• Only secular Muslim country in the world.

• Oldest democracy in the region. .

• Democratic government since 1923.

• Rapidly-growing free market economy.

• Ability to serve as a regional base.

• A cultural bridge for: Europe, Asia and the Near East

• Russia and the Newly Independent States to the north

• Middle Eastern countries to the south and east

• Balkan states to the west.

• Strong links with neighboring Arab countries.

• Growing trade and other commercial links with the Central Asian Republics.

• Influential as a political and economic role model for the region.

• Closer ties with Europe after Turkey officially joins the EU Customs Union.

• Commonality with Turkic states -

• There are more Turkish language speakers in the world than French speakers.

Turkey's Growing Domestic Market

• Best performing emerging stock market in the world for the first quarter of 1995 - over $400 million traded per day and an increase of 47% in dollar terms.

• Economic growth of 7.6% in 1993 and an average of 5% per year since 1981.

• Long-term promises of 6-8% real growth rates once Turkey overcomes its current economic constraints.

• Expanding domestic market comprised of 63 million people, 50 percent of which is under the age of 30.

• Good market for raw materials and industrial machinery.

• Excellent new market for consumer products as per capita income increases.

• Markets in major cities include a wealthy, entrepreneurial, Western-oriented upper class.

• Sizable and growing middle class becoming major consumers of imported goods and services.

Situated in the fertile crescent and the cradle of civlization, Turkey is strategically positioned at the crossroads of Europe, the Middle East, the Black Sea region, and the Turkic-speaking republics of Central Asia. It thus offers an excellent base for economic activities throughout the region. Turkey is a historical gateway from the ancient Silkroad to new markets and is becoming a powerful focal point as a cultural and a political intermediary as well as a trade center of growing importance.

Turkey: An Active Ally of the West

Member of the United Nations and NATO.

Founding Member of:

• Council of Europe

• International Bank for Reconstruction and Development

• International Monetary Fund

• Organization of Economic Cooperation and Development

• Organization of Security and Cooperation in Europe

Associate Member of the European Union. Member of the EU Customs Union. Member of the General Agreement on Tariffs and Trade (GATT). International Finance Corporation (IFC). Shareholder in the European Bank for Reconstruction and Development. Existence of Relatively Advanced Market Economy Rules. Freer circulation of capital than some EU countries. Reduction of trade barriers & deregulation of markets. Conformance to international legal/accountancy rules. Liberal foreign investment policies. Full commercial banking infrastructure. Internationalization and growing role of the private sector.

At the turn of the last decade, Turkey has chosen to liberalize its economy and enable its private sector to take the lead in generating growth and employment. Major strides have been taken to revamp conditions for entry, operations and exit for both national and international business by completely dismantling bureaucratic barriers and streamlining procedures based on a thorough deregulation effort. The completion of the remaining reforms in the public sector combined with an intensive privatization program and targeted customs union with the EU scheduled for the end of 1995, will make the Turkish economy one of the most open and internationally integrated markets in the whole nation.

Turkey has been the center of trade and enterprise in the region for centuries and its location between the continents of Europe and Asia remains the crossroads between the East and the West. With a population of close to 65 million, Turkey has the largest single market in the region. It is rich in human resources, its business community has developed a very high entrepreneurial spirit and experience about the market oriented approach and it possesses a good mix of skilled, semi-skilled and highly qualified and productive work force.

By aiming to build a strong economy and join the European Union, Turkey has made great strides in increasing its attractiveness as a place to live and work. Since 1980, it has had one of the fastest annual GNP growth rates in the OECD, i.e., about 5.5% (1980-91). Its GNP in 1993 was about US$1 70 billion; resulting in per capita GNP in 1993 at about US$ 2,850. The government's commitment to development and growth is also evident in its active efforts to liberalize economic policy. A few highlights for investors:

• Convertible currency (Turkish Lira)

• 100% foreign ownership permitted

• 100% repatriation of profits and dividends

• Foreign management allowed and welcomed

• Focus on exports

• Tariffs and non-tariff trade barriers lowered to match EU standards

• Active financial sector (istanbul Stock Exchange)

• Ongoing privatization of state-owned enterprises

Little wonder that Turkey has been able to rapidly increase both its total exports -

about half of which go to the EU - and the share of manufactured goods it exports. While

the public sector still accounted for nearly a third of total manufacturing in ustry sales

at the end of the 1 980s, the privatization program started in 1 985/86 has had a positive

effect and the experience gained has induced the government to redouble its efforts to

enlarge the private sector.