. POLITICO-LEGAL ENVIRONMENT
The Turkish political system is that of a parliamentary democracy that is representative. This system's usage dates back to 1923 when Turkey became a republic. It has developed a unique tradition of secularism hence remaining a secular state that is the country’s dominant ideology. Therefore, the president is the head of the state with ceremonial powers. The executive power rests on the Prime Minister and the Council of ministers constitute the government. In early days, the country experienced coups making it unstable. However, there is some considerable government stability in present days. The constitution of the country defines her laws and governance procedures making use of both common law and civil law in litigation matters. The legal system is that of civil law based on various legal systems in Europe more notably the civil code of the Swiss.
2. ECONOMIC ENVIRONMENT
2.1 Economic System
The Turkish Economic environment has had stronger growth and stability following the liberation of her economy in the 1980s. This has made her the world’s 15th largest economy. The economic system is that of a free market economy driven by her industry and service sectors. Thus, Turkey maintains a capitalist system. The Government plays a regulatory role, and it implements the country’s fiscal and monetary policies.
2.2 National Wealth
The country’s Gross Domestic Product (GDP) stood at $ 1.026 trillion in the year 2011 placing it as the 17th largest economy. Thus, this grew from the $ 981.2 billion from the year 2010. GDP growth rate stood at 8.2 percent in 2010 and fell to 4.6 percent in 2011 placing her at position 84 globally. The country’s GDP per capita was $14,600 in the year 2011 after growing from $ 13,800 in the year 2010. This was number 86 globally.
2.3 Other Macroeconomic Fundamentals
Inflation was high during the 2001 financial crisis. Following reforms, the country saw her inflation fall considerably to about 7.8 per cent in the year 2011 and 8.6 in 2010. The exchange rate was 1.5028 and 1.668 of Turkish liras per US dollar in 2010 and 2011 respectively. Turkey’s central bank interest rates were 15 percent in 2009 and 5.25 percent in 2011. In addition, Turkey’s unemployment rate was about 9.8 percent in 2011 and 12 percent in 2010. This was position 108 when compared to the rest of the world.
2.4 Industrial Structure
The country economy depends on her service and industry sectors. The agricultural industry makes 25 percent of employment in the economy. The country’s principal industries range from banking, transport, automotive, electronics, and construction that have surpassed the traditional industry of textiles.
2.5 International Trade
The principal exports for international trade include oil that accounts for about 68,450 bbl per day. The manor exports include apparels, textiles, metal products, foodstuffs, and transport equipment. The principal export partners include France, Germany, Iraq, Russia, UK, and Italy. The principal imports include chemicals, machinery, semi-processed goods, fuels, and transport equipment. The country’s foreign investment at the country stood at $98.98 billion in 2011.
3. CULTURE
3.1. Cultural Characteristics
The Turkish culture is majorly diverse and highly heterogeneous with its elements derived from the Ottoman Empire with a mixture of European and Asian traditions. After Turkey becoming a republic in 1923, it engaged in modernizing her culture. This culture is a fusion between the traditional Turkish Eastern values with the Western and modern culture.
3.2. Social Structure
The dominant classes include the Southern European ruling class and the Turkish. The population is 79,749,461 according to 2011 estimates with the main ethnic group being the Turkish at 70 – 75 percent of the population, the Kurdish that make 18 percent and other groups that make about 7 – 12 percent of the population.
3.3. Religion
The main and dominant religion in Turkey is Muslim (mostly Sunni) that accounts for about 99.8 percent of the entire population while 0.2 percent is Christians and Jews.
3.4. Language(s)
The dominant language in Turkey is Turkish that is the official language. The other language is the Kurdish and other minority languages. This places the number of the main spoken languages at two.
3.5. Work-Related Values (G.H. Hofstede)
The work related values in Turkey show a significant relationship with its cultural values. A research showed that Turkey has a high Power Distance, is high in Individualism, as people tend to do things alone. It also found that Turkey is in high Uncertainty Avoidance. Thus, the findings conclude that culture has a little role in developing the work related values.
4. LABOR MARKET
4.1. Labor Force
The total population estimates for 2011 were 79,749,461 with the ages of 0-14 years constituting 26.6 percent, and ages of 15-64 years making the labor force being 67.1 percent and over the ages of 65 years and over taking 6.3 percent of total population. The total labor force for Turkey is 27.43 million and approximately 1.2 million Turks work outside Turkey.
4.2 Employment and Unemployment
The agriculture industry employs 25.5 percent of the population, with the industries employing 26.2 percent and the services taking 48.4 percent as per the 201 estimates.
5. LABOR RELATIONS AND EMPLOYMENT LAWS
The current labor markets and regulations in turkey have enhanced job creation. Various legislations and laws made in Turkey enhance strong employment protection. The high severance pay aims at protecting workers form the risks of termination. On the other hand, restrictions on temporary work prevent employers from misusing the workers. Turkey also has restrictions on fixed term workers and temporary work agencies. Thus, turkey relies on strong labor regulations that aim at protecting workers from unemployment and other labor market risks.
Works Cited
Çarkoğlu, Ali. Religion and Politics in Turkey. London: Routledge, 2004.
CIA. "THE WORLD FACT BOOK ." 28 June 2012. Central Intelligence Agency . 8 July 2012
Friedman, Barry A. "Turkey and the United States: Enterpreneurship Activity, Motives, Aspirations, and Perceptions." International Journal of Business and Social Science (2012): 96-108.
World Bank . Turkey Labor Market Study. New York: World Bank , 2006.
World Bank. Data and Statistics for Turkey . New York: World Bank, 2005.
