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Turkey's economy: a story of success with an uncertain future. OSW Commentary No. 120, 2013-11-05

Jarosiewicz, Aleksandra (2013) Turkey's economy: a story of success with an uncertain future. OSW Commentary No. 120, 2013-11-05. [Policy Paper]

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    In the decade since the Justice and Development Party (AKP) came to power, Turkey’s economy has become synonymous with success and well-implemented reforms. Economic development has been the basis of both socio-political stability inside the country and of an ambitious foreign policy agenda pursued by the AKP. However, the risks associated with a series of unresolved issues are becoming increasingly apparent. These include the country’s current account deficit, its over-reliance on short-term external financing, and unfinished reforms, for example of the education sector. This leaves Turkey exposed to over-dependence on investors, especially from the West. Consequently, Ankara has become a hostage of its own image as an economically successful state with a stable socio-political system. Any changes to this image would cause capital flight, as exemplified by the outflow of portfolio investment1 and an increase in the cost of external debt2 that followed the nationwide protests over the proposed closure of Gezi Park last summer. In addition, Turkey remains vulnerable to potential changes in investor sentiment towards emerging markets.

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    Item Type: Policy Paper
    Subjects for non-EU documents: Countries > Turkey
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for Eastern Studies (OSW) > OSW Commentary
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 12 Dec 2014 14:35
    Number of Pages: 6
    Last Modified: 12 Dec 2014 14:35

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