Turkey case study

Thèmes abordés

Turkey, inflation, European Union, national wealth

Résumé du document

Turkey a country of about 70 million habitants, disposes of an important internal market but few are developed. The demography is stabilizing and the national wealth per habitant is low-level. In volume, the counties gross domestic product (GDP) reached 192 billion Euros in 2005. However these figures can be relative because according to the economy specialists, the statistics reveals just one part of the Turkish economy. Indeed the black economy is extremely developed, it represents between 40 and 60% of GDP. The Turkish economy is quite far away from achieving their potential because of some strong structural's difficulties.

It has known a succession of crisis and growth periods. The inflation is the main factor of these crises. The state is obliged to finance itself short-run, which is limited the investment capacity of companies in the economy. Turkey wants to integrate into the European Union this will permit Turkeys economy to stabilize integration into EU will make this possible.

Extraits

[...] France is the fourth supplier of Turkey with about of the market. That is why ,their deception is deep when they see France reluctant for their application. The way that Turkey followed since 2001 is in the mould of EU, it is important for Turkey to integrate into the EU. The objective has to be seen by EU as a geostrategic and economic objective. Turkey and EU will decide together without one imposing the other, the nature and the importance of the link which links them together because Turkey and EU have a mutual destiny. [...]

[...] Thus we will analyze the Turkish economy, their strengths and their weaknesses. The Turkish economy has a lot of characteristics of a dynamic and stable economy, well integrated in a regional and worldwide economy. The evolutionary study of their productive structures since the begin 1990's shows a slow decline of farming sector against the profit of others activities more competitive. Nevertheless the farming employers are still 35% of the active population and contributed for 14% of GDP. This spread shows a lower productivity of a lot of farming exploitations and can lead of a rural exodus's acceleration. [...]

[...] After that, Turkey has to be ability to operate in the European single market with a market economy. In a legal point of view, they have to accept the aims of political, economic and monetary union and to be willing to abide by all past EU treaties. Until now, the mains restraints to accept Turkey into EU are the Human rights in Turkey, the refusal of a normal relationship with Cyprus and the implication of the army in a political Turkey. [...]

[...] The Island has always been divided since the invasion by Turkey in 1974. The international community considered this occupation as an illegal act. In 2006, Angela Merkel German chancellor declared the recognition of Cyprus is a preliminary objective for Turkey if it wants to integrate into the EU. She has also asked for the application of Ankara protocol permitting the access of Turkish airports and ports for the Cyprus planes and boats. We can underline that the EU sustains Cyprus in front of this controversial matter. However, Turkey has some assets. [...]

[...] Since 1980, Turkey has strongly increased their exportations and importations. In fact, the exportations on the GDP were in 1980 and in 1990 it was up to 21% this represents 12.9 billion Dollars in 1990 from 46.8 billion Dollars. In 2004 the importations was from 22.3 to 69 billions. In 2002, seven out of ten Turkish mains customers and suppliers belong to EU. (Germany, Italy, France, United-Kingdom, Luxemburg, Netherlands and Spain). The commercial exchanges with Greece are strongly increasing since the end of 1990's.The political relations between the both are better. [...]