Turkey: Another Emerging Economy?

Following a visit three years ago, I have maintained an interest in Turkey's economic growth and political development. I have wondered often whether in spite of all their acclamation, each of the BRICs will of necessity have more successful outcomes than Turkey. From my own assessment then , Turkey had very good prospects for economic expansion on account of its geographical position, diversified economy and secular constitutional order. it is clear hat turkey's political development today is not necessarily guaranteed to result in a more open and stable political foundation on account of the changes in the constitution and an emerging intolerance for diverse views among the prime minister and his party's main adherents.

That aside, one must reckon with the fact that for a populous country, economic growth rates together with consumer demand have been quite impressive. Landon Thomas Jr. of the NYT reports here that there are early signs of excessive issuance of credit may be showing in the economy. Increased consumption of luxury items may be consistent with a rising middle class generated by growth and yet the easy terms of advancing credit may generate massive losses that could stagger that economy. I applaud the innovative ways through which the decisions on credit are made but the central laws of banking and lending remain the same. Banks must guard against issuing unsecured credit to individuals as no economy is immune form dangers of imprudent lending and expenditures.