Turkish Economy have experienced great developments during last six decades, more than most of countries around the world. Accelerating Turkish economic growth made mainly by export-led policy (after 1980) and the economical reforms (after 2003) when current president Recep Tayyip Erdoğan started his role as PM.
Some of the achievements have been reached as a result of Turkey’s geopolitical position, where is a connection node between producers and consumers of energy and industrial goods and some could be awarded to the government’s plans, mainly for free international trade, developing tourism industry, privatization, earning income and accessing the chip energy sources via it’s energy transiting plans.
Turkish economic growth analysis in a glance
Turkish GDP was increased to $ 875.748 billion at 2016 where it was just $ 13.995 billion at 1960 (from worldbank.com), a wonderful raising by more than 60 times that is faster than world average but not enough uninterrupted to be compared with some pioneer economies such as Korea republic.
The sharpest rate of Turkish economical growth was experienced in 1970s decade (%223.08), mostly resulted by boosting governmental spending after 1971 military intervention. The biggest growth in amount was in 2010s decade that experienced increasing $ 411.92 billion during 6 years. Comparing Turkey’s achievement with Korea Republic’s shows lack of harmony and Continuity in Turkish economical growth, while Korea’s economy moved from $ 4.23 billion (32% of Turkish) in 1960s decade to $ 1,290 billion (1.48 of Turkish) in 2010s duration.
Main growth areas
Ruling party’s economical reforms, such as strong domestic consumption, cheap credit and large financial inflows, enhancing the flexibility of the labour market and boosting the competitiveness of the manufacturing sector through greater competition, could enhance it’s rank to world’s 17th in 2015.Some sectors are playing main role in this economic leap, such as Tourism while could attract more than 36 million tourists In 2015 that raised Turkey’s revenues to 31 billion USD per year (from: www.mfa.gov.tr), as well as Privatization that it’s earning was increased significantly from 8 billion USD in the period of 1986-2003 to 58 billion USD between 2004-2015 (from the same source). Turkish contracting services abroad have successfully completed 8693 projects in 107 countries across the globe between 1972-2015, with a total value of 276 billion USD between 2002-2015 (from the same source). As well as Turkish economy could host more than 46,000 foreign active firms and 916 liaison offices of foreign firms, as well as the total amount of foreign direct investments exceeded 165 billion USD as of the end of 2015.
The same sharp raising could be traced in Turkey’s foreign trade during last decades, too, when Turkey’s export was raised to $142.53 billion at 2016 from $12.96 billion at 1990 (%1100) that is sharper than growth in it’s importing, where it was changed from $22.30 billion to $198.62 billion during the same period of time (%891) but the balance of Turkey’s trade is negative yet and extended to $56.09 billion.
An Energy Hub
Turkey’s plan for rolling as the hub of energy between main producers in middle east, Caspian and Russia to main customers in Europe entered to a new phase by signing the Turkish Stream contract with Russia in 2014. Now 4 operating natural gas pipelines through Turkey with capacity of more than 2.3 Tcf are supplying Turkey’s demand and transiting gas to the Europe customers. Also 3 projects in the construction phase and 3 new proposed projects with total capacity of more than 4.8 Tcf could make Turkey one of the main Energy transiting hubs in the world that could powering it’s geopolitical plans as well as giving significant economical advantages.
As well as, 3 Crude oil pipelines from Baku, Kirkuk (Iraq) and Kurdistan Government of Iraq with capacity of more than 3.4 million barrels of oil per day are transiting Azerbaijan, Kazakhstan and Iraq’s crude oil to/via Turkey. Turkey’s Ceyhan oil port covers 1.44 sq.km, storage capacity of about 7 million barrels of oil and annual export capacity of more than 50 million tones of oil annually (from: bp.com).
Increasing demands in European countries for energy carriers, mainly the natural gas as a cleaner and chipper product and on the other the natural gas producers’ need for chipper and operational solution to reach the Europe market, make Turkish ways more highlighted and Turkey’s governments are trying to catch this opportunity, economically and politically.
Transiting 7.1 Tcf of natural gas and 3.4 million barrels of oil could make Turkey one of the main energy transition hubs around the world that not only make significant economical benefits but also could support it’s political plans such as accession of Turkey to the European Union, the desire is sometimes closed and sometime far.
Turkey’s in economical crisis
Despite all the longterm growth in indictors, Turkey’s economy is facing new crisis during last 3 years, especially after some internal clashes and tensions with with Russia, united states and European countries. Turkish Liras’ exchange rate to foreign currencies is dropped sharply and reached to 3.88 to USD (at 2017, December) from 1.8 in 2012 (less than half, just during 5 years).
Also inflation rate is raised to more than % 10.9 at 2017, when it was decreased to 7.7% at 2015 (from IMF).
The GDP per capita that was raised to about $ 12,500 at 2013 is declined again to $ 10,800 at 2016 for three consequently years (the same level at 2008).
The situation in some other indicators such as “population below poverty line” are showing more shortages or crisis, when it was raised to more than %21 at 2016.
Continuing this conditions could abduct the chances of improvements for Turkish government and people while it’s most needed for both to hold over the dreams.
Future of Turkey’s economy – Short term provision
The short term provisions of Turkish economy are not optimistic enough, especially after several diplomatic and economical clashes between Turkey and it’s main partners during last three years.
Russia imposed sanctions against Turkey at 2015, November that affected Turkish economy quickly but it couldn’t get rid of them even after 7 months of removing most of these sanctions.
Turkey – Russia clashes on downing of a Russian fighter jet in 2015 led to sanctions
Turkish economy that has been affected quickly by sanctions imposed by Russia (at 2015, November) doesn’t get rid of them completely, even after more than 7 months of easing tensions and lifting the most of sanctions. In the case of removing all Russian sanctions, it couldn’t bring relief to Turkey’s struggling economy as it’s faced to a bigger crisis arising by political clashes with European countries, especially Netherland, Germany and Belgium and next with USA.
Furthermore, effects of internal clashes (especially after failed coup in 2016) and hosting million refugees from Syrian internal war made the Turkey’s economy battered which was one of the best – performing until 2014.
The Turkey’s economy could experience new small growths by easing the internal and international conflicts before next elections on 2019 but not as was before 2014.
Now it’s time for Turkey to select it’s ambitious plans for being one of the main energy hubs in the world that could affect on global energy markets and having rapid growing economies or drowned in diverse economical crisis.
Radiation Processing Enables Small Businesses to Enter Global Value Chains in Malaysia
In today’s globalized world, becoming part of an international supply chain is key to the prospering of small businesses and their ability to create jobs. Meeting the quality requirements set by the multinationals that head these value chains is often tough for small and medium sized businesses (SMEs) operating on shoestring budgets. The country’s nuclear agency, Nuklear Malaysia, is doing its bit to help.
Thanks to the support of the Nuklear Malaysia, Wonderful Ebeam Cable has become the first SME in the country to supply cables to Malaysia’s booming automotive sector. “By using radiation technology, we have been able to improve our product line and meet the requirements of the car manufacturers,” said Managing Director Ir Chan Chang Choy. “This has allowed me to grow my business and increase the workforce.”
Due to the high temperature in engines, cables used in the engine compartment of vehicles need to be heat and flame resistant to make sure they, and the car, do not catch on fire. To improve the heat resistance and flame retardance of the insulation of copper wires, their polymers need to be crosslinked, forming an extremely tightly packed network of interconnected polymer chains. Crosslinked insulation material increases the service temperature of cable for instance from 75⁰C in the case of normal PVC to 100⁰C for crosslinked PVC.
Crosslinking can be achieved using chemicals, but the process requires higher temperatures. The alternative, the irradiation of polymers, leads to the formation of permanent bonds between the polymer chains at room temperature – which requires lower operating costs.
No SME in Malaysia has the technology in place to carry out such irradiation, and banks are reluctant to provide loans for the purchase of irradiation equipment, Chang Choy said. “These machines are expensive, and the banks do not accept the equipment itself as collateral, because there is no second hand market for irradiation equipment, so the banks cannot sell it if my company were to go bankrupt.” Also, their safe use requires extensive shielding, which can make up half the installation cost. And shielding cannot be removed and sold.
Enter Nuklear Malaysia, which irradiates the products of small businesses like Chang Choy’s for a small fee.
“The automotive industry has long been recognised as one of the key contributing factors towards the realisation of Malaysia’s aspiration to become an industrialised nation by 2020,” said Zulkafli Ghazali, Director of Radiation Processing Technology at Nuklear Malaysia. “This requires domestic capacity in cable manufacturing.” Through this support, the agency is doing its part to support the Government’s SME Masterplan to accelerate the growth of SMEs and increase their contribution to the economy from 32% of GDP to 41% by 2020.
Wonderful Ebeam Cable ships its products to Nuklear Malaysia’s irradiation facility in the centre of the country, some 300 kilometres to the north, three times a week. After a few days, the cables are returned, ready for the car companies.
Nuklear Malaysia is working with several SMEs in different areas of radiation processing – using ionizing radiation such as gamma radiation and electron beam to change the physical, chemical or biological characteristics of materials to increase their usefulness and value or to reduce their impact on the environment. It is most widely used in the modification of plastic and rubber materials, the sterilization of medical devices and consumer items, the preservation of food and the reduction of environmental pollution. Nuklear Malaysia’s scientists have benefitted from a number of IAEA Technical Cooperation and Collaborative Research Projects, through which they were able to perfect the technologies used in radiation processing by working with experts from around the world. “The IAEA helps turn global expertise into local expertise,” Ghazali said.
The IAEA helps Member States strengthen capacities in adopting radiation-based techniques that support cleaner and safer industrial processes. Nuklear Malaysia has participated in several such projects and has been recognized, since 2006, as an IAEA Collaborating Centre for radiation processing of natural polymers and nano-materials.
This could come particularly handy in a few years’ time, he added. “If the country decides to build a nuclear power plant, we would need a lot more of cross-linked cables and other products manufactured using radiation processing technology.”
First published in International Atomic Energy Agency
55 New Financial Inclusion Metrics For World’s 2 Billion Unbanked
Today the World Economic Forum and 15 of its partners launched a new financial inclusion measurement framework. It defines the metrics that are crucial to understanding and improving how hundreds of millions of people access and use financial products like digital payments, savings accounts, and loans in the developing world.
The report complements ongoing efforts to quantify how financial services are being used, and their impact on people’s lives. “More nuanced metrics provide businesses and governments with the necessary inputs to offer customer-centric strategies that increase access and usage of financial services in a sustainable manner,” said Cheryl Martin, Managing Director, Head of Industries, World Economic Forum.
The findings, summarized in Advancing Financial Inclusion Metrics: Shifting from access to economic empowerment, proposes specific metrics to analyze the maturity of payments, credit, savings services and the overall regulatory environment. Greater visibility into these inputs is vital to financially include those left out of the formal economy whether in India or Mexico, Tunisia or Zimbabwe.
The initiative’s 15 core partners include financial providers, consulting companies, foundations, and consumer goods companies who together reach the majority of the world’s population, including the estimated 2 billion who currently don’t have bank accounts, debit or credit cards, or access to loans. They are Alliance for Financial Inclusion, BBVA, Bill and Melinda Gates Foundation, Credit Suisse, International Finance Corporation, Mastercard, Mercy Corps, MTN Group, PayPal, SWIFT, Tata Consultancy Services, Telenor Group, Unilever, UNSGSA, and the World Bank.
Paul Polman, Chief Executive Officer, Unilever said: “Data is critical to better understand the relationship between financial inclusion and greater wellbeing. By digitizing the processes of buying supplies and selling goods, small and micro businesses in emerging markets can gain access to appropriate low-interest credit, further boosting business growth.”
The report highlights that much of the required consumer data is already available. However, expanded data collection is needed in certain cases. In India, for instance, a country with 251 million people without access to financial services, only 11% of consumers used debit cards for payments over the course of a twelve month period 1.
This statistic is interesting, but fails to tell the whole story. Going several levels deeper, the application of more granular metrics would provide insights into the actual percentage of registered and unregistered businesses accepting digital payments; the barriers preventing both men and women from using digital financial services , alternative payment methods used (e.g., account direct transfer, card top-up), and the types of purchases made (e.g., groceries, utilities, healthcare, etc.). Understanding the customer at this level of detail would allow for more targeted solutions for increasing debit card acceptance.
As emphasized by H.M. Queen Máxima of the Netherlands, United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development, “I always emphasize the importance of data. Without good data, we cannot map potential demand for financial services, track progress, and develop customer-centric products and services for the excluded, including women. The knowledge data provides, in turn, will help shape effective policies and generate the strong political will needed to achieve full financial inclusion.”
The report was launched ahead of the Annual Meeting of the World Economic Forum, which takes place January 22-26 in Davos, Switzerland, and brings together governments, international organizations, business, civil society, cultural leaders, media, foremost experts and the young generation from all over the world.
Economics Students Unite in Bangladesh to Explore Paths Toward One South Asia
The 14th South Asia Economic Students’ Meet (SAESM) commences in Chittagong, Bangladesh today, embracing the arrival of over 110 top economics undergraduates and faculties from seven countries in South Asia towards the realization of a more integrated South Asia.
Rising economists from Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka will engage in vigorous academic competitions and research presentations on South Asia’s development opportunities under the theme of regional integration in South Asia. The meet will also include discussions by professors and World Bank experts on how greater regional integration in South Asia can help countries achieve the Sustainable Development Goals (SDGs).
“South Asia is a region with immense potential and youthful energy waiting to thrive,” said Selim Raihan, SAESM Organizer for Bangladesh and Executive Director for the South Asia Network on Economic Modeling (SANEM). “Building trust among neighbors through students can help lay the foundation for lasting relationships that will benefit growth, poverty reduction and prosperity in the future.”
SAESM Chittagong will include essay presentations and defense by students on their essays submitted for SAESM, a quiz on economic knowledge, as well as a ‘budding economist competition’’ that selects the brightest young economist through the best written and oral defense. Hosted this year by SANEM, participants come from a variety of South Asian universities including Dhaka University (Bangladesh), Delhi University (India), Lahore University of Management Sciences (Pakistan), University of Kabul (Afghanistan), Royal Thimphu College (Bhutan), and Tribhuvan University (Nepal).
Recognizing its unparalleled efforts in facilitating regional academic and cultural exchange, the World Bank Group has supported SAESM for many years in the forms of financing, logistical support, external communications as well as speeches and competitions.
“Regional Integration in South Asia is a work in progress, but there are many grounds for optimism, including the growing realization that most of the gains from regional integration remain under-exploited. To help realize some of these gains, the WBG is supporting country governments in South Asia to deepen cooperation with their neighbors in several areas including energy, trade and investment, and connectivity,” said Sanjay Kathuria, Lead Economist for the World Bank. “Gains are likely to be incremental because this is a complex and long-term agenda. Youth can bring a business-like, uncluttered approach to provide greater momentum to the process of creating One South Asia.”
Since SAESM was piloted in New Delhi, India in 2004 by a group of university professors, it has been hosted rotationally by organizers in India, Bangladesh, Nepal, Pakistan, Sri Lanka, and Bhutan. Afghanistan sent its first batch of delegates in 2014.
“When we started SAESM, our objective was to bring together brilliant young economists from across South Asia and engage them in intensive academic exchange. Over the years SAESM has itself ‘graduated’ numerous dazzling talents and sent them worldwide,” said Raihan.
Where is America’s common sense in foreign affairs?
In 2000, the United States was evidently at the apogee of its power, exercising an unparalleled ascendancy around the globe....
India-US bonhomie: Time for a reality check
The ongoing India-US rapprochement has been couched in terms of a pact between the “two largest democracies in the world”...
Shame and stigma: The taboo of menstruating in South Asia
The beliefs and practices that revolve around menstruation differ across societies. In some cultures, the menstruating women are victimised due...
Post 19th Congress of CPC: Where does Xi Jinping leads China to?
Xi Jinping “The Dream Seller” Xi started 2018 by dream-selling that all rural Chinese living below the poverty line would...
Invisible and Excluded: The Fate of Widows and Divorcees in Africa
Across Africa, the impact of marital death and divorce falls more heavily on women, who may be excluded socially and...
Improved economic conditions boost air-traveller numbers worldwide
A record 4.1 billion passengers took to the skies in 2017 onboard some 37 million scheduled flights globally, the United...
Rohingya Crisis Growing, More Support Needed
The Rohingya refugee crisis in southern Bangladesh is growing at a rapid pace and there is an urgent need to...
Middle East14 hours ago
Gulf crisis turns Qatar into the ‘region’s Israel’
Middle East5 days ago
The Triggering and Deterring Factors of the Recent Protests in Iran
South Asia4 days ago
Chinese engineer’s disappearance takes on geopolitical significance
South Asia13 hours ago
India-US bonhomie: Time for a reality check
Economy4 days ago
Economics Students Unite in Bangladesh to Explore Paths Toward One South Asia
Economy3 days ago
55 New Financial Inclusion Metrics For World’s 2 Billion Unbanked
Southeast Asia5 days ago
CPTPP Serving Vietnam as Opportunities and Challenges
Energy4 days ago
Going Long Term: US Nuclear Power Plants Could Extend Operating Life to 80 Years