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Prices are set to double and tourism market exploding.

The Turkish Economy

Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that in 2001 still accounted for 40% of employment.

It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The most important industry - and largest exporter - is textiles and clothing, which is almost entirely in private hands. In recent years the economic situation has been marked by erratic economic growth and serious imbalances.

Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. Meanwhile, the public sector fiscal deficit has regularly exceeded 10% of GDP - due in large part to the huge burden of interest payments, which accounted for more than 40% of central government spending in 2003.

Inflation, in recent years in the high double-digit range, fell to 11.3% in 2004. Perhaps because of these problems, foreign direct investment in Turkey remains low - less than $1 billion annually.
Results in 2002-04 improved, because of strong financial support from the IMF and tighter fiscal policy. A major political and economic issue over the next decade is whether or not Turkey will become a member of the EU.


The European Union

Turkey first applied for associate membership in the European Economic Community in 1957, and finally signed an Association Agreement in 1963. This provided for the future possibility of full membership. Turkey made such an application on 14 April 1987. Though this application was rejected by the Commission in 1989, on the basis of its poor economy and human rights record, Turkey's eligibility for membership was confirmed.

During the 1990s Turkey proceeded with a closer integration with the European Union by agreeing to a customs union in 1995 (in effect since 1996). Moreover the Helsinki European Council of 1999 again stated that Turkey was a candidate for full membership on the same basis as other candidates, namely the fulfilment of the Copenhagen criteria.

Another significant aspect of this summit was that Greece for the first time withdrew its longstanding objections over giving Turkey official candidate status. In return, Turkey agreed (but have not yet fully acted) to cooperate for a solution on the problem of divided Cyprus, while the European Union pledged that such a solution would not however be a prerequisite on the future accession of the Republic of Cyprus into the Union. Around this time a strong and wide-reaching reform program was also initiated under the Justice and Development Party (AKP), a popular pro-European party with Islamist roots.

The next significant step in Turkish-EU relationships came with the December 2002 Copenhagen European Council. According to it "The EU would open negotiations with Turkey 'without delay' if the European Council in December 2004, on the basis of a report and a recommendation from the Commission, decides that Turkey fulfils the Copenhagen political criteria."

Turkey also backed the latest EU-supported UN plan to reunite Cyprus in 2004, however the rejection of the UN plan by Greek Cypriot voters prompted Turkey to continue its military occupation of northern Cyprus. At the same time a three-decade long period of hyperinflation ended, with inflation being reduced to 6% in recent years from annual levels of 75% during the mid-90s.

Also the political reform program of the Erdoðan government continued. Some specific developments during this time included:

Turkey ratified the Sixth Protocol to the European Convention on Human Rights and signed the 13th Protocol, meaning it has abolished the death penalty for all peacetime crimes and intends to abolish it for wartime crimes.
The AKP government has lifted a small part of the large-scale ban on the teaching of Kurdish; now there are two private schools teaching Kurdish - although it does not yet accept the use of Kurdish in regular education (as required by European conventions in those areas historically and currently inhabited by Kurds).
In response to these developments, the European Commission recommended that the negotiations should begin in 2005, but also added various precautionary measures. The EU's leaders agreed on 16 December 2004 to start accession negotiations with Turkey from 3 October 2005. The country's eventual accession now faces democratic approval processes in European and member states legislative procedures.


The External Boundaries of Turkey

Turkey is bounded by eight countries and six bodies of water. Surrounded by water on three sides and protected by high mountains along its eastern border, the country generally has well-defined natural borders. Its demarcated land frontiers were settled by treaty early in the twentieth century and have since remained stable. The boundary with Greece--206 kilometres--was confirmed by the Treaty of Lausanne in 1923, which resolved persistent boundary and territorial claims involving areas in Thrace and provided for a population exchange. Under the agreement, most members of the sizable Greek-speaking community of western Turkey were forced to resettle in Greece, and the majority of the Turkish-speaking residents of Greek Thrace were removed to Turkey. The 1923 treaty also confirmed Turkey's 240-kilometer boundary with Bulgaria.


The Geograpghy of Turkey

Turkey is a large, roughly rectangular peninsula situated bridge-like between south-eastern Europe and Asia. Indeed, the country has functioned as a bridge for human movement throughout history. Turkey extends more than 1,600 kilometres from west to east but generally less than 800 kilometres from north to south. Total land area is about 779,452 square kilometres, of which 755,688 square kilometres are in Asia and 23,764 square kilometres in Europe.

The European portion of Turkey, known as Thrace (Trakya), encompasses 3 percent of the total area but is home to more than 10 percent of the total population. Thrace is separated from the Asian portion of Turkey by the Bosporus Strait (Istanbul Bogazi or Karadeniz Bogazi), the Sea of Marmara (Marmara Denizi), and the Dardanelles Strait (Çanakkale Bogazi). The Asian part of the country is known by a variety of names--Asia Minor, Asiatic Turkey, the Anatolian Plateau, and Anatolia (Anadolu). The term Anatolia is most frequently used in specific reference to the large, semiarid central plateau, which is rimmed by hills and mountains that in many places limit access to the fertile, densely settled coastal regions.

Astride the straits separating the two continents, Istanbul is the country's primary industrial, commercial, and intellectual centre. However, the Anatolian city of Ankara, which Atatürk and his associates picked as the capital of the new republic, is the political centre of the country and has emerged as an important industrial and cultural centre in its own right.


The Geology of Turkey

Turkey's varied landscapes are the product of complex earth movements that have shaped Anatolia over thousands of years and still manifest themselves in fairly frequent earthquakes and occasional volcanic eruptions. Except for a relatively small portion of its territory along the Syrian border that is a continuation of the Arabian Platform, Turkey geologically is part of the great Alpine belt that extends from the Atlantic Ocean to the Himalaya Mountains. This belt was formed during the Tertiary Period (about 65 million to 1.6 million B.C.), as the Arabian, African, and Indian continental plates began to collide with the Eurasian plate, and the sedimentary layers laid down by the prehistoric Tethyan Sea buckled, folded, and contorted. The intensive folding and uplifting of this mountain belt was accompanied by strong volcanic activity and intrusions of igneous rock material, followed by extensive faulting during the Quaternary Period, which began about 1.6. Million B.C. This folding and faulting process is still at work, as the Turkish and Aegean plates, moving south and southwest, respectively, continue to collide. As a result, Turkey is one of the world's more active earthquake and volcano regions.

Turkey's terrain is structurally complex. A central massif composed of uplifted blocks and downfolded troughs, covered by recent deposits and giving the appearance of a plateau with rough terrain is wedged between two folded mountain ranges that converge in the east. True lowland is confined to the Ergene Plain in Thrace, extending along rivers that discharge into the Aegean Sea or the Sea of Marmara, and to a few narrow coastal strips along the Black Sea and Mediterranean Sea coasts. Nearly 85 percent of the land is at an elevation of at least 450 meters; the median altitude of the country is 1,128 meters. In Asiatic Turkey, flat or gently sloping land is rare and largely confined to the deltas of the Kizilirmak River, the coastal plains of Antalya and Adana, and the valley floors of the Gediz River and the Büyükmenderes River, and some interior high plains in Anatolia, mainly around Tuz Gölü (Salt Lake) and Konya Ovasi (Konya Basin). Moderately sloping terrain is limited almost entirely outside Thrace to the hills of the Arabian Platform along the border with Syria.

More than 80 percent of the land surface is rough, broken, and mountainous, and therefore is of limited agricultural value. The terrain's ruggedness is accentuated in the eastern part of the country, where the two mountain ranges converge into a lofty region with a median elevation of more than 1,500 meters, which reaches its highest point along the borders with Armenia, Azerbaijan, and Iran. Turkey's highest peak, Mount Ararat (Agri Dagi) about 5,166 meters high, is situated near the point where the boundaries of the four countries meet.


The Climate in Turkey

Turkey's diverse regions have different climates, with the weather system on the coasts contrasting with that prevailing in the interior. The Aegean and Mediterranean coasts have cool, rainy winters and hot, moderately dry summers. Annual precipitation in those areas varies from 580 to 1,300 millimetres, depending on location. Generally, rainfall is less to the east. The Black Sea coast receives the greatest amount of rainfall. The eastern part of that coast averages 1,400 millimetres annually and is the only region of Turkey that receives rainfall throughout the year.

Mountains close to the coast prevent Mediterranean influences from extending inland, giving the interior of Turkey a continental climate with distinct seasons. The Anatolian Plateau is much more subject to extremes than are the coastal areas. Winters on the plateau are especially severe. Temperatures of -30°C to -40°C can occur in the mountainous areas in the east, and snow may lie on the ground 120 days of the year. In the west, winter temperatures average below 1°C. Summers are hot and dry, with temperatures above 30°C. Annual precipitation averages about 400 millimetres, with actual amounts determined by elevation. The driest regions are the Konya Ovasi and the Malatya Ovasi, where annual rainfall frequently is less than 300 millimetres. May is generally the wettest month and July and August the driest.

The climate of the Anti-Taurus Mountain region of eastern Turkey can be inhospitable. Summers tend to be hot and extremely dry. Winters are bitterly cold with frequent, heavy snowfall. Villages can be isolated for several days during winter storms. Spring and autumn are generally mild, but during both seasons sudden hot and cold spells frequently occur.
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