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Turkey, you were doing so well!
Article

Turkey, you were doing so well!

An economic success story runs off the rails.

Noah Smith
Noah Smith, 2022
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Editorial Rating

8

Qualities

  • Analytical
  • Overview
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Recommendation

A manufacturing miracle with a wealthy European customer base, Turkey has markedly improved the living standards of its people since 2001. Yet populism and policy blunders are marring its economic success. In this incisive analysis, economist Noah Smith reveals how excessive borrowing for high-risk, low-yielding political projects, along with the nativist leanings of the Erdoğan government, are undermining the country’s economy. Smith outlines the potential remedies Turkey could employ before it’s too late.

Summary

Turkey’s economy experienced a sudden and drastic turn for the better at the start of the 21st century.

The Turkish economy grew unremarkably for years until industrialization brought with it a dramatic upswing in 2001. Living standards have doubled since then. The country’s growth trajectory places it in the company of Malaysia, Poland, Hungary and Romania as a “near-developed” economy.

Turkey began pouring money into, and encouraging foreign direct investment in, its manufacturing sector starting in 2001. Diversified exports, particularly for the automotive sector, go to a varied customer base of wealthy European nations. Turkey...

About the Author

Noah Smith writes “Noahpinion,” a blog about economic events.

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