Essay - Turkey: Economy in the 1970s and 1990s Introduction Turkey Is...

Turkey:

Economy in the 1970s and 1990s

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Turkey is a unique country that lies partially in Asia and partly in Europe. The Asian and the *****an part of the country are separated by the Bosporus, which ***** the water link between the Black Sea and the Mediterranean. Although the areas constituting Turkey have a very ancient history, ***** modern day Turkey became a Republic in 1923 under the leadership of Mustafa Kemal (Ataturk) after the collapse of the Ottoman Empire. *****'s economy is a mixture ***** ***** industry ***** ancient agriculture that has undergone many ups and down throughout its history. In this paper we will focus on the economy of Turkey in ***** 1970s & 1990s, and discuss the major economy-related events that occurred dur*****g ***** period.

The *****

***** decade ***** 1970s was a period of serious economic crisis in Turkey, which ***** accompanied ***** political and social turmoil.

Overview of Major Events

Suleiman Demirel had won the general elections in 1969 to become the Prime M*****ister, soon confronted by civil unrest ***** violent clashes ***** ***** extreme leftist and rightist factions. There was an ongoing separatist struggle by the country's Kurdish minority that exacerbated the situation. A severe earthquake hit Western ***** in 1970-71 that resulted in widespread damage. ***** was followed ***** a succession ***** Prime Ministers in the e*****rly seventies amidst continuing ***** strife and unrest. Under U.S. pressure, ***** Turkish government banned the cultivation of opium poppy (used in manufacture of heroin) in 1972. Turkish troops ********** the island ***** Cyprus in mid-1974 and occupied 30% of the island. This was purportedly done ***** protect the *****'s Turkish inhabitants following a Greek-inspired coup in Cyprus. Turkey *****nd Greece were on the verge ***** all out war, which ***** prevented only by ***** intervention of the United Nations and the U.S. During most of the decade, Demirel and Ecevit alternated as heads of unstable, ***** ********** presiding over a worsening economy. The decade ended with a milit*****ry coup in 1980 following ***** civil unrest claiming over 2000 lives.

1977: The Crisis Year

A***** from the political instability and civil ***** in the country, ***** Turkish economy had to face an unprecedented increase in oil prices after the 1973 Arab-Israeli war. ***** economic conditions continued to worsen over the next several years, reaching ***** level ***** 1977. Inflation reached a rate of over 50% in that year while unemployment exceeded 30% of the total workforce. Domestic industries were hit hard by the ***** in cost of raw materials ********** energy and could not compete in the foreign markets. The country's trade deficit approached $ 4 billion in *****, ***** ***** in a balance of payment deficit nearly five times the 1974 level. With foreign creditors refus*****g to give further credit due ***** doubts ***** the country's ability to repay loans, Turkey was faced with bankruptcy, which was barely prevented by intervention ***** ***** Central Bank by suspending payments for imports. By the end of 1977,