The problems Turkey faces today are because of neither poor performances of a few governments nor solely economic factors. Turkey has serious structural difficulties in the fields of economic, political and human rights which have been seen in totalitarian and authoritarian countries of Latin America and Asia. It is not easy to cope with these problems in the short run. Otherwise, we should not have talked about these problems today. Imbalance between foreign exchange revenues and expenses has urged Turkey to take measure to develop foreign trade with Northern and Southern neighbor countries. Comparative advantages of Turkey can be more compromisable with the countries which less developed than Turkey. Remittances of Turkish workers from the West and tourism revenues are other most remarkable components. The other important issue is the structure of Turkish financial system. Turkish financial markets are dominated by banking sector like Germany and Japan. However, the experiences have showed that Anglo-Saxon model of the USA is advantageous. Interest-free banking should be developed to catch up a solid SME sector. Hopefully, EU membership process has forced Turkey to take steps toward structural reforms.
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