Tag Archives: Turkey

Izmir Economic Congress Series

The first Izmir Economic Congress created a tradition about discussing Turkey’s economic situation and it become an organization to prepare a strategy for make nation’s economy better considering worldwide contemporary conditions. For this purposes Turkish government tries to make such economic congress almost every decade and it called as “Izmir Economic Congress”.

Izmir Economic CongressAfter 1923, 2nd Izmir Economic Congress gathered between 2-7 November 1981. Among 1923 to 1981, just like Turkey’s economic conditions, world economy was changed and also almost every single country, including Turkey, effected from 1929 Great Depression, which ruined United States economy. During Great Depression period, to reconstruct the economy, Turkey should increased import and export amounts.


Promoting firms to produce  standardized goods were the basic economic politics during this period. The relation between great depression and 2nd Izmir Economic Congress was about Turkey’s ignorance its clearing policy during 1929s and country’s attempt to calling the attention of foreigners. During 1981, fundamental changes took place in Turkish economic and social politics.  1980 Turkish coup d’état became the root of the decisions in 2nd Izmir Economic Congress. In Briefly, one of the coup’s most visible effects was on the economy. On the day of the coup, it was on the verge of collapse, with three digit inflation. There was large-scale unemployment, and a chronic foreign trade deficit.


İzmir İktisat Kongresi The economic changes between 1980 and 1983 were credited to Turgut Özal, who was the main person responsible for the economic policy by the Demirel administration since 24 January 1980. The strategic aim was to unite Turkey with the “global economy,” which big business supported, and gave Turkish companies the ability to market products and services globally.In 2nd Izmir Economic Congress main items of the agenda was about creating a realistic exchange rate regime, opening Turkish industry to foreign competition, encouraging foriegners about investing Turkey, decreasing tax ratios and also expanding floors about taxation. The lack of energy sector was also another discussion topic of this congress.

The 3rd Izmir Economic Congress  gathered between 4-7 June 1992 and its main subject was “ Turkey Towards to 21th Centruy”. In Turkey during 1990s, there were lots of tranformations could observed in social and economic conditions. Basically, the aim of this congress was creating a sustainable macroeconomic conditions, creating politics which could be used in long run and the importance about integration of politics for globalization. Following points were agreed during this congress: decreasing public deficits, achieveing economic growth without effecting inflation, improving social infrastructure and the need about free market regime & privatization.

Prime Ministry State Planing Organization was coordinate 4th Izmir Economic Congress in 2004, between 5-9 May. The main objective of this congress was about transforming Turkey to knowledge based society and having characheristics of developed countries in 21th century. Turkey tried to be a member of European Union since 1987 (full candidate status reached in 1987). For the purpose of concluding this process, in 4th Izmir Economic Congress participants also mentioned their perspective about EU membership and this was the main topic of this congress. Additionally during congress, they made strategies and offered solutions about following points: achieving high and sustainable economic growth rate, increasing competition and encouraging entrepreneurs, bring into action dynamics of regional developments, improving income distribution, struggling with poverty and targeting efficient managment among Turkey.

5th Izmir Economic Congress was gathered between September 30 to 1st of November 2013. This congress was the most crowded one of these congress series. Almost 4,409 people participated this congress including Turkey President Of Republic Abdullah Gül, Prime Minister Recep Tayyip Erdoğan, Minister Of Economy Deputy Prime Minister Ali Babacan and Prime Minister Of World Bank Jim Yong Kim. The main topic of this congress was “The Role of Turkey During Restructuring Period of Global Economy”.  Ruling party’s targets about 2023 was main topic which was discussed during congress. These targets were about economic growth and participants agreed in an idea which states that economic growth of Turkey must depend on growth in productivity. Secondly the quality of education services, manpower, technology must be improved and also there must me more investment to women for the purpose of healhty growth. Labor force and labor market also draw attention during congress and participants decided that government  must reform labor market. Households savings must be increased without effecting current inflation rates and credit system in banks must be strenghten immediately.



            Izmir Economic Congress gathered for the first time to find a solution Turkey’s ruined economic  conditions and than it continued as a tradition to discuss current economic era of Turkey considering world economies. This congress can be stated as deliberative council because participant are quite diverse and most of them represent society’s different economic areas. Such council also dominated in Japan and the difference between Turkey and Japan during this period was governmental structure.

Japan Deliberative CouncilJapan is conducted by parliamentary representative democratic monarchy  system. In parliamentary representative democratic monarchy system, where the minister of Japan is the head of government and head of cabinet that directs the executive branch. To keep a level head about country’s economic and social conditions, deliberative councel was established in Japan. There were about 200 deliberative councel (shingikai), each attached to a ministry; their members were both officials and prominent private individuals in business, education, and other fields. The shingikai played a large role in facilitating communication among those who ordinarily might not meet. Given the tendency for real negotiations in Japan to be conducted privately, the shingikai often represented a fairly advanced stage in determining policy. They are legal councels but they don’t have any authority about forcing government to consider their decisions or determinations. Izmir Economic Congress has such characteristics in Turkey. The similarity is obviously about characteristic of participants and the way of their decision making or discussion process. In 1982, deliberative councel in Japan made a significant decision about tax reform.   tax reform; a policy to limit government growth; the establishment, in 1984, of the Management and Coordination Agency to replace the Administrative Management Agency in the Office of the Prime Minister; and privatization of the state-owned railroad and telephone systems.In Turkey we cannot see such big transformation or enforcement in Izmir Economic Congress. As stated in 5th Izmir Economic Congress, decisions and discussing during congress will be implemented to Turkish economy. This sentence represent that strating from 1st congress many of those decisions could not applied to economy but as stated before Japan made this happen to use decisions made in deliberative councel.


Sanırım yaptığım kısa araştırmalar içerisinde zevkle ve ilgiyle çalıştığım konulardan biriydi bu. Girişimcilik ve Türkiye!

Açık konuşmak gerekirse, “girişimcilik” başlığı altında ve “girişimci” sıfatıyla Türkiye’de yapılan çalışmaların büyük bir bölümünün “sabun köpüğü” niteliğinde olduğu düşünüyorum. Hazırlamam gereken girişimciliğin ülkenize, ülkenizin ekonomisine etkisi konulu araştırma ödevim ile ilgili kaynak ararken Yeditepe Üniversitesi’nde bu konuda bir araştırma yapmış olan akademisyenlerden birinin raporuna ulaştım. Bu raporu okuduktan sonra herşeyin bize lanse edildiği gibi “reel” olmadığını anladım.

Herkes girişimci olduğunu iddia ederken bu durumun “gelişmekte olan ülkelerde” oldukça farklı bir boyutta olduğunu düşünüyorum. Yani eğer gelişmekte olan bir ülkede yaşıyorsanız ve parlak bir fikriniz varsa bu fikri hayata geçirdiğiniz zaman sermayenizi nasıl elde ettiğiniz, fikrinizin ne gibi oluşumlardan “esinlenerek” ortaya çıktığı çok önemli. Bu konuda kadınların da “girişimci” sıfatını taşıyıp taşımadığı da söz konusu ülkenin girişimcilik gündemine ve geçmişine farklı bir boyut kazandırıyor.

Araştırmamın içeriğine ingilizce olarak aşağıdan ulaşabilirsiniz.

>What impact does entrepreneurship have on your local, state (or province), and national economies? Use data to back up your arguments.

As a Turkish citizen, I know that Turkey has fast developing process. Because of many entrepreneurship activities, developing process is getting stronger and one of the key findings is that the early-stage entrepreneurial activities in Turkey is much lower than those that take place in other developing countries, whereas, the number of established business entrepreneurs are relatively higher in Turkey. Like many middle east countires, female participation in work force in Turkey is really low. But this participation ratios are getting higher with respect to entrepreneurship activities. I will give datas like TEA index, SME index, NEA index, NBO index, NE & OE index to reflect the impact of entrepreneurship activities to Turkey, as an example of developing country.

Innovative/creative ideas, the power of R&D, government policies, financial supports, education, rapid market changes, entrepreneurship capacity, entry barriers to the industry are the basic topics for being a leader about raising high level of entrepreneurships. These topics are getting stronger in Turkey but before giving information about this topics I will give an example about Turkish people’s understanding about entrepreneurship. With a random sampling method called CATI (Computer Assisted Telephone Interview), researchers make an observation in 16,000 individuals. Only 2416 individuals responded and considered to be a representative sample size. Participants ranged in age from 18-64, and lived in 19 cities throughtout Turkey. Thus, a standard questionnaire was asked to 2416 individuals and among those 418 respoondents fit the definition of an entrepreneur.
Total Entrepreneurial Activity Turkey Developing Countries
TEA index 6.07 14.64
NEA index 2.2 7.70
NBO index 4.01 7.68
EBO index 11.5 9.93
Ratio of TEA index to EBO index 0.53 0.67
NE index 1.79 4.39
OE index 3.7 9.97

TEA index: early stage entrepreneursh,p activities index, NEA index: Nascent entrepreneurial activities index, NBO index: New business owners index, EBO index: established business owners index, OE index: Opportunity entrepreneurs index, NE index: Necessity entrepreneurs
According to table as we can determine that, Turkey’s TEA, NEA, NBO indexes are lower than developing countries’. But Turkey’s EBO index is higher than others. As developing countries I mean India, Jamaica, Indonesia, Philippines, Peru, Colombia, Brazil, Chile, Thailand, Mexico, Uruguay, Malaysia, South Africa and Argentina. The average EBO index of Turkey (11.5%) is higher than that of the developing countries (9.93%). But why Turkey’s EBO index is higher than others? One reason is that Turkish government attention and support have been always more favourable to large firms than small firms. Effectiveness of a country’s economy can be determine by EBO index which actually shows enterpreneurial dynamism in the economy. So, Turkey has an effective economy.

Entrepreneurship has two types: opportunity entrepreneurs and necessity entrepreneurs. Opportunity entrepreneurs are taking advantage of a business opportunity but necessity entreprenurs are people who have no better options for work. According to average of the OE index Turkey (3.7 %) is 13th out of 14 developing countries. The average NE index is 1.8% that places Turkey 12th among developing countries. The ratio of OE to NE is lower than the average of the developing countries, implying that relatively more Turkish entrepreneurs have taken the entrepreneurial route out of necessity.
Entrepreneurial Framework Conditions Turkey Developing Countries
Financial support 1.76 2.40
Government regulation policy 1.89 2.02
R&D transfer 2.14 2.16
Education & Training 2.16 1.92
Fast market changes 3.4 2.86
Population composition 2.9 3.21
National culture 2.78 2.80
High growth firms 2.53 2.78
Intellectual property rights 2.4 2.47

For starting a business, entrepreneurs or ordinary people have to pass many regulations and try to arrange their cashflows, find an financial support or hire educated people to grow the firm fastly. As you can see from the table in many developing countries has high level of government support and checking system. Turkey’s economy is effecting from this regulaitons and policies positively. Entrepreneurs are able to set up a business easily.
Government’s basic problem is having a budget deficit. Usually number of imported goods exceeds exports and this create a deficit in countries budget. The majority of the new firms have no exports but 10% already have very significant exports with more than 75% of their customers in export markets. Entrepreneurs in Turkey are more export oriented than entrepreneurs in other developing countries. This means that high levels of export will reduce the gap between imports. Government’s budget deficit will be always less and GDP (gross domestic product) will be on its best level.

Entrepreneurs don’t have to be men. Women are also can be entrepreneur and this will expand country’s economy fastly. Turkey is developing Middle East Country and women did not have any chance to join the work force easily. But in India, Prof. Mohammed Yunus made a loan for 45 poor women to create their business. This manner established Grameen Mikro credit system. Starting from India, in Turkey there were women got benefit from this credit system and start many businesses as “an woman entrepreneur”! They start to work instead of being non-productive house wifes and contribute the national economy. Actually in this case, Mr. Mohammed Yunus made an entrepreneurial manner and create benefical cycle to make countries economy better. After all Turkey gets benefits of this enterprise.

• Autio, E., 2005, Global Entrepreneurship Monitor, 2005 Report on High-Expectation Entrepreneurship, London Business School and Babson College (from web)
• Microcredit/ http://www.microcreditsummit.org/
• Assistant Professor Esra Karadeniz, Department of Economics and Administrative Sciences, Yeditepe University Entrepreneurship report
• Long,W., 1983 “The meaning of entrepreneurship” American Journal of Small Business (from web)

Economy of the Middle East and Turkey

Turkey has the world’s 15th largest GDP-PPP. and 15th largest Nominal GDP. The country is a founding member of the OECD (1961) and the G-20 major economies (1999). Turkey has been part of the EU Customs Union since 31 December 1995.

Turkey is often classified as a newly industrialized country by economists and political scientists;[ while Merrill Lynch, the World Bank and The Economist magazine describe Turkey as an emerging market economy.

Turkey is restructuring its economy in an attempt to gain full European Union membership. It began this policy in the early 1970s, abandoning its previous import substitution industrialization policy.

As privatization has taken hold in Turkey it has brought with it significant foreign direct investment. Additionally, the Baku-Tbilisi-Ceyhan pipeline has brought revenue to Turkey and enabled it to share some of the regional hydrocarbon wealth.

Turkey’s economy is currently led by its agricultural and textile sectors. It has a per capita GDP of $11,200, supplemented by some 1.2 million Turks working abroad.