Are you aware of the difference in growth process?
Güven Sak, PhD
26 October 2010
A factor which facilitated structural economic growth in Turkey is about to fade out or it will soon fade out. In 1961, the year I was born, approximately 32 percent of Turkey's population lived in urban areas. Back then, urban areas were not as crowded as today. Today I am almost fifty years old and 70 percent of Turkey's population live in urban areas. We have surpassed Italy with respect to urban population. Have you ever thought what this could imply? What Turkey needs is a wiser economic policy management. Let me explain why.
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Tax structure in Turkey
Fatih Özatay, PhD
25 October 2010
Same tax rate is imposed for everyone without making any differentiation on the basis of income. I have mentioned several times that the growth rate attained over the last five decades failed to close the prosperity gap between Turkey and developed countries. In fact, the gap remained the same let alone being narrowed down.
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Enterprise scale: Middle East and Europe
Fatih Özatay, PhD
24 October 2010
The egalitarian system in the Middle East hinders enterprise growth and capital accumulation. Today I would like to write about an interview. I deeply recommend you to read the interview with Timur Kuran by Ali Bilge published in Journal of 'İktisat, İşletme ve Finans' October, Issue 295. Timur Kuran studies on the roots of economic underdevelopment in the Middle East. The interview was on the results of this study.
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If it is OK when it is the US, why is it not when it is China?
Güven Sak, PhD
23 October 2010
We are going through an unprecedented period: from exchange rate wars to raw material wars! China's blocking the export of rare earth minerals to Japan in order to exert political pressure became the top agenda item of today. Do you monitor the rare earth minerals debates? I found it quite interesting.
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Tea Party in the US, Strike in France. What about Turkey?
Güven Sak, PhD
22 October 2010
Though seem different at first instance, the reactions in the two sides of the ocean are quite alike. It appears that the crisis and the developments aftermaths lead to different reactions in the two sides of the Ocean. While Americans hit the streets yelling "downsize the public sector, take it out of our lives" French revolt saying "neither downsize the public sector not take it out of our lives." These might appear as reactions in opposite directions at the first instance, but in my consideration they are quite alike. And I really am not happy with this. Let me tell what is that I am unhappy with.
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What is going on with agricultural employment?
Fatih Özatay, PhD
21 October 2010
Do you employ more workers as the crop per hectare increases? Figures net of seasonal effects imply that unemployment rate stood at 11.7% in July. It is seen that the rate has stuck at this level over the last three months. The lowest level of unemployment rate before the crisis was achieved in April 2008 with 10.0. Then the rate tended to rise steeply reaching 14.8 percent in April 2009. In short, though the rate recently showed a significant downwards trend, it is still 1.7 points above the pre-crisis level and it has not shown any movement for the last couple of years.
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Why is the Medium Term Program not taken seriously in Turkey?
20 October 2010
The Medium Term Program (MTP) for the 2011-2013 period announced last week was welcomed warmly by the markets. I guess the impact of the MTP, which presents the estimations and policy perspectives for a period of three years, lasts only a week. I wonder how many of you will dig into the MTP and adjust your forecasts to those of the government. Not many. The reason is that the MTP is not taken seriously in Turkey.
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What has changed in Turkey since 2001?
Güven Sak, PhD
19 October 2010
I do not see any alternative, mission-driven new capital. When I left the old Radikal daily, it was the year 2001. It was a period of crisis. After a nine-year break, I am again writing at Radikal. And it is again a period of crisis. So, if we are giving a start again, let us recall what happened during the break. Let me begin with identifying what has changed since the year 2001.
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Is the 2003-2010 period different than the previous five decades?
Fatih Özatay, PhD
18 October 2010
Average growth rate in 2003-1010 period is the same with that in the previous 42 years Let us assume that Turkey will achieve an average 6.5 percent growth this year. In that case, average growth rate over the five decades between 1960 and 2010 would be 4.4 percent. If we start the interval at 1950, average growth rate increases to 4.5 percent. This is not bad when considered alone. However, this average growth rate was insufficient to close the income gap between Turkey and the developed countries. For instance level of per capita income in comparison with the USA is the almost same with that in 1969. In terms of closing the income gap between Turkey and developed countries the attained 4.5 percent growth rate proves weak. Of course we can always say "Why care the others; we should be fo
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It is easy to support the status quo; it is radicalism that necessitates talent
Fatih Özatay, PhD
17 October 2010
We can live the moment and be happy. But take a look at the previous five decades, do we see a pleasant picture? In the first day of the 'Media's Radical Revolution' the question below appears in one's mind: If Turkey was to translate the attempt in the media into the economy, what was the step to take? But before that we had better pose this question: Does Turkey actually need an economic revolution?
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