Turkish Economy Essay examples -- essays research papers

Turkish Economy - Structure and GrwothAt the time of the collapse of the Ottoman Empire during demesne War I, the Turkish economy was chthoniandeveloped agriculture depended on outmoded techniques and poor-quality livestock, and the few factories producing basic products such as sugar and flour were under hostile control. Between 1923 and 1985, the economy grew at an average annual rate of 6 pct. In large part as a result of government policies, a backward economy developed into a complex economic system producing a wide range of uncouth, industrial, and service products for both domestic and export markets. frugal DevelopmentAt the birth of the republic, Turkeys industrial base was weak because Ottoman industries had been undermined by the capitulations. World War I and the War of Independence (1919-22) also had extensively disrupted the Turkish economy. The loss of Ottoman territories, for example, cut off Anatolia from traditional markets. Agricultural output--the source of i ncome for most of the population--had dropped sharply as peasants went to war. Even the production of wheat, Turkeys main(prenominal) crop, was insufficient to meet domestic demand. In addition, massacres and the emigration of Greeks, Armenians, and Jews, who had dominated urban economic life, caused a shortage of skilled laborers and entrepreneurs.Turkeys economy recovered remarkably erstwhile hostilities ceased. From 1923 to 1926, agricultural output rose by 87 percent, as agricultural production returned to prewar levels. Industry and services grew at more than 9 percent per year from 1923 to 1929 however, their share of the economy remained quite low at the end of the decade. By 1930, as a result of the world depression, external markets for Turkish agricultural exports had collapsed, causing a sharp decline in national income. The government stepped in during the early 1930s to promote economic recovery, following a school of thought known as etatism (see Glossary). Growth s lowed during the worst years of the depression but between 1935 and 1939 reached 6 percent per year. During the 1940s, the economy stagnated, in large part because maintaining fortify neutrality during World War II increased the countrys military expenditures while almost entirely curtailing foreign trade.After 1950 the country suffered economic disruptions about once a decade the most serious crisis occurred in the late... ...h.Structure of the EconomyIn the years after World War II, the economy became capable of supplying a much broader range of goods and services. By 1994 the industrial sector accounted for just under 40 percent of GDP, having surpassed agriculture (including forestry and fishing), which contributed about 16 percent of production. The fast shift in industrys relative importance resulted from government policies in effect since the 1930s favoring industrialization (see fig. 8). In the early 1990s, the government aimed at continued increases in industrys share of the economy, especially by means of export promotion.Services increased from a small fraction of the economy in the 1920s to just under half of GDP by 1994. Several factors accounted for the growth of the services sector. Government--already sizable under the Ottomans--expanded as defense expenditures rose health, education, and welfare programs were implemented and the government take on force was increased to staff the numerous new public organizations. Trade, tourism, transportation, and financial services also became more important as the economy developed and diversified. ________________________________________