Our December issue includes an article by James Chater on a country in the news in recent weeks - Turkey. In it, Mr Chater states that whilst government reform has helped secure the energy needs for a fast-growing economy, much is yet to be done. To add to the challenge, spectacular economic growth has been followed by a wobble: 10% unemployment, inflation running at 10% and debt amounting to 50% of GDP might be cause for alarm. Do you agree?
A World Bank report from July certainly lists a series of hurdles to continue energy reforms, a new phase in which the government will need to shore up public support rather than simply attract private investment:
“Securing public support for energy reforms – and for the investments the reforms are designed to attract – is in principle simpler than attracting private investment, but perhaps just as challenging in practice. It requires information-sharing, education, consultation, engagement, and transparency – continuously, relentlessly, with no exceptions; otherwise continued public support will be undermined.”
And of course, selling reforms is harder for politicians in slow economies. However I remain positive. It seems, that Turkey may just look after itself. Mr Chater cites an IMF report that by 2041 Turkey will be the world’s 12th largest economy (it is now in 16th place). Another interesting statistic he points out is that of the ten cities in the world that have the fastest-growing economies, Turkey has four: Izmir, Istanbul, Bursa and Ankara.
I remain positive, and I think the article is, too. After all, this is the nation that gave The Netherlands its tradition of St Nicholas, as well as its famous tulips. Turkey also accounts for over 70% of the world’s hazelnut supply and is home to two of the Seven Wonders of the World.
What’s not to like? I think Turkey is going to be just fine.