Turkey
Turkey
COUNTRY OVERVIEW
LOCATION AND SIZE.
Turkey is a peninsula that, uniquely, straddles 2 continents. Located in         southeastern Europe and southwestern Asia, 97 percent of its area         occupies Anatolia, the peninsula of land that lies between the Black Sea         on the northern coast of the country, and the Mediterranean to the         south, where the continents of Asia and Europe meet. The remaining 3         percent of the country is in Thrace, a region in the southeastern Balkan         peninsula, north of the Aegean Sea. Turkey has an area of 780,580 square         kilometers (301,382 square miles) with a total coastline of 8,430         kilometers (5,238 miles), and shares its land borders with Armenia,         Azerbaijan, Bulgaria, Georgia, Greece, Iran, Iraq, and Syria. The         country is strategically situated since it controls the Turkish Straits,         comprised of the Bosphorus, the Sea of Marmara, and the Dardanelles,         which connect the Black Sea to the Aegean on the west coast.         Comparatively, Turkey is slightly larger than the state of Texas. The         capital city, Ankara, is located in the northwest center of Anatolia.
POPULATION.
In July of 2000, Turkey's current population was estimated at         65,666,677. Between 1990 and 2000, the average annual growth rate of the         population was 1.27 percent, with a total fertility rate of 2.16         children born per woman. The World Bank expects Turkey's         population to reach 91 million by 2025. Since 1986, the state has         actively promoted population control but, ironically, for about 40 years         following the establishment of the republic in 1923 the government         actually encouraged population growth.
The Turkish population is very young with only 6 percent aged 65 and         over, and 65 percent between the ages of 15 and 65. In 1995,         approximately 67 percent of the population lived in urban areas. As of         1999, urban dwellers increased to 75.3 percent of the total population.         Approximately 20 percent of them live in Istanbul, making it the most         heavily populated city in the country.
Turks constitute almost 80 percent of population and Kurds 20 percent.         The rest of the population is made up of small minorities of Arabs,         people from the Caucasus, Greeks, Armenians, and Jews. The ethnic Turks         are a diverse people who differ from one another in dialect, customs,         and outlook. The 3 major groups are the Anatolian Turks, who have lived         in the Central Anatolian Plateau for centuries; the Rumelian Turks, who         were originally mainly immigrants from the Ottoman territories in the         Balkans; and the Central Asian Turks, descended from Turkic-speaking         immigrants from the Caucasus region, southern Russia, and Central Asia.         Turkey is the only country with a Muslim majority population (99.8         percent) that operates under a secular constitution and a democratic         government.
TEXTILES AND CLOTHING.
Industrial expansion in the 1960s and 1970s gave birth to the modern         textile industry in Turkey. Currently, it is one of the most important         sectors in the Turkish economy, accounting for 10 percent of GDP, 20         percent of the labor force, and 40 percent of total manufacturing         output. This sector is the largest in the country and it is the largest         supplier of exports as well. Today, Turkey is extremely competitive in         international markets and was ranked sixth in world exports of clothing         in 1998.
The fact that Turkey is a major grower of cotton is a great advantage         for the textile and clothing sector. Thanks to the easy availability of         the raw materials, Turkish spinning and weaving industries have         developed significantly, creating integrated and diversified production           in all sub-sectors of the textile industry. In terms of cotton         spinning, the installed capacity in Turkey is equivalent to around 33         percent of that of the EU as a whole. The export value of cotton and         cotton textile products was US$777 million in 1999 and the main         destinations were the EU countries and the United States.
In addition to the cotton-based textile industry, Turkey makes a strong         showing in both woolen textiles and man-made fibers. It is the third         largest mohair producer and has the sixth largest synthetics capacity in         the world. In 1999, the export value of wool or woolen textile products         was US$107 million, while the man-made fibers industry accounted for         US$1.1 billion.
The Turkish home textile industry has also been a strong competitor in         world markets. Turkish towels and bathrobes, produced primarily around         the western cities of Denizli and Bursa, enjoy a worldwide reputation         for quality, and the home textiles sector accounted for 3.2 percent of         Turkey's total exports in 1999, bringing in US$859 million.
The clothing industry has shown stable growth over the years and is         today one of the most important manufacturing sectors. In 1999, the         production volume of clothing equaled 223,000 tons, and its export         revenues reached US$6.2 billion, giving it a 23 percent share of         Turkey's total exports. The major markets for clothing exports         are again the EU and the United States. The EU accounts for 71 percent         of all clothing exports, and Germany leads all European countries with         38 percent of total exports. The clothing manufacturers are spread         through the west and south of the country, with the majority based in         Istanbul.
IRON AND STEEL.
The foundations of the iron and steel industry were laid in the late         1930s with the establishment of the first integrated steel mill (a steel         mill that takes raw materials in the form of iron ore and coke to         produce molten iron, which is further processed to produce finished         steel products) in 1939. At present, there are 3 integrated steel mills:         the recently privatized KDCI (Karabuk, Black Sea region) plant and the 2         public-sector plants, Erdemir (Eregli, Black Sea region) and Isdemir         (Iskenderun, East Mediterranean region). With the 1980 reforms, private         sector investments accelerated, and several private electric arc         furnaces (lower capacity mini-mills that produce steel from iron-bearing         scrap) were established. Today, there are 17 electric arc furnaces         (EAFs), only one of which is state-owned. The total steel production capacity of these 20 plants is 19.9 million tons, of which over 70         percent comes from EAFs.
Since 1980, the Turkish iron and steel industry has been one of the         fastest growing in the world. In 1999, Turkey's raw steel         production rose to 14.3 million tons, with a 1.9 percent share of the         total world production.
Turkey currently ranks seventeenth among the 66 steelmaking countries in         the world and fifth in Europe. In 1999 steel products were exported to         149 countries, with the top 6 buyers being Italy, Israel, the United         Kingdom (UK), the United States, the United Arab Emirates, and Greece.         With a total export value of US$2.1 billion in 1999, the steel industry         is the second most important export sector in the country, after         textiles and clothing.
CHEMICALS.
Turkey has been manufacturing chemicals since the very early years of         the republic. Although it has not been a high-flying sector, it has         shown slow but steady improvement over time. Currently, it is one of the         country's largest industries in terms of value, and is the fourth         major export sector, accounting for 6.6 percent of Turkey's total         exports and worth US$1.7 billion. The major chemical exports are plastic         raw materials and plastic products, followed by rubber and rubber         products. There are 6,000 companies manufacturing chemicals in Turkey,         the most prominent being Petkim, a state-owned petrochemical company         established in 1965, which supplies around 40 percent of the domestic         market. Petkim's 2 major complexes are located at Kocaeli         (Marmara Region) and Izmir (Aegean Region). Aside from Izmir and         Kocaeli, most of the private sector companies are located in Istanbul,         Ankara, and Adana. Primary chemicals produced in Turkey include boron         products, caustic soda, chlorine, industrial chemicals, and sodium         phosphates.
CEMENT.
In comparison with the rest of Europe, Turkey was a latecomer to the         cement industry. However, with accelerated investments and a number of         structural reforms such as the elimination of government price-setting         practices in 1984 and privatization of the industry from 1989, Turkey         has become self-sufficient in this sector. Today, there are 51 cement         plants in Turkey, all of which are private companies. By 2001, the         country was the eighth largest cement producer in the world with a 2.5         percent share of the world market, and the largest producer in Europe.         In 1999, Turkey produced 38.1 million tons of cement. While 34.7 million         tons of it went to the domestic market, the balance was exported. The         chief markets for Turkish cement are the United States, Spain, Israel,         Egypt, and France.
CONSTRUCTION.
A domestic construction sector did not exist in the founding days of the         Turkish Republic, with almost all building done by foreign companies.         The sector developed steadily over 50 years following the establishment         of the Republic. The 1970s and early 1980s saw a period of international         expansion for Turkey's construction sector, and Turkish firms         became quite successful in the oil-producing states of the Middle East.         The industry contracted with the Iran-Iraq war, but large domestic         infrastructure projects enabled it to survive the difficult period. The         break-up of the Soviet Union marked the beginning of a new era in the         Turkish construction           sector, and led to the diffusion of Turkish construction firms         throughout Russia and Central Asia. Today, the construction sector makes         up about 6 percent of the gross national product (GNP), and Turkey's share in international global contracting         services is about 2-3 percent. (Since most construction is offered         outside the country, the industry contributes only to GNP, and not to         GDP.) During the 1990s, 34 percent of construction services performed         were located in the Russian Federation, while Libya accounted for         another 15 percent, followed by Kazakhstan, Pakistan, Turkmenistan,         Uzbekistan, and Saudi Arabia.
MINING.
Geologically complex, Turkey possesses some of the richest and most         diverse mineral deposits in the world numbering 4,400, excluding         petroleum and coal. Today, 53 minerals are produced in the Turkish         mining sector, with 85 percent of production belonging to the         state-owned enterprises that predominate in the production of mineral         fuels and metallic ore. The 15 percent that belongs to the private         sector is concentrated in industrial minerals. Turkey is a major         producer of boron, chromite, marble, barites, magnesite, pumice,         feldspar, celestite, and emery. Two-thirds of boron reserves and 40         percent of marble reserves in the world are located in Turkey, and the         country provides 80 percent of the world demand of emery. In 1999,         mining products accounted for 1.4 percent of total exports, worth US$353         million—down from 1998, when mining exports accounted for a 1.9         percent share of total exports, worth US$531.6 million.
SERVICES
The services sector accounted for 64 percent of GDP in 1999, while         employing over one-third of the total labor force. Tourism and banking         are the 2 primary service industries in Turkey.
TOURISM.
With a share of nearly 26 percent of GDP, the tourism industry in Turkey         is strategically important to the Turkish economy. The industry entered         the 1980s with 1.5 million tourists annually and a global market share         of 0.3 percent. However, the sector took off between 1983 and 1993,         growing at an average annual rate of 18 percent, the highest tourism         growth rate in the world for the period. In 1998, the number of foreign         visitors reached 9.7 million, bringing revenues estimated at US$7.1         billion. As such, Turkey is currently in the world's top 20         tourist destinations, both in terms of visitor numbers and earnings.
Despite these statistics, Turkey remains a relatively undiscovered land         for tourists. The country's long and gorgeous coastline, high         mountains and lakes, and wealth of historical, religious, and         archaeological sites offer opportunities for massive development of         tourism. However, the growth of the sector has been plagued with         problems, chief among them the fallout from the nuclear disaster at         Chernobyl in the Soviet Union, Kurdish terrorist campaigns, and economic         problems in neighboring regions. In addition, access to natural and         historical wonders is difficult in most parts of the country, and much         investment in transportation, waste management, and infrastructure is         required to remedy this problem. Since the 1980s, the government has         identified tourism as a high-priority industry and has been steadily         developing the sector, encouraging both private and foreign investment         through new laws and incentive programs.
Today tourism is considered to be one of the leading industries in the         Turkish economy. It creates jobs for at least 10 million Turkish         citizens and offers a capacity of 563,000 beds. Further capacity of         nearly 8,500 beds is available on some 990 yachts that cruise the Aegean         and Mediterranean coasts. These are operated by over 100 yacht agencies.         The largest number of tourists are from Germany, the Commonwealth of Independent States (CIS, formerly the USSR), the United Kingdom, the United States, and         France.
FINANCIAL SERVICES.
The Turkish financial system is based upon a universal banking system         that legally enables commercial banks to operate in all financial         markets. As such, banks carry out nearly all of the activities in the         money and capital markets in Turkey, and the banking sector has become         almost synonymous with the Turkish financial system. The only 2 areas         prohibited to commercial banks are leasing and the trading of goods for         commercial purposes. On the other hand, development and investment banks         may not accept deposits, but can engage in the 2 activities prohibited         to the commercial banks. Excluding the Central Bank of Turkey, there         were 80 banks operating in Turkey by the end of 1999. Of these, 61 are         commercial banks and 19 are development and investment banks. Seven of         the banks are state-owned. Much like their counterparts in Germany and         Japan, the major private banks have ownership linkages with large         non-financial conglomerates. Most state banks are located in Ankara,         while many of the private banks are centered in Istanbul.
The banking system has undergone a rapid technological transformation in         the last decade. According to the U.S. Department of Commerce, in terms         of trade finance, treasury operations, electronic banking, and         information management, the dozen leading Turkish banks are as         sophisticated as their counterparts in developed countries. Certainly,         Turkish banks are among the most profitable in Europe, but this         statistic could prove misleading in the long term. Given the high budget deficit and high inflation, operations have a short-term focus and profits come         primarily from banking investment in short-term government securities         and short-term loans with high real interest rates. Therefore,         profitability has not           been loan-based (contrary to their counterparts in developed countries)         and banks lack a lending culture and risk-asset management systems.         Therefore, as inflation responds to recent measures and begins to fall,         banks will begin losing their highly profitable short-term operations,         and will have to focus more on core banking operations with low margins.
The Central Bank of Turkey is responsible for the supervision of the         banking sector in order to guarantee that banks meet liquidity requirements and operate responsibly. However, banking has suffered in         the past from weak supervision and inconsistent accounting practices.         The banking sector passed through a crisis in 1999 when 3 small banks         failed. The same year, a new law was passed calling for the creation of         an independent regulatory agency, toughening operating conditions, and         giving weight to regulatory and sanctioning powers. It is expected that,         under stricter supervision, the financial sector will grow considerably         stronger.
DEPENDENCIES
Turkey has no territories or colonies.
BIBLIOGRAPHY
Colakoglu, N.M. Executive's Handbook: Turkey Almanac 1998. Istanbul: InterMedia, 1998.
Economist Intelligence Unit. Country Profile: Turkey. London: Economist Intelligence Unit, 2001.
Export Promotion Center of Turkey (IGEME), Trade Point Ankara. Economic Outlook 2000. <http://www.igeme.org.tr/english/economy/economy.htm> . Accessed January 2001.
Export Promotion Center of Turkey (IGEME), Trade Point Ankara. Foreign Trade of Turkey. <http://www.igeme.org.tr/english/trade/foreign.htm> . Accessed January 2001.
International Monetary Fund, Staff Country Reports. Turkey: Selected Issues and Statistical Appendix. <http://www.imf.org/external/pubs/CAT/longres.cfm?sk=3408.0>. Accessed December 2000.
Republic of Turkey. <http://www.turkey.org/start.html> . Accessed September 2001.
U.S. Central Intelligence Agency. World Factbook 2001: Turkey. <http://www.odci.gov/cia/publications/factbook/geos/tu.html> . Accessed September 2001.
U.S. Department of State, Bureau of European Affairs. Background Notes: Turkey. <http://www.state.gov/www/background_notes/turkey_9910_bgn.html> . Accessed December 2000.
U.S. Department of State. 1999 Country Reports on Economic Policy and Trade Practices. <http://www.state.gov/www/issues/economic/trade_reports/1999/turkey.pdf> . Accessed December 2000.
U.S. Department of State. FY 2001 Country Commercial Guide: Turkey. <http://www.state.gov/www/about_state/business/com_guides/2001/europe/index.html> . Accessed September 2001.
U.S. Library of Congress. Turkey: A Country Study. <http:// lcweb2.loc.gov/frd/cs/trtoc.html> . Accessed December 2000.
World Trade Organization, Ministry of Foreign Affairs and Trade. Trade Policy Review: Turkey: October 1998. <http://www.wto.org/english/tratop_e/tpr_e/tp83_e.htm> . Accessed December 2000.
—Tunga Kiyak
Ankara.
MONETARY UNIT:
Turkish lira (TL). One Turkish lira equals 100 kurus (pronounced         kouroush). However, because of the high inflation rates Turkey has faced         in the past 20 years, kurus are no longer used due to the low purchasing         power. As of the end of 2000, there are coins of 10,000, 25,000, 50,000,         and 100,000 liras. The 10,000 and 25,000-lira coins were expected to be         phased out by 2001, and probably replaced with new coins of 500,000 and         1 million liras.
CHIEF EXPORTS:
Clothing, foodstuffs, textiles, metal manufactures.
CHIEF IMPORTS:
Machinery, semi-finished goods, chemicals, transport equipment, fuels.
GROSS DOMESTIC PRODUCT:
US$444 billion (purchasing power parity, 2000 est.).
BALANCE OF TRADE:
Mar 18, 2011 @ 5:17 pm
my company would like to buy fabric for textile design.cottons and linen
Tori Bryl
Apr 14, 2011 @ 7:07 am
Can you tell me what currently makes up the percent of GDP? I know that textiles make up 10% and Tourism makes up 20% Can you give me the rest that is current information?
gracie miller
Apr 27, 2011 @ 4:16 pm
i thought was so helpful! i wish i could find everything this way! and the fact that we can leave comments! thats good, so now you can get feedback on how to make your website better! good job creater!