Turkey’s New Course
CHICAGO – Turkey has recently been at the forefront of international economic and political debates. On the one hand, despite the economic crisis engulfing neighboring Europe, Turkey remains the world’s second-fastest growing economy, after China. On the other hand, there is almost no issue on the global agenda – from Iraq and Afghanistan to Somalia, Iran, and the Arab Spring, and from sustainable development to a dialogue among civilizations – on which Turkey is not playing a visible role.
This is a rather new phenomenon. Until a decade ago, Turkey was regarded as no more than a staunch NATO ally. That began to change in 2002, when an era of political stability dawned, giving rise to a vision for a stronger Turkey – and a firm commitment to realizing that vision.
To this end, Turkey’s governments since 2002 implemented bold economic reforms that paved the way for sustainable growth and provided a firewall against the financial crisis that hit in 2008. As a result, in less than a decade, GDP has tripled, making Turkey the world’s 16th largest economy. Moreover, the country benefits from strong public finances, prudent monetary policy, sustainable debt dynamics, a sound banking system, and well-functioning credit markets.