Bridging the gap between Asia and Europe

A rare example of an Islamic democracy that enjoys a robust capitalist economy.

MORTEZA NIKOUBAZL/REUTERS

By Rick Westhead

Rick Westhead South Asia Bureau

When U.S. oil billionaire Malone Mitchell first walked out of the Istanbul airport, he expected to see a Third World country chockablock with security concerns and whirling dervishes.

“It dawned on me that I knew nothing about the country, only what I had been taught,” Mitchell says.

Instead, Mitchell, 50, discovered a place where he felt safe walking the streets and where he could get his company’s oil rigs fixed by local firms.

Mitchell’s TransAtlantic Petroleum drills 150 wells a year in Turkey and “the stress on drilling rigs and pumps is extreme,” he says. “They break, they need constant repair, but anything we needed fixed, it’s been available in Turkey.

“This is really a country with a first-rate manufacturing sector, and that surprised me.”

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In financial circles, the secret’s out about Turkey, its dynamic economy and its strategic importance. A key stop on the ancient Silk Road, Turkey bridges Asia and Europe and is among the world’s busiest transportation hubs.

Turkey’s $730 billion (U.S.) economy grew faster than any country other than China and India last year. It’s now a member of the G20 and it lays claim to NATO’s largest army.

It’s also a symbol for religious liberals, a rare example of an Islamic democracy that enjoys a robust capitalist economy.

The country has made incredible progress since 2001, when some analysts suggested it was on the verge of bankruptcy.

In 2002, the current government, led by the Justice and Development Party, took power and introduced reforms. Government utilities were privatized, bureaucracy was pruned and archaic corporate laws were scrapped.

Exports have tripled, the economy has grown at a 6.5 per cent annual clip, and foreign investment has climbed to more than $20 billion (U.S.) from $1 billion in 2002. Tourism, a key sector, is also skyrocketing.

Turks are taking pride in this reversal of fortunes, with young people snapping up T-shirts with slogans such as “The Empire Strikes Back” and “Terrible Turks.”

Still, there are reasons for concern.

Reporters Without Borders says as many as 64 journalists are jailed in Turkey, more than any other country. Advocates for Human Rights, a nongovernment organization, says domestic violence, sexual assault, honour killings and human trafficking persist, despite amendments to Turkish law. Nearly one-third of Turkish women are married before they turn 18, activists say.

Still investors remain high on Turkey.

In 2006, a British Petroleum-led consortium opened a $4-billion (U.S.), 1,760-kilometre pipeline that runs from the Caspian Sea to the Mediterranean. With the new line, an estimated 5 per cent of the world’s oil runs through Turkey.

When Scotiabank’s Paul LeBlanc went to Turkey in 2008 to open an office, he was struck by the bustle of seaside activity.

“There was such as long line of ships going through, it was like Singapore,” LeBlanc says.

Scotiabank provides assurances to exporters sending goods to Turkey that their bills will be paid.

“We’ve been there three years now and we’ve seen it’s stable politically and important geographically,” he says. “It has such a bright future.”

via World News: Turkey: Bridging the gap between Asia and Europe – thestar.com.