Turkey's major cities ineffectual in competitiveness

Hurriyet Daily News with wires

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Turkey in the last year has declined in competitiveness, a crucial economic factor in a crisis climate, according to Ali Koç, the chairperson of the International Competitiveness Research Institution, or URAK.

Turkey ranked 53rd on the Global Competitiveness Index during the 2007 to 2008 term, but fell to 63rd in the 2008-2009 term, according to the Global Competitiveness Report 2008-2009 released by the World Economic Forum, said Koç.

At a meeting where the results of URAK’s "Intercity Competitiveness Index 2007-2008" were announced, Koç said URAK’s mission was to form and implement regional and sectoral strategies. As cities constitute the main element of international competitiveness, URAK has launched the intercity competitiveness index project to calculate cities’ competitiveness each year for the first time in Turkey, said Koç.

Istanbul, most competitive
Unsurprisingly, the index ranked Istanbul as Turkey’s most competitive city. İzmir, the third biggest city in Turkey was behind the city of Manisa in recognition as a brand, and behind Eskişehir in quality of life, and Ankara ranked first in the amount of bank deposits made per capita. The research, which continued over four years, was conducted under the leadership of professor Kerem Alkin.

URAK’s survey has proved some predictions, but also revealed many interesting results, Koç said, adding that the institution aims to help the private sector, universities and nongovernmental organizations assess competitiveness with objective data.

"We are all on the same boat. Turkey’s prosperity means prosperity for all of us. In order for prosperity to rise, Turkey needs to reach its targeted economic potential. For this to occur, it should first use its existing economic potential."

The most competitive cities in Turkey are Istanbul, Ankara, İzmir, Bursa and Kocaeli, whereas the weakest cities are Şırnak, Ardahan, Hakkari Bayburt and Iğdır. There is a major difference between Istanbul, the most competitive city and Ankara, the second most competitive city. Istanbul’s point ranking was 83.53, Ankara was at 48.2 points and İzmir, 43.2. The quality of life index, which covers things such as the average number of crimes committed per capita, the average income per capita and the average university faculty members per capita, is highest in Ankara. Eskişehir, known as a university city, has the highest number of graduates per capita.

İzmir is far behind on innovation
As for becoming a brand name and the innovation sub-index that covers the number of brands and patents established, Istanbul ranked first in both areas. Following Istanbul, Ankara, Bursa, Konya and Kayseri were also successful. İzmir, the ninth on the list, showing it is lagging in innovation.

On the accessibility index, which looks at the number of Internet users, telephone subscribers and transportation investment, Istanbul was again the leading city and İzmir ranked second.

Cities should utilize proper resources to increase their competitive power, Koç said, adding that they should also learn how to look at themselves through a competitiveness mirror. This way, they could designate their position, power and flaws in the competition world and form targets and strategies.

"Turkey should see its reflection in the competitiveness mirror on the basis of both the country and its cities, and plan its future to make use of its potential. In our country, however, the issue of intercity competitiveness has not yet been clearly comprehended," said Koç, who added there was a difference between competition and incentive.

"Unfortunately, it is incentive that first comes to mind within the framework of competition in Turkey. There is a perception that cities with incentive also loom large in competition. Of course, proper incentive is a driving force, but it is not the end of the story. I suppose the generator of competitiveness should not be the incentive expectation."

Positioning cities
Each city has its own potential and strong and weak aspects, Koç said. There are cities in the world that have accomplished great developments by activating their own potential and internal dynamics, such as Barcelona, Sydney and New York, he said. "We should also designate how to position our cities in terms of competitiveness."

The acceleration in developing countries in terms of competitiveness constitutes a potential threat to the dominance of developed countries, Koç said. "Competitiveness is the only solution for the Turkish economy and within this framework we need more analysis based on proper and objective knowledge."

Koç said competitiveness was lasting whereas crises were temporary. "We are more robust in this climate, compared to the previous crisis. The impacts of the crisis will be seen in time. The more competitive you are, the swifter and stronger you will overcome a crisis."