Introduction to Turkey
Turkey or Türkiye is an autonomous parliamentary democracy located in Eurasia. Its largest portion is in Western Asia while the smaller portion is in Southeast Europe. Iran, Greece, Bulgaria, Georgia, Armenia, Syria, Iraq, and Azerbaijani Exclave border the nation. The nation’s location at the crossroads of Asia and Europe implies that it comprises an important geostrategic region for the two continents. Turkey has the unique characteristics of the population, climate, topography, culture, and political environment.
General Information about the Population
Following the nationalistic indoctrination, many of the Turkish citizens recognize and regard themselves as Turks, irrespective of their ethnic groups. However, major non-Turkish people such as Kurds and Arabs who live in the southern part of Turkey, Georgia, and Laz consider themselves having two identities. Turkey is home to over 70 million people. About 65% of the population comprises urban dwellers while 35% live in villages (Magnarella, 2015). In its demographic statistics, Turkey does not classify its population in terms of ethnic groups. This strategy makes it incredibly difficult to determine the actual number of different ethnic groups. However, Pope and Pope (2004) assert that Turkey has about 35 groups of people who do not communicate in the Turkish tongue. They include Kurds, Americans, Arabs, Chechens, and Greeks. Among the non-Turkish people, Kurds have the largest population followed by Arabs who live near the border between Turkey and Syria.
Every nation has its exceptional linguistic affiliation as an important aspect of its population demographics. In the case of Turkey, its linguistic attachment may be traced from inner Asia among the Atlantic families. In this context, Pope and Pope (2004) reveal, “the earliest evidence of Turkish writing dates to eighth-century C.E. runic inscriptions on steles along the Orkhon River near the present-day Ulan Bator, Mongolia” (p.36). Arabs and Persians shaped the development of Turkish speech when the Turks migrated to other regions where they changed into Islam. However, upon developing Turkish democracy, vocabulary from the prehistoric Turkish people substituted the Persian expressions in verbal communication. This process involved a ‘Turkification’ program, which demanded all Muslim citizens communicate in writing and spoken words through the Turkish language. Indeed, until 1991, public speaking, broadcasting over the radio, and publication was only permitted in the Turkish language (Magnarella, 2015). However, today, Kurds born and brought up in Southeast Turkey communicate not only in Kurdish but also in Turkish while the majority of the rest of the population, especially the youths, use only the Turkish language.
Climate
The climate of Turkey varies from one region to another. For example, Turkey witnesses hot and dry summers along the Mediterranean Sea and Aegean Ocean while winters are cool and wet. This atmosphere is known as Temperate Mediterranean. Coastal regions along the Black Ocean possess a moderate marine atmosphere characterized by humid and rainy summers while winters may be rainy or chilly. The Black Sea coastal regions of Turkey receive the highest amount of yearly rainfall averaging about 2,200mm. The Marmara Sea links the Black Sea to the Aegean Ocean. It exhibits transitional climatic conditions of the two regions. The interior of Turkey has a continental climate.
Topography
Turkey has rolling low hills of Thrace. River valleys of streams that open to the Aegean Sea are highly fertile. In the Mediterranean, Turkey has the Adana and Antalya warm plains. However, amid these good features describing Turkey’s topography, most parts of the nation have mountainous ranges. The ranges border and crisscross the elevated and dry Anatolian upland (Nations Encyclopedia, 2015, par.1). The country’s altitude varies between 600m above Sea Level on its western side and above 1800m above Sea Level on its eastern highland. Turkey’s highest point is 5,166m above sea level. This point is on Mount Ararat. The nation’s other peaks of its mountainous terrain raise an average of 3,000 meters above sea level.
Many of Turkey’s streams are average in size. However, there are two big streams, namely Tigris and Euphrates. Their source emerges from the eastern Anatolia. Lake Van constitutes the largest lake in Turkey with an area of about 3,700 Square Kilometers (Nations Encyclopedia, 2015). An important Turkish water body is Lake Tuz, which is briny. Commercial salt is extracted from the lake. The nation also has good natural waterfronts along the seashore approximating to 7,000 km long. Turkey is vastly situated along an earthquake zone. In 1970, the Gediz region experienced more than 1000 earthquakes, which killed almost 1100 people (Nations Encyclopedia, 2015). However, the most deadly earthquake was experienced in 1939 close to Erzincan. It left 30,000 people dead.
Culture
Culture defines people’s ways of life. It implies people’s beliefs, behaviors, social norms, ideas, and traditions that influence their decision-making process or shape their socialization methods. It is transmitted from one person to another through language and performance in terms of behavior modeling. Therefore, it can proclaim or discourage certain behaviors within society. In this process, it leads to the determination of undesirable and enviable behaviors among different people within a society. Turkey possesses a diverse culture that blends Ottoman, the Oguz Turkic, and the western cultural perspectives (Magnarella, 2015). Western cultures became assimilated into the Turkish culture during Turks’ migration from the central part of Asia to the west. Therefore, Turkish culture involves a blend of attempts to become modernized and the need to maintain traditional religious values and norms together with historical perspectives that define the native Turkish population. Turkey is rich in Turkish music and artifacts, which display the people’s way of life.
Various financial aspects, civilization, thoughts acquired from overseas nations, political principles, and the ecological circumstances, shape the structural design and urbanism in Turkey. However, there is a quest to benchmark from the western cultural impression in Turkish architectures (Magnarella, 2015). For instance, the new republic leaders had a desire to catch up with other western nations in terms of material culture and technology. Consequently, they deployed the skills of western Europeans in erecting the city of Ankara.
In small villages, undersized homes retain traditional architecture. The housing architecture here varies according to the available building materials within people’s localities, domestic income levels, environmental conditions, the structure of families, and more importantly, the tradition of the builders. However, the majority of the houses have two main divisions, namely Harem and Selamlik. Harem denotes the classified lodgings of a family while Selamlik means a welcoming room for the public (Magnarella, 2015). All male visitors occupy the Selamlik. From this division, they engage in dialogue with all-male members of a family. All-female visitors are confined to the Harem from where they chat with women’s household members. Women converse with neighbors. Besides, they conduct their domestic chores in courtyards.
Political Environment
The administration of Turkey is run under the 1982 charter. The constitution was developed and inaugurated when the military was in control. In Article 2, the 1982 constitution declares the state of Turkey “a democratic, secular, and social state, loyal to the nationalism of Atatürk” (Magnarella, 2015, par.26). Article 3 acknowledges the indivisibility of Turkish states together with the nation and Turkish territories. The clause also declares Turkish the national language. The constitution lists various political rights, social, and civil liberties. However, it limits the exercise of such rights to national security, public morality, and national cohesion. The implication is that even though people have the right to enjoy and exercise various rights as provided for in the 1982 constitution, they should not do so at the expense of public morality, national cohesion, and national security.
The 1982 constitution permits the government to declare emergency rules and/or martial laws. It establishes a one-chamber state assembly elected through a popular vote. The assembly has legislative powers independent from government control. Turkey also has a prime minister coupled with a cabinet that is accountable to state assembly. The constitutional court possesses power for judicial review. The charter grants the head of state administrative authority and a governmental veto. He or she is elected by Turkey’s national assembly. The president’s tenure lasts for seven years.
Turkey is a multiparty self-governing system. However, the parties have no permission for appealing to any religion. The country advocates the establishment of religious states. No party is also allowed to advocate the representation of one class of people or a given ethnic group. Over the recent past elections, no party has managed to secure above 22% of the total cast vote (Magnarella, 2015). This situation has left Turkey under the headship of coalition governments. The nation is divided into eight different divisions (provinces or Iller). Sellers are then subdivided into ilceler (sub-provinces). Each ilceler is subdivided into bucklers (districts). The interior minister appoints the vali of the head. He or she represents the states. He or she also leads an Iller. Other representatives are elected at the local village and Iller levels. Such people and bodies are responsible for governance.
Overview of Turkey’s Economy
The State of Economic Progress
Turkey has self-reliant food supplies and production. The economy is well endowed in fish farming, animal husbandry, vegetables, nut, and fruit cultivation among other types of foods. Despite the self-sufficiency of food supplies in the majority of the parts of Turkey, urban dwellers and the rural populations of the eastern region suffer from malnutrition in small proportions. Agriculture constitutes a major contributor to the economic progress of Turkey. For example, in 1996, the economic sector accounted for 15% of the total GDP. In the same year, the sector employed roughly 43% of the total labor force. However, this figure fell to roughly 30% in 2009. Food production is done for domestic consumption and a source of income. The income acquired from sales of farm proceeds is used in purchasing manufactured and other value-added commodities from local and international markets. Apart from agriculture, Turkey’s economic progress relies heavily on the industrial sector and tourism.
The economic progress of any nation, including Turkey, is influenced by different factors such as the political environment, technology, and social factors. In Turkey, political aspects underscore the degree to which economic systems are influenced by tax policies, environmental laws, tariffs, restrictions of trade, labor laws, and regulations among other factors. In Turkey, organizations operate under systems governed by politically influenced policy frameworks. Thus, for efficient economic progress in Turkey, political stability is incredibly important. For instance, investors are keen to invest in the nation due to the high anticipations of long-term political constancy. The political school of thought of the regime that runs a government also influences the delivery of certain goods such as merit goods, education, health, and infrastructure. Indeed, the political climate influences the easiness of providing public goods in all nations. Through the provision of an effective political climate, the Turkish government has played a significant role in enhancing the competitiveness of its firms and industries.
The country has a well-established and independent judiciary in all jurisdictions. Thus, Turkey enforces different types of contracts, including commercial agreements without political or other sources of stakes. Political regimes in the nation have also ensured limited government impacts on the economy. This situation has paved a way for consistent economic progress. Turkey has transparent international business frameworks, which support the private sector. The nation advocates open markets. It endeavors to minimize international business operation barriers by establishing long-term positive relationships with international investors. This plan permits external international investors to contribute to economic progress through the creation of employment opportunities while nurturing creativity and innovation in Turkey.
Amid the opportunities available in Turkey for investment and conducting various economic activities that guarantee economic development, the state of progress has been facing some challenges. For example, the Economist (2013) reveals that after the 1990s volatilities followed by a big bust in 2001, Turkey has experienced modest inflation together with steady growth in its economy (par.1). The Economist (2013) also posits that between 2010 and 2011, the Turkish economy recorded 9% economic growth similar to that reported by China in the same fiscal year. Later, in 2012, the nation’s GDP growth fell by 2%. Turkey relies on capital inflows. Hence, it demonstrates a high dependency on the confidence of investors to keep economic progress on pace. However, the finance minister of Turkey insisted in 2013 that the economy’s progress was just doing right. In support of his assertion, he indicated that Turkey’s gross debt amounted to only 36 percent of the total GDP (The Economist, 2013). He went on to inform that Turkish household together with corporate debts remained low and that the nation’s possession of strong banks and fiscal policies was on an upward trend in terms of job creation. Reserves in foreign currency remained high.
Hindrances to economic progress are evident in Turkey’s economy. For instance, it has poor and weak economic structures, including the unregulated labor market, high minimum wages, its highly unproductive informal sector, and inequalities in gender in areas such as education and participation in employment. The major concerns in the Turkish economic progress are external. Lowly growing economy trims deficit in current accounts. In the case of Turkey, the deficits are financed through capital inflows, which are short-term in nature. This situation leaves the Turkish economy characterized by high volatility, but good returns and excellent growth. This observation explains why the Turkish currency fell to low levels over 18 months from 2011 to the end of 2012 when compared with the currencies of other developed nations.
The rate of economic progress depends on various economic factors. These factors refer to all financial policies that influence business decisions. They may include the anticipated extent of fiscal expansion, adjustment on inflation, cost of credit, and currency exchange rates. The exchange rate determines the value of a nation’s currency. Consequently, it determines the prices of foreign nations’ manufactured products and exportation costs. Also, this aspect affects the behavior of manufacturing firms and the prices of value-added goods, especially where the raw materials are imported.
Turkey’s exchange rate compared to the US dollar has been depreciating from 2008 through 2013 to stand at 1.899 liras to $1. According to the CIA World Factbook (2014), Turkey had an official exchange rate of $821.8 billion. The official exchange rate provides values of all services and goods that are produced within a country per fiscal year. The CIA World Factbook (2014) defines the GDP at the official exchange rate (OER) as “the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year” (par.1). The high figures of GDP at OER for Turkey may be explained by the fact that Turkey recognizes and promotes a free-market system of economy.
State of Trade: Balance of Payments, Exports, Imports Trade
The balance of payments implies the difference between exports and imports when measured from a common currency. A nation has stronger reserves of foreign currencies in case the amount of its exports exceeds its imports. Over many decades, the textile industry was the leading source of exports for Turkey. However, today, the electronic industry, the construction contract, and the automotive industry have overtaken it. For example, while textile and clothing exports amounted to $10.67 billion in 2006, the 2008 automotive industry exports amounted to 22.944 billion US dollars. Turkey is also a leading exporter of ships. Indeed, it assumes the fourth position globally in shipbuilding after China, Japan, and South Korea. It is a major exporter of steel. In 2013, it produced 29 million tons of steel meant for local consumption and exportation. Exports in the agricultural sector include cucumbers, tomatoes, watermelons, onions, green pepper, tea, apples, tobacco, barley, and cotton among other products.
Turkey has gas and oil reserves. However, the Turkish Petroleum Corporation (TPAO), a state-owned company that extracts the resources, does not produce at adequate levels to make the nation self-sufficient in the supplies of the oil and gas. Consequently, Turkey is a net importer of commodities. Nevertheless, it is anticipated that the nation will be self-sufficient in oil and natural gas production following several discoveries of oil in the border with Syria, Iraq, and North Anatolia among other regions (TPAO, 2011). Globally, Turkey ranks the 27 economies in terms of exports. It exported $164 billion in 2013. It imported $225 billion worth of goods and services in the same year. Hence, the country has a negative balance of trade since it imports more than it exports. Major sources of imports are Germany, the UK, Italy, Iraq, the US, China, and Italy.
Analysis of the Economy
The Turkish economy can be analyzed from the context of various economic theories. This section deploys only two of such theories, namely the comparative advantage theory and Porter’s model. The concept of comparative advantage is central to discourses of international trade driven by perspectives of competitive advantage.
The Theory of Comparative Advantage
To place organizations’ goods and services in the global market, price is an important factor for enhancing the competitive advantage in comparison with other organizations that offer similar goods and services in the global market. Offering goods and services at low prices implies the capacity to produce at low costs. Alternatively, it suggests that a nation or even an organization that can place goods and services in the global market at low prices has a comparative advantage in the production of goods and services in comparison with other nations or organizations (Deardorff, 2005). Turkey needs to focus on producing products and services, which it can manufacture at the lowest costs while importing other products and services at low prices from nations that can produce at many reduced charges.
From the section on economic progress, Turkey imports and/or exports its products to various nations. The net impact of engaging in international trade is the negative balance of payments, which amounted to over $60 billion in 2013. Considering that the nation excels in various sectors such as construction contracting, agriculture, and manufacturing, it can reduce its balance of payments by permitting those nations that can produce some products cheaply and selling to them at low prices. Hence, Turkey should stop producing products with high marginal costs. It should concentrate most of its efforts on producing products and services with low marginal costs.
Hence, reducing the costs of its total production due to advantages derived from economies of scale acquired on focusing its resources on the production of few commodities will lead to increased profitability in those products and services it specializes in producing. Therefore, even after assuming that the import remains fixed, the balance payment can progress towards a positive value. To this extent, the theory of comparative advantage advocates that Turkey or its firms should consider producing goods and services, which they are effective and efficient at producing. Hence, Turkish firms should be willing to incur an opportunity cost for the goods and services they are not effective at producing.
Opportunity cost involves the service or the good that a nation or an organization sacrifices in the quest of producing the good or service it is more efficient in its production. An analysis of the economy of Turkey from the comparative advantage perspectives is perhaps well accomplished by an illustration. Supposing hypothetically that Turkey can produce leather shoes at a rate of 200 pairs per hour and producing shirts at 125 pieces per hour. Supposing also that China can produce similar shoes at the rate of 150 per hour and similar shirts at the rate of 300 pieces per hour. Table 1 below shows the opportunity costs in these two nations when they decide to produce products that they are well-positioned to produce efficiently. From the table, it is evident that if the cost of importation is lower than the cost of low production efficiency, then the two nations can gain from trading with one another in the two commodities.
Table 1: Opportunity Cost and the Concept of Comparative Advantage.
Adams Smith first developed the concept of comparative advantage in the Wealth of Nations. Aiginger (2006) quotes Adam Smith posting, “if a foreign country can supply us with a commodity cheaper than we can make it, better buy it from them with some part of the produce of our industry, employed in a way in which we have some advantage” (p.64). However, the theory was formally postulated by David Ricardo in the scholarly work titled On the Principles of Political Economy and Taxation. In the book, the author compared the relative costs of producing wine and cloth in both Portugal and England (Samuelson & Heckscher, 1999).
David Ricardo deduced that Portugal could produce clothes and wine at very low labor costs compared to the production of similar quantities in England. Nevertheless, there was relativity in the cost of the production of the two products in the two nations. England found it moderately easy to produce cloth, although it was incredibly difficult to produce wine. Although Portugal could produce the two commodities with ease, the cost of producing excess wine was far low than producing cloth (Samuelson & Heckscher, 1999). David Ricardo concluded that Portugal should produce wine and buy clothes from England and vice versa for England. This conclusion suggested that comparative advantage exists even if one nation may be having an absolute advantage in the event relative efficiencies in production ability exist between two nations (Deardorff, 2005). In such a situation, the comparative advantage is successful in reducing the cost of running an economy. Turkey may obtain a similar saving.
The above illustration is based on a hypothetical case. However, Turkey can still benchmark from the application of the theory of comparative advantage by the US. Graph 1 below shows how the theory applies in the US manufacturing and service sector with the onset of higher economic growth in China due to the increased manufacturing comparative advantage.
China’s comparative advantage currently rests on manufacturing capability through labor-intensive approaches. However, “Labor-intensive industries will work in favor of China while natural resource-intensive, capital-intensive, and technology-intensive industries will work against its business agenda” (Deardorff, 2005, p.1012). Turkey is well endowed in areas that pose a comparative disadvantage to China. Nevertheless, high minimum wages and the unregulated labor markets form part of Turkey’s comparative disadvantage.
Porter’s Diamond Model
In the book, The Competitive Advantage of Nations, Porter develops the diamond model for analyzing competition in a nation. The model is illustrated in figure 2.
Discussing and analyzing the applicability of Porter’s diamond in all Turkish industries or sectors of the economy is beyond the scope of this paper. Therefore, it is important to limit the analysis to a specific industry. The rest of this section discusses the application of Porter’s diamond model in the context of the Turkish economy from the perspective of the contracting construction services.
In the construction industry, factor conditions comprise production elements that affect firms in Turkey. Porter (1990) identifies these factors as physical, human, information, capital, and infrastructural resources. In the construction industry, geographical and topographical conditions influence the learning of the firms in doing their works. Other factors include professionalism, standards, education, efficiency, and technological status. Demand conditions that affect the construction contracting firms in Turkey refer to the opportunities for new markets, export opportunities, and qualitative demand. Such opportunities emerge due to clients’ quality specifications, the anticipated performance levels, continuous improvements in the construction industry, and the ways of executing contracts. The dominance of Turkish construction companies in domestic and foreign contracting indicates the possession of a high competitive advantage in local and international markets.
The success of the construction contracting firms of Turkey in both local and international markets depends on their strategies and degree of rivalry in the industry. This aspect of Porter’s diamond model defines a firm’s positioning in the market in preparation for attaining long-term and enumerated middle-term established targets. Major critical issues for consideration by Turkish construction contracting firms entail reliability, firm’s competitiveness, their expertise levels, components of industrial integration, and cost-competitiveness in local and international markets.
The fourth aspect of Porter’s diamond model encompasses the related and supporting industries. The component looks at the impact of various industries that operate in the domestic markets in their area of construction contracting. The major issues that apply to the Turkish construction industry encompass work volumes, levels of competitiveness of different firms that operate in the sector, and the number of firms. The Turkish government influences the four factors of Porter’s diamond model in an indirect manner. For example, policies established in support of the construction industry, bilateral business pacts between Turkey and potential client nations, and incentives given to the construction industry in Turkey and other foreign construction countries by their respective governments influence the global competitiveness of Turkish construction firms.
Chance comprises an exogenous factor that influences a firm’s competitive advantage. The factor may lead to the alteration of the position occupied by the Turkish construction contracting industry in the local and international markets. Important components of this aspect concerning Turkey’s economy and its relative geographical position include wars, natural calamities such as earthquakes, global economic situations, and national economic situations. In particular, wars constitute a significant factor for Turkish contracting construction firms in the international markets. For example, the current political instability in Syria and Iraq limits the successful performance of the firms that have engaged in contracts within these nations.
Possible Challenges and Opportunities facing Turkey
All nations have opportunities and challenges. The identification of challenges is crucial to the development of strategies for enhancing competitive advantage. Turkey’s GDP peaked at about 9% in 2010. Over the years, this situation has fallen, thus leaving Turkey with some serious challenges that it has to overcome to facilitate the achievement of its dream of becoming one among the 10 biggest economies across the globe by 2023 (Boumphrey, 2014). One of its challenges entails an inadequate competitive edge. It needs to develop the capacity for competing in the world-level marketplace. In Turkey, competition is negatively impaired by low productivity and high production costs akin to factors such as high minim wages. The low competitive edge may also have been contributed by the depreciation of its currency. The regulatory environment is also highly burdensome.
Turkey faces the challenge of persistent deficits in its current accounts. In 2013, the nation had a current accounts deficit amounting to roughly 8%. The figure remains the highest among the developed nations. Tensions in Ukraine and nations in the Middle East such as Iraq and Syria have led to the escalation of oil prices. This situation puts more pressure on the nation’s current account deficits. This pressure constitutes a significant challenge to Turkey, considering that it is a net importer of natural gas and oil. Despite the challenge, Turkey depends on short-term capital inflows in financing its current accounts. Such flows may be easily reversed to the extent of exposing Turkey too high vulnerability to sentiments that arise from investors.
Political uncertainties pose international and local challenges to Turkey. While the strategic location of Turkey near the Middle East nations is attractive for international organizations that seek to invest in the emerging markets in the region, it becomes crucial to consider risks, especially those that are posed by political instability. Even though the Middle East nations present attractive markets for foreign multinational corporations, which can then contract Turkish firms in the establishment of infrastructures, political risks presented by instabilities in nations such as Syria and Iraq comprise a major problem that may make an organization susceptible to risks that may lead to financial failure. Indeed, the vulnerability of these Middle East nations poses an immense challenge to Turkey. In 2013, roughly 7% of its exports were destined for Iraq and Syria. Thus, political tensions and instabilities in the nations pose a significant challenge to Turkey. The instabilities in Syria pose a major challenge to the nation due to expenses incurred in support of refugees together with fears associated with spillover effects of violence within Turkey’s soil.
Two other significant challenges facing Turkey include inflation and the unfitness of its labor market. In 2013, Turkey’s inflation averaged at 7.5%. By mid-2014, this figure rose to 9.3%. The figure exceeded the 5% target set by the Central Bank. Irrespective of this challenge, the nation decreased its interest rates. To make the challenge even worse, its currency has been weakening, thus resulting in expensive imports compared to exports. The rising inflation poses a challenge since it erodes the confidence of consumers, increases demand in the labor force for pay hikes, and/or reduces savings (Boumphrey, 2014).
Turkey has a population of about 68%, which has attained a working age. However, only 51% of the labor force actively engages in vigorous work. Issues such as gender disparities in employment participation may explain this gap. Indeed, by 2013, only 33% of women who had attained a working-age were absorbed in the Turkish labor force. In 2013, Turkey had a youth unemployment rate of 17.3% for those aged 15-25 years. Amid the challenges facing Turkey, opportunities exist for addressing them to ensure that the nation remains competitive in the domestic and international markets. Opportunities exist in more investments in its textile industry, construction contracting, and any other subsectors that give it a comparative advantage in the international platforms. The nation’s strategic location between the EU and Asia acts as an opportunity, which while exploited successfully, can increase its volume of trade. Therefore, its strategic geographical location acts as an opportunity for propelling high economic growth. This move can lead to the achievement of its 2023 strategic vision of becoming among the 10 global largest economies.
Turkey has a large consumer population that is mainly characterized by young people. The population estimated in 2014 indicated that the nation had a population of 75.6 million individuals. The figure puts it in the second position in Europe after Germany in terms of the consumer population. Indeed, Turkey is the 18th most populated nation across the globe. The Turkish consumer market spending is about $8,000 per capita (Boumphrey, 2014). Therefore, its population constitutes a major source of competitive advantage. However, in unleashing the opportunities available for Turkey, reforms on macroeconomic policies, reviewing its business environment, and equal participation of all its population in economic growth remain critical to achieving global competitiveness.
Other Interesting Facts about Turkey
Turkey has a rich history. For example, it possesses one of the global oldest shopping malls. The Grand Bazaar, which is located in Istanbul, was erected in 1455 during the Ottoman Conquest era. The mall has grown to comprise 61 streets with an excess of 3,000 shops and an area of 333,000 Sq feet. The site drew above 91 million people in 2014, thus making it the global most visited mall. Chicken pudding constitutes Turkey’s signature menu that is found in all list of options across the nation. Turkey is perhaps the global most significant nation in terms of conservation of its cultural heritage. The UNNESCO lists 13 of its heritage sites as most important in the world. For example, the battlefield of Gallipoli, the Biblical most famous city of Ephesus and Mesolithic Temple are located in Turkey. Christianity has big roots in Turkey. For example, Saint Nicholas, Virgin Mary, and Paul have historical attachments with Turkey. For instance, the Virgin Mary is believed to have been buried near Ephesus while Saint Paul is believed to have been born in Tarsus. Historians believe that Noah could have run the ark on the floor of Mt. Ararat.
While in Turkey, people should not be confused by its coastal climate. Turkey has spectacularly rising mountains and ranges. Istanbul is among Europe’s interesting scenes of art. Although Istanbul is the biggest city in Europe, about 50% of its area is in Asia. Through Mammary Metro Line, one can move between continents via an underground railway tunnel. Turkey has over 10,000 different plant species and above 80,000 animal species. The nation is a hot spot of agriculture as evidenced by the flourishing of grain farming since time immemorial. Following the discovery of Göbekli Tepe archaeological site, Turkey has turned around historical theories. The site evidences the construction of massive structures, as opposed to the popular historical assertion that large-scale construction began soon after people learned the science and art of agriculture.
Conclusion
Turkey is a free market economy. Although agriculture has been the leading industry, manufacturing sectors such as electronic and automobile production have emerged to supersede agriculture in terms of total earnings. Although Turkey has different ethnic groups, it has put in place a strong spirit of nationalism so that any ethnic profiling is highly prohibited. Despite its population being more than 90% Islamic, the nation has strong historical marks of Christianity. Its strategic location in Asia and Europe constitutes a major geographical advantage, which the nation utilizes optimally to increase its trading. It also has a high consumer population. However, the nation has some challenges such as high inflation and deficits in its current accounts. The obstacles hinder it from attaining comparative advantage. Political instability in its neighboring nations such as Syria and Iraq poses a major challenge to the nation since its rapidly developing construction contracting companies may face the challenge of optimizing their focus on the markets. Nevertheless, based on an appropriate review of macroeconomic policies and business environment, Turkey can achieve its vision in 2023 of becoming one of the global ten biggest economies.
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