Question

Turkey January 24, please provide information about economic developments in these decisions after what are the basic principles of decisions taken in 1980?

Answer 1

Basic principles of decisions taken on 24th January 1980 were :

1. The import substitution strategy was replaced by an export based outwardly oriented approach.

2. Shift in emphasis towards a free market economy accompanied by economic liberalisation.

3. Flexible exchange rates along with privatization had been an important policy ingredient.

4. Transfer of the decision making process in half of the economy from public to private sector.

Economic Developments :

a) Seeking to liberalise and modernize, government initiated a process of mega programs. These projects financed by IMF and other foreign loans helped to stimualte an economic boom.

b) The OECD categorised Turkey as a high and sustained growth economy.

c) The annual growth of GDP was 2.5% between 1991 and 2001, 4.1% between 1995 and 2005 and 5.4% between 2009 and 2014.

d) Agriculture was the leading sector in the Turkish economy and 80% of population practiced agriculture between 1913 and 1950 which dropped to 34% by 2005.

e) Industry was the leading sector. It increased from 9 to 23% by 2005 and services from 11 to 43%