Turks have remained detached from the realities of the outside world, and this has created a unique atmosphere where uncertainty, endless debate, emotions and shortsighted thinking define the country’s future. But we need to get rid of such an outdated understanding to reconnect with the real world.
Nowadays, the country is threatened by domestic political clashes. Although the Constitutional Court annulled some key reforms in a constitutional amendment package, the package will still be put to a public vote on Sept. 12. However, possible political unease during the referendum process will definitely hurt the country’s economy, which has so far managed to keep problems at bay. That is why we have to protect currently finalized and ongoing investments in the country by encouraging investors. Turkey needs to ensure a continuation of new investment before it can address chronic unemployment and meet a current account deficit while maintaining basic structural reforms in the economy. Turkey’s trade deficit, basically, stems from a lack of necessary investment in the iron and steel, energy and petrochemicals sectors. We used to suffer from the same problem in the shipbuilding industry; however, this was overcome thanks to certain measures that were taken. The government should show the same determination in the sectors mentioned above, as it did for others, and they have actually started doing so.
Most foreign and local investors had set their sights on investing in Turkish markets, even before the adverse effects of the 2009 global financial crisis could come to an end. Let me give a few examples. Tosyalı Holding invested $1 billion in steel production in the middle of crisis, and they will provide jobs for 2,500 people in their new facilities. The Atakaş Group demonstrated another instance of “insanity” by looking to finalize a new joint investment project, with a value of $2 billion, in steel production with one of Russia’s largest steel producers, Magnitogorsk Iron and Steel Works (MMK), in a year. This is going to be the first-ever overseas investment for the MMK, and it is important that they have chosen Turkey.
The European Bank for Reconstruction and Development (EBRD) recently said it was high time to focus on Turkish markets. The bank said it would lend a total of 600 million euros for energy, environmental protection and infrastructure projects in Turkey this year. This number is expected to reach 1.5 billion or even 2 billion euros by 2011, a sign of growing confidence in Turkish markets.
US car manufacturer Ford has recently signaled they will accelerate their investment in Turkey, and so will the Italian manufacturer Fiat. The number of engineers that Fiat employs in their Turkish facilities has increased to 450, from 80 three years ago, while Ford is expected to shortly increase this number to 1,000, a direct result of incentives provided for the sector.
Alcatel-Lucent in March opened their newest research and development (R&D) center in Turkey. They will export the latest technologies developed by 100 engineers from their base in Turkey. German industry giant Bosch expects to invest 100 million euros on their 100th anniversary in Turkey; the company’s facility is located in the province of Bursa. German industrial conglomerate Siemens AG earlier announced that Turkey would be the global base for their R&D center. Similarly, having seen the incentives provided by the government, Chinese giant Huawei established their second largest R&D center after India in Turkey.
This country had lost numerous opportunities and much time because a certain group did not want it to prosper and prevented any possible attempt to do so in the past. The thing is, the public has to eliminate the oligarchy and open a new page in Turkey’s bright future. It is impossible for Turkey to develop as long as this oligarchy, which cares nothing about the country’s future, remains in power. One can assume that everybody who is aware of this fact cannot wait for the referendum.
