gulfnews : In Theory: Turkey success could inspire Arab states

Turkey’s unique model of development reflects the major changes in the economic and political structure of its society

* By Mohammad Al Asoomi, Special to Gulf News

* Published: 00:00 June 23, 2011

* Gulf News

Turkey’s unique model of development reflects the major changes in the economic and political structure of its society. The country has for many years fluctuated between the advanced and developing worlds, as it has between liberal and military systems and its economic and political affairs.

In light of these changes, the question of how Turkey was able to attain such progress over the past decade is a valid one. Was it a result of the great challenge posed by the European Union? Or can this success be attributed to Turkish Prime Minister Recep Tayyip Erdogan, the so-called Ataturk of the 21st century?

I believe there are many reasons behind Turkey’s success, and the country has clearly become a model for Western and Eastern countries. In the West, there are many Eastern European countries, which are still suffering from economic problems despite the passing of 20 years since the fall of the Berlin Wall and the entry of most of these countries into the European Union.

In the East, there are problems such as unemployment, corruption and poor living standards, even in the two oil rich countries that lie on Turkey’s eastern borders.

Statistically, income per capita in Turkey increased two times from $7,000 (Dh25,711) in 2001 to $14,000 in 2011, while imports jumped from $36 billion in 2002 to $114 billion in 2010. Turkey achieved high growth rates in the past few years, and its growth is considered one of the world’s most dramatic.

Consumer price inflation

On the other hand, consumer price inflation fell drastically from 73 per cent in 2001 to 4 per cent this year, while financial and monetary reforms led to fixing the exchange rate of the Turkish lira against euro, which is equal to two liras on average. It is telling that previously the lira was almost worthless and was valued by the weight of the banknotes, not by its actual financial value.

The euro has become the second-most circulated currency in the world, and is the common traded currency in Turkey’s shops and restaurants just like the Turkish lira in efforts to establish Turkey as a euro country under the Maastricht Treaty. Apart from all these economic reforms, Turkey has also responded to most legislative demands by the EU as it brought about radical changes in its judicial system in the past 10 years.

It also adopted the proportional representation system for the first time during its parliamentary elections last week, giving the Kurdish minority more powers of self-government.

Political stability

As a result of its political and economic reforms, Turkey has effectively neutered the military institution, a once all-powerful military apparatus long seen as the guardian of secularism in the country. It has also managed to achieve political stability of significant importance to the economic growth in the country.

Therefore, Turkey succeeded in putting its train on EU tracks, regardless of the position of the right-wing alliance of French President Nicolas Sarkozy and German Chancellor Angela Merkel, because the interests of the EU countries will eventually determine Turkey’s membership in the EU.

When compared to the impact of the membership of some East European countries, which added an increased burden on the union, Turkey’s membership will give a big boost to the EU due to its powerful economy, political influence and strategic location, as well as its global strategic weight — a fact understood by Europe’s moderate politicians.

To be emulated

As for eastern countries, especially the Arabic states, the Turkish experience is seen as a role model of development to be emulated. This is because the conditions of many Arab countries are similar to those of Turkey before it undertook reforms that put it within the Group of 20 (G20), which is made up of 20 major economies and are responsible for steering the global economy and ensuring global economic stability.

Arab countries are now all set and more prepared in view of the so-called Arab Spring, which will never be a real spring without achieving economic success that affects people’s daily living issues, which are one of the key demands of the popular demonstrations in the Arab countries.

Indeed, economic progress in the next few years will be the main criterion to determine the success of the Arab Spring.

Dr Mohammad Al Asoomi is a UAE economic expert.

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