Pestle Analysis Turkey
PESTLE Analysis
PESTLE ANALYSIS Summary
The Turkish government is made up of democratically elected representatives of the people divided into several ruling bodies. In September 2010, a referendum on constitutional reform backed amendments to increase the control of parliament over the army and the judiciary. Turkey is a strong proponent of liberal trade and investment policies. The European Union (EU) accession negotiations have required the country to increase the role of the private sector in the economy, enhance the financial sector’s efficiency and resiliency, and strengthen the social security system. However, the country faces challenge from Kurdish militants, and relations with Iran, Syria, Israel, and Cyprus are precarious. In addition, tensions between the ruling Justice and Development Party (Adalet ve Kalkinma Partisi [AKP]) and the Turkish Armed Forces (Turk Silahli Kuvvetleri [TSK]) have intensified since June 2009. The implementation of several reforms has resulted in a strong financial sector in the country. The Turkish banking sector maintained a sound growth path in 2010, with net profit of $13.9bn. The financial sector had a compound annual growth rate (CAGR) of 20% during 2002–10, and was not affected by the global financial crisis. The country has followed sound macroeconomic strategies in combination with strong fiscal policies and structural reforms to manage economic progress and attract more foreign direct investment (FDI). However, the country’s declining current account balance has hindered its economic stability. The median age of the population was around 27 in 2010. With the rest of Europe facing the problem of an aging population, the country has an opportunity to increase its employment rate by capitalizing on its young labor force. To further improve healthcare coverage, which is currently at 80%, the government assigned new staff to areas with a low density of doctors. However, the country suffers from low human development
PESTLE ANALYSIS Summary
The Turkish government is made up of democratically elected representatives of the people divided into several ruling bodies. In September 2010, a referendum on constitutional reform backed amendments to increase the control of parliament over the army and the judiciary. Turkey is a strong proponent of liberal trade and investment policies. The European Union (EU) accession negotiations have required the country to increase the role of the private sector in the economy, enhance the financial sector’s efficiency and resiliency, and strengthen the social security system. However, the country faces challenge from Kurdish militants, and relations with Iran, Syria, Israel, and Cyprus are precarious. In addition, tensions between the ruling Justice and Development Party (Adalet ve Kalkinma Partisi [AKP]) and the Turkish Armed Forces (Turk Silahli Kuvvetleri [TSK]) have intensified since June 2009. The implementation of several reforms has resulted in a strong financial sector in the country. The Turkish banking sector maintained a sound growth path in 2010, with net profit of $13.9bn. The financial sector had a compound annual growth rate (CAGR) of 20% during 2002–10, and was not affected by the global financial crisis. The country has followed sound macroeconomic strategies in combination with strong fiscal policies and structural reforms to manage economic progress and attract more foreign direct investment (FDI). However, the country’s declining current account balance has hindered its economic stability. The median age of the population was around 27 in 2010. With the rest of Europe facing the problem of an aging population, the country has an opportunity to increase its employment rate by capitalizing on its young labor force. To further improve healthcare coverage, which is currently at 80%, the government assigned new staff to areas with a low density of doctors. However, the country suffers from low human development