Informed Questions Paper: Turkish Economic Issues
Abstract
Facing decreased foreign investment, massive and historic levels of inflation and the lowest levels of productivity in decades, the Turkish government launched an extensive economic reform program in 1999 to defeat the entrenched pattern of high inflation and restore sustained growth. In a demonstration of unprecedented unity, the three party coalition government began the momentous task of modernizing the role of the state in the Turkish economy, in an effort to remove the legacy of autarky that was engrained in the "statism" side of the six arrows of Kemalism. Inherent in this undertaking, the government initiated steps to address deep-rooted social and environmental problems that had characterized Turkish society for generations. The Government's economic reform program is based upon three core elements: (1) a strong fiscal adjustment to put public finances on a sustainable path; (2) major second generation structural reforms in agriculture, pensions, banking, energy and telecommunications; and (3) a shift to forward indexation to lower inflationary expectations. Sensing the seriousness and commitment with which the Turkish government was addressing the economic reform, the International Monetary Fund, with World Bank and American support, initiated an unprecedented economic reform loan package to provide aid in Turkey's reform efforts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2002
- Accession Number
- ADA441520
Entities
People
- John K. Dodge
Organizations
- National War College