During this period, in which global conditions have become vague and risks have increased, Turkey has no choice but to increasingly continue its economic growth. To achieve this, it needs to ensure the required capital from international markets seamlessly and under good conditions. It does not have the chance to meet the required financing in a short period of time by increasing internal savings. Hence, with its economic and political stability, Turkey is one of the main countries to which direct foreign investments will be aimed and which can become a hub for foreign investments. Taking into consideration Turkey's weight in the region, as the country that is the center of political and economic stability in the region, it becomes clear how important this is.
TURKEY HAS STRONG POTENTIAL
Turkey is the country in the region that has no political uncertainty, that is able to form commercial and economic ties with European countries rather than political relations, the country that is also in close interaction with the Muslim countries in its vicinity.
The country that has brotherhood and friendship ties with less developed countries and economic partnerships with Latin American countries is Turkey. It also has great prestige in the Balkan region with the influence of history.
Actually, to see all this variety provided by Turkey in recent years, it is sufficient to note on the map the countries from where the foreign investments came. It is important to increase the diversity of these countries. This importance is not limited to Turkey alone. The foreign investments made for different sectors have the power to affect both Turkey and the region's economy positively.
Hence, taking into account concerns about geopolitical risks in 2016, the Federal Reserve Bank's (Fed) interest rate hike and concerns regarding the development of world economy, steps need to be taken to strengthen Turkey's position as an attractive country for foreign capital.
This is because in addition to providing the capital necessary for production and the realization of value added production, foreign investments will help the establishment of a local and sustainable innovation ecosystem.
WHAT SHOULD BE DONE?
At a time when all developing countries are competing against one another and want a share from the direct foreign investments made around the world, and countries are making efforts to offer an appealing environment for foreign investors, Turkey should prepare a business environment for foreign investors in which bureaucratic uncertainties are minimized and alternative choices are available.
For this, it first needs to develop a special program for the research and development (R&D) area in particular. Unfortunately the last periods excluded, Turkey, in the past, assigned limited resources to R&D and innovation, which prevented it from forming an adequate and sustainable innovation ecosystem. Hence, the prerequisite for high value added production to reach higher gross domestic product (GDP) and take place among the high-income economies, is the formation of a different ecosystem.
The economic production process in Turkey which will accelerate with the formation of such an ecosystem, will, with the domino effect, provide a basis for cooperation and partnership with other countries. The more Turkey is able to attract foreign capital in areas of energy and automotive and especially in finance, it will help reduce the country's risk premium while increasing its credit rating.
Hence, the conditions and suitable atmosphere required to bring international direct investments aimed at strategy-determined, technology-focused sectors and technology-focused areas into the country need to be created.
The necessity of foreign investments should be seen from this angle, too.
If a country that was able receive a total foreign investment of $20 billion between 1950 to 2002 managed to attract $22 billion in direct foreign investments in 2007 alone, it can do it again and do even better.