Can state-sponsored patents generate innovation?

China’s economic success in the last three quarters is mainly due to cheap labor and export-oriented economies of scale. However, the leadership is quite aware of the unsustainability of this approach, and as wages are rising in the country, they are working to increase the value chain of domestic production.

Their foreign technology transfer strategies and highly incentivized, state-sponsored private sector research and development support have started to pay dividends. According to the World Intellectual Property Organization (WIPO), Chinese domestic patent filings increased from 15,600 in 1999 to 122,000 in 2006. An average 35 percent annual increase is not a bad accomplishment. This rate is 6 percent in America, 5 percent in South Korea, 4 percent in Europe and 1 percent in Japan.

In “Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion” (University of Oxford, CSAE Working Paper 2011/15), Markus Eberhardt, Christian Helmers and Yu Zhihong investigated the drivers behind this patent explosion. Based on the firm level data, a very tiny number of companies generates the bulk of these patents: 75 percent of the domestic patent filings in China are registered by 10 companies that are operating in the ICT (information and communication technology) business; 85 percent of the Chinese patents registered in the US are also registered by the same 10 companies.

For these companies, a substantial share of the patents is new product innovation despite their low-tech character. If you check the next 10 year national patent development strategy, the quantity gets more attention than the quality when you check the measurable targets and metrics they would like to achieve. However, focused efforts on ICT, energy technologies, especially wind and solar, make the Chinese companies quite competitive in their own field.

Chinese firms’ ability to stay close to the technology frontier of the world is praised by the same authors. However, their contribution to this frontier is a mixed bag and a work in progress. The funds and staff they allocated to the transformation from imitation to innovation can be easily observed.

Another interesting development I would like to share with you is the business share of the national research and development (R&D) expenditure in the world. The US is the leader in innovation, and the US private sector is the main driving force of the innovation culture of the US. If you check Asian success in technology and innovation over the last decades, you can easily see a similar structural development as well.

In the 1980s the Japanese government was widely seen as the master practitioner of industrial policy based on technology and patents. But we did not see Japanese software giants or information technology companies focused on innovation. Japan, Korea, the US and Germany all have more than a 70 percent business share in national R&D expenditures. Most of these countries became patent generators.

 

China as well, changed domestic dynamics considerably and increased the business share of R&D expenditures from 49 percent to 72 percent from 1999 to 2006. State sponsored but privately held technology companies are definitely generating a more innovative private sector.

There are lessons for many emerging economies from these statistics. Take Turkey, for example. Turkey is allocating substantial funds for R&D via the Scientific and Technological Research Council of Turkey (TÜBİTAK) and other state-funded institutions. The target R&D expenditure in Turkey is expected to be 2 percent of gross domestic product (GDP) soon. This share almost doubled in the last seven years from 0.48 percent to 0.85 percent. But, these fund allocations seem to lack the business and entrepreneurship focus. Universities and academics are getting the biggest chunk of this spending. The business share is stagnant at around 40 percent. This is one of the lowest shares among Organization for Economic Cooperation and Development (OECD) countries, as can be seen from the following table taken from the paper written by Eberhardt, Helmers and Yu.

China’s state sponsored innovation and technology promotion activities turned out to be successful in the last decade after they started to generate new funding mechanisms for startups and the private sector.

 

 

04 October 2011, Tuesday

Stocks drop on bank exposure

The failure of eurozone finance ministers to come up with a concrete measure on Greece sends stocks plummeting as investors flee from perceived risk to the relative safety of the US dollar. The markets are especially concerned about European lender Dexia, which reportedly has a huge exposure to shaky Greek government debt
A trader scratches his head at the stock market in Frankfurt, Germany, in this photo on Monday. European stocks continued their downward spiral yesterday. AP photo
A trader scratches his head at the stock market in Frankfurt, Germany, in this photo on Monday. European stocks continued their downward spiral yesterday. AP photo

World stocks hit a fresh 15-month low on Tuesday and the dollar rose to a nine-month peak as fears over a major banking crisis in Europe mounted along with expectations Greece could soon default, accelerating a global economic slowdown.

Sovereign debt insurance costs for the region’s economic powerhouse Germany hit a record high after eurozone finance ministers said they were reviewing the scale of private sector involvement in a second bailout package for Greece, a move that threatens to hasten a default.

At their meeting in Luxembourg, the ministers also agreed Greece could wait until mid-November for the next instalment from the existing aid program, putting further pressure on Athens to get to grips with its debt problems .

European banking shares fell 4.2 percent, with Dexia shedding as much as 37 percent on top of its 10 percent fall on Monday, as worries about the Franco-Belgian bank’s heavy exposure to Greece grew.

“What you’re now beginning to see is they (investors) are now picking out the banks. Dexia is the weakest,” said Justin Urquhart Stewart, director at Seven Investment Management. “Politicians have to stand behind these banks – whether you call it state support, nationalization, you have to keep the financial system working otherwise we will end up with another credit crisis.”

Expectations the region’s paymasters in Berlin will have to fork out increasing amounts of money to bail out weaker elements within the eurozone sent the cost of insuring German debt against default to record highs, with the country’s five-year credit default swaps, or CDS, rising to 1.21 percentage point. Debt insurance costs for Belgium and peripheral eurozone states also rose.

The MSCI world equity index fell 1.5 percent, hitting its lowest since July 2010. The index has fallen more than 18 percent since January and more than 24 percent since hitting a three-year high in March.

European stocks lost 2.6 percent while emerging stocks fell 2 percent to hit their lowest since September 2009. U.S. crude oil fell 1.1 percent to $76.78 a barrel.

Belgium’s five-year CDSs rose 14 basis points to 2.86 percentage points, close to a Sept. 22 record.

The dollar rose 0.4 percent against a basket of major currencies to a fresh nine-month high. The euro fell as low as $1.3144, a nine-month trough.

“The tone for the euro is sour after the failure of the eurozone finance ministers to bring anything concrete to the table with respect to Greece,” said Jane Foley, senior currency strategist at Rabobank. “The market is … worried about the … Greek crisis and the calamity that could be created if there was a messy default.”

Tuesday, October 4, 2011
LONDON – Reuters

D-8 trade must develop: Ergün

The trade among the Developing Eight, or D-8, countries, which represent a total population of 1 billion people, hit $100 billion in 2010, according to Turkey’s Science, Industry and Technology Minister Nihat Ergün.

“I believe we will double this figure in the next five years,” the minister said, speaking at a D-8 Industry Ministers’ summit in Istanbul on Tuesday.

The D-8, an initiative launched by former Turkish Prime Minister Necmettin Erbakan in 1997, includes Iran, Pakistan, Bangladesh, Malaysia, Indonesia, Egypt and Nigeria, along with Turkey.

The trade between D-8 countries constitutes 7 percent of their total trade volume, Ergun said. “This is good news of course. But still it is not satisfying.”

Commenting on regional unrest, Widi Pratikto, the D-8 secretary-general, said during his speech, “We can overcome these hard times by working together.

Tuesday, October 4, 2011
STANBUL – Hürriyet Daily News

Turkey’s annualized inflation eases to 6.15 pct in Sept.

The annualized CPI was 6.65 percent as of August, and the central bank was expecting September’s CPI to be 6.17 percent.

Turkey’s consumer price index (CPI) rose 0.75 percent month-on-month in September, compared to a forecast increase of 0.68 percent, making the annualized CPI rate 6.15 percent, the Turkish Statistics Institute (TurkStat) said on Monday.

The annualized CPI was 6.65 percent as of August, and the central bank was expecting September’s CPI to be 6.17 percent. Observers said the latest slight increase in inflation is not expected to make much of a difference in the central bank’s year-end inflation targets.

The producer price index (PPI) also rose, at a higher rate of 1.55 percent in September, making annualized inflation in the PPI 10.03 percent. In the first nine months of 2011, the CPI rose 4.53 percent and the PPI increased by 9.72 percent.

Ata Investment chief economist Nurhan Toğuç said September’s inflation was in line with market expectations, adding, however, that pundits anticipate an increase in inflation in the months to come, albeit a slow one. Speaking to the Anatolia news agency in İstanbul on Monday, Toğuç said the beginning of the new school year did not lead to much of an increase in inflation. The back-to-school season traditionally brings with it price increases in Turkey, especially in the ready-wear clothing and office supplies sectors.

Toğuç attributed the anticipated increase in inflation in the coming months to possible hikes in electricity and natural gas prices through the end of the year. The unit price for electricity rose 9.57 percent at the beginning of this month. Government officials have hinted at a possible price increase of around 15 percent in natural gas as well.

Further rate cuts likely

With inflation not posing a serious threat to the country’s economy, the Central Bank of Turkey has more maneuvering room to press for further interest rate cuts to support economic growth, at a time when fears of a second round of global financial turmoil mount, with the US and European nations failing to develop effective measures to counter staggering debt issues at home.

“It seems as though the [Turkish] central bank will continue with its growth-based policy in the days ahead,” said economist Gülay Elif Girgin from Oyak Investments on Monday, also in remarks to Anatolia. The Central Bank of Turkey has lowered its benchmark short-term repo rate multiple times since late last year. In its latest such move, the bank slashed the one-week repo rate, or policy rate, by 50 basis points to 5.75 percent in early August.

Cihan news agency

 

 

03 October 2011 Monday

 

Turkey, US to turn Istanbul to finance hub

Turkey and the United States have agreed to turn Istanbul into a global finance hub with the latter providing technical infrastructure, a Turkish official said Monday.

Turkish entrepreneurs are among the fastest in the region and we look forward to working with them, Fernandez says. AA Photo.
Turkish entrepreneurs are among the fastest in the region and we look forward to working with them, Fernandez says. AA Photo.

“Istanbul is already a regional financial center. Our aim is to make it a genuine global financial hub,” deputy undersecretary of the Foreign Ministry Selim Yenel told reporters at a joint press conference with U.S. Assistant Secretary of State for Economic, Energy and Business Affairs Jose Fernandez. The press conference came following a Turkey-U.S. Economic Partnership Commission meeting.

The Turkish government has been working to make Istanbul a financial hub for a long time by transferring key national economic institutions, such as the Central Bank, from Ankara to Istanbul, Yenel said, adding that the next move is making Istanbul a globally recognized finance hub.

“We have asked the U.S. to provide some infrastructure services and agreed on this,” Yenel said. Energy efficiency, cooperation in third countries and nuclear energy were other issues discussed.

Monday, October 3, 2011
ANKARA

Turkish minister says GDP per capita exceeds $10,000

Turkish Customs & Trade Minister Hayati Yazici has said that gross domestic product per capita exceeded $10,000.

Turkish Customs & Trade Minister Hayati Yazici has said that gross domestic product (GDP) per capita exceeded $10,000.

In an exclusive interview with the AA, Yazici said, “our country has proved its economic, political and legal credibility to the whole world thanks to reforms made by the Justice & Development (AK) Party government.”

“Turkey has become the 16th biggest economy in the world and the 6th biggest economy in Europe,” he said.

“GDP per capita exceeded $10,000. We aim at increasing it up to $25,000 in 2023. The rate of unemployment decreased to 9.2 percent this year from 10.5 percent in 2010. Inflation rate dropped to 6.7 percent. Turkey’s exports reached $127.1 billion as of end-July while our national income increased to $736 billion. Turkey became the second fastest growing country in the world behind China with a growth rate of 8.8 percent in the first quarter of 2011,” he said.

“Turkish economy turned the global financial crisis into an opportunity thanks to its dynamic private sector. Our target is to make Turkey one of the world’s ten biggest economies in 2023 by increasing our exports up to $500 billion,” he said.

“Recently, we have renovated some of our border crossings including Gurbulak, Ipsala, Cilvegozu, Habur, Kapikule, Hamzabeyli and Sarp. Renovation of other border crossings will continue,” he added.

AA

 

02 October 2011 Sunday

EU says Turkish economy successful during global crisis

The European Union will declare that Turkey’s economic policies have proven successful during the crisis in her annual report, to be released on Oct. 12. The economic part of the progress report, seen by Today’s Zaman, will praise the performance of the Turkish economy while the EU, the world’s largest economy, is still struggling to contain the Greek crisis in a bid to save her ailing economies.

With a swift recovery from 2009 global crisis, Turkish economy grew by 8.9 percent last year and another 10.2 percent in the first half of this year.
With a swift recovery from 2009 global crisis, Turkish economy grew by 8.9 percent last year and another 10.2 percent in the first half of this year.

“Overall, the economy expanded rapidly in 2010 and in the first quarter of 2011, mainly driven by strong domestic demand,” said the draft. Despite the strong showings of the Turkish economy, the draft says Turkey’s gross domestic product (GDP) per inhabitant stands at 48 percent of the EU average in 2010.

While the EU will declare that the fiscal and monetary policy mix has been successful in tackling the crisis, it will caution against the current account deficit and inflation volatility. The draft report finds the budget and taxation policies successful, also stressing that employment policies have yielded positive results.

Despite the fact that Turkey was hard hit by the global financial crisis, the draft says regulatory and supervisory reforms have paid off and strong growth returned. “Turkey’s fiscal and monetary policy mix proved successful during the crisis. Although the Turkish economy was hit hard by the financial crisis, the earlier regulatory and supervisory reforms have paid off and growth resumed rapidly and strongly,” said the draft. The EU highlights the record growth by pointing at the economic expansion of 11 percent in the first quarter of 2011.

Just after underlining the brighter side, the draft report goes on to warn about the macroeconomic stability by drawing attention to a “boom-bust scenario.” The report hints towards the possible steps that should be taken. “However, Turkey did not fully benefit from the recovery due to insufficient adjustments. Making more progress with fiscal transparency, adjusting the fiscal and monetary policy mix, strengthening the inflation targeting and preserving financial stability will be important to minimize the risks of a boom-bust scenario.”

Despite the good performance of the Turkish economy in times of global crisis, the draft, nevertheless, advises prudence. “Overall, macroeconomic stability remains vulnerable and could benefit more from a better coordinated tightening of the policy mix,” said the draft.

The draft elaborates on both the strong and weak sides of the Turkish economy. The strong sides are as follows:

Turkish economy’s strengths

— The consensus on the fundamental goals of economic policy remains firm.

— Economic activity rebounded strongly, which reflected some base effects but also a strong growth of domestic demand driven by low interest rates, strong capital inflows and a rapid acceleration in bank credit growth.

— All major sectors of the economy contributed to growth in 2010. The largest increases in gross value added came from the most cyclical sectors, construction and manufacturing.

— All exports (with the exception of North Africa) recorded strong growth.

— Official gross foreign-exchange reserves have remained on an upward trend in 2011 and amounted to 68 billion euros by mid-2011.

— In 2010, the unemployment rate amounted to 11.9 percent, down significantly from 14 percent in 2009. The youth unemployment rate dropped faster, most likely due to the priority given by the government to this segment in the employment package. Employment data showed a marked improvement as the number of employed increased by over 6 percent compared with 2009. Overall, robust economic development allowed for strong employment growth and a sizeable decrease in unemployment.

— The budget performed much better than expected in 2010 and early 2011, especially due to the robust recovery in domestic demand, which supported indirect tax revenues significantly. Overall real tax revenues rose by 35 percent year-on-year in 2010 and real expenditure grew by 15 percent. Consequently, the primary surplus almost tripled and the overall central government budget deficit fell by about half from 5.7 percent of GDP in 2009 to 3.6 percent of GDP in 2010, much better than the originally budgeted level of 4.7 percent of GDP. In the first half of 2011, strong demand continued to support the budget performance, as revenues increased by double-digit rates. According to the medium-term fiscal plan, the government expects a 2.8 percent of GDP budget deficit in 2011. Extra revenues collected from a tax amnesty program, if saved, would bring the 2011 deficit even lower. Overall, consolidation of public finances is on track.

Weaknesses

— The sharp increase in domestic demand was accompanied by a further deterioration in the trade and current account balances. The current account deficit, which tripled to a record of 6.6 percent of GDP in 2010, continued to widen in early 2011. The increase was entirely attributable to the deterioration of the merchandise trade deficit, which in the first four months of 2011 more than doubled compared with a year earlier.

— Exports to some countries in political crisis started to fall and according to customs-based data, exports to North Africa declined by 10 percent year-on-year in the first quarter of 2011. Overall, imports have been rising due to strong domestic demand, thus increasing trade and current account deficits considerably. External imbalances have become significant.

— The labor markets need to absorb the unemployed and 1 million new entrants each year. Overly strict employment protection discourages employers from hiring new people. The prevalence of undeclared work remains an important challenge.

— The combination of strong domestic demand, high world fuel and food prices and a weaker currency can be expected to push inflation up further. Overall, inflation has been in a volatile, and recently, upward trend, in large part due to pressures stemming from energy and food inputs and buoyant economic activity.

— Monetary policy has been only partially successful as it could not sufficiently curb credit growth, which along with high commodity prices continues to feed Turkey’s growing current account deficit.

— The lack of measures to enhance the accountability, efficiency and transparency of the budgeting process makes it challenging for citizens to hold the government accountable for its management of public money. The unification of all tax administration functions under the Revenue Administration announced earlier has not been implemented in full. Overall, modest efforts were made to increase fiscal transparency.

 

30 September 2011, Friday / SELÇUK GÜLTAŞLI , BRUSSELS

Iraq wants to take part in Turkish electricity plans

The Iraqi government eyes Turkish cooperation in rehabilitating its war-hit electrictiy network and joining
its neighbor’s plans to sell electricity to several Mediterranean countries, according to an expert. Turkey can
contribute to Iraq’s energy projects through technical advice and expertise in energy, says another.

A man checks the many electricity wires attached to a pylon as the Iraqi capital Baghdad endures another stifling summer with only a few hours of power a day this summer.
A man checks the many electricity wires attached to a pylon as the Iraqi capital Baghdad endures another stifling summer with only a few hours of power a day this summer.

War-stricken Iraq aims to take part in Turkey’s recently announced interconnected regional electricity network for southern and eastern Mediterranean countries with its vast natural resources in a bid to export a potential energy surplus to Europe via Turkey.

“Iraq wants to take part in Turkey’s master plan for electricity interconnection,” Luay Al Khatteeb, head of the London-based Iraq’s Energy Institute, told the Hürriyet Daily News on the sidelines of the “Iraq Future Energy 2011” conference in Istanbul on Monday.

Turkish Energy Minister Taner Yıldız previously said Turkey was working on a master plan for electricity interconnection in the southern and eastern Mediterranean countries including Syria, Lebanon, Jordan, Palestine, Egypt, Libya, Morocco and Algeria during his official visit to Cairo accompanying Turkey’s Prime Minister Recep Tayyip Erdoğan on Sept. 14.

Talking about the investment opportunities in Iraq’s natural gas, oil and electricity, Khatteeb said, “Especially northern Iraq is a safe haven for investments.”

He said both countries already reached a total trade volume of $6 billion as of the end of last year. “Now the countries are targeting $10 billion in a few years’ time,” he said.

According to Al Khatteeb, the close trade bonds between the parties require more cooperation in energy. “Once we start to have surplus capacity, Iraq can be well connected to Europe through Turkey and export electricity through an interconnected regional network,” said Al Khatteeb speaking about the future plans of the Iraqi government. “These are goals for the future but they are very possible.”

According to him, if there could be a proper national strategy on the Iraqi side, these plans would be well implemented.

Developing gas fields

Iraq has an estimated 112 trillion cubic feet of natural gas reserves. The Akkas field on Syria’s border has estimated reserves around 5.6 trillion cubic feet; the Mansouriya field located in the northern province of Diyala has 4.5 trillion cubic feet; and the Siba field on the Kuwaiti border has approximately 1.1 trillion cubic feet of reserves, according to Iraq’s Oil Ministry. Kuwait Energy Co., Türkiye Petrolleri and the Korea Gas Corp signed contracts to develop Iraq’s Mansouriya and Siba gas fields at a ceremony in Baghdad on Nov. 14.

“Turkey has an important role in the region,” said Simon Stolp, senior energy specialist of the Word Bank, speaking to the Daily News during the conference. “The country can contribute to Iraq’s energy projects through technical advice and Turkish expertise in energy.”

Commenting on Turkey’s electricity master plan, Stolp said, “There is an ongoing discussion in developing an integrated network and Turkey will be a significant priority in that.”

Still he added that “the current transmission links of Iraq are still low in capacity for a regional network.”

Noting that Iraq needs nearly $4 billion in direct investment over 20 years in gas and electricity, Stolp said, “We continue the discussions and Iraq might take part in such a network in the future.”

Monday, September 26, 2011
GÖKHAN KURTARAN
ISTANBUL- Hürriyet Daily News

Turkey to Host D-8 Industry Ministers’ Summit

Istanbul city will host the 2nd Industry Ministers’ Summit of D-8 (Developing Eight) countries between October 4 and 6.

D-8
D-8

 

 

Participants will discuss cooperation to produce automotive through joint research & development projects, sharing experiences in environment issue, setting common policies in environment issue, energy supply, food certification, joint research & development on electricity and information technologies, and projects on petrochemical area.
Turkish Science, Industry & Technology Minister Nihat Ergun told A.A on Saturday that the first of the summit took place in Iran two years ago, and they had decided to hold the second meeting in Turkey.
The second meeting, which would take place in Halic Congress Center in Istanbul, would be more comprehensive than the first one, said Ergun, adding that businessmen delegations from D-8 member states would attend the summit.
Ergun said that the population of D-8 countries was nearly one billion, adding that there was a large market, but they could not set up a sound cooperation since D-8 had been founded.
We target to increase the trade volume among D-8 countries to 100 billion USD within the next five years, said Ergun.
D-8 was established in 1997 upon invitation of Turkey and participation of Iran, Pakistan, Bangladesh, Malaysia, Indonesia, Egypt and Nigeria.
All of the D-8 member states are also the members of the Organization of the Islamic Cooperation.

 

Saturday, 24 September 2011

A.A

 

 

 

 

 

 

 

 

 

Derviş: Turkey promises a lot, could become a leading economy by 2023

19 September 2011, Monday

The Brookings Institution Vice President Kemal Derviş, who is also an advisory board member at Sabancı University, has said that Turkey could become one of the leading economies in the world by 2023 if its current dynamism continues over the next decade.

Kemal Derviş previously served as the Minister of Finance in Turkey for more than a year after the country was hit by two financial crises in early 2000s.
Kemal Derviş previously served as the Minister of Finance in Turkey for more than a year after the country was hit by two financial crises in early 2000s.

“Turkey has made significant progress in the last 10 years; its population is quite dynamic and the private sector and all working Turks have made great contributions to the national economy. However, everybody knows that you cannot remain untouched by the current negative developments in global markets. For instance, Turkey was also affected from the global financial crisis of 2009 when developed economies experienced a recession. You cannot expect a country like Turkey, whose economy is integrated in the world, to be untouched by developments around the world.

However, Turkey can make more progress in the coming 10 years as it has done in the past 10 years. Maybe after a long journey it can join the world’s leading economies by 2023, the 100th centennial of the Turkish Republic, with the continuation of this current dynamism,” Derviş told the Anatolia news agency on Sunday in New York.

Following a high-profile scandal that touched the International Monetary Fund (IMF) in May, when Dominique Strauss-Kahn was forced to step down, the position of chief was left wide open for several strong candidates. Many top news agencies around the world named Derviş as one of the leading candidates for the top IMF position. Turkey’s ruling Justice and Development Party (AK Party) government gave its full support to Derviş, who was also the former head of the United Nations Development Programme (UNDP). However, Derviş said he would not run for the top IMF job. Former French Economy Minister Christine Lagarde was later chosen as the new IMF chief.

Derviş, a former finance minister in Turkey, commented about developments around the world, observing there are very serious economic problems in some countries. “Budget talks in the US that became deadlocked, the debt crisis in formerly wealthy countries and political mechanisms in the US, Europe and Japan that aren’t working completely, have led to serious problems in the world economy,” Derviş said.

“On the other hand, the debt problem in the eurozone shows that without political partnership, a monetary union is not possible. A joint monetary policy should be developed in the eurozone or the euro will face even more severe problems,” he said.

“It is very pleasing to see emerging countries such as Turkey achieving high growth figures. However, like many experts underline, the high current account deficit [CAD] exposes a vulnerability to [the Turkish] economy. A CAD around 4-5 percent is sustainable but a CAD at 8 percent or greater is high. Therefore, anything [that can be done] should be done to lower this figure; I am sure everyone is aware of this issue. To decrease the CAD long-term structural reforms should be implemented and more importantly, domestic savings should be increased,” outlined Derviş.

After the economic meltdown around 2001 in Turkey, the coalition government appointed Derviş, who was the World Bank vice president, as its economy minister and pinned all its hopes on him to sort out the country’s economic turbulence. It was a time when 11 banks went bankrupt, the İstanbul Stock Exchange (İMKB) recorded a historic 18.1 percent loss in shares on Feb. 21, 2001, overnight interest rates on loans reached 7,500 percent and the lira lost half its value following a domino effect of events. Referring to those hard times in 2001, Derviş said it was common sense in the country that enabled it to emerge from that crisis.

“Like every single person who experiences hard times personally, countries can also witness some hard times. Turkey was able to overcome its economic crisis in 2001 and better policies have been implemented since that time. However, I think that the Turkish people and their dynamism was the real determinant behind the country overcoming that crisis. The common sense of the people while enduring the difficult times is the real story behind the economic success of Turkey since 2001,” he noted.

 

TODAY’S ZAMAN, İSTANBUL