State Policies of Turkey Part 2
Economy of Turkey

ECONOMY OF TURKEY

Public corporations were also developed to handle general daily needs. These corporations were owned either partly or completely by the state and were called State Economic Enterprises (KIT in Turkish), and whilst being an autonomous body were for the public�s benefit.

Another problem for Turkey was World War II. Although Turkey did not take an active part in the war, a major part of the country�s natural resources were allocated to defense. This caused production to fall, external trade relations to be stopped and therefore new extraordinary measures had to be introduced. After World War II, a new capitalist system, which derived from America, was dominant in the world. During this period, America was giving credit to Western European countries. This played an important part in the reconstruction of their economies. Under this framework Truman's Doctrine and the Marshal Plan (1947-1948) were developed to help the European countries against the Soviet threat. Turkey was one of the countries receiving aid and as a result became a member of the IMF (International Money Fund) and NATO (North Atlantic Treaty Organization).

During the years that followed, democratic improvements and radical changes made way for the introduction of a liberal economic system.

Demand for exported Turkish products, particularly agricultural, grew considerably during this period. The Korean War contributed to this demand.

During the second half of the 1950s the economy reached a stalemate.

According to the 1961 Constitution, economic planning became a legal requirement and as a result The State Planning Organization was established. Five-Year-Development Plans started to play an important role from 1963 onwards.

A package of economic stability measures which came to be known as the January 24 Decisions was introduced in 1980, when Suleyman Demirel was Prime Minister and Turgut Ozal was holding an important and leading position in The State Planning Organization. The main aims of the package concentrated on foreign trade and economic liberalization.

After the military coup of 1980 the Armed Forces recognized the January 24 Decisions. This was the point at which Turgut Ozal came onto the political scene as he had been responsible for designing the package. When Turgut Ozal became Prime Minister, he used many novel ideas in order to integrate Turkey with the rest of the World on an economic basis. The main achievement was the introduction of a free market economy. He represented liberal tendencies and often said, "you can never make rivers flow in the opposite direction".

Following the same path from 1993 onwards, the Prime Minister Tansu Ciller tried to overcome the deficit in the budget by putting emphasis on the privatization of State Economic Enterprises in international markets, the prevention of inequality in the tax system and reducing the rate of inflation (70% a year).

In 1994 Turkey suddenly started to loose economic stability and the Ciller Government, through emergency measures, was forced to introduce another package of policies known as April 5 Decisions.

This new package required that extra taxes were collected from the rich, and non-profitable State Economic Enterprises were shut down.

In order to obtain international support, Turkey suggested that there are two types of Islamic countries. The first is traditional and fundamentalist while the second, of which Turkey is a leading member, is more modern in its outlook. If Turkey, for any reason, cannot succeed, it will mean victory for the fundamentalists which could be seen as an important threat for the Western world.

Turkey is an associate member of the European Union and has been applying for full membership since 1987. Numerous reasons and excuses have been used by the EU committees to postpone full membership, however, the first step towards the EU was taken with the Customs Union in January 1996.

Economic Daily Life in Turkey

60% of the population earn between $100-$350 per month. The legal minimum salary is $100, but 6% of people receive less than the minimum salary.

Income Tax in Turkey

25-40%

Unemployment Rate in Turkey

Institutions for Social Insurance in Turkey

There are three big social security institutions established by the state:

• The Retirement Trust (Emekli Sandigi)
• The Social Insurance Board (Sosyal Sigortalar Kurumu)
• The Social Insurance Board for small businessmen, craftsmen and others (Bag-Kur)

There are also Private Institution Companies.

Retirement in Turkey

Men can retire after working 25 years; women, after 20 years. Pensions are based on 70-75 % of their last salaries.

Housing in Turkey

Because the size of families has become smaller and urbanization problems have arisen, people have started to live in apartment blocks in the urban areas and in smaller houses in the rural areas. Generally apartments have 3 bedrooms with an average surface area of 100 m� / 120 yd�. In larger cities apartments are more expensive to own with, the minimum price being about $30,000. The average citizen cannot easily afford such a price even with the help of a mortgage. Renting is a possibility, or good fortune may mean inheriting an apartment.

The housing problem increased in the 1960s and the Mass Housing Fund was established in 1980. The fund gave credit to construction cooperatives and many people became the owners of their own apartments by forming these cooperatives.

Nearly half of the people living in big cities rent their flats rather than own them. The average rent is $200 a month. In smaller cities, flats are less expensive and more people own their houses or apartments. The proportion of people who rent their houses nationwide is 25%. Some of these people, who work for the state, live in apartments which belong to the state and they pay a very small amount of rent. There is also a large group of people who live in their relatives� houses in which case they either do not pay rents or pay minimum amounts.

MAJOR INDUSTRIES IN TURKEY

MAJOR IMPORTS OF TURKEY

MAJOR EXPORTS OF TURKEY

NATURAL RESOURCES OF TURKEY

Agriculture and Farming in Turkey

Agriculture accounts for less than 20% of the GNP, although it employs well over half of the national labor force.

Turkey's total land

Agricultural production is generally carried out by small family enterprises in Turkey. 5% of the farm land belongs to the large enterprises and 95% to smaller concerns.

77% of the cultivated land produces grain with wheat ranking as the first. Wheat is common all over the country except in the Black Sea Region. Barley ranks as second, corn is third. Corn requires humid weather conditions during summer time, so the Black Sea Region is very suitable for its growth.

Vegetables account for 62% of agricultural production. Lentils, chickpeas and beans are common. Broad beans and peas also grow in Turkey but on a smaller basis. Chickpeas grow in Central Anatolia, broad beans in western parts and lentils especially in Southeastern Anatolia. The growing of potatoes has recently increased.

Industrial vegetables such as cotton, flax, sesame seeds and opium poppies have been grown for a long time in Turkey, but since the industrial developments after World War I new industrial vegetables such as sugar beet, sunflower seed and tea have also been produced.

Tobacco is grown in the Aegean, Marmara and Black Sea Regions. Soybeans are grown in the Mediterranean. Many kinds of fruit are grown in most parts of the country.

Animal Husbandry in Turkey

Animal husbandry has considerable potential for Turkey. In parts of the country where agriculture and farming are limited, people make their living with animals, especially in Central, Eastern and Southeastern Anatolia. Generally, traditional techniques are used, and the results are not as satisfactory when compared to modern countries.

Fishing in Turkey

Because Turkey is surrounded by different seas on three sides, and has numerous lakes and rivers there is a big seafood potential. Unfortunately, because of the primitive techniques that are used, production and consumption of seafood per person is below the world average.

Anchovy, small mackerel and bonito are the most common fish in Turkey. The major freshwater fish are carp and trout. Besides fish, mussels and shrimps are also abundant.

Overfishing and water pollution are two problems for Turkey.

Seafood Catches in Turkey

Forestry and Plants in Turkey

Large areas in the South, West and Northwest are covered by Mediterranean vegetation, consisting mainly of thick, scrubby underbrush in the lowlands and deciduous or coniferous forests at higher altitudes up to the timberline. The humid northern margins of the country are the most densely wooded regions of Turkey. On the eastern Black Sea coast there are subtropical forests. The Anatolian interior is a region of steppes. Forests of mostly oak and coniferous trees exist only on the elevated areas.

The forest areas comprise of 26% of the total area of Turkey.

Forests of Turkey

99.8% of the forests belong to the state. Much of the wood harvest is burned and used for energy. Forests in Turkey are very rich regarding plant types. As a country with different climates and different ecosystems, Turkey has a tremendously rich flora and fauna.

The number of species of flowers in Turkey is approximately 9,000, out of which 3,000 are endemic, whereas in Europe there are 11,500 species.

Animal Life in Turkey

Increasing population, developing industries, larger residential areas and unregulated hunting have been causing the destruction of natural resources which has a negative effect on wildlife.

Throughout the country today there are 120 species of mammals, 439 birds, 130 reptiles and 345 fish. Many of these species are very rare.

Turkey is rich in wild animals, insects and game birds. Wolf, fox, wildcat, lynx, jackal, marten, hyena, bear, deer, gazelle, boar, mountain goat, snake, scorpion, spider, beaver are among the animals still found in secluded and wooded regions. Major game birds are partridge, wild goose, quail and bustard.

Indigenous animals found in Anatolia include shepherd dog from Kangal, White Cat of Van region, and Tiftik Kecisi (Angora goat) from Ankara (Angora). Bald Ibis (Geronticus eremita) from Birecik is extinct.

Mines in Turkey

Turkey is not so rich in mining. The mines are divided into three categories: Metals, industrial raw materials and energy raw materials.

The main metals are copper, lead, zinc, mercury, iron, chrome, aluminum, gold and silver. Industrial raw materials include asbestos and phosphate. Energy raw materials are coals, uranium, oil and geothermal sources.

Energy Sources of Turkey

Electricity in Turkey

Electricity consumption per capita: 1,079 kw (1993)

The Southeastern Anatolia (GAP) Project

GAP is the largest regional development project ever undertaken in Turkey. It is a multi-purpose and integrated development project comprising of 22 dams and 19 hydroelectric power plants on the Tigris and Euphrates rivers and their tributaries.

When completed, it is planned to irrigate over 1.7 million hectares / 4.2 million acres of land and produce 27 billion kilowatt / hours of electrical energy per year. The planned total irrigation area will cover 8.5 million hectares / 21 million acres of productive land.

GAP is not limited to energy production, irrigation and farming alone. It is obvious that the development in agriculture will affect all other sectors of the regional economy, industry, mining, transportation, education, health and communications. The population of the region is around 5 million today but it is growing day by day. With new investments a minimum of 2 million people will have new job opportunities in the area. The migration from the rural to urban districts will stop and it is hoped that people will start migrating back to this region again. With the opening of the Urfa tunnel in 1994, the construction of new factories in the private sector has already started.

The Ataturk Dam on the Euphrates is the biggest in Turkey and fifth in the world. It is at the core of the GAP project and is almost complete.

Crude Oil in Turkey

76% of the domestic production is by the state (TPAO) and the 24% is by Turkish or foreign private companies like Shell, Mobil or Ersan.

Nearly all the domestic production is concentrated in Southeast Anatolia: Batman and Adiyaman.

Crude oil is processed at five major refineries: Izmit, Aliaga (Izmir), ATAS (Mersin), OAR (Kirikkale) and Batman.

Tourism in Turkey

Income from Turkish tourism in 1995 was 4 billion US Dollars.

The number of tourists coming to Turkey has been increasing rapidly in the last few years. There were more than 8 million in 1996. This figure means that Turkey has a share of 1.5% of the total number of tourists traveling throughout the world.

Most of the tourists coming to Turkey are from Germany, the Commonwealth of Independent States, Iran, Israel and the USA.

The number of Turkish tourists going abroad is about 2-3 million per year.

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