Turkey, with the published Industrial Strategy Paper, set forth that it has the vision of “being the production base of Eurasia in high and medium technological products”. In accordance with this medium term vision, the determined objectives can be summarized as increasing the competitiveness and efficiency of Turkish Industry and expediting the transformation to an industry structure which has more share in world exports, where mainly high-tech products with high added value are produced, which has qualified labor and which at the same time is sensitive to the environment and the society. Three main strategic objectives have been set in accordance with the vision and objectives of the Strategy Paper namely increasing the weight of mid- and high-tech sectors in production and exports, transition to high added value products in low-tech sectors, and increasing the weight of companies that can continuously improve their skills (strong).

 

 In keeping with the overall objective of the Industrial Strategy of Turkey and its strategic goals, various policy areas are established by taking into consideration the priorities of the Development Plan in force, the strengths and weaknesses of Turkish industry as well as the existing opportunities and threats. Policies determined inn relation to vertical and horizontal policy areas will also be implemented concomitantly.

 

The said horizontal industrial policy areas are the improvement of investment and business environment, maintaining international trade and investment specifically maintaining the policies that will contribute to diversity of trade goods, adoption of a strategy that will maintain consistency in industrial policies and human resources policies, easing SMEs’ (Small and Medium Sized Enterprises) access to finance, improving the innovation and technological infrastructure and thus reducing the input costs, sensitivity to the environment and maintenance of governance for regional development.  

 

Sectoral industrial policy areas have been constituted in order to identify the obstacles to the competitiveness of the sectors and implement policies to eliminate them. The sectors examined in terms of their competitiveness were identified in line with the commitments made to the EU as the automotive, machinery, white goods, electronics, textile and garments, food and iron-steel sectors were included in the strategy paper. The sectoral competitiveness analysis is assessed on innovation capacities of the companies in knowledge and technology, the competition environment in the domestic market, the impact of legal regulations on the sectors, measurements concerning the environment and energy within the frame of existing regulations and those that will be effective in the medium term, adverse effect of the competitiveness of the industry and anti-dumping and trade obstacles that could create unfair competition in the international arena, the obstacles to the expansion of employment within the context of relevant employment figures. Under the coordination of the Ministry of Industry and Trade, and with the participation of all other relevant organizations and companies, the implementation process will need to be monitored and coordinated so that the goals can be achieved. 

 

First of all, preparation of the Industrial Strategy Paper for Turkey with a participative mentality and determining a vision for Turkey is quite significant. Turkey has been quite successful in maintaining macroeconomic stability due o the stability programs applied after the 2001 crisis and due to the contributions of the abundance of the liquidations experienced in the world economy. The structural economic reforms, primarily reconfiguration of the financial sector and maintaining the financial discipline, played a prominent role in maintaining the economic stability. The record of growth rate of Republican history was broken in this term. Since the structural reforms which were realized as a part of stability program and those realized independent from the respective program were designed to maintain macroeconomic stability their influence on sectors were restricted to some extent. In the years 2005, 2005, 2006, 2007 and 2008 the growth rates of Gross Domestic Product (GDP) were in order 9.4, 8.4, 6.9, 4.7 and 0.7 percent. These numbers regarding the curve of decrease in growth rate of Turkish economy before the eruption of the balloon of American Housing Market can be interpreted as the structural reforms have reached their limits and a new reform stage should start. On the other hand, passage of the law regarding the social security in those days when the Lawsuit regarding the closure of AK Party at power was on the scene is a historical reform to be noted down. However, party closure case and the congestions experienced in Presidency election increased the ambiguities concerning the political stability of the country and these cases had an adverse impact on economy as well.

 

The actual impact of the global crisis on turkey came out in 2009 and GDP shrank in 4.7 percent. The measurements taken were designed in accordance with the minimization of impact of the crisis. In order for Turkey which upgraded to the grade of the countries which were influenced the least by the crisis and those caught the highest growth rate in 2010 to maintain a cadent growth trend it has to develop a comprehensive and integrated industrial strategy. Furthermore, an economy which tries to rank among the 10 biggest economies has to restructure itself in a production orientation. At this point the Industrial Strategy Paper plays an important role. The determined objectives such as increasing the competence of Turkey, upgrading the quality of human resources, developing the mechanisms to meet the financial need so SMEs and improve the investment atmosphere can be interpreted as the forerunner of the prominent structural reforms.

 

The Turkish economy which was “comatose” with the economic crisis of 2001 and remained under “intensive care” for a few years has proven that it has healed and have the mechanism decreasing the impacts of external shocks in the course of 2008 global financial crisis. The Industrial Strategy Paper prescripts operation in “capillaries” with structural reforms designed as to increase the dynamism and acting ability of Turkish economy.

 

Furthermore, the periods when the global economy, particularly the developed countries, experience significant economic problems and focus on the solutions for these, may create opportunities for the other counties to perform alternative economic programs which yield priority to their own interests. If the fact that the developed countries have been influenced the harshest by the economic crisis experienced currently and that they have focused on the solutions for the crisis is taken into consideration, Industrial Strategy Paper is significant in terms of declaring the place that Turkey desires to stand in the new international economic order to the world   

 

Lastly, the economic and political transformation that Turkey experienced after 2001 has increased its ability to structural reforms and Turkey has realized many economic and political reforms successfully independent of recommendations of institutions and structures such as EU and IMF. Applying the structural reforms whose details were determined by the activity plan and whose frame was drawn by with the Strategy Paper in accordance within the defined calendar has significance as much as preparing the document itself. A Turkey integrated to the world and peaceful with its neighbors, by realizing the structural reforms that it targeted in the Strategy Paper will maintain its political and economic stability on one hand, an on the other hand it will become a high value-added, gross technological and informative production base in Eurasia by increasing its global and sectoral competence.  

(Assoc. Prof. Muhsin Kar, SDE Coordinator of Program of Economics)