Turkey lagging behind emerging markets, at 1980s levels of FDI: World Bank

ANKARA

World Bank Director for Turkey Martin Raiser. AA Photo

Turkey has lagged behind other emerging markets in competitiveness levels and returned to the 1980s in terms of attracting foreign direct investment (FDI), World Bank Director for Turkey Martin Raiser said on Jan. 6, as reported by Cihan News Agency.

“Turkey’s FDI figures are very impressive, and the country’s FDI attraction rate increased to very high levels in 2007 compared to BRICS countries, Mexico and Nigeria. However, we now see Turkey back to 1988 rates in terms of luring FDI in comparison to other emerging markets, but very few people accept this fact,” Raiser said at the launch of a report titled “Turkey’s Experiences: Integration, Inclusion, Institutions” at Turkish think-tank TEPAV in Ankara.

“This is not impressive. One of the causes may be problems in the reform process and regulations,” he added.

Raiser said there are three obstacles that Turkey must overcome to become a high-income country: Increasing productivity, enabling the working population to participate in the economy more, and preparing Turkey’s institutional structures for the high-income group.

“It is necessary for Turkey to strengthen the rule of law and autonomous regulation authorities, as well as to complete financial administration reforms to compete with the best. Compared to many EU counties, Turkey is lagging behind in innovation capacity. Turkey’s R&D investments have recently increased two-fold, but this is mostly from the public sector, as the share of private sector investment in R&D activities is lower than many EU countries, for example in Poland,” he said.

Raiser said Turkey’s global visibility has increased over the last 40 years, according to Anadolu Agency.

“If the Customs Union had not been the case for Turkey, the process would have not been experienced,” he said, praising the strong banking sector and infrastructure investments in Turkey.