PESTLE analysis
PESTLE ANALYSIS
Summary
The Turkish government is made up of democratically-elected representatives of the people, divided into several ruling
bodies. In 1997, the military forced the resignation of the Erbakan government to end the increasing social and political
power of Islamic institutions. Instability continued to increase, with the implementation of policies which secularized
education, and political leaders implicated in corruption charges. Soon Turkey witnessed a series of cabinet changes and
the year 2001 ended with acute economic crisis. On the international front, in 2002 and 2004, the Turkish parliament
passed certain human rights laws with the aim of strengthening the country’s association with the EU.
Turkey experienced a series of economic disruptions after the 1950s, which resulted in a balance-of-payments crisis by the
1970s. With ineffective structural reforms, Turkey had witnessed current account deficits, which it financed by external
borrowing that led to an increase in the country's external debt. The Turkish government failed to take sufficient measures
to tackle the increase in world oil prices during the 1970s, and borrowed short-term loans from foreign lenders; with rising
inflation and unemployment, the government found it increasingly difficult to repay the interest on these loans. After 2000,
however, Turkey’s economy gradually benefited from prudent fiscal and monetary policies coupled with a significant
reduction of expenditure on public infrastructure development.
On the social front, Turkey has been faring well on various social parameters, mainly because of the manifold programs
that the government initiated for fiscal sustainability in the areas of healthcare and pensions. Some of the most important
social welfare schemes that the government provides are unemployment insurance, medical insurance, insurance for workrelated injuries, maternity insurance and housing security. Turkey aims to make radical changes in the public service sector
by introducing advanced technologies; the country also intends to increase productivity in the long run by allocating more
resources to R&D activities in both the public and private sectors. The government has been trying to make the country an
attractive destination for foreign money by encouraging more infrastructure investment, which contributes significantly to
the economic growth of the country through the diffusion of technology, positive externalities and capital inflows. Turkey
has an independent judicial system responsible for the maintenance of law and order. As for ecological concerns, Turkey is
involved in global environmental conservation programs and has linked its development aid to environmental objectives
and policies focusing on air pollution, biodiversity, chemical substances, environmental health and issues such as climate
change. However, Turkey suffers from industrial air pollution from power plants and the cement, fertilizer and sugar
industries, which continues to be an area of concern.
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PESTLE analysis
Political analysis
Overview
Turkey has been a strong promoter of liberal trade and investment policies and the recent governments have shown a
sustained commitment to focus on improving economic policies. Turkey became a candidate for EU membership at the
Helsinki Summit in 1999. Nevertheless, increasing corruption and a perceived lack of political commitment continue to
discourage prospective international investors.
Table 3: Analysis of Turkey’s political landscape
Current strengths
Current challenges
▪ Government policies on liberalization
▪ Terrorist attacks
▪ Rampant political and bureaucratic corruption
Future prospects
Future risks
▪ Membership of the EU
▪ Troubled relations with neighbors
Source: Datamonitor
DATAMONITOR
Current strengths
Government policies on liberalization
Turkey is a strong proponent of liberal trade and investment policies. It has an open trading system, especially with the
countries in the EU, with which it forged a customs union agreement in 1996. The agreement led to a positive shift in
Turkey’s trade policy, allowing many Turkish firms to successfully extend their presence in the global economy. Exports
have increased at an average of rate of 10% every year in real terms over the past decade. The automobile sector in
Turkey has benefited from the trade agreement; automotive exports as a percentage of GDP have grown significantly. In
effect, these policies have stabilized inflation rates and have led to higher levels of investment and trade.
Current challenges
Terrorist attacks
Turkey has witnessed a sporadic series of violent terrorist acts in the past, and it is believed that there are terrorist groups
in the country. It has historically been under threat from widely disparate terrorist groups, including left-wing and Kurdish
radicals, indigenous Islamic extremists, and Turkish militants with suspected links to Al-Qaeda. Furthermore, in 2006, the
state police in Ankara informed the press about the involvement of a group of military officers in a plot to weaken the Adalet
ve Kalkınma Partisi (AKP) government.
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PESTLE analysis
Most of the terrorist organizations in Turkey have targeted foreign tourists or assets in the country. Since 2004, the
Kurdistan Workers Party (PKK) has been working to damage the Turkish tourism industry by targeting foreign tourists. Over
the years, radical Turkish Islamists have plotted several attacks in Turkey, the majority of which have been prevented. The
intention behind these schemes has been to hamper the foreign interests in the country, including institutions, businesses
and personnel associated with the US and the UK. These repeated terrorist attempts will inevitably increase the security
risk in the country and hamper its growth prospects.
Rampant political and bureaucratic corruption
Turkey faces widespread corruption in its political and bureaucratic machinery. The 2008 Global Corruption Report,
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published by anti-corruption organization Transparency International (TI), ranked Turkey 64 in its corruption perception
index. According to both TI and the World Bank, corruption at the institutional level has traditionally been a cause of
hesitancy among prospective investors.
According to the 2007 activity report of the Turkish Police Department's Anti-Smuggling and Organized Crime
Administration (KOM), several bureaucrats have been found to be involved in corrupt activities during various operations
carried out by the police. The officials who were embroiled in these scandals were sacked from their jobs. Turkey’s outlook
for the future looks dismal as a result of increasing corruption cases and a perceived lack of political commitment.
Future prospects
Membership of the EU
In the 1999 Helsinki Summit, Turkey became a candidate for EU membership. This was a follow-up from the customs union
signed with the EU in 1995. This initiative has lead to the implementation of several political and economic reforms in the
country. For instance: after 2001, Turkey entered a period of high growth and significant structural transformation, with an
average annual growth of 7.5%. Turkey has been able to sustain this position due to the government's continued
commitment to improve its economic policies. The prospect of EU accession has helped Turkey increase its exports and
draw large capital inflows.
Future risks
Troubled relations with neighbors
Turkey’s relations with its neighbors, especially Greece, have been showing signs of improvement. Nevertheless, the
progress in its business relations does not change the fact that territorial disputes with its neighbors, in particular with
Greece over Cyprus, continue to cause political tension. Furthermore, a rift between Turkey and its ally the US, over
Ankara's intention to send troops into northern Iraq to fight Kurdish rebels, could further weaken its relations with the
international community and damage its investment climate.
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PESTLE analysis
Economic analysis
Overview
The economic structure of Turkey is well supported by the fiscal and monetary policies of the government. Moreover, the
healthy flow of FDI into the country is boosting its economic development. The Turkish government also plans to implement
free trade agreements (FTAs) with the intention of encouraging foreign and domestic investors and thereby improving
competitiveness. Despite recent initiatives, such as the easing of overtime restrictions, the Turkish labor market remains
relatively rigid compared to international standards.
Table 4: Analysis of Turkey’s economy
Current strengths
Current challenges
▪ High inflow of foreign investment
▪ Current account deficit
▪ Prudent fiscal and monetary policies
Future prospects
Future risks
▪ Implementation of free trade agreements
▪ Rigid labor market
Source: Datamonitor
DATAMONITOR
Current strengths
High inflow of foreign investment
Foreign investment plays a strong role in Turkey’s rapid expansion and has been a driving force of its economic growth
engine. The country received FDI worth $20 billion in 2006 compared to $2.7 billion in 2004, and it is anticipated that this
will surpass $20 billion in 2008. The privatization program, scheduled to be implemented in 2008, includes the sale of major
bridges, highways, electricity grids and a stake in the partly privatized commercial bank, Halkbank. The money inflow
through foreign investment in Turkey will be useful for expanding the infrastructure of the country.
The significant increase in the inflow of foreign investment to Turkey proves the country’s considerable economic size and
quality of labor force.
Prudent fiscal and monetary policies
Turkey’s economy has significantly benefited from prudent fiscal and monetary policies. The government has sought to
tighten fiscal policies through the significant reduction of expenditure on public infrastructure development. Furthermore,
the government significantly increased the prime lending rates for commercial banks to extract excess liquidity out of the
market. Inflation in Turkey has witnessed a significant drop, as private investments have been increasing since 2003. The
inflation rate of Turkey declined from 25.3% in 2003 to 8.5% in 2007, remaining in single digits during 2006 despite the
depreciation of the Turkish lira. The Turkish central bank has been successful in lowering inflation since 2001, keeping it
down by tightening fiscal policies and implementing structural reforms that resulted in high productivity growth.
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PESTLE analysis
Current challenges
Current account deficit
Turkey's declining current account balance has been hindering its economic stability. The current account deficit was $37.5
billion in 2007, compared to $8 billion in 2003. Imports have witnessed a sharp rise as a result of increased global
commodity prices and a strong Turkish lira. The current account deficit makes the country even more susceptible during
times of global financial uncertainty.
Future prospects
Implementation of free trade agreements
The Turkish government plans to implement FTAs to encourage foreign and domestic investors and boost competitiveness.
As part of this, the country entered into several trade agreements with various countries, including Jordan, Lebanon, the
Faeroe Islands, Albania, South Africa and Mexico. During April 2008, Turkey entered into an agreement with Albania to
boost economic and commercial relations between the two countries and promote joint investments between Turkish and
Albanian businessmen. Moreover, Turkey wants to forge a FTA with India by increasing the annual bilateral trade between
the two countries to $10 billion by 2012. Turkey also aims to broaden its business relations with India so as to narrow its
trade deficits. These FTAs will greatly improve the prospects of economic expansion in Turkey.
Future risks
Rigid labor market
Despite initiatives such as the easing of overtime restrictions, the Turkish labor market remains relatively rigid by
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international standards. According to the World Bank's Doing Business report 2007, Turkey is ranked 146 among 178
countries in regard to the difficulties faced by businesses in hiring and firing workers. The current labor market scenario is
also stiff because the business sector in the country is finding it difficult to respond to competitive pressures and create an
adequate number of jobs. To tackle this situation, governments need to take initiatives that would make Turkish laws and
regulations more flexible. An overhaul of labor markets is essential to regain lost competitiveness and reduce the
unemployment rate.
In addition, high taxes on wages also contribute to Turkey's rigid labor market. The tax wedge, which is the share of
employee earnings taken by the government, is equivalent to the difference between labor costs to the employer and the
net take-home pay of the employee, including any cash benefits received from government welfare programs. For a family
of four, Turkey's tax wedge was significantly higher than other OECD countries at 42.7%, and 15 percentage points higher
than the OECD average wedge of 27.7% as of 2005. The rate of the tax wedge on wages has not kept pace with
productivity, making the economy uncompetitive.
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PESTLE analysis
Social analysis
Overview
Turkey has been grappling with the problems of high unemployment levels and the lack of a proper educational system.
Turkey’s infant mortality rate is six to seven times higher than that of the members of the EU. The government has initiated
programs for fiscal sustainability, and reforms are expected to be undertaken in the areas of healthcare and the pension
system. Some of the most important social welfare schemes that the government has been providing are unemployment
insurance, medical insurance, insurance for work-related injuries, maternity insurance and housing security. The system is
financed primarily by contributions made by employers and through the payroll deductions of employees. With the recent
reforms in the education system, it can be expected that the tertiary education scenario will improve and the growing
mismatch between academic and industrial needs will be rectified.
Table 5: Analysis of Turkey’s social system
Current strengths
Current challenges
▪ Growing percentage of young population
▪ Low human development index
▪ Increasing infant mortality
▪ High level of unemployment
Future prospects
Future risks
▪ Overhaul of social policies
▪ Ineffective social security system
▪ Inadequate education system and infrastructure
Source: Datamonitor
DATAMONITOR
Current strengths
Growing percentage of young population
More than half the population of Turkey is aged below 30. With the rest of Europe facing the problem of an increase in the
average age of its population, Turkey has an opportunity to increase the employment rate within the country by capitalizing
on its young labor force. In addition, European small and medium enterprises (SMEs), as well as countries such as Austria,
Italy and Spain, have been showing an interest in investing in Turkey.
Current challenges
Low human development index
Turkey has historically shown weak performances on various social parameters, mainly because of its policies on such
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matters. The human development index (HDI) of Turkey is 0.775 and the country is ranked 84 among the 177 countries
rated. Life expectancy at birth is 71.4 years, while the combined primary, secondary and tertiary gross enrolment ratio is at
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PESTLE analysis
68.7%. Turkey also fares low in terms of gender equality. Turkey’s gender-related development index (GDI) value is 0.763.
GDI measures achievements by using the HDI indicators, but captures also inequalities in achievements between women
and men. The index indicates Turkey’s inability to create a positive social climate for women.
Increasing infant mortality
Turkey has a dismal infant mortality rate. The country’s infant mortality rate is six to seven times higher than that of the
members of the EU. For instance, the total number of deaths per 1000 live births during 2006 was approximately 37 in
Turkey, making it the country with the worst infant mortality rate in Europe. Among males the rate was 40 deaths per 1,000
live births, while among females it was 33 per 1,000 live births. The insufficiency of several of Turkey's preventive and
protective health services is the major cause for the high infant mortality rate in the country.
High level of unemployment
Turkey’s highly regulated labor market has led to high employment costs and increasing levels of unemployment.
According to the report released by the Turkish Statistics Institute, the number of unemployed people in 2007 increased by
approximately 38,000 to reach 2.3 million.
In early 2008, Turkey‘s population consisted of around 49.7 million people aged over 15 years: an increase of 737,000
people compared to the previous year. This rise has made it difficult for Turkey to create sufficient jobs for its population. In
the first quarter of 2008, the unemployment rate in Turkey was 11.6%, compared to 11.4% during the same period in 2007.
The unemployment rates in cities and rural areas were 13.4% and 8.5%, respectively, in the same period. In the first
quarter of 2008, more than 73% of the population who were unemployed comprised males, approximately 56% did not
have a high school education, and 30% had been jobless for a year.
Future prospects
Overhaul of social policies
The Turkish government has undertaken several initiatives to implement policies aimed at improving the social benefits it
provides to its people. The country initiated an IPARD in December 2007 to improve social conditions in settlements and
regional centers. The program, which will run until 2020, aims to improve the social conditions of people living in rural areas
by building hospitals, cultural centers, apartment buildings, roads, power-transmission lines and schools. The program's
objective also includes the modernization of the agricultural sector.
Furthermore, the government intends to allocate funds to improve agricultural holdings and the overall performance and
competitiveness of the food processing industry along with the role of manufacturer groups in agricultural markets. This
initiative would hence contribute to the development of the rural economy, and would promote the formation of microenterprises which would create employment opportunities in the rural areas.
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PESTLE analysis
Future risks
Ineffective social security system
The social security system in Turkey needs some serious enhancements, despite Turkey being the only country in the
world that has made three reforms in social security in two years. The retirement age is currently 44 for women and 48 for
men. The government has also made it clear that it has no plans to increase the retirement age to 65. As a result of both
this and the country's inadequate pension system, the Turkish people are finding it difficult to lead a proper social life after
their early retirement. Moreover, the current security system of Turkey is unsustainable due to low rates of registration
among workers, the underreporting of incomes and drifts in spending, which are causing growing imbalances in the system.
Inadequate education system and infrastructure
To a great extent, Turkey’s education system has been held responsible for the mismatch between labor demand and
supply. In the future, economic growth will be led by the knowledge economy, and Turkey’s educational system may not be
capable of meeting the attendant needs. Furthermore, the primary and secondary schools in Turkey have inadequate
infrastructure and resources. For instance, more than 80% of the primary and secondary schools suffer from a shortage of
teachers, and 87.3% have limited infrastructure and physical space. Along with this, approximately 42% of the schools do
not have a library, while 71.5% have inadequate library facilities. The outmoded education system and lack of infrastructure
facilities in schools are seen as some of the primary reasons for the prevailing unemployment scenario.
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PESTLE analysis
Technological analysis
Overview
Turkey has been slower in adopting technological advances than the EU countries, although policy measures have been
undertaken to expedite this. Total expenditure on R&D in 2006 as a percentage of GDP was 0.6%, compared to 2.3% in
the OECD countries. Nevertheless, over the past decade, Turkey’s telecommunications industry has been booming due to
the liberalization of the market. The number of mobile telephone subscribers increased at a CAGR of 22%, from
approximately 23 million in 2002 to 62 million in 2007. However, the levels of patenting remain extremely low, despite a
rapid increase in recent years. The R&D climate is expected to improve, as the government has been taking several
initiatives towards developing the technological landscape of the country by encouraging foreign entities, prominent
universities and research organizations to foster a culture of innovation.
Table 6: Analysis of Turkey’s technology landscape
Current strengths
Current challenges
▪ Significant development in the ICT sector
▪ Low expenditure on R&D
Future prospects
Future risks
▪ Government encouragement to improve R&D
▪ Lack of innovation and low number of patents
▪ Prospects of joining the EU reversing brain drain
Source: Datamonitor
DATAMONITOR
Current strengths
Significant development in the ICT sector
Turkey witnessed double-digit growth in the ICT market during 2001–07. Turkey’s ICT market reached approximately $24
billion in 2007, compared to $21 billion in 2006. The ICT sector contributed approximately 4% of GNP in 2006, and the
growth rate of this market was about 11% at the end of that year. The number of internet users in Turkey increased from
approximately 10 million in 2004 to 19 million users in 2007, at a CAGR of 23%. The number of mobile telephone
subscribers also increased at a CAGR of 22%, from approximately 23 million in 2002 to 62 million in 2007. The increase in
the ICT sector has been due to the privatization of the Turkish telecommunications sector by the government, which has
provided more scope for employment and attracted new foreign investment projects to Turkey.
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PESTLE analysis
Current challenges
Low expenditure on R&D
Total expenditure on R&D in 2006, as a percentage of GDP, was around 0.6%: well below the overall 2.3% in the OECD
countries. In comparison, France’s expenditure for the same year was 2.13% of GDP, the US's 2.68%, Japan's 3.18% and
Canada's 1.8%. This huge asymmetry points towards the gross inadequacy of investments by both the private and public
sectors in R&D. In the long run, low R&D spending would erode the competitiveness of industries in Turkey.
Future prospects
Government encouragement to improve R&D
The Turkish government is inclined towards developing the technological landscape of the country, and has given
considerable encouragement to foreign entities, prominent universities and research organizations to foster a culture of
innovation. The government initiated a project on science and technology called Vision 2023 for the period 2003–23 under
the co-ordination of the Scientific and Technical Research Council (TUBITAK) and the Supreme Council of Science and
Technology (BTYK). The project mainly covers the implementation of the national Technology Foresight study and seeks to
gather and study information on the technological levels of industrial sectors. Other initiatives undertaken by the
government in this regard include establishing science and technology centers and encouraging the e-commerce network
in the country. The aim of these projects is to originate and formulate new national science and technology policies with the
intention of promoting and encouraging innovation.
Prospects of joining the EU reversing brain drain
There has been an increase in the number of skilled scientists who are returning to Turkey to gain from the opportunities
offered to them by the prospect of joining the EU. A total of 40 scientists left foreign universities and returned to Turkey
during 2005–07. The European Commission has also allocated E4.7 billion to support researchers and institutions during
2007–13. The increase in the number of skilled scientists will provide a boost to the development of technology in the
country.
Future risks
Lack of innovation and low number of patents
The low level of innovation in Turkey is reflected by the low number of patents registered in the country. Although the
number of patents registered is on the rise, it is still far behind the levels seen in EU nations. It compares very poorly to
some EU and developed countries, as illustrated in the table below. A continuation of the trend is likely to hamper the
scientific prospects of the country.
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PESTLE analysis
Table 7: Patents received from the US Patent and Trademark Office by country
Year
Turkey
France
Germany
Japan
US
2000
6
4,173
10,824
32,922
97,011
2001
14
4,456
11,894
34,890
98,655
2002
18
4,421
11,957
36,339
97,125
2003
32
4,126
12,140
37,248
98,590
2004
19
3,686
11,367
37,032
94,129
2005
10
3,106
9,575
31,834
82,586
2006
23
3,856
10,889
39,411
102,267
Source: Datamonitor
DATAMONITOR
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PESTLE analysis
Legal analysis
Overview
Turkey has an independent judicial system responsible for the maintenance of law and order. The Constitutional Court, the
highest constitutional body in Turkey with respect to legislation, determines the constitutionality of legislation prior to the
enactment of new laws. The judicial system is divided into the judicial and administrative orders of courts, and a clear
hierarchy of courts at different levels of states and center exists. The government has been trying to make Turkey an
attractive destination for investment by encouraging more infrastructure investment, which contributes significantly to the
economic growth of the country’s economy through diffusion of technology, positive externalities and capital inflows. Along
with this, the government has reduced the basic rate of corporation tax, with the intention of drawing FDI in Turkey.
However, there exist a lot of loopholes available for those looking to evade the tax system, which is leading to huge
revenue losses for the government.
Table 8: Analysis of Turkey’s legal landscape
Current strengths
Current challenges
▪ Comprehensive legal structure
▪ Judicial inefficiencies
▪ Robust framework for business entities
Future prospects
Future risks
▪ Reduction in tax rates
▪ Existing loopholes in the taxation system
▪ Favorable laws for foreign investment
Source: Datamonitor
DATAMONITOR
Current strengths
Comprehensive legal structure
The judicial system is composed of general law courts, heavy penal courts, military courts, the Constitutional Court and
three high courts. The High Court of Appeals handles criminal cases, the Council of State handles administrative cases,
and the Audit Court inspects the accounts of state institutions. Other courts include the civil, administrative, and criminal
courts. The comprehensive legal structure of the country has the capability to address various bottlenecks and structural
issues in the system and gives foundational strength to the investment climate of the country.
Robust framework for business entities
An entrepreneur in Turkey does not face any lengthy business registration processes for commencing a business. The
overall freedom to start, operate, and close a business is protected by Turkey’s regulatory environment. Starting a business
in Turkey takes an average of six days, compared to the world average of 43 days. Gaining a business license requires
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PESTLE analysis
more than the world average of 19 procedures but less than the world average of 234 days, with costs relatively low. The
robust framework for business entities hence creates a successful commercial environment and drives business growth in
Turkey.
Current challenges
Judicial inefficiencies
Delays in the Turkish judicial system are a serious issue, and have become the subject of debate in recent times.
Furthermore, the political bias of judges has affected legal outcomes. The High Council of Judges and Prosecutors controls
the careers of prosecutors and judges, and thus can sway their decisions. Long pretrial detention and excessively
protracted trials are major concerns. Turkish commercial courts are overloaded with cases, and on average it takes over a
year to resolve each one. In criminal trials, the judicial process have been slow owing to the backlog of cases and court
decisions which are often arbitrary and have been subject to political interference in high-profile cases, which leads to
biased verdicts.
Future prospects
Reduction in tax rates
Turkey has one of the lowest corporate tax rates in the world, with further reductions expected in the coming years. During
2007, the government reduced the basic rate of corporation tax from 30% to 20%. It also introduced and implemented
online filing in an attempt to reduce the time required for preparing trade documentation, with the intention of drawing FDI
into Turkey, and lowered personal income tax from 40% to 37%. This reduction in the tax rates is expected to stimulate the
economic growth of the country.
Favorable laws for foreign investment
Turkey has been a hub for foreign investment over the years. According to the treasury, total foreign investment (including
real property purchases) increased from $2.8 billion in 2004 to approximately $20.1 billion in 2006. The treasury's official
figures for June 2007 reveal that about $10 billion in foreign capital entered the country during the first four months of 2007.
This increase in foreign investment was mainly due to the introduction of law number 4875, or the Foreign Direct
Investment Law, in June 2003 and the Directive for the Implementation of the Foreign Direct Investment Law in August
2003. The implementation of these laws removed almost all of the restrictions and requirements which were imposed on
foreign investors and provided them with the same legal status as Turkish-owned companies under the Turkish
Commercial Code.
The government has been trying to make Turkey an attractive destination for business ventures by encouraging
infrastructure investments. Foreign investment contributes to the economic growth of the country’s economy through the
diffusion of technology, positive externalities and capital inflows.
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Future risks
Existing loopholes in the taxation system
Enforcing regulations has been a challenge for the country and will continue to be the case in the future. The problem
primarily lies with the loopholes available for those looking to evade the system. Furthermore, personal income, company
sales and real-estate prices are frequently under-declared. According to a recent study, 30% of value-added tax (VAT)
revenue in Turkey is never collected. Levels of employment are often concealed in order to avoid the payment of income
tax and social security premiums on employees' salaries. If stringent action is not initiated very soon, the loopholes could
lead to a huge revenue loss for the government.
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PESTLE analysis
Environmental analysis
Overview
Turkey has been a leader with respect to environmental legislation and ranks ninth in terms of biodiversity compared to
other European countries, with over 33% of its flora being endemic. The country is strongly involved in global environmental
issues and has linked its development aid to environmental objectives and policies focusing on air pollution, biodiversity,
chemical substances, environmental health, and global issues such as climate change. Despite the presence of a strong
framework, environmental pollution in Turkey is high due to an increase in the amount of chemicals and detergents being
dumped. There has also been a rise in air pollution, particularly in urban areas.
Table 9: Analysis of Turkey’s environmental landscape
Current strengths
Current challenges
▪ Rich biodiversity
▪ High pollution levels
Future prospects
Future risks
▪ Kyoto Protocol
▪ Increasing levels of hazardous waste
▪ Rising emission levels
Source: Datamonitor
DATAMONITOR
Current strengths
Rich biodiversity
Turkey is acclaimed for its rich natural resource base and ranks ninth in terms of biodiversity compared to other European
countries, with over 33% of its flora being endemic. Turkish flora boasts of many wild species and important domestic
species like wheat, chickpeas, lentils, apples, pears, apricots, chestnuts and pistachios. The Turkish landscape is also
dotted with ornamental flowers like the tulip. The distinctive biodiversity of the country has immense potential for
sustainable development or ecotourism.
Current challenges
High pollution levels
There is an urgent requirement for water treatment plants, wastewater treatment equipment and solid waste management
facilities in Turkey. The main reasons for the current high levels of environmental pollution in Turkey are: the increase in
chemical and detergent effluents; and the rise in air pollution, particularly in urban areas. Furthermore, the discharge of
pollutants by neighboring countries has contaminated the Black Sea.
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