When the Russians did first climb the Everest?
Güven Sak, PhD
24 April 2012
When it comes to entrepreneurship, we belong to the school of “first succeed, then we'll talk.” The height of Mount Everest is 8,848 meters. Climbing Everest is a dream for every mountaineer. Until today, many have attempted to climb to the peak; some have succeeded and some have failed. Climbing to the peak of Everest is such a big deal that there are books and movies about it. Successful attempts to climb the mountain are celebrated and failed attempts are described. Except for one. No one talks about the failed Russian expedition of 1952. So, today let me share an observation on the entrepreneurship culture here and there. Here is the key question: why do Turkish people who have carried out successful R&D activities abroad rust when they return to Turkey? What is it that affects the
[More]
Why do the Turks just not save?
Güven Sak, PhD
21 April 2012
A stronger domestic savings base requires a coherent urbanization strategy. What’s the main difference between Turkey and China? Simple. China is a high-growth country with high savings. Turkey is a high-growth country with low savings. The numbers are very clear on this issue. The result: China’s growth produces a high current account surplus. Turkey’s growth widens the current account deficit, currently at historic levels. The topic of a recent World Bank report on Turkey is just this: Why do the Turks just not save?
[More]
If you spend recklessly, you will end up giving the shirt off your back.
Güven Sak, PhD
20 April 2012
The irresponsible actions of the administration that put healthcare professionals in front of patients cost Dr. Ersin Aslan his life. Any practice of populism leads to a disaster. This is the case for the health sector as for any other. I believe that the uncontrolled widening of the spectrum of services in the Turkish health sector is a sort of populism. The assault that led to the death of doctor Ersin Aslan in Gaziantep is evidence that the populism in the health sector has overstepped the limit. Let me tell you why.
[More]
Can this incentive system create a Samsung?
Güven Sak, PhD
17 April 2012
We are designing our public policies not for the sake of future generations as the Koreans do, but for the sake of the upcoming elections. Last week I argued that the new incentives bill did not have a spirit. Let me carry on from there. To what do I refer when saying "the spirit of the bill"? If you are interested, please read on.
[More]
The Syrian turmoil is bad for business
Güven Sak, PhD
14 April 2012
In a world of non-market economies, you have to be in good terms with foreign capitals to penetrate their markets. Turkey was one of the earliest countries to abide by the economic sanctions against Syria, and the country’s only neighbor to do so. Jordan, Iraq and Lebanon chose to stay neutral. These three are important trading partners of Syria, but then again, so is Turkey. Therein lies the basis of the local discontent with the Erdoğan government’s decision to implement sanctions: many provinces in Turkey exporting to Syria feel serious economic pain. Gaziantep and Hatay are the two most affected. Are sanctions against Syria bad for the Syrian economy? Yes. But they are also bad for Turkey’s economy. So it is not only the strength of the Syrian economy on a stress test here, but
[More]
Please do not beat the police
Güven Sak, PhD
13 April 2012
In our experience, civilians do not beat police officers, but the police beat anyone and everyone at a moment’s notice. The other day I saw a brochure in Bern when I was going to the Federal Department of Foreign Affairs of Switzerland. It said, “Please do not use violence against police officers. They are doing their jobs.” At first I thought it was a joke. In our experience, civilians do not beat police officers, but the police beat anyone and everyone at a moment’s notice. In a way, police officers beat citizens as part of the job description. I am constantly complaining and asking why Turkey does not have this or that. It seems this is actually what we are lacking.
[More]
Yes, but not enough
Güven Sak, PhD
10 April 2012
The incentive system I was briefed about in Korea was thematic and had a spirit. Unfortunately, ours does not. The new incentive system for industrial investments has been announced. So, let’s discuss if the new incentive system is useful or not. The business world seems to be content with the system. Everyone is stressing how successful the new system is. In my consideration we have a “yes, but not enough” case here. I think that Turkey is not as successful as Korea yet. Let me tell you why I think that this is not enough.
[More]
I feel betrayed by the JOBS Act
Güven Sak, PhD
07 April 2012
I feel betrayed because in Turkey, we are trying to enhance our disclosure rules and make corporate accounts more transparent. Just a few days ago, U.S. President Barack Obama signed the “Jumpstart Our Business Startups Now” Act, known as the JOBS Act for short. I see a change here in the way we are looking at things, since the beginning of the financial crisis. The new legislation eases the financial reporting and audit requirements as well as securities markets compliance costs of small and medium size enterprises (SMEs). It is meant to ease access to securities markets for SMEs. Well, that’s some change.
[More]
I felt at home in Moscow
Güven Sak, PhD
06 April 2012
If you asked me, “What did you think about Moscow?” I would say it is a bit from the past. The city has a glory inherited from the past. I do not know if this is about perceptual selectivity. I was in Moscow for one day at the beginning of this week. I saw references to Korea all around me. So I wanted to add another element to the Korea-Turkey comparison: The Koreans adhere strictly to Deng Xiaoping’s advice, “hide your brightness, bide your time,” not caring that he was Chinese and a communist. They work, not just talk. We, however, do not have time to take action as we are busy with telling people what we are planning to do. They identify which sector will be the coinage machine of the future and design huge programs accordingly. We not only just talk, but make people suspicious about o
[More]
Why is Bursa’s textile industry in decline?
Güven Sak, PhD
03 April 2012
The old industrial centers have started to lose the old sectors. In other words, the old industries have moved to the new industrial centers. Last weekend, I was in Bursa. The city has blossomed. I was having a look around when somebody approached me and said, “Bursa has lost the textile industry now. It has moved to Gaziantep.” Have you checked the export figures on Turkey? The picture is not exactly like what the man said. Bursa has not lost the textile industry. But a trend does exist: the old industrial centers have started to lose the old sectors. In other words, the old industries have moved to the new industrial centers. This way, industry has moved from the west to the east of Turkey. Let me tell you why. And let me explain how the new rise in fuel prices has affected this trend. I
[More]
