dÜnya ekonomİsİnde canlanma beklentİlerİ vardir. · 2015-11-25 · overview of the turkish...
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TURKEY:TOWARDS SUSTAINABLE GROWTH
ANDPROFITABLE OPPORTUNITIES
Dr. Yılmaz ARGÜ[email protected]
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MOSCOW
TASHKENT
TEHRAN
BAKU
TEL AVIV
ROME
BERLIN
PARIS
2,000 km
1.800 km
2,000 km1,100 km
1,400 km
3,400 km
1,700 km
2,000 km
E.U. ASIA
MIDDLE EAST
ISTANBUL
AFRICA
PERFECT LOCATION OF ISTANBUL FOR REGIONAL HEADQUARTERS OF INTERNATIONAL COMPANIES SUCH AS
COCA-COLAMICROSOFTJP MORGAN CHASEGENERAL ELECTRIC
DEVELOPED COUNTRY LEVEL INFRASTRUCTURE FOR BUSINESS AND LIVING
STATE OF THE ART TELECOM FACILITIESAVAILABILITY OF EFFECTIVE LOGISTICS SYSTEMSSKILLED LABOURDEVELOPED FINANCIAL MARKETSSTATE OF THE ART HEALTH SERVICEEDUCATION SUITABLE TO ALL NEEDS
TURKEY AS A BUSINESS HUB
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OVERVIEW OF THE TURKISH MARKET (2004)
POPULATION (Million) 72
LABOUR FORCE (Million) 22
GNP ($ Billion) 302
PPP 562
GNP/CAPITA ($) 4,200
PPP 7,800
HOUSEHOLD INCOME ($) 18,900
PPP 35,100
NUMBER OF HOUSEHOLDS(Million) 16
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25 YEARS OF INTEGRATION WITH THE WORLD, 42 WITH THE EU
Changing Political and Business Habits: Towards a New Understanding
Free Circulation of Capital
CustomsUnion
Full MembershipPerspective
WTOFreeMarket
Economy
1980
1996
1995
1989
2002
AccessionNegotiations
Decision
2005 andbeyondCLOSED
ECONOMY
Political ImmobilismStructural Problems
Striving Private Sector
“IRREVOCABLE PROCESS”
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CHANGING MENTALITY IN TURKISH POLITICS
New Single Party Government In Office Since 2002: Culturally Conservative Yet Open-Minded And Business
Oriented
Committed To And Successful In:
Fiscal & Monetary Discipline
Structural Reforms
Implementing International Standards
Integration With EU
OLD HABITS DIE HARD…BUT THEY DO EVENTUALLY…
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CHANGING ATTITUDE OF PRIVATE SECTOR
Producing Export Oriented Goods And Services At Affordable Prices
(billion $) 1980 1990 2000 2003 2004 2005 CAGR %2000-05
Exports 3 13 28 47 63 72 21Imports 8 22 55 69 98 115 16
Exports (billions $) CAGR %2000 2003 2004 2000-04
Textiles 10,1 15,1 17,6 15Vehicles 2,4 6,2 9,5 41Machinery 3,4 8,5 8,9 27Metals 2,9 5,3 8,8 32
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CHANGING ATTITUDE OF PRIVATE SECTOR
Focus on Quality: Turkey Wins Most Quality Awards in Europe.
By 2004, Turkey Was Awarded Largest Number of Quality Awards:
BRISA BRIDGESTONE/SABANCI TYRESBEKO KOÇ GROUP CONSUMER DURABLESBOSCH BSH AUTOMOTIVE SUPPLIESBEKSA SABANCI GROUP STEEL CORDSVITRA ECZACIBASI CONSTRUCTIONARCELIK KOÇ GROUP CONSUMER DURABLESNETAŞ NETAŞ TELECOMSERDEMIR OYAK IRON/STEELECA ELGİNKAN GROUP HEATING ELEMENTSSKF SKF ROLLINGS
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CHANGING ATTITUDE OF PRIVATE SECTOR
Creating World Brands Of Her Own…
Brand Industry Mostly Active In Origin
Beko Electronics USA and Europe TurkeyMavi Textiles USA and Europe TurkeyEfes Beverages Europe, Asia Turkey
…As Well As Manufacturing For World Giants
Companies IndustryRenault, Ford, Fiat, Toyota, Pirelli, Goodyear AutomotiveMercedes, HyundaiBosch, Siemens, Vaillant Consumer Dur.Coca-Cola, Unilever, P&G FMCG
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A HISTORICAL OPPORTUNITY FOR SUSTAINABLE GROWTH
TURKISH ECONOMY SEEMS TO HAVE SET ON THE RIGHT TRACKFOR SUSTAINABLE GROWTH
ECONOMIC MANAGEMENT IN LINE WITH TARGETSIMF PROGRAMME IS STRICTLY FOLLOWEDBUDGETARY TARGETS ARE REASONABLE
SIGNIFICANT DECREASE IN REAL AND NOMINAL INTEREST RATESSIGNIFICANT DECREASE IN INFLATIONFOURTH SUCCESSIVE YEAR OF GROWTH IS EXPECTED IN 2005FOREIGN TRADE IS GROWING SIGNIFICANTLYLOWERING EXPECTATIONS IN EXCHANGE RATES RISK
THERE IS STILL PLENTY TO ACCOMPLISH AND MANAGESTRUCTURAL REFORMS NEED COMPLETIONPUBLIC MONETARY DISCIPLINE NEEDS TO BE FOLLOWED VIGOROUSLYCURRENT ACCOUNT DEFICIT NEEDS TO BE KEPT UNDER CONTROL
EU IS A STRONG ANCHOR FOR FUTURE DEVELOPMENTS
HISTORICAL
COMMERCIAL
ECONOMIC
TURKEY EU
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POLITICAL
Free Market Economy-Inclusion of Turkey in G-20
Formal Relationship Since 1963
Main Trading PartnerCustoms Union
CU Related Legislation
Efforts Of IntegrationWith World Economy
Creating An Economic & Financial Union
Recognition Of The Potential In Turkey
Creating A Single Currency
Enlargement
FULL MEMBERSHIPCANDIDACY
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TURKEY AS AN INCREASINGLY COMPETITIVE WORLD PLAYER:
DRIVING FORCES BEHIND SUSTAINABLE GROWTH POTENTIAL
&DYNAMISM
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TURKEY OFFERS A SOUND LEGAL BASIS FOR INTERNATIONAL INVESTORS
FREE MOVEMENT OF CAPITAL SINCE 1990WELL-SECURED ENVIRONMENT FOR FOREIGN CAPITALHIGHLY LIBERAL AND NON-DISCRIMINATORY FOREIGNINVESTMENT LEGISLATION
INTERNATIONAL ARBITRATION MECHANISMCOMMERCIAL LEGISLATION IN LINE WITH THAT OF THEDEVELOPED WORLD
COMPETITION LEGISLATIONPROTECTION OF PROPERTY RIGHTSINVESTMENT INCENTIVES
NEW DIRECT INVESTMENT LAW EFFECTIVE SINCE JUNE 17, 2003COMPANY ESTABLISHMENT PROCEDURES SIMPLIFIED
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MAIN DRIVING FORCES BEHIND TURKEY’S DYNAMISM
UNSATURATED LOCAL MARKET AND YOUNG POPULATION%30 BELOW 15 YRS OF AGE (DECREASING)
DYNAMISM IN THE DOMESTIC MARKET DUE TO INCREASED COMPETITION
CHANGES IN LIFE STYLES AND CONSUMPTION PATTERNSAVERAGE HOUSEHOLD SIZE 4.4 (DECREASING)74% URBAN POPULATION (INCREASING)
POSITIVE EXPECTATIONS RESULTING FROM THE INITIATION OF ACCESSION NEGOTIATIONS WITH THE EU
DYNAMIC AND GROWING PRIVATE SECTOR
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KEY GROWTH SECTOR : ENERGY
TURKEY`S ENERGY SUPPLY IS EXPECTED TO DOUBLE TO REACH155 mtoe IN 2010NEED OF FURTHER ENERGY INVESTMENTS AMOUNTING TO 20-25 BILLION USD TO MEET THE GROWING DOMESTIC DEMANDTURKEY IS A PROMISING CANDIDATE FOR BEING THE ENERGY TERMINAL OF THE REGION IN THE 21ST CENTURY THANKS TO EURASIAN ENERGY RESOURCES
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KEY GROWTH SECTOR : ENERGY
CASE OF ELECTRICITY
8 % AVERAGE INCREASE IN ANNUAL ELECTRICITY DEMAND24.000 MW OF INSTALLED CAPACITY IN 2000 MUST INCREASE TO 65.000 MW IN 20104.000 MW ADDITIONAL CAPACITY NEEDED PER ANNUM IN 10 YEARS INVESTMENT OPPORTUNITIES BY WAY OF BOT, BOO AND CO-PRODUCTION MODELSEXAMPLE: INTERGEN-ENKA-BECHTEL JV TO BOO 3 POWER PLANTS TOTALING 3.854 MW , WORTH $2.2 BN
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RAPIDLY DEVELOPING SECTOR : TELECOMMUNICATIONS
PRIVATISATION OF TURK TELEKOM WAS REALISED
A RAPIDLY DEVELOPING SECTOR1994 2003
NUMBER OF MOBILEPHONE SUBSCRIBERS 80.000 27.000.000
LIBERALIZATION OF FIXED TELEPHONY SERVICES THROUGH ABOLITION OF MONOPOLY OF TURK TELEKOM IN 2004
THIRD GSM LICENCE SOLD DURING 2000 BECAME OPERATIVE IN 2001. TURK TELEKOM’S GSM OPERATOR ALSO LAUNCHED IN 2002
NOW BOTH NEW GSM OPERATORS MERGE UNDER ONE ROOF
INVESTMENTS BY WORLD TELECOMMUNICATION GIANTS SUCH ASNOKIA, ERICSSON AND SIEMENS IN TURKEY
4 MILLION INTERNET USERS (EST.)
CONSTANT NEED FOR INFRASTRUCTURE INVESTMENTS TO MEET RAPIDLY DEVELOPING DOMESTIC DEMAND
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HIGH POTENTIAL : TOURISM
2,7
9,7
12,1
15,5
8,5
5,0
7,68,1
20,0
17,5
14,0
7,7
5,4
10,411,6
13,2
0
2
4
6
8
10
12
14
16
18
1990 1995 2000 2001 2002 2003 2004 2005E
(Bil
lion
USD
)
0
2
4
6
8
10
12
14
16
18
20
Mil
lion
peo
ple
Tourism Revenues
Number of Tourists
Janu
ary-
July
8.3
Turkey is the 13th country attracting the highest number of tourists and in terms of revenues, Turkey ranks 8th according to WTO as of 2004. WTO
expects 25 million tourists visiting Turkey annually by 2010
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AN AREA OF FOCUS IN TURKEY : THE SOUTH EASTERN ANATOLIAN PROJECT
A $ 30 BILLION INVESTMENTAIMS TO DEVELOP ALL THE LAND AND WATER RESOURCES IN THE REGIONCOVERS 10% OF TURKEY’S SURFACE AREACOVERS 20% OF TURKEY’S LAND SUITABLE FOR IRRIGATION8.5 MILLION HECTARESAGRICULTURAL PRODUCTION IN THE REGION WILL BE INCREASED BY SIXFOLDWILL SUPPLY 25% OF ELECTRICITY AND 85% OF HYDROELECTRICALENERGY OF TURKEY
AGRIBUSINESS OPPORTUNITIESCAPABLE OF GROWING MOST TEMPERATE ANDSUBTROPICAL CROP SPECIESJOINT VENTURE OPPORTUNITIES
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STRONG RELATIONS WITH TURKIC REPUBLICS
TURKEY HAS THE LARGEST NUMBER OF INVESTORS INTURKIC REPUBLICS AND SECOND LARGEST IN $ TERMS COMPANIES OPERATING ESPECIALLY IN ;
AUTOMOTIVE SECTORWHITE GOODSRETAILINGCONTRACTING
INFLUENCE OF TURKEY IN THE REGION IN MATTERS RELATING TOEDUCATION - STUDENT EXCHANGE PROGRAMSWIDESPREAD TURKISH TV BROADCAST eg: CNN TÜRKTELECOM FACILITIES ACTING AS A HUBFOREIGN AFFAIRSLARGEST NO OF FLIGHT DESTINATIONS
EASY ACCESS TO TURKIC REPUBLICS THANKS TOCULTURAL & LINGUISTIC LINKSPOSSIBILITY OF ADDRESSING SOME 300 MILLION PEOPLE
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RECENT PRIVATISATION,M&A AND
PRIVATE EQUITYACTIVITIES
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PRIVATIZATION
162 COMPANIES HAVE BEEN PRIVATIZED FROM 1986 UNTIL 2004, GENERATING A REVENUE OF $ 9 BILLION. 2005 WITNESSED PRIVATISATION OF UNPRECEDENTED SCALE
PRIVATISED INDUSTRY SHARE ACQUIRED VALUESOLD BY PAID(%) (billion USD)
TURK TELEKOM Telecom 55 SAUDI OGER 6,55
TÜPRAŞ Energy 51 KOÇ/SHELL 4.14
ERDEMİR Steel 46 OYAK(TR) 2.77
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TO BE PRIVATIZED OR SOLD OUT BY GOVERNMENT AUCTIONS
PRIVATISATION AND GOVERNMENT SELL OUTS WILL CARRY ON AT FULL SPEED WITH THE SALE OF
ELECTRICITY DISTRIBUTION COMPANIESPOWER PLANTSTELECOMS (2nd GENERATION GSM)AGRIBUSINESS (MAINLY SUGAR)MOTORWAYS (RIGHTS OF USE)INSURANCE PORTS (RAILWAY CONNECTED)REAL ESTATE (GENERAL AND TOURISTIC NATURE)TRANSPORT (AIRLINES)
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FINANCIAL SECTOR
Recent Mergers in Financial SectorRecent Mergers in Financial Sector
TEB BNP Paribas France
DIŞBANK Fortis NetherlandsBelgium
YAPI KREDİ UniCredito/Koç Italy
GARANTİBANK GE Capital USA
ŞEKERBANK Rabobank Netherlands
GLOBAL SECURITIES Banca IMI Italy
Financial sector has already attracted great attention of foreign investors.
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OTHER EXAMPLES OF PRIVATE EQUITY ACTIVITY THROUGH M&A’s AND GOVERNMENT SELL OUTS
Country Investor Acquiring Year Industry ValueMillion USD
USA AIG Galatasaray 2000-3 Entertainment 15
Egypt EMEA Probil 2002 IT
Dutch FMO TUYAP 2000 Exhibition
Germany DGE Goldaş 2002 Jewellery 6
UK Tesco Kipa 2003 Retail 124
France Carrefour Gima Endi 2004 Retail 133
Turkey Migros Tansaş 2005 Retail 387
Canada Canwest Radio Channels 2005 Communications 56
Turkey Doğan TV Channel 2005 Communications 306
Turkey, Italy Various 9 Cement 2005 Construction 1.073Belgium Factories
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POTENTIAL AREASOF INVESTMENT –
A SUMMARY
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SECTORS LIKELY TO BENEFIT FROM CURRENT ECONOMIC CLIMATE
ENERGYGROWTH POTENTIALINCREASED ECONOMIC ACTIVITY
CONSTRUCTION AND REAL ESTATESIGNIFICANT GROWTH POTENTIAL
RETAILINGCHANGING LIFE STYLES
AGRIBUSINESSENJOY SUSTAINED DEMAND, HIGH LIQUIDITY & LONG FX POSITION
CONSUMER ELECTRONICSHAVE HIGH EXPORT SALES
STRUCTURAL STEELHAVE HIGH EXPORT SALES
TOURISMTURKEY REMAINS RELATIVELY CHEAPER AND OFFERS A VERY GOOD QUALITY SERVICE
AUTOMOTIVEHAVE HIGH EXPORT SALES
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MAIN AREAS OF GENERAL OPPORTUNITY
MANUFACTURINGPRIVATIZATIONDELOCALIZATIONSTRATEGIC ALLIANCESSOURCING BASE
INFRASTRUCTUREPRIVATIZATIONENERGYTELECOMENVIRONMENTAL PROTECTIONIRRIGATIONTRANSPORTATION
SERVICESPRIVATIZATIONBANKINGTOURISM
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SEEING IS BELIEVING
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DID YOU KNOW THAT…
...The only city in the world located on two continents is Istanbul, which was the capital of three great empires, Roman, Byzantine and Ottoman for more than 2000 years.
...There are at least 150 archaeological excavations taking place in Turkey each year.
...The world's oldest known human settlement is in Catalhoyuk, Turkey (7500 BC).
...Two of the seven ancient wonders of the world, the Temple of Artemis and the Mausoleum at Halicarnassus, are located in Turkey.
...Anatolia is the birthplace of historic legends, such as Omer (the poet), King Midas, Herodotus (the father of history) and St. Paul the Apostle.
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...Julius Ceasar proclaimed his celebrated words, "Veni, Vidi, Vici" (I came, I saw, I conquered) in Turkey when he defeated the Pontus, a formidable kingdom in the Black Sea region of Turkey.
...Turks introduced coffee to Europe and the tulip to the Dutch.
...St. Nicholas, who became popular as Santa Claus, was born in Demre (Myra) on Turkey's Mediterranean Coast.
...According to legend, Noah's Ark landed on Agri Dagi (Mount Ararat) in Eastern Turkey, the supposed remains of which can be seen there today.
...The last meal on Noah's Ark, a pudding with nearly 20 ingredients, is still served throughout Turkey.
DID YOU KNOW THAT…
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...The last home of the Virgin Mary is located in Selcuk, Turkey and, still intact, attracts thousands of visitors each year.
...St. John, St. Paul and St. Peter all lived and preached throughout Southern Anatolia.
...Homer was born in Izmir on the west coast of Turkey and he depicted Troy in his Epic the Iliad. The Famous Trojan Wars took place in western Turkey, which is marked with a wooden statue of the Trojan Horse today.
...Aesop, famous for his fables and parables, was born in Anatolia.
...Leonardo da Vinci drew designs for a bridge over the Bosphorus, the strait that flows through Europe and Asia. It was never built (although two suspension bridges span thestraight today).
...Alexander the Great conquered a large territory in what is now Turkey and cut theGordion Knot in the Phrygian capital (Gordium) not far from Turkey's present-day capital(Ankara).
DID YOU KNOW THAT…
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...Istanbul's Robert College (established in 1863), is the oldest American university outside the United States.
...Early Christians escaping Roman persecution nearly 2000 years ago sheltered in Cappadocia in Central Anatolia.
...The Amazons are supposed to have originated in Turkey's northeastern region.
...The first church ever built by man (St. Peter's Church) is located in Antioch (Antakya), in southern Turkey.
DID YOU KNOW THAT…
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DID YOU KNOW THAT…
...The first Ecumenical Council was held in Iznik in Western Turkey.
...Democratic institutions of Patara, located on the Mediterannean region of Turkey, has been one of the sources of inspiration for the U.S. Constitution
...Suleyman the Magnificent (the famous Ottoman Sultan) was a poet who wrote over 3000 poems, some of them criticizing the greed of mankind.
...Anatolia is the location of the first known beauty contest, judged by Paris, with Aphrodite, Hera and Athena as leading participants.
...Anatolia was producing wine as early as 4000BC.
...Anatolia is the location of the Seven Churches of Asia.
...Anatolia is the origin of the names of Paris, Philadelphia, and Europe.
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IN SUMMARY
IF YOU ARE IN SEARCH OF:
NEW MARKETS FOR GROWTH
NEW SOURCES TO INCREASE COMPETITIVENESS
A PLACE YIELDING HIGH RETURNS
A BRIDGE TO NEW MARKETS
A HOLIDAY DESTINATION WHERE PAST, PRESENT AND FUTURE CREATE THE MOST BEAUTIFUL COLORS
TURKEY IS THE RIGHT PLACE IN THE REGION
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RECENTECONOMIC DATA
Autumn 2005
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Turkey’s GNP has reached 300 billion USD in 2004 and expected to reach 340 billion USD by the end of the year.
69,8 68,2
152,4172,0
201,5
144,6
182,9
238,4
301,6
340,0
0
50
100
150
200
250
300
350
400
1980 1985 1990 1995 2000 2001 2002 2003 2004 2005E
Bill
ion
USD
GNP
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REAL GNP GROWTH
4,0
3,9
6,3
-9,5
7,9
5,9
9,9
-15 -10 -5 0 5 10 15
1980-1989Average
1990-1999Average
2000
2001
2002
2003
2004
%After the 2001 crisis, real GNP growth rate reached its peak in 2004 and Turkey was one of
the fastest growing economies with 9.9% growth rate. GNP growth in the first two quarters of 2005 has been 4.3%. Short-term annual growth rate
expectation for the next couple of years is around 5%.
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INDUSTRIAL PRODUCTION
Industrial Production Index (1997=100) Industrial Production Index (1997=100)
Industrial production has increased steadily in the last 4 years.
123,5
32,0
47,6
67,8
83,5
103,494,4
103,4112,4
0
20
40
60
80
100
120
140
1980 1985 1990 1995 2000 2001 2002 2003 2004
Public PrivateTotal
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CAPACITY UTILIZATION
Capacity Utilization in Manufacturing IndustryCapacity Utilization in Manufacturing Industry
55,2
81,778,475,4
70,975,9
78,675,2
70,3
0
10
20
30
40
50
60
70
80
90
100
1980 1985 1990 1995 2000 2001 2002 2003 2004
(%)
Public Private Total
Capacity utilization has made a peak and increased to its ever highest level in 2004.
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PRODUCTIVITY
Index of Productivity per Worker (1997=100)Index of Productivity per Worker (1997=100)
60,5
90,4
144,8133,8
124,6
113,2114,5
0
20
40
60
80
100
120
140
160
180
1990 1995 2000 2001 2002 2003 2004
Public
PrivateTotal
Productivity increase has been an important factor in the recent surge in economic growth.
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INFLATION
51,2
78,8
39,0
68,5
29,8
18,4
9,3 8,0 5,0
0
10
20
30
40
50
60
70
80
9019
85-
1989
Ave
rage
1990
-19
99A
vera
ge
2000
2001
2002
2003
2004
2005
Q3
2006
E
%
After long years of chronic high inflation, CPI finally decreased to single-digit figure of 9.3% in 2004. As of three-quarters of 2005, y-o-y CPI is 7.99% and WPI is 4.38% and
the end-year target of 8% is still possible despite high oil prices and expectation for 2006 is 5%.
Change in Consumer Price Index (CPI) (yChange in Consumer Price Index (CPI) (y--oo--y, %)y, %)
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INTEREST RATES
24,7
44,1
63,5
99,9
38,2
123,2
53,0
22,1
28,6
48,2
62,5
45,6
92,3
59,4
6,110,1
4,4 4,6 4,510,88,1
0
20
40
60
80
100
120
140
1990 1995 2000 2001 2002 2003 2004
%
Treasury Auctions Rate
TRL Rate
USD Rate
Interest rates are at 20 years’ low.
(average annual compounded rates)
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DEBT STOCK
167,3
139,3
84,9
54,2
91,7
145,8
161,8
118,8113,9
130,4
63,5
70,4
78,5
90,5
57,1
0
20
40
60
80
100
120
140
160
180
2000 2001 2002 2003 2004
Bill
ion
USD
0
10
20
30
40
50
60
70
80
90
100
%
Domestic Debt Foreign Debt Net Public Debt Stock/GNP
Maturity of the debt as well as the net public debt stock to GNP ratio has decreased since 2001. EU Maastricht criteria of net public debt stock to GNP ratio of 60% is to be
met by 2007.
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CURRENT ACCOUNT
2,6
15,5
1,5
8,0
2,3
9,8
-3,4
5,2
3,4
1,41,7
4,9
-2,3
0,8
-6
-4
-2
0
2
4
6
8
10
12
14
16
18
1990 1995 2000 2001 2002 2003 2004
Bill
ion
USD
-3
-2
-1
0
1
2
3
4
5
6
7
8
%
Current Account Deficit CA Deficit / GNP Ratio
The current account deficit continues to widen, it may pass 20 billion USD level in 2005 and reach 5.8% of GNP but the reasons behind are not the same as before 2001.
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FOREIGN TRADE
38
1322 23 26 27 27 28 31
36
47
63
8 11
22
3644
49 4641
55
41
52
69
98
72
115
0
10
20
30
40
50
60
70
80
90
100
110
1201
98
0
19
85
19
90
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
*
Bill
ion
USD
Export Import
Turkey’s exports more than doubled in the last 3 years and in 2004 exports reached 63 billion USD. Target for 2005 is 72 billion USD.
46
Janu
ary-
Augu
st
75
Janu
ary-
Augu
st
* Estimate
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LATEST COMPETITIVENESS REPORTAND
TURKEY VIS-A-VIS WORLD
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LARGE IN AREA AND POPULATION COMPARED WITH EU MEMBERS
AREA POPULATION
TURKEY GERMANY
FRANCE TURKEY*
SPAIN UK
SWEDEN FRANCE
* TURKEY IS SLATED TO BECOME EUROPE’S LARGEST POPULATION BY 2005 WITH A YOUNG SKEW, AN ADDITIONAL MOTIVATION FOR EU TO ACCEPT TURKEY IN FACE OF A FASTER GROWING NAFTA POPULATION
AMONG 10 MOST IMPORTANT EMERGING MARKETS (US DEPT. OF COMMERCE)
MEXICO
BRASIL
ARGENTINA
POLAND
TURKEY
SOUTH AFRICA
CHINESE ECONOMIC AREA
SOUTH KOREA
ASEAN
INDIA
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TURKEY RANKS AMONG TOP 10 WORLD PRODUCERS OF TURKEY RANKS AMONG TOP 10 WORLD PRODUCERS OF SOME COMMODITIESSOME COMMODITIES......
W H EAT TEA RAW W O O L CO TTO N1 CH IN A IN D IA AU STRALIA CH IN A2 CIS CH IN A CIS U SA3 EC SRI LAN KA N EW Z ELAN D IN D IA4 U SA KEN YA CH IN A PAKISTAN5 IN D IA IN D O N ESIA ARG EN TIN A U Z BEKISTAN6 CAN AD A TU RKEY U RU G U AY TU RKEY7 AU STRALIA JAPAN SO U TH AFRICA BRAZ IL8 TU RKEY CIS TU RKEY TU RKM EN ISTAN9 PAKISTAN BAN G LAD ESH U N ITED KIN G D O M EG YPT
1 0 ARG EN TIN A ARG EN TIN A PAKISTAN AU STRALIA
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...AND ALSO AMONG LEADING PRODUCERS IN SOME INDUSTRIES
THE WORLD’S6TH CEMENT PRODUCER6TH CLOTHING EXPORTER8TH GLASS PRODUCER
EUROPE’S1ST FERTILIZER PRODUCER5TH GLASS RPODUCER 7TH STEEL PRODUCER LARGEST EMERGING ECONOMY
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CAPITAL MOVEMENTS ARE ONE OF THE MOST LIBERALS IN THE WORLD
WORLD COMPETITIVENESS REPORT, 2002SELECTED COUNTRIES
FREEDOM TO INVEST IN STOCKS AND BONDSFOREIGN CITIZENS INVESTING OWN CITIZENS
IN HOME COUNTRY INVESTMENT ABROADRANKING SCALE 1-7 RANKING SCALE 1-7
TURKEY 9 6.8 31 6.3US 17 6.7 11 6.7ITALY 26 6.5 27 6.4BRASIL 39 6.3 60 4.7POLAND 42 6.2 69 3.9CANADA 54 6.0 26 6.4RUSSIA 71 5.1 70 3.7
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TURKEY PROVIDES A RELATIVELY LOWTAXATION BUSINESS ENVIRONMENT
WORLD COMPETITIVENESS REPORT, 2002SELECTED COUNTRIES
TOP CORPORATE TAX RATE
RANKING RATE*
BRAZIL 2 1.0IRELAND 6 1.6TURKEY 24 2.0CHINA 24 2.0POLAND 41 2.1RUSSIA 50 2.3US 50 2.3GERMANY 69 2.7
* relative to best available, namely Brazil
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TURKEY OFFERS A HIGHLY SKILLED WORK FORCE
WORLD COMPETITIVENESS REPORT, 2002SELECTED COUNTRIES
HIGHLY SKILLED IT WORKERS
RANKING SCALE 1-7
US 2 6.7FRANCE 21 5.7TURKEY 32 5.1HUNGARY 36 4.8CHINA 42 4.5MEXICO 47 4.2ARGENTINA 50 4.1RUSSIA 61 3.7
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TURKEY HAS A FLEXIBLE EMPLOYMENT ENVIRONMENT
WORLD COMPETITIVENESS REPORT, 2002SELECTED COUNTRIES
HIRING & FIRING DETERMINED BY EMPLOYERS
RANKING SCALE 1-7
US 6 5.0RUSSIA 10 4.7TURKEY 17 4.2CHINA 23 4.1UK 29 3.9MEXICO 45 3.5POLAND 63 2.6GREECE 65 2.4
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OTHER POLICY ISSUES
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TURKISH – EU RELATIONS
From a candidate country to a accession country: Turkey has signed the Association Agreement with the EU in 1963, applied for full membership in 1987, the Customs Union became effective in 1996, has been recognized as a candidate country in 1999 and has become an accession country on October 3, 2005 as agreed on in December 17, 2004.
EU accession negotiations process is expected to last 10 years during which Turkey will adapt its economic, political and social system under 35 chapters of policy areas.
The associated reforms will provide an anchor for economic and political stability, improvement in social conditions and therefore a better business and investment environment.
Turkey will also be able to use EU financial assistance for infrastructure projects, reconstruction of institutions, more efficient public management systems and increasing competitiveness of enterprises, developing human resources, environmental protection, telecommunications and information technology etc.