| |
Turkish Industry
Opening
to the World |
|
| |
| Beginning in the early 1960s, Turkey managed to attain “high rates of growth” also went through structural changes in its industrialization policies. The Economic Stability Program of January 24, 1980 was a crucial milestone for Turkish industry. |
| |
| The policies introduced by this stability program and its aftermath, quite different from those adopted when five-year development plans were in effect, marked the begin-ning of a radical change in economy and industrialization. Momentous changes took place in the monetary, finance, foreign trade and exchange rate policies and industrialization efforts based on exports replaced the domestic market oriented industrialization policy based on import substitution. |
| |
| Starting in the mid-1980s, infrastructural investments in the industrial sector gained impetus and in later years the “build-operate-transfer” model was introduced to meet financial needs on better terms. The Capital Market Board was established in 1981 to channel savings to the industrial sector; banking services were modernized and transpor-tation and communications services were improved. |
| |
Meanwhile, new regulations and incentives for foreign currency earnings helped the industrial sector improve its competitive power and exports increased rapidly. Free trade zones and international fairs were also quite effective in the development of the industrial sector and its integration with world markets. As a result of these efforts, the share of industrial products in Turkey’s exports increased from 36% in 1980 to 94% in 2006. |
| |
| At present, priority is placed on efforts to increase the productivity and international competitive capabilities of small and medium-size enterprises as well as to improve their share in the added value. These enterprises enjoy a |
| |
| |
| |
| |
|
| |
 |
|
PETKİM - İZMİT |
| |
| series of benefits such as low interest loans, tax exemption and VAT support to help them solve their problems such as financing, employment, quality and compliance with standards. |
| |
| Efforts to set up and spread organized industrial regions and small industry sites are gaining impetus across Turkey. The total number of businesses in 403 small industry sites in various regions increased to 88,025 as of the end of 2006. The 2007 Investment Program envisaged the building of 8,554 workshops in 62 small industry sites. Furthermore, a total of 93 organized industrial regions established over an area of 20,699 hectares were operational at the end of 2006. The 2007 Investment Program anticipated carrying out 108 new projects over an area of 19,512 hectares. |
| |
| Following the 2001 financial crisis industrial production continues to recover. Annual production volume in the manufacturing industry rose by 10.4% in 2004, 4.8% in 2005, and 5.8% in 2006. |
| |
|
