RECENT ECONOMIC DEVELOPMENT OF TURKEY
This research paper discusses the course of Turkey's economic development since the mid-1980s and the factors which have influenced it. Since the end of World War II, the Turkish economy has grown at an average annual rate of approximately five percent per annum, about double the rate of population growth; however, that growth has been highly irregular, reflecting periods of substantial prosperity coupled with episodic and recurring bouts of financial and political crisis. That growth, which has been mirrored by a lesser but still substantial improvement in per capita income, was largely stimulated by state-led intervention in the economy. Beginning in the early 1980s, Turkey began de-emphasizing the role of the state in the economy and adopted measures of structural adjustment and free market reforms which were designed to make the Turkish economy more competitive in global markets. Progress in integrating that economy with the world economy has, however, been implemented slowly and has been impeded by a number of factors, including populist pressures which delayed the implementation of measures such as the privatization of state economic enterprises (SEEs) and other institutional reforms, continuing high inflation and persistent government budgetary deficits, foreign trade and debt repayment problems, and various domestic and foreign policy problems. These factors caused a major drain of resources needed for capital investment in infrastructure and other areas essential to raising the productivity of Turkish industry and agriculture, and retarded full entry of Turkey into the European Union (EU).
Turkish Approach to Economic Development Prior to 1980
According to Mango, when Turkey emerged from the ruins of the Ottoman Empire in 1923 under the leadership of Kemal Ataturk, "it was a poor agricultural country with almost no industry" (54). Owens and Pamuk said that "industrialization a...