A troubled star

Author: | Published: 27 Apr 2016
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Turkey is at a crossroads. With a civil war next door creating a refugee crisis and putting a strain on resources, economic forecasts downgraded and a cooling in relations with Russia, the country is no longer the darling of the so-called MINT economies.

Some foreign investors remain deterred by unpredictability, a lack of transparency and trust in key institutions. An increase in investment and innovation is undoubtedly needed to boost productivity and create enough high-productivity jobs to accommodate Turkey's rapidly growing workforce. According to the World Bank, although Turkey has created 6.3 million jobs since the global financial crisis, unemployment still lingers at a troubling ten percent.

But the swirl of crisis has meant that observers – and more worryingly investors – have at times lost sight of the country's strengths.

"In less than a decade, per capita income in the country has nearly tripled"

In less than a decade, per capita income in the country has nearly tripled. And this rising prosperity has been shared. Between 2002 and 2012, the consumption of the bottom 40% increased at around the same rate as the national average. Over the same period, extreme poverty fell from 13% to 4.5% and moderate poverty fell from 44% to 21%. Growth is estimated to have increased to 4.2% in 2015, much higher than expected.

Turkey has a young, dynamic population, a large domestic market and a strategic location, combined with strong infrastructure and much improved public services. Turkey's achievements and future potential have been a source of inspiration for other emerging markets.

And those doing business in the country will find a legal framework which is rapidly developing too. As this guide illustrates, Turkey's lawmakers have been busy, initiating reforms on issues ranging from the energy markets, to data protection, competition, portfolio management and the healthcare sector.

The guide also features contributions from the country's leading in-house counsel, a legal market roundup from IFLR's sister publication, the IFLR1000 and much more. We hope you will find it an invaluable resource.