'Turkey' for investment
We can look at the investment potential from two perspectives: First is the short term fluctuations and the effects of the conjuncture. When we look at things from this perspective we can count a number of events and phenomena, which may “dissuade the investors”, and which do not originate from Turkey, but happen at near and far surroundings of Turkey. As always and everywhere, a short term perspective is one of the most critical traps that an investor might get caught by. The second perspective is to foresee, understand, and explain the dynamics that determine the long term future of a country. When we look at the situation from this long term perspective, we have to closely review the important internal dynamics of perceiving Turkey as an “investable country”. First of all we have to note that in a period of almost 100 years, this country has shown an average of 5.2% growth rate. Independent of administrations and the quality of the administrations, average long term growth performance of Turkey is 5.2%; even though this is not a sufficient goal for the country, it forms an attractive basis when you consider the world averages. In other words, the growth rate long term investors will see in Turkey will not be below around 5 per cent; this is a potential that shouldn’t be underestimated when compared to other countries.
Another not often discussed internal dynamic of Turkey is the perception adopted by the shared values and shared benefits that govern the society: As much as rich underground and above ground resources, this country also has rich human resources.
This is a country that has learned the traditional ways of production in its own geography, and today at its current state knows that it must bring its production skills towards anR&D, innovation, design, brand, and image focus. This fundamental perspective is one of the essential variables that make this country an “attractive investment region” for the long term. The will to transition from labour-capital centric production to a creative, innovative and entrepreneur focus in this information age, when combined with human oriented thinking, means that we are following a realistic development path. From a market centric perspective, Turkey’s oft-emphasised “geographical location” and related “accesability and reachability potential” and its strong links to almost 200 million people living in its close surroundings are serious “market potentials”. Thinking of Turkey as a basin with its neighbouring countries may be considered the variable for making medium and long term investment decisions.
Importance of speed and flexibility
Current production levels in Turkey, especially Turkey’s speed and flexibility with regard to some products, are indicators of its strength and potential to become a central hub for production and trade networks. “Logistic opportunities” provided by the country’s geographical position will be able to create effective solutions when combined with the latest fast railways and other alternative means of transportation. Furthermore, Turkey has had long term relationships with people from different cultures; the convenience of this cultural exchange is also something investors should look for. Turkey is also very successful in internalising and producing new technologies. For example regarding Digital technologies, we see successful applications of advanced technology in Turkey, particularly in the defence sector and also in some civilian initiatives
Excessive or deficient assessment
When analysing whether or not a country is an “investable country”, we should consider variables with a short term effect and variables with a long term effect as a whole.
When you consider the long term, the data at hand shows that Turkey is an investable country. In the near future in Turkey, “uncertainty area” will narrow, assumable “risk areas” will become clearer. From this point of view, investors should avoid falling into one-dimensional and unilateral evaluations; they should properly analyse the potential of Turkey and its immediate surroundings.