Another legal advantage that Turkey will possess isrelated to relaxation of paperwork or lengthy process of registration for business this willencourage more companies to enter into the market and generate higher foreign fund. Environmental: Environment condition of Turkey is relatively challenging because ofhigh pollution level due to which global warming is cased. Further, the solid wastemanagement in Turkey need to be taken care of appropriately because high level of3

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