Case | HBS Case Collection | August 2012 (Revised January 2015)

Turkey—A Work in Progress?

by Richard H.K. Vietor


For the past 10 years, Turkey has grown its real GDP at about 6% annually. This came after a huge debt crisis in 2001-02, wherein Turkey had to borrow $16 billion more from the IMF and comport with its difficult conditionality. Today, Turkey is a middle-income country, in search of an effective development strategy. It tends to run high inflation with a devalued currency, despite massive capital inflows and a huge current account deficit. At home, the government has carefully managed between Islamicization, democracy and secularism. And abroad, it deals with a difficult neighborhood—Syria, Iran, Iraq, Israel (not to mention Russia, Europe and the USA). Prime Minister Erdogan is trying to rewrite the Constitution before 2014 when the next election occurs.

Keywords: Turkey; Economy; Macroeconomics; International Relations; Growth and Development Strategy; Turkey;


Vietor, Richard H.K. "Turkey—A Work in Progress?" Harvard Business School Case 713-018, August 2012. (Revised January 2015.)