.. t’s earthquake. Turkey has had difficulty putting together a 2000 budget and the talks with International Monetary fund are being delayed.
The task of computing the costs of the earthquake is going to dictate when decisions will be made regarding loans from the IMF. The IMF pledged financial resources in July if Turkey makes reform progress. The government has moved quickly on structural reforms, pushing banking, pension, and international arbitration laws through parliament. But government sources say Turkeys lack of commitment to a tight fiscal policy for 2000 have raised concerns about the fate of the talks. (WASHINGTON, Sept 09,Reuters) Foreign Debt: (4)***(4) Funds will continue to be needed.
Tansu Ciller swept into the Prime Minister’s office in Ankara. She was confident and full of ideas, epitomizing a new generation of politicians whom, many hoped, would transform Turkey into a key player in Europe and Asia. Ciller’s policies were intended to restore faith in Turkeys public finances, but continued government borrowing and her inattention to the $66 billion foreign debt undermined lenders’ confidence. Both Moody’s and Standard & Poor’s, the influential U.S. rating agencies, downgraded Turkeys credit standing, which further scared off potential private investment. Ciller inherited an economy overheated by inflation and a government structure groaning under the weight of Red tape and beurocrocy.
Infrastructure: (5)***(4) The slow process begins to make Turkey a fluid country again. The government is giving special priority to major infrastructure projects, especially in the transport sector. Although most state investments were put on hold in 1994, the government has resumed planning and construction of many airport, port, and highway ventures, in large part through project finance with private capital. As of 1987, Turkey had 106 usable airports, 62 of which had paved runways. Turkish Airlines (Turk Hava Yollari–THY), plagued by a poor safety record in the 1970s, fought its way back to profitability during the 1980s and was considered a candidate for privatization Some 20 undertakings involving project finance, worth about $14 billion, have been proposed or are under development. The government planned to build 3,000 kilometers of highways by the year 2000 and to upgrade existing roads.
The Ozal administration began a major highway project that, when completed, would give Turkey highways that traversed the country, making it possible to handle increased levels of freight between Europe and the Middle East. This project, along with the second bridge across the Bosporus, would form 3,600 kilometers of a Trans-European motorway, a 10,000-kilometer route from Gdansk on the Baltic Sea to cities on the Caspian Sea and the Persian Gulf. The recent earthquakes have destroyed many entities of travel; it will be a long recovery period before the Country rebuilds from the disastrous 1999. Remittance of Earnings: (2)***(2.5) must remain stable in order to remain an incentive for F.D.I. Turkey has created a Foreign Investment Directorate (FID) has passed legislation to promote and encourage foreign much needed investment, especially in technological and know-how sectors, job creation, export promotion, tourism and capital investment.
If investors go through the procedures of starting a venture, a good experience is likely. Turkey has no set rules for reinvesting capital unless it is stipulated in the venture. The planning stage is of crucial importance, in that you should clarify and obtain all the necessary documentation. Otherwise, subsequent rectification is not possible and an investment without permission will create problems for taxation and the repatriation of capital. The legislation, which regulates the investment establishes the ground rules for the remittance of foreign capital and simplifies this process to further Turkeys open-door policy with the world markets. Per capita income: (4)***(3) Better jobs will be available in the future partially due to F.D.I.
The year ending 1998 yielded a per capita income of, $6,600 U.S. dollars. This number and chart come from the (CIA fact book 1999.) GDPcomposition by sector: agriculture: 14.4% industry: 28.7% services: 56.9% (1998) Competitive forces: (3)***(3) They continue to lack in many areas, other than basic industries. There is little competition in many areas of technology, however there is heavy competition in agriculture, mining and other already situated and figured out operations.
Turkey welcomes investment that will bring them to the 21st century. Education: (3)***(2) While education is reasonably funded and supported, much like Mexico a Technology boom or avenue must be created to train future candidates for jobs that will assist F.D.I. There are general, vocational and technical education institutions which provide a three-year education for primary school graduates and which supply students with general knowledge and prepare them for either higher education or a profession. High Schools are not generalized like they are in the U.S., a High school serves a particular function. It is much more difficult to find out what you like. Once a student becomes 15, they are expected to go into a form of schooling geared to a career that they wish to pursue.
A sort of mission statement for the education in Turkey looks like this. Being one where all individuals of the state are gathered together as an inseparable whole, united in national consciousness and thinking, trained to think along scientific lines with intellectually broadened views on world affairs, and to be productive happy individuals, who through their skills contribute to the prosperity of society and are instrumental in making the Turkish nation a creative and distinguished member of the modern world.(Turkish Education Embassy, 1998) Although the above statement gives us that warm fuzzy feeling we learn to convey in marketing class, the sad truth is that education is somewhat near the bottom of priority in areas of funding. It could be said that a students true calling could easily be lost in the shuffle of severely tunnel-vision type (subject wise) schooling. Crime: (4)***(3) Viewed political crime must be separated from real crime. As discussed earlier in the Democracy section, Turkey has more than 10,000 political prisoners. They are trade unionists, human rights activists, democrats, artists, writers, revolutionaries, Kurdish patriots, socialists, etc.
The number of inmates has doubled from 1984 to 1991. This rise is primarily due to the above mentioned prisoners. Their life in prison is a permanent struggle for minimal human rights. Very often they have to face brutal attacks by the fascist forces of the Turkish State.
There are many reports of torture and inhumane activities amongst prisons. There is much discussion on the horrific conditions of jails and detention centers. Once again this is insufficiently funded area of Turkey. Human rights organizations for years have alleged that Turkish security forces abuse detainees with electric shocks, beatings, death threats and other forms of abuse. ABCNEWS, John Cochran asked Turkish President Suleyman Demirel, about allegations of human rights abuses at a news conference with President Clinton.
It is impossible to say that there is no torture in Turkey; there is torture. But torture is not state policy, Demirel said. (ABC NEWS DEC11 1999). However, this discussion is two-fold, while procedures of the Criminal justice system are harsh to say the least, the crime rate is lower than most other Middle Eastern, and some Western European countries.
Labor force: (3)***(3) A somewhat strong suit in Turkeys regime, Which if nurtured could be a key to future success upon entering the EU. 22.7 million (April 1998) note: about 1.5 million Turks work abroad (1994) Labor forceby occupation: agriculture 42.5%, services 34.5%, and industry 23% (1996). The human resource is fairly abundant in Turkey and with a younger population the potential is available to investors that wish to enter a business that needs people. Many people feel that their jobs are dead end, while some accept it as a way of life, others are seeking jobs more enlightening. Ethnic Conflict: (6)***(5) An inherent problem for a long time will see. As stated earlier this is a huge problem with the Turks.
The Kurds and Turks have been battling for years. The tremendous Armies on both sides lead to a very unstable cohesion among all people living Turkey. Although there are signs that this relationship may actually be improving. In 1991 turkey lifted a ban on which Kurdish music, language, dress, associations. This occurred following the gulf war. The Kurdish language still may not be taught in schools or used by merchants on storefronts or in advertising.
In fact is illegal in Turkey for parents to give their children a Kurdish name. (Atlantic Economic Journal, Dec.11, 1999). Riots Terrorism: (6)***(4) I predict it will diminish however strikes fear in many Turks, once again new leadership shows promise. Turkey is one of the several democratic countries who face severe terrorism problems. Terrorism started to make the public restless while disorder in political area increases. Istanbul is the new target of terrorists in causing chaos.
People stopped shopping from markets and hypermarkets, interest in collective activities like football matches and concerts dropped. Anxiety about terrorism is a threat for tourism and entertainment sectors. Many involve either the outlawed Kurdistan Workers’ Party (PKK), which intensified its campaign for an independent state in the southeastern part of Turkey or ultra-Islamist groups that are based mainly in Germany and Iran. Ethnic Conflict: (4)***(3) New leadership will curb war with the Kurds. The Turks are a highly composite ethnic mixture, mostly speak Turkish; there is a sizable Kurdish minority.
The country is almost entirely Muslim, with small groups of Orthodox Christians and other religions. At 25 million, the Kurds are the largest ethnic group in the world without their own state. With a similar language, religion, and culture, the Kurds have lived for thousands of years in an area that is now part of Turkey, Iraq, Iran, Syria, and the former Soviet Union. Today, the 15 million Kurds who live in Turkey constitute about 25 percent of that country’s population. Until 1991, the Turkish government banned Kurdish music, language, dress, associations, and newspapers.
The Kurdish language still may not be taught in schools or used by merchants on storefronts or in advertising. It is illegal in Turkey for parents to give their child a Kurdish name. Death squads have killed more than a dozen Kurdish journalists, as well as numerous politicians and activists. Despite 15 years of fighting, Turkey today has no POWs; most rebels, according to the government, have been captured dead. But there are large numbers of civilian Kurds in Turkish prisons where, according to organizations like Amnesty International, the use of torture is routine.
In the last decade the Turkish army has leveled, burned, or forcibly evacuated more than 3,000 Kurdish villages. Social cohesion: (2.5)***(3.0) As technology, increases social classes will diversify. In general amongst the Turks, the people get along well. According to a news article on (CNN) date unknown, The Turks gathered together during the earthquakes and worked together in an unselfish giving manner. The emphasis of care was being placed on woman and children.
In fact hundreds of thousands of people came from unaffected areas of Turkey to offer help in any way needed. Quality of life: (4.0)***(4.0) difficult slow rebuilding process. Turkey has been devastated by earthquakes, which have crushed the hopes and dreams of many. Life in turkey for many is a rebuilding process that may go on for over a decade to just make life once again stable.
Turks for the most part enjoy a simple life, The Country as a whole sees itself as a large part of a future economic boom, but the Turks rely on tradition and tight families as a positive indicator for quality of life. Family stability: (4)***(3) Although some bizarre acts, overall stable environments. New politicians are eradicating some informal mechanisms that humiliate women. Turkey practices a way of life similar to other European countries. The divorce rate amongst couples ranges from 20% – 35%.
A man can get a divorce very easily, however a woman must go through a long procedure, in which she must prove a valid case that allows her to proceed through the tight restrictions of divorce. Women as a whole are not given the same rights as seen in other countries. In a bizarre report, (The Dallas Morning News, 01-11-1998), Women can be subjected to a virginity test where if they fail, are shunned from society and face many family problems. In rural areas and urban neighborhoods populated by migrants from the countryside, parents and future husbands often take young women to be tested before their marriage, and sometimes if they are suspected of having had premarital relations.
Turkish law makes no reference to the practice of virginity tests, but many parents consider them a reasonable way to control their daughters. There is pressure on all family members to not bring dishonor to the family name at any cost. Bribery: (4)***(3) F.D.I. will not except bribery as a form of business. As in every other aspect of Turkish political life, the issue of corruption occupies a central role in the struggle between secularism and political Islam in Turkey.
Bribery is more of problem than thought, In the wake of the August 17 earthquake and the revelation of the shoddy construction that contributed to the loss of lives and the official negligence that permitted it. Bribery in the business environment is similar to that of Russia in some areas like the trade zones where bribes are masked as tariffs or consulting fees. Psychology.
