Economy
Turkey is prosperous in comparison with most Asian countries, but is poor when compared to many European nations. It is largely an agricultural country and must import much of its machinery and industrial equipment and many of its raw materials. Nevertheless, considerable progress has been made in developing a modern economy; development began in the early 20th century.
Industrialization has been achieved largely through efforts of the government working under a series of five-year plans initiated in 1963. During the 1970's the economy declined significantly. Reasons for the decline included political instability, rising foreign debt, and the government's policy of limiting foreign trade by establishing import quotas and high tariffs. During the 1980's the Turkish economy improved, largely because of government stability and a new policy of encouraging foreign trade. However, longstanding problems such as high unemployment and a high rate of inflation remained.
The government owns and operates many of the country's transportation facilities and large manufacturing plants, banks, and mines. There is, however, a growing private sector.
Turkey produces enough food for its own population and also exports agricultural goods. Roughly half of the labor force works in agriculture. Large areas on the plateau are either cultivated or grazed, but most of this land has relatively low productivity. The richest and most productive farmlands are near the coasts. Most farms are relatively small, averaging less than 20 acres (8 hectares). Dam projects have made irrigation possible in a number of areas.
Wheat, barley, corn, and other cereals are the dominant crops. They are grown most extensively on the plateau. Sugar beets are also a major crop. Significant, too, are melons, tomatoes, potatoes, grapes, sunflower seed, cotton, olives, apples, and citrus fruits. Virtually all the subtropical crops, including citrus fruits, cotton, hazelnuts, melons, oranges, olives, tobacco, and tomatoes, are grown near the coasts.
Livestock raising is a significant part of the economy. Sheep and goats graze in large numbers on the plateau and on mountain slopes. Turkey is a major producer and exporter of mohair, obtained from Angora goats. Cattle and buffalo are used as draft animals as well as sources of dairy products and meat.
is the largest single contributor to Turkey's economy, accounting for about 20 per cent of the labor force. Food processing and the making of textiles are the chief manufacturing activities. Basic heavy industries, most of which are government undertakings, include the manufacturing of iron and steel, chemicals, cement, and fertilisers. Also significant is the manufacturing of motor vehicles, machinery, petroleum products, and paper goods.
Much of Turkey's manufacturing is located in the northwest, especially in Istanbul and adjacent areas; the rest is primarily in the Ankara, Izmir, and Adana areas. Many products, including rugs and metalwares, are still made in traditional ways as handicrafts.
Turkey's meager forests yield relatively small amounts of timber suitable for cutting into lumber. Most of the production is scrub and brush that is used for fuelwood.
There is relatively little fishing except in coastal waters.
Turkey has substantial mineral resources, but some of them are little developed, partly because of poor transportation in many areas. Petroleum, natural gas, and lignite coal are the chief mineral fuels produced. Other production includes chromium, iron, manganese, copper, boron, and sulfur. Turkey is a leading world source of boron and chromium.
Other than coal and hydroelectric power, almost the entire energy required by Turkey is imported. Natural gas imports have also been gradually increasing, as this form of energy has been replacing coal in heating urban buildings, thereby helping to reduce air pollution.
The chief imports of Turkey include chemicals, machinery, iron and steel, motor vehicles, and petroleum. The country's major exports consist of clothing and textiles, iron and steel, and other manufactured goods. Fruits, nuts, and vegetables are also important exports.
has become a significant activity in Turkey, with millions of European and Russian tourists visiting the country every year. The visitors spend beach holidays on the Mediterranean and Aegean coasts, and also visit Turkey's cities. Ancient sites of Turkey, such as Troy and Pergamum in northwestern Turkey, and Ephesus, near present-day Izmir; and the unusual rock formations and other natural wonders of Cappadocia in east-central Turkey and the Eastern Plateau also attract a large number of visitors..
Turkey's mountainous terrain has hindered the development of a good transportation system. The national railway system serves mainly to connect the larger cities. Most of Turkey's main roads are paved.
Istanbul, on the Bosporus, is by far the largest Turkish port. Izmir is the principal Aegean port and is second only to Istanbul in tonnage handled. Other ports include Samsun and Zonguldak on the Black Sea and Mersin and Iskenderun on the Mediterranean. Istanbul and Ankara have the busiest international airports. The state-owned Turkish Airlines connects most of Turkey's larger cities and provides foreign service.
