As if managing floods of refugees inhabiting their country wasn't enough, Turkey now faces allegations of corruption and bribery amongst government officials. As a country that is heavily reliant on foreign investments, this poses a significant problem for the Turkish economy. The question that the world is asking though, is what exactly went wrong? As of 2011, Turkey was marked nation of growth. Perhaps it was all a façade. Read more to find out about the Turkish economic downfall.
2 comments:
It’s interesting to see Turkey’s GDP discussed here because, as we have learned, measuring the success of an economic system using GDP is not always the most accurate representation. The author references the country’s impressive GDP growth at an annual 9% in 2010 and 2011, but this growth was driven by “debt-fuelled private consumption…” etc. In this sense, using GDP as a way to assess a system’s success does not necessarily include all financial activities occurring in the system.
Turkey is a country with a big Muslim population yet their central bank still has an interest rate. Even though according to the Koran interest rates are forbidden. How does a country get around this with still attracting the Islamic population?
I wonder how this will affect tourism, it seemed to be doing well last year but now that corruption is obvious tourists might not feel comfortable going there. The Turkish lira is decreasing value and thus it might attract Europeans who see it as cheap.
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