Global Competitive

Analysis

8y: C||v|a ou||n
A.N Myer
March 22, 2013


Welcome Lo 1urkey, a counLry LhaL unlquely, sLraddles Lwo conLlnenLs, acLlng as
Lhe Mlddle LasLern brldge beLween Lurope and Asla. WlLh a populaLlon of 74.3
mllllon, Lhls counLry scores 4.3/7 on Lhe World Lconomlc lorum's 2012-2013
Clobal CompeLlLlveness 8eporL. 1urkey ls ranked 43 of 144 counLrles afLer a
compeLlLlve analysls of Lwelve plllars LhaL help dlsLlngulsh Lhe mosL compeLlLlve
counLrles ln Lhe world. 1hls reporL analyses Lhose 12 plllars and exLernal facLors
leadlng Lo 1urkey's growlng global compeLlLlveness.

Stage of Deve|opment
o 1urkey ls currenLly ln LranslLlon from belng an !""#$#!%$& ()#*!% !$+%+,& Lo belng
an #%%+*-.#+% ()#*!% !$+%+,&.
o AL Lhls polnL, Lhe flrsL four plllars (lnsLlLuLlons, lnfrasLrucLure, macroeconomlc
envlronmenL and healLh and prlmary educaLlon) have long been esLabllshed and
are Lhe solld foundaLlon on whlch 1urkey ls bullL. 1urkey ls ln Lhe flnal push Lo
becomlng a compeLlLlve naLlon.
o lllars 3 Lhrough 10 (hlgher educaLlon and Lralnlng, goods markeL efflclency,
labour markeL efflclency, flnanclal markeL developmenL, Lechnologlcal readlness
and markeL slze) have more recenLly presenLed and esLabllshed Lhemselves.
o 1hls means LhaL 1urkey can now focus on Lhelr buslness sophlsLlcaLlon and
lnnovaLlon, plllars 11 and 12. 1hey are becomlng able Lo susLaln hlgher wages
and Lhe assoclaLed sLandard of llvlng lf Lhelr buslnesses are able Lo compeLe wlLh
new and/or unlque producLs, models and processes. Companles ln 1urkey musL
compeLe by produclng new and dlfferenL goods Lhrough new Lechnologles (plllar
12) and/or sophlsLlcaLed producLlon processes or buslness models (plllar 11).
o 8ecause 1urkey ls currenLly ln LranslLlon, Lhelr focus musL be on plllars 3 Lhrough
12. When compared Lo oLher counLrles also ln LranslLlon from economlc Lo
lnnovaLlon drlven, 1urkey ls elLher sllghLly ahead or behlnd ln all plllars, excepL
for a very large lead ln Lhe 10
Lh
plllar, markeL slze. 1urkey has a populaLlon of 74.3
mllllon and ls surrounded by many largely populaLed counLrles.

rob|emat|c Iactors of do|ng 8us|ness
Access Lo flnanclng (14.1), Lax raLes (13.2), lnadequaLely educaLed workforce (11.9),
lnefflclenL governmenL bureaucracy (10.3), forelgn currency regulaLlons (10), Lax
regulaLlons (8.3), lnadequaLe supply of lnfrasLrucLure (8.2), resLrlcLlve labour
regulaLlons (3.3), lnsufflclenL capaclLy Lo lnnovaLe (3.4), pollcy lnsLablllLy (3.4),
lnflaLlon (3.4), poor work eLhlc ln naLlonal labor force (2.2), corrupLlon (1), poor
publlc healLh (0.6), crlme and LhefL (0.3) and governmenL lnsLablllLy/coups (0.2).
1he more ma[or problemaLlc facLors are analyzed below.
o Access to f|nanc|ng - 1urklsh banks have been cauLlous when lendlng ouL money
Lo bulld small and medlum slzed enLerprlses, buL recenLly Lhe Lll (Luropean
lnvesLmenL lund) slgned agreemenLs wlLh slx 1urklsh banks for a LoLal granL of
273 mllllon euros - Lhls wlll beneflL small and medlum slzed enLerprlses ln
1urkey's leasL developed provlnces, maklng lL easler Lo access flnanclng Lo sLarL
and/or develop buslnesses. Macroeconomlc sLablllLy has lmproved and Lhe
flnanclal secLor ls assessed as more LrusLworLhy and flnance as more easlly
accesslble for buslnesses
! http://www.eib.org/attachments/country/eib_factsheet_turkey_en.pdf
uesplLe Lhls belng seen as a problemaLlc facLor, lL ls a blg reason LhaL 1urkey was
reslllenL Lo Lhe global flnanclal crlsls and made a rapld recovery. SLrucLural
flnanclal reforms have paved Lhe way for changes ln a number of areas. Malnly Lo
lncrease Lhe role of Lhe prlvaLe secLor ln Lhe 1urklsh economy, enhanclng Lhe
efflclency and reslllency of Lhe flnanclal secLor, and Lo ensure a more solld
foundaLlon for Lhe soclal securlLy sysLem.
! http:]]www.|nvest.gov.tr]LN-US]1UkkL]IAC1SANDIIGUkLS]ages]Lconomy.aspx

o 1ax kates - 1urkey's Lax sysLem ls progresslve - meanlng Lhe more money you
make, Lhe more Laxes you pay. 1he lndlvldual Lax raLes vary from 13-33, and
Lhe corporaLe Lax raLe ls 20. 1here are addlLlonal Laxes lmposed on companles
for caplLal galns. 1he vA1 (value Added 1ax) LhaL ls lmposed on spendlng for
goods and servlces ls 18. 8eal esLaLe Laxes ln large clLles are doubled for lands
and bulldlngs.
! hLLp://www.worldwlde-Lax.com/Lurkey/Lur_econonews.asp
! hLLp://www.worldwlde-Lax.com/Lurkey/Lurkey_Lax.asp
! hLLp://www.worldwlde-Lax.com/Lurkey/Lur_oLher.asp

o Inadequate|y Lducated Work Iorce - 1urkey's Cu conslsLs of 2.9 spendlng for
educaLlon expendlLures. 1hls ranks Lhem aL Lhe 136
Lh
spoL of 163 LoLal compared
counLrles. 1hls shows LhaL noL enough money ls belng spenL on Lhe educaLlon
sysLem Lo lmprove Lhe quallLy of sLudenLs comlng ouL of Lhelr schools and
unlverslLles. Accordlng Lo Lhe ClA World lacLbook, 87.4 of Lhe LoLal populaLlon
over Lhe age of 13 can read and wrlLe.
! hLLps://www.cla.gov/llbrary/publlcaLlons/Lhe-world-facLbook/geos/Lu.hLml
Cnly 1/3 of sLudenLs conLlnue on Lo a sLaLe unlverslLy afLer recelvlng elLher a
formal or mass educaLlon. 1he oLhers conLlnue on Lo prlvaLe unlverslLles (lf lL can
be afforded), some enLer Lhe mlllLary servlce, and oLhers begln work wlLh slmply
a secondary level educaLlon. 1hese workers are ofLen noL quallfled or educaLed
enough Lo conLlnue drlvlng 1urkey Lowards becomlng an lnnovaLlon drlven
economy. 1hls can Lle ln wlLh anoLher problemaLlc facLor, #%/0""#$#!%. -1#2#.& .+
#%%+*-.! - due Lo a lack of hlghly educaLed people.
! http://www.gostudyinturkey.com/admissions-visa/education-system-in-turkey

Gross Domest|c roduct
o 1urkey's GD per cap|ta |s 5 10,S24.00
- Cu represenLs Lhe LoLal value of all goods and servlces produced wlLhln a
counLry ln a year.
- lL ls essenLlally an average of wealLh dlsLrlbuLlon. ln saylng Lhls, Lhe Cu
number may be skewed by represenLlng few very wealLhy clLlzens and many
poor clLlzens.
o 1urkey's GD () |s 5 17, 110.12
- 1helr Cu ranks 33
Lh
of 180 ln Lhe world, wlLh Lhe world average belng $
11, 394.24. sLands for urchaslng ower arody, whlch ls an economlc
Lheory used Lo deLermlne Lhe relaLlve value of currencles ln order for
exchange Lo be equlvalenL for comparlson purposes. LssenLlally, Lakes
facLors of each counLry lnLo conslderaLlon Lo puL a number" on a person's
sLandard of llvlng wlLhln LhaL counLry.
o 1urkey's GD () as a share of wor|d tota| = 1.36

! hLLp://search.worldbank.org/daLa?qLerm=Cu+er+caplLa+Lurkey&language=Ln&formaL=hLml

o 1urkey's GD ranks we|| compared to the surround|ng reg|ons. 8ulgarla,
whlch borders 1urkey, has a Cu of $ 14, 823.08, lraq - $3, 863.99, Syrla - $3,
231.61, LgypL - $6, 280.99 and Saudl Arabla - $24, 268.
o 1urkey's GD per cap|ta has been grow|ng stead||y over the past 10 years, and
grew 8.4 |n th|s past year a|one.

! !""#$%%&&&'"()*+,-./0,01+/2'/01%"3(4.5%-*#6#.(6/)#+")6###


o 1urkeys GD by sector |s as fo||ows:
AC8lCuL1u8L 8.9
lnuuS18? 28.1
SL8vlCLS 63
! hLLps://www.cla.gov/llbrary/publlcaLlons/Lhe-world-facLbook/geos/Lu.hLml

Natura| kesources
o As a resulL of Lhe geologlcal sLrucLure lL ls slLLlng upon, 1urkey has a slgnlflcanL
porLlon of lLs own raw maLerlal requlremenLs due Lo Lhe dlverslLy of lLs mlnerals.
Cf Lhe 90 Lypes of mlnerals Lraded LhroughouL Lhe world 1urkey has deposlLs of
77. lL ls ranked 10
Lh
ln Lhe world ln Lerms of Lhe dlverslLy of mlnes produced.
1urkey ls aL Lhe Lop of Lhe reserve-rlch counLrles ln Lhe world, supplylng boron,
marble, feldspar, llmesLone and calclLe.
! hLLp://www.ener[l.gov.Lr/lndex.php?dll=en&sf=webpages&b=Labllkaynaklar_Ln&bn=216&hn=&nm=40
718&ld=40718
o 1urkey has:
- 72 of Lhe world's boron reserves
- 23 of Lhe world's feldspar reserves
- 20 of Lhe world's benLonlLe reserves
- 1he second largesL soda ash reserve ln Lhe world
- 3,300 known meLalllc and
- 2,00 lndusLrlal raw maLerlal beds and resources
! hLLp://www.ener[l.gov.Lr/lndex.php?dll=en&sf=webpages&b=Labllkaynaklar_Ln&bn=216&hn=&nm=40
718&ld=40718

o 1urkey's large supply of boron ls Lyplcally exporLed Lo creaLe producLs such as,
cleanlng producLs/deLergenLs, glass/ceramlcs, carblde shlelds ln nuclear reacLors,
magneLs used ln M8l machlnes/cell phone baLLerles and lnsecLlcldes. uue Lo lLs
wlde array of uses, 1urkey can exporL boron Lo almosL any naLlon. 8oron ls a
falrly soughL afLer mlneral and 1urkey conLrols 72 of Lhe world's boron
reserves.
o 19/21 of 1urkey's naLural resources llsLed on Lhe ClA World lacLbook are
mlnerals, lllusLraLlng LhaL 1urkey relles heavlly upon Lhls lndusLry.
o ln 1999, mlnlng producLs accounLed for 1.4 percenL of LoLal exporLs, worLh $333
mllllon uS dollars.
! http://www.nationsencyclopedia.com/economies/Asia-and-the-
Pacific/Turkey.html#ixzz2ObWvgwbv

Market S|ze
o 1urkey's vlbranL buslness secLor derlves lmporLanL efflclency galns from lLs large
domesLlc markeL (ranked 13Lh), whlch ls characLerlzed by lnLense local
compeLlLlon (16Lh).
o CLnL8AL uCMLS1lC CuLA1lCn: 1urkey has one of Lhe youngesL, mosL
dynamlc populaLlons ln Lurope. 1he medlan age ls 28, and 63 of Lhe populaLlon
ls beLween Lhe ages of 13 and 63. 1urkey has a compeLlLlve domesLlc markeL
because of Lhe amounL of Lhe populaLlon avallable Lo work. ApproxlmaLely 33
mllllon 1urks are lnLerneL users maklng Lhem 12
Lh
ln Lhe world for lnLerneL usage,
Lhe 3
Lh
largesL group ln Lurope. 70 of all onllne users are younger Lhan 34 years
old.
! hLLp://venLurebeaL.com/2011/11/26/Lurkey-ecommerce-lnvesLmenL-Lech/
! hLLp://www.slnaafra.com/why-Lurkey-ls-hoL
o 8CxlMl1? 1C MA8kL1S: 1urkey ls a penlnsula LhaL, unlquely, sLraddles Lwo
conLlnenLs. 1o some lL ls consldered Lhe brldge beLween Lurope and Asla".
1urkey ls Lhe commerclal hub of Lhe reglon, and can be used Lo access buslness
opporLunlLles LhroughouL CenLral Asla, Lhe Mlddle LasL and Lhe Caucasus. 1urklsh
parLners know Lhese nelghbourlng markeLs well. 1he 8osphorus 8rldge ls one of
Lwo suspenslon brldges ln lsLanbul, whlch connecL Lurope and Asla. 1hls allows
1urkey Lo Lrade easlly wlLh surroundlng counLrles. SllghLly Lo Lhe norLh wesL of
1urkey are Lhe largesL Luropean markeLs such as Cermany, lrance and Lhe uk.
1hey are also noL far from Chlna, a huge forelgn markeL avallable for lmporLlng
goods. 1hey rank 13
Lh
on Lhe WLl 8eporL for domesLlc markeL slze, and 28
Lh
for
forelgn markeL slze. lL ls evldenL LhaL Lhelr buslness secLors wlll flourlsh wlLh such
large cusLomer bases wlLhln Lhelr own counLry, and ln nelghbourlng markeLs.
! hLLp://Lurkey.usembassy.gov/dolng_buslness_ln_Lurkey.hLml#22_809

o 8lMA8? 18AulnC A81nL8S - lMC81S Anu LxC81S: 1urkey's prlmary exporL
parLners are Cermany (10.3), lraq (6.2), uk (6), lLaly (3.8), lrance (3) and
8ussla (4.4). 1hese exporLs are apparel, foodsLuffs, LexLlles, meLal manufacLures
and LransporL equlpmenL. 1helr LoLal exporLs are valued aL $ 134.2 bllllon. 1urkey
has a Lrade deflclL, as Lhelr lmporLs are valued aL $ 223.6 bllllon. 1hey lmporL
prlmary from 8ussla (9.9), Cermany (9.3), Chlna (9), uS (6.7), lLaly (3.6)
and lran (3.2). 1hese lmporLs conslsL malnly of machlnery, chemlcals, seml-
flnlshed goods, fuels, and LransporL equlpmenL.
! hLLps://www.cla.gov/llbrary/publlcaLlons/Lhe-world-facLbook/geos/Lu.hLml




o 18AuL AC8LLMLn1S: 1urkey has a number of small Lrade agreemenLs beLween
solely Lhemselves and one oLher counLry, for example: Albanla, Chlle, CroaLla,
Serbla, Morocco, lsrael eLc. Cne of Lhelr larger, maln Lrade agreemenLs ls Lhe
Lconomlc CooperaLlon CrganlzaLlon (LCC) conslsLlng of counLrles such as
AfghanlsLan, lran, aklsLan and kazakhsLan. AnoLher ls Lhe Ll1A, whlch ls a free
Lrade agreemenL beLween 1urkey, and lceland, LlechLensLeln, norway and
SwlLzerland. 1urkey ls noL offlclally a member of Lhe Luropean unlon, buL has
been pushlng Lo become a member slnce 2007. 1hey are Lradlng parLners wlLh all
of Lhe naLlons lnvolved ln Lhe Lu buL do noL recelve Lhe beneflLs of belng a
member. 1urkey's membershlp bld has become a ma[or conLroversy of Lhe
ongolng enlargemenL of Lhe Luropean unlon.
! hLLp://rLals.wLo.org/ul/ubllcSearch8yMember8esulL.aspx?MemberCode=792&lang=1&redlrecL=1
! hLLp://en.wlklpedla.org/wlkl/Accesslon_of_1urkey_Lo_Lhe_Luropean_unlon#1urklsh_membershlp_lssues

Infrastructure
o 1urkey beneflLs from lLs reasonably developed lnfrasLrucLure (31sL), parLlcularly
roads and alr LransporL, alLhough porLs and Lhe elecLrlclLy supply requlre
addlLlonal upgradlng.
o lnfrasLrucLure ls Lhe very flrsL plllar analyzed when assesslng a counLry's
compeLlLlveness. 1hls ls because, wlLhouL lnfrasLrucLure, Lrade cannoL be made
because Lhe counLry ls noL developed enough Lo handle lL. lL ls essenLlal for
economlc vlLallLy of buslnesses and communlLles. lL can help conserve oll and
oLher naLural resources, as well lL ensures Lhe comforL and safeLy of resldenLs
and vlslLors. lL ls Lhe foundaLlon of a counLry, and a sLrong, well-developed
lnfrasLrucLure ls necessary Lo compeLe efflclenLly on a global level.
o 1urkey ranks 33
rd
on Lhe WLl for 3-/.!"02%!// +" 4+*!)%,!%. 56!%(#%7. 1hls ls a
weakness ln Lhelr lnfrasLrucLure. 1urkey's governmenL has noL made wlse
spendlng declslons ln regards Lo lnfrasLrucLure and developmenL, buL LhaL secLor
has been aLLracLlng conslderable forelgn dlrecL lnvesLmenL ln recenL years.
Powever, Lhe governmenL has an amblLlous vlslon for 2023 - becomlng one of
Lhe Lop 10 economles ln Lhe world. naLurally Lhls requlres lmmense lnvesLmenLs
ln lnfrasLrucLure, ln areas such as bulldlng new porLs, brldges, alrporLs, roads,
rallways, hosplLals eLc.
! hLLp://www.lnvesL.gov.Lr/en-us/secLors/pages/lnfrasLrucLure.aspx
o Also on Lhe WLl ls a ranklng of 40 for 8)-%/6-)!%$& +" 4+*!)%,!%. 9+2#$&,-:#%7;
8ecause 1urkey ls a secular governmenL, all governmenL-made declslons are
neuLral ln regards Lo rellglon. 1hls means Lhey are LransparenL ln Lhelr
pollcymaklng because declslons are purely economlc. 1hls also means LhaL oLher
counLrles can Lell whaL 1urkey's moLlves are when declslons are made, Lhereby
reduclng Lhelr compeLlLlveness as a counLry.
! hLLp://www.brussels[ournal.com/node/3834
o A rank of 19 on Lhe WLl for 4+*!)%,!%. /!)*#$!/ "+) #,6)+*!( 10/#%!//
6!)"+),-%$! shows LhaL Lhe 1urklsh governmenL lnvesLs Llme ln maklng buslness
work. 1he Co 1urkey" webslLe, Lhelr offlclal Lourlsm porLal, hosLs llnks Lo many
resources LhaL buslness can use Lo lmprove Lhemselves.
! hLLp://www.goLurkey.com/en/pages/read/buslness

kesearch and Deve|opment
o 8esearch and developmenL ls exLremely lmporLanL Lo a counLry's
compeLlLlveness. lL ls searchlng for Lhe means Lo meeL Lhe needs of Lomorrow's
cusLomers. LxpendlLures for 8&u are expendlLures on creaLlve work underLaken
sysLemaLlcally Lo lncrease knowledge, lncludlng knowledge of humanlLy, culLure
and socleLy, and Lhe use of knowledge for new appllcaLlons. lL covers baslc
research and experlmenLal developmenL. lnnovaLlon ls Lhe developmenL of new
values Lo meeL markeL needs ln value addlng ways. LssenLlally, lL ls lmprovlng Lhe
old. 1here ls only one Lype of lnnovaLlon LhaL creaLes real wealLh for a naLlon -
dlsrupLlve or empowerlng lnnovaLlons. CounLrles should seek Lo develop Lhese
Lypes of lnnovaLlons LhaL creaLe LransformaLlons, ln Lurn creaLlng [obs.
! hLLp://www.Lradlngeconomlcs.com/Lurkey/research-and-developmenL-expendlLure-percenL-of-
gdp-wb-daLa.hLml
o 1urkey's expendlLure on 8&u wenL up by 20.4 percenL ln 2011, reachlng 11.1
bllllon 1urklsh llras, approxlmaLely 6.2 bllllon uS dollars. 8&u spendlng as a
percenLage of Cu reached 0.86 percenL, and ls expecLed Lo Lake up 3 of Lhe
counLry's Cu by 2023.
! hLLp://www.lnvesL.gov.Lr/en-uS/lnfocenLer/news/ages/091112-Lurkey-research-developmenL-
expendlLure-lncrease.aspx
o <*-#2-1#2#.& +" /$#!%.#/./ -%( !%7#%!!)/ - 1urkey ranks 41
sL
accordlng Lo WLl
reporL flndlngs. 1hls ls a greaL sLaLlsLlc for 1urkey, seelng as sclenLlsLs and
englneers are necessary Lo furLher Lhe 8&u behlnd lnnovaLlon. Powever, a
closely relaLed sLaL on Lhe WLl shows LhaL 1urkey ls ranked 88
Lh
for =0-2#.& +"
/$#!%.#"#$ )!/!-)$> #%/.#.0.#+%/. lf Lhey can lmprove boLh of Lhese ranklngs
(requlrlng Lhe reflnlng of Lhelr educaLlon sysLem and research faclllLles), Lhelr
ranklng for $-6-$#.& .+ #%%+*-.! wlll lncrease as well, maklng Lhem a more
compeLlLlve naLlon. WlLh a ranklng of 32 on 4+*!)%,!%. 6)+$0)!,!%. +"
-(*-%$!( .!$> 6)+(0$./ Lhey have exLernal resources Lo help lnnovaLe.




Lducat|on
o 1he 1urklsh educaLlon sysLem ls falrly poor. 1here ls noL a slngle (poslLlve)
noLeworLhy ranklng on Lhe WLl reporL as all sub-ranklngs are 36+. 1hls ls a
problem for 1urkey, because wlLhouL proper educaLlon, Lhere ls a weak spoL ln
Lhelr foundaLlon. 1hls wlll noL allow Lhem Lo llve up Lo Lhelr poLenLlal as a
compeLlLlve counLry. 1helr educaLlon sysLem needs Lo be sLrong and well
developed ln order Lo produce brlghL mlnds Lo furLher 8&u, lnnovaLe and keep
Lhe counLry runnlng efflclenLly. 1he =0-2#.& +" .>! !(0$-.#+% /&/.!, ranks aL 82.
1hls leaves 1urkey ln Lhe poorer half of Lhe educaLlon sysLem ranklngs. Cnly 2.9
of 1urkey's Cu ls spenL on educaLlon. As a LranslLlonlng counLry LhaL ls
seeklng Lo become compeLlLlve Lhls ls a huge downfall LhaL musL be addressed
and correcLed.
! hLLp://hdrsLaLs.undp.org/en/counLrles/proflles/1u8.hLml
o An lmprovemenL Lo be made ln Lhe educaLlon sysLem would be Lo sLray from
Leacher-cenLered, roLe-memorlzaLlon learnlng. ln 1urklsh classrooms, Lhe Leacher
Lalks and Lhe sLudenLs llsLen. 1hls form of learnlng does noL encourage oplnlon,
appllcaLlon or creaLlve Lhlnklng, whlch ls perhaps why Lhey are slow movlng ln
lnnovaLlon (whlch requlres fresh and orlglnal ldeas).
! hLLp://LurkllshLefl.com/for-Leachers/obsLacles-faced-ln-Lhe-Lurklsh-classroom/

numan Deve|opment Index
o 1urkey ranks 90
Lh
on Lhe Plgh Puman uevelopmenL lndex. 1hls ranklng ls
conslderably weaker Lhan Lhe WLl ranklng because Lhe Pul was creaLed Lo
emphaslze LhaL people and Lhelr capablllLles should be Lhe ulLlmaLe crlLerla for
assesslng Lhe developmenL of a counLry, noL economlc growLh alone. 1urkey has
seen sLeady lncrease ln rank on Lhe Pul slnce 2000.
o Accordlng Lo Lhe Pul, beLween 1980 and 2012, 1urkey's Pul rose by 1.9
annually, glvlng lL a rank of 90 ouL of 187 counLrles wlLh comparable daLa.
Powever, Lhls places 1urkey below Lhe reglonal average. 1urkey conLlnues Lo
develop buL noL aL such a pace as oLher naLlons ln Lurope and CenLral Asla.
8ecause Lhe Pul rank ls based on people and Lhelr capablllLles, 1urkey also
suffers due Lo Lhelr lack of sLrengLh ln Lhe educaLlon sysLem.
! hLLp://hdrsLaLs.undp.org/en/counLrles/proflles/1u8.hLml
o A socleLal facLor affecLlng 1urkey's rank on Lhe Pul: Slnce 1984 Lhere has been
whaL ls known as Lhe kurdlsh-1urklsh confllcL. 1he kurds share Lhe same rellglon
as Lhe ma[orlLy 1urks, however Lhey are a dlsLlncL eLhnlc group wlLh Lhelr own
hlsLorlcal orlglns, culLure and language. 1hey demand separaLlon from 1urkey Lo
creaLe an lndependenL kurdlsLan C8 Lo have greaLer pollLlcal and culLural rlghLs
lnslde Lhe 8epubllc of 1urkey. Accordlng Lo human rlghLs organlzaLlons, vlllages
have been desLroyed, lnnocenL llves have been clalmed, forced evacuaLlons have
been broughL abouL, and many casualLles (mlllLary, kurdlsh and 1urklsh) due Lo
Lhe baLLle beLween Lhese people. 1hls causes greaL pollLlcal sLress on Lhe
governmenL, and Lenslon beLween Lhe Lwo eLhnlc groups. unLll more peace and
unlLy can be broughL abouL, Lhe people of 1urkey wlll rank low on Lhe Pul.
! hLLp://en.wlklpedla.org/wlkl/kurdlsh-1urklsh_confllcL#CasualLles
o A workplace facLor affecLlng 1urkey's rank on Lhe Pul: upon Coogle-lng"
lnformaLlon on Lhls Loplc, Lhe search ylelded many resulLs - mosL of whlch were
dlscloslng Lhe rlsks and hazards of Lhe 1urklsh workplace. 8anglng from verbal
and physlcal abuse, Lo safeLy hazards, 1urklsh workplaces are noL Lyplcally safe
and held aL passlng sLandards. ApproxlmaLely 62 of employees are abused aL
Lhelr workplaces. 1hls shows a lack of developmenL among Lhe 1urklsh people
and conLrlbuLes Lo Lhelr low ranklng on Lhe Pul.
o lf Lhe 1urklsh people cannoL resolve confllcL and show a lack of developmenL Lhey
wlll sLruggle Lo become and malnLaln a poslLlon as a compeLlLlve counLry.
! hLLp://www.ncbl.nlm.nlh.gov/pubmed/23312120

Labour Iorce 8y Cccupat|on
o AgrlculLure: 23.3
o lndusLry: 26.2
o Servlces 48.4
Unemp|oyment kate
o 9
opu|at|on be|ow poverty ||ne
o 16.9

Leve| of Lntrepreneursh|p and Government Support for Sma|| 8us|nesses
o 1urkey ranks 73
rd
accordlng Lo Lhe WLl reporL. 1hls lllusLraLes LhaL lL ls qulLe
dlfflculL for enLrepreneurs Lo recelve caplLal Lo sLarL rlsky/lnnovaLlve pro[ecLs.
Powever, Lhls has noL held back 1urklsh enLrepreneurs. 1he governmenL
supporLs and offers many helpful resources, buL no caplLal. lsLanbul, Lhe caplLal
of 1urkey ls one of Lhe world's hoLLesL Lechnology sLarL-up scenes. 8ecause lL ls
so sLraLeglcally locaLed beLween key markeLs ln Lurope, Lhe Mlddle LasL, 8ussla
and CenLral Asla. LnLrepreneurs have noL been recelvlng money from Lhe
governmenL Lo fund Lhelr venLures, buL raLher from forelgn lnvesLmenL (Lyplcally
from Lhe uS) and from programs such as e-1ohum, a caLalyzer for sLarL-ups ln
1urkey. A small fund of $ 173, 000 ls avallable for 23 seed lnvesLmenLs.
! hLLp://www.forbes.com/slLes/elmlrabayrasll/2012/09/19/Lurklsh-enLrepreneurlal-ecosysLem-
more-Lhan-[usL-sLarL-ups/
o Accordlng Lo Lhe WLl, lL Lakes 6 procedures and 6 days Lo sLarL a buslness. lL ls
easy for an enLrepreneur Lo geL a small buslness off Lhe ground. A mlnlmum
caplLal requlremenL ls 1, 230 1urklsh Llras.
! hLLp://www.dolngbuslness.org/daLa/exploreeconomles/Lurkey/sLarLlng-a-buslness/
o ?%(!-*+0)80):!& dlscusses Lhe many obsLacles of enLrepreneurshlp ln 1urkey,
lncludlng Lhe hlgh cosLs of navlgaLlng Lhe lnefflclenL and lnconslsLenL
bureaucracy, Lhe dlfflculLy ln proLecLlng lnLellecLual properLy rlghLs and
monopollsLlc markeLplace dynamlcs ln whlch domlnanL players abuse smaller
suppllers. lL ls also dlfflculL Lo hlre and flre ln 1urkey, plus Lhere ls llmlLed access
Lo caplLal, so for 1urkey's youLh, enLrepreneurshlp seems llke a plpedream glven
Lhls flnanclal llmlLaLlon. WlLh Lhe Lldal wave of 12 mllllon youLh aged 13-24 abouL
Lo enLer Lhe labour markeL, Lhere ls spurred new lnLeresL ln enLrepreneurlal
acLlvlLy. ?%(!-*+0)80):!& found LhaL Lhe average person's ablllLy Lo ldenLlfy
buslness opporLunlLles ls low due Lo a vocaLlonal school sLlgma, ln whlch
sLudenLs lack buslness skllls.
! hLLp://www.enLrepreneurshlp.org/en/resource-cenLer/enLrepreneurshlp-ln-Lurkey.aspx

Government and o||t|cs
o Accordlng Lo Lhe ClA World lacL 8ook, 1urkey ls a republlcan parllamenLary
democracy. 1he 1urklsh governmenL ls also secular - meanlng Lhe counLry's
governmenL ls neuLral ln rellglous maLLers. Modern Lurkey has suffered several
perlods of lnsLablllLy and auLhorlLarlan rule (43 governmenLs ln 33 years). CfLen,
democraLlc parLles have been ln power, buL due Lo lnLernal pollLlcal Lenslons and
growlng economlc problems Lhey have been selzed ln mlllLary coups. 1hls has
been Lhe case many Llmes LhroughouL Lhe years.
! hLLp://www.naLlonsencyclopedla.com/economles/Asla-and-Lhe-aclflc/1urkey-CLl1lCS-
CCvL8nMLn1-Anu-1AxA1lCn.hLml
o 1he currenL pollLlcal envlronmenL ln 1urkey ls one of lmprovemenL. 1urkey
conLlnues Lo develop lLs foundaLlons as a sLable governmenL and has been
runnlng falrly smooLhly on a seml-presldenLlal sysLem slnce 2007. Powever,
human rlghLs ln 1urkey have been a sub[ecL of much conLroversy. 8eLween 1998
and 2008 Lhe ?0)+6!-% @+0). +" A0,-% B#7>./ has made more Lhan 1,600
[udgmenLs -7-#%/. 1urkey for human rlghLs vlolaLlons (parLlcularly Lhe rlghL Lo llfe
and freedom from LorLure, kurdlsh rlghLs, women's rlghLs and press freedom).
1hls human rlghLs record conLlnues Lo be a slgnlflcanL obsLacle Lo Lhelr aLLempL
aL membershlp wlLh Lhe Lu. 1urkey ls currenLly waglng of Lhe blggesL
crackdowns on press freedoms - arresLlng [ournallsLs on charges of Lerrorlsm and
anLl-sLaLe acLlvlLles.
! hLLp://en.wlklpedla.org/wlkl/1urkey
o A pollLlcal lssue recenLly resolved, ls ln 2009, Lhe 1urklsh governmenL announced
a plan Lo help end Lhe 1urkey-kurdlsLan Worker's parLy confllcL. 1hls plan allowed
Lhe kurdlsh language Lo be used ln broadcasL medla and pollLlcal campalgns as
well as Lo resLore kurdlsh names Lo clLles and Lowns LhaL had been glven 1urklsh
ones. 1hls shows an efforL on Lhe governmenLs parL Lo resLore sLablllLy beLween
Lwo eLhnlc groups lnhablLlng one counLry.
! hLLp://en.wlklpedla.org/wlkl/8ecep_1ayylp_Lrdogan#uomesLlc_pollcy
o 1urkey needs Lo malnLaln a sLrong governmenL ln order for oLher naLlons Lo feel
secure abouL parLlclpaLlng ln buslness wlLh Lhem. WlLhouL proper pollcles and
procedures flrmly ln place by Lhe governmenL, forelgn lnvesLmenL cannoL
happen. 1helr currenL governmenL demonsLraLes sLrong perlods of growLh Lo
come.
! hLLp://www.naLlonsencyclopedla.com/economles/Asla-and-Lhe-aclflc/1urkey-CLl1lCS-
CCvL8nMLn1-Anu-1AxA1lCn.hLml
Susta|nab|||ty
o 1urkey does noL susLaln lLs good performance once susLalnablllLy maLLers are
Laken lnLo accounL. Plgh lnequallLy, vulnerable employmenL, and a large lnformal
secLor place pressure on Lhe counLry's soclal susLalnablllLy. Slmllarly, hlgh
polluLlon and lnLenslve waLer use for agrlculLure, as well as a lack of proLecLed
land area and a low commlLmenL Lo lnLernaLlonal envlronmenLal agreemenLs
remaln areas of concern for 1urkey's envlronmenLally susLalnable
compeLlLlveness.
o 1urkey's vulnerable ecosysLem has been placed under lncreaslng sLress by hlgh
populaLlon growLh, rlslng lncomes and energy consumpLlon. 8ecause 1urkey
sLruggles ln Lhls area, Lhey are beglnnlng Lo: noL only promoLe malnsLreamlng
envlronmenL, cllmaLe change and energy efflclency lnLo secLoral pollcles, buL also
supporL sLrengLhenlng Lhe lnsLlLuLlonal and pollcy capaclLles.
! hLLp://www.undp.org.Lr/Cozlem2.aspx?WebSayfano=112

kL IINDINGS IkCM 1nL WLI
1urkey ls one of Lhe counLrles LhaL lmproved Lhe mosL ln Lhe CCl ranklngs Lhls
year - moved up 16 places Lo aLLaln Lhe 43
rd
spoL.
1he counLry's economy grew by 8.4 percenL and beneflLs from conslderable
progress ln a number of areas covered by Lhe CCl.
ln mosL plllars of compeLlLlveness, 1urkey (when compared Lo oLher economles ln
LranslLlon from efflclency Lo lnnovaLlon drlven), ranks aL par wlLh or sllghLly
below, excepL ln markeL slze. 1urkey ls sLable, buL sLruggllng Lo keep up.
1urkey's markeL slze ls one of Lhe mosL aLLracLlve feaLures of Lhls growlng
compeLlLlve economy. lL ls one of Lhe flrsL Lhlngs poLenLlal lnvesLors conslder
when decldlng on poLenLlal lnvesLmenLs wlLhln 1urkey.
Macroeconomlc sLablllLy has lmproved, and 1urkey's flnanclal secLor ls assessed
as more LrusLworLhy. llnance ls also more easlly accesslble for buslnesses.
1he educaLlon sysLem ln 1urkey ls noL produclng Lhe brllllanL mlnds necessary Lo
drlve lL forward as an lnnovaLlon drlven counLry. 8aslc levels of educaLlon need Lo
be reassessed and Lhe learnlng sysLems remodeled Lo promoLe enLrepreneurshlp
quallLles and ouLslde Lhe box Lhlnklng. 1hey musL focus on bulldlng up lLs human
resources base Lhrough beLLer prlmary educaLlon and hlgher educaLlon and
Lralnlng.
1urkey's lnfrasLrucLure ls well developed, enough Lo promoLe good buslness
wlLhln Lhelr counLry (parLlcularly ln regards Lo roads and alr LransporL). Powever,
porLs and elecLrlclLy supply requlre addlLlonal upgradlng. 1hese Lwo facLors of
lnfrasLrucLure are very lmporLanL because of 1urkey's geographlc locaLlon (porLs -
surrounded by Lhe 8lack Sea, Aegean Sea and MedlLerranean Sea) as well as Lhelr
access Lo global buslness hours Lhrough Lhe use of elecLrlclLy.
1he Cu per caplLa ln 1urkey does noL reflecL Lhe sLandard of llvlng ln 1urkey as
Lhe WesL porLlon of 1urkey ls consldered much more wealLhy Lhan Lhe LasL.
1urkey ls rapldly modernlzlng due Lo growlng afflllaLlons wlLh Lhe uS, adopLlng
WesLern values, whlch wlll help rld Lhem of human rlghLs lssues, and ease Lhelr
LranslLlon lnLo Lhe Lu.
1urkey ls Lhe Lalk of Lhe global economy rlghL now as compeLlLlve counLrles
prepare for Lhls sleeplng glanL Lo awaken and unleash Lhelr large domesLlc markeL
on Lhe world.