Have you ever installed a line at the power plant of the district?
Güven Sak, PhD
21 January 2011
Two Turkish firms producing electricity power plants have turned into giants of the sector thanks to the rising demand in the Iraqi market
[More]
Arbil looks increasingly like Turkey
Güven Sak, PhD
18 January 2011
The bigger the opportunity, the bigger the responsibility. We have a lot to do. I have been in Arbil for a couple of days. Arbil is the capital of the Kurdish Autonomous Administration in Iraq. Last week I was in Sana, Yemen's capital. Arbil does not look at all like Sana. Let me explain why I think Arbil is different. Are you ready for some comparative impressions?
[More]
No profits, no sector
Güven Sak, PhD
14 January 2011
The problem in the animal breeding sector can be solved with a policy that guides the firms Signs started to emerge in December. First Banvit and than Koç Holding declared that they would stop breeding for red meat production. What this means is that the Ministry of Agriculture and Animal Breeding has once again taken the wrong path with respect to its animal breeding policy. The problem originated due to the wrong animal feed policy. This time the ill-designed carcass meat importation policy was to blame. Turkey, which is going through a process of deindustrialization, does not perform well in the animal breeding sector, either. Recently, Minister Mehdi Eke successfully explained why we are way off base. His statement had two parts, each of which conflicted with the other.
[More]
Can the budget deficit be remedied by raising oil prices?
Güven Sak, PhD
11 January 2011
Those wondering when Turkey's credit score will be upgraded must start thinking about how Turkey's public savings can be improved. Public finance was the top priority agenda item of the last week both in Pakistan and the USA. The United Kingdom, Bolivia and Algeria have recently taken similar steps to improve public savings. Turkey also has followed this path to improve public savings and has raised oil prices. The qualifications of the steps taken to this end give hints about the quality of the public finance system in a country. According to this, there are two types of countries: those with a modern public finance system and others. Turkey is among the latter. This is the first thing those wondering why Turkey's credit score has not been upgraded should check.
[More]
“No wise man enters the industrial sector in this milieu”
Güven Sak, PhD
07 January 2011
I hear the above statement in different forms with increasing frequency these days. Yesterday, the Industrial Strategy and Action Plan was announced. The timing could not have been more suitable. I believe that in the current milieu it is of critical importance to issue an industrial strategy if only just to stress that 'industry matters.' Let us examine why the statement "No wise man enters the industrial sector in this milieu" has become so popular lately.
[More]
An unmanaged economy accumulates risks
Güven Sak, PhD
04 January 2011
2011 will be the year to avoid behaving like Procrustes. Administrators had better be cautious. 2011 will be a year requiring cautious economic administration. As everyone is giving a name to the year, let me add my own. I think 2011 will be the year to avoid behaving like Procrustes. Let me tell you why.
[More]
MOBESE doesn’t count
Güven Sak, PhD
31 December 2010
Investment on MOBESE for instance are also counted as public expenditure. Recently the Honorable PM of Turkey, Tayyip Erdoğan, visited Mardin, I guess. What happened was what normally happens in a small town visited by the PM, in the same order as it always has. The Honorable PM naturally will deliver a couple of speeches, which is the main point indeed. And at that exact point, Mr. Erdoğan said, "We have made an investment in your city for the new surveillance system, the Mobile Electronic System Integration Project (MOBESE)." And he went on to talk about other public expenditure items. It was quite surreal. So today let me argue that "MOBESE does not count." If you wonder what I mean, please read on.
[More]
Where can Turkey go with this zero-reform policy?
Güven Sak, PhD
30 December 2010
There is a big difference between pre and post-2007 Turkey. Leaving behind the politically and economically unstable country image, Turkey started the second millennia with an ambitious reform program that stabilized most macroeconomic parameters. Add to this the European Union accession process that brought a series of political reforms aimed at strengthening democratic standards as well as free-market institutions. Then came the general elections in 2007, closure case against the AKP in 2008, local elections in 2009, and of course the global financial crisis. We have seen no major structural reforms in the Turkish economy ever since 2007. Global crisis has led the government to basically a period of wait and see. The only reform attempt that has started and been completed is the ban on s
[More]
World War I has ended just in 2010.
Güven Sak, PhD
28 December 2010
How will 2011 be for Turkey's economy? What will be the determinant factors?
[More]
Silence of the east augurs no good.
Güven Sak, PhD
24 December 2010
The problem is not limited to Southeastern Anatolia.; it seems industry did not visit the said part of the country. The era of shouting about the Kurdish issue was ended a while ago by the Honorable Prime Minister. The Don't War, Talk campaign initiated by the the daily Radikal daily also is also related to the end of the "shouting era." Today we are in a process where any matter and proposal related to the Kurdish issue is made clear and discussed openly. This is a good thing. Listening to what others say rather talking at the same time with other will better the circumstances. But the silence of the east augurs no good. It is related not only to the silence of the residents. In the east, the machinery is also silent and production plants are nonexistent. How can we define this silence an
[More]
