"The future belongs to those who believe
in the beauty of their dreams."
Eleanor Roosevelt
Overview
The year 2023 marks the centennial for the Turkish
Republic - a critical benchmarking date against
which Turks are set to achieve their strategic mission
for a world-class ethical democracy, competitive,
knowledge-based economy, proactive and innovative
foreign policy, cultural renaissance befitting their
ancient history, bridging role between the east
and the west, and religions, and greater integration
with the global system in every domain. This ambitious
endeavor can fail or succeed, depending on the decisions
and choices to be made and their effective implementation
between now and 2023.
The usual problem with future-oriented stories,
which diagnose the "existing dire situation"
and promise a "wonderful, bright future",
is how to navigate, in practical terms, from point
A to Z. Our story in this paper is not unfamiliar
at all and has indeed been repeatedly spelled out
by the country's government, business and civil
society leaders. Our storyline, which we hope can
be transposed into a national action-oriented roadmap,
with intermediate steps, is as follows:
"Turkey is a country, sitting on one of the
world's most valuable real estates, inhabited by
a young, dynamic and entrepreneurial people, but
it is unable to unleash the vast potential because
of long years of poor governance and unimaginative
leadership. The country is drowned in a vicious
cycle of foreign and domestic debt service soaking
up four times what the state spends each year on
health and education. Enormous resources wait to
be effectively and efficiently harnessed. People
are in search of a future vision for themselves
and their children in which they can trust. Hence,
there is urgency for sustained actions to put Turkey
on a rapid economic growth path and democratic governance
towards 2023 in harmony with emerging global trends
and the country's truly unique strengths".
To realize Turkey's long-standing and unfulfilled
aspiration to become one of the world's high-fliers
over the next two decades, it is imperative to begin
with the pressing task of putting its house economically
and politically in order and restoring confidence
in the political system, public administration,
and private sector, while at the same time framing
this effort in the broader strategic vision to be
mapped out in genuine consultation with key stakeholders
and following up its implementation with vigor,
devotion and creativity. The depth of the current
economic crisis, the uncertain prospect of European
Union (EU) accession, the continuous erosion of
the country's competitiveness and the ruling elite's
incompetences all add to further clouding the country's
skies. Ankara-centered political and regulatory
institutions and practices are widely believed to
be outdated, incoherent, ineffectively managed,
and undermined by lack of trust in government, widespread
non-compliance and in some cases corruption. They
need to be complemented (and in some cases, replaced)
by vibrant regions, municipalities, private sector
and civil society partners, who are increasingly
inclined towards taking their futures in their own
hands.
Yet, without an overarching and unifying grand
vision, the chances of fragmentary or patchwork
reform packages coming into life are rather slim.
As a first step in this direction, Turkey is required
to prioritize a range of key goals: from attaining
higher standards of education for young population
to moving to high-tech agriculture and promoting
sustainable tourism, from cultivating ethical values
to home-grown technological innovation in textile,
from building physical/digital regional hub to fine-tuning
foreign and security policies. The resultant "Turkey
2023 Vision" will shed light on the nation's
future aspirations and direction - a solid anchor
for private sector enterprises, public administration,
regions, civil society, foreign actors and individual
citizens. Yet, the government must focus on a number
of key priorities, which can be achieved in two
to four years, to showcase the success stories for
building stronger public and international support.
While having great difficulty in anticipating what's
to come in the next few months and coping with chronic
day-to-day problems, it may be ironic to ask Turkish
people to consider a vision twenty years down the
road. But there is good reason for asking this precisely
because most of the deep-seated problems Turkey
faces today are closely related to the past's short-termism,
clumsiness, excessive prudence, and lack of innovation.
At the current juncture Turks need to be motivated
to imagine better futures, believe in and make them
happen. Better futures cannot be safely left to
the workings of either fate or governments. The
broad segments of the society should feel a sense
of ownership in, and benefit from, them and engage
meaningfully in the process without having to wait
too long. Because uncertainty is unavoidable, several
possible futures, not just one, should be articulated
particularly in such a country as complex and unpredictable
as Turkey.
This paper is far from being all-embracing and
complete. There are many important issues, which
are knowingly or unknowingly left out. At this stage,
it is intended only as an initial, modest introduction
to coloring Turkey's current "visionless"
panorama and planting a few seeds, on the basis
of the future trends and best practices in other
parts of the world, for a realistic strategic architecture
of Turkey between now and 2023. There is evidently
no shortage of good analysis, ideas and projects
in this line of thinking (i.e., TUBITAK's technology
foresight, EGEV's Aegean projects, TUSIAD's strategy
papers, State Planning Organization's plans and
the like); the key challenge is to embed them in
an embracing vision, communicate them effectively,
organize ourselves effectively and embark on the
result-oriented intermediate steps to showcase the
progress under the government's leadership which
can inspire trust, galvanize the nation's collective
intellect, domestic and foreign resources, and masses
around commonly shared goals and success stories.
Scenes From Turkey's "Missionless"
and "Visionless" Panorama
We all know what our country's major shortcomings
are. They should neither be underestimated nor exaggerated.
Most are rooted and aggravated in the absence of
proactive, foresighted and resourceful policies
and can be resolved. Viewed from the outside, Turkey
gives the impression of a country, which has not
yet fully settled. It has long been experimenting
with the 'critical' and 'transitional' periods,
seemingly with no end in sight. The national identity
in terms of where it actually belongs is yet to
take shape. Its EU accession process is still unclear
for reasons emanating from both Brussels and Ankara,
while 10 new members are set to join the EU in May
2004 nearly 15 years after the fall of the Berlin
wall and more than 40 years following Turkey's first
application to the then EEC. Turkey looks like a
country at peace neither with itself nor with the
countries around it, engulfed in a mindset of paranoia
about perceived threats to its domestic and foreign
security. Regrettably, it offers neither any ray
of hope for its own future, nor a strong reference
for its younger generation to follow.
Turkey represents a country, which has so far been
unable to use its scarce resources rationally and
effectively, and which is crippled by huge domestic
debts, with limited capital available for real investment
in its human capacity, technology development and
promising industries. There is a huge underground
economy, which both energizes and distorts the country's
fundamentals. The leadership stubbornly and unnecessarily
drags feet instead of rejuvenating the country and
adapting at the right tempo and scale to the rapid
transformations unfolding in the world as they can
be translated into national interests. The heavy
price of all this has for decades been paid by an
increasingly impoverished people as they patiently
wait for the promised, but hardly showing, light
at the end of the tunnel. As a result, its democracy
has visibly degenerated; its unsustainable economy
is running from one crisis to another; and its foreign
and security policy has created stories of frustration
from Central Asia to Cyprus, from EU to Iraq.
The recent economic crises over the past decade
have also removed the gloss from the Turkish private
sector, which we used to praise as being 'dynamic'
and 'the driving force' at every opportunity. In
2002, Turkey ranked 46th (as opposed to 38th in
1999) in the world competitiveness league among
a list of 49 countries, according to a poll of business
leaders by the International Institute for Management
Development in Switzerland. Corruption is widespread
in all sectors of public management, particularly
in public procurement, at customs entry points,
in tax offices, traffic, deed office, rental of
public property and forested lands, granting of
credit from public banks, and siphoning off of funds
of private banks. Last year in the Corruption Perception
Index of Transparency International Turkey's position
was 64th among 91 countries (as opposed to 54th
a year ago).
Although the Turkish economy grew by 7.8 percent
in 2002 after the worst ever contraction of more
than 9 percent in 2001, the nominal GDP size reached
only $180 billion (only 0.6 percent of the world
GDP), with per capita income of $2,584. This can
be compared with the 1993 GDP of $178 billion and
per capita income of $3,000, which shows a considerable
decline of prosperity in real terms over the past
decade. If GDP calculations are given in purchasing
power parity terms, the situation may not look so
damning. Rentiers earn more than real economy producers.
Turkey's total debt is $157.4 billion as of April
2003, which corresponds to 86 percent of its GDP.
The country invested $422 billion in 1993-2002,
both public and private, while it had to pay a total
interest of $211 billion during the same period
for public and private debt. Domestic savings rate
is low.
Industrial, agricultural and labor productivity
are well below the international average. Turkey
has one foot in the world of productive modern industry,
but it also has the other deeply planted in traditional,
inefficient methods. Modern segments in the cement
and automotive parts industries, for example, have
productivity rates higher than counterparts in the
United States. And yet traditional segments of many
sectors are indexed as low as 20 percent of U.S.
levels. And, in most sectors, traditional operators
employ a substantial majority of labor. Turkey has
to solve that problem. It must successfully extend
liberalization into its key utilities sectors.
Added to this are high inflation (around 35 percent
in March 2003), the chronic and constantly rising
budget deficit (over 11 percent of the GNP, while
the authorized ceiling in the EU is 3 percent),
an alarming possibility of not servicing internal
and external debt, structural and hidden unemployment,
a widening gap of income distribution at the expense
of the working population and a reform deficit in
public life. Each year 700,000 new jobs need to
be created. Turkey has not fully grasped the importance
of three Es - economic growth, energy security and
environmental protection. Its rural development
is a failure, prompting more migration to urban
shantytowns. A bottom-up regional development drive
is yet to take root.
In its poorest cities such as Mus, Agri, Bitlis
and Bingol, people live on an annual per capita
income of less than $600; subsistence agriculture
is still prevalent; land inequality is at large
proportions; and the climate is harsh. Other regions
are not doing much better either. There is a huge
untapped potential for these diverse regions to
fuel rapid growth and develop democratic governance.
In response to the wide disparities in the Southeast,
and in recognition that strengthening this region
socially and economically will benefit all of Turkey,
the government has initiated a comprehensive socio-economic
development project -- the Southeastern Anatolia
Project, or GAP in its Turkish acronym. But the
region has not profited much from potential spillover
effects of this $32 billion mega-project.
Although Turkey is the largest economy in Eastern
Europe, the Balkans, the Black Sea basin, the Middle
East and the European Union's sixth biggest trading
partner, foreign direct investment (FDI) flows into
Turkey have rarely reached $1 billion in any one
year - a fraction the level of FDI attracted to
countries of comparable size and development like
Argentina and Mexico and only one-quarter the level
of FDI attracted into Poland. The reasons for Turkey's
dismal performance in attracting large FDI inflows
are not hard to find. Economic reasons include high
transaction costs of entry and operation for foreign
investors, chronic high inflation, economic instability,
lack of intellectual property rights protection,
lack of internationally acceptable accounting standards,
insufficient legal structure and physical infrastructure.
One can also add to this list non-economic causes
such as political instability, internal conflicts,
fear of foreign political domination within the
civilian and the military bureaucracy, widespread
corruption, lack of strategic investor targeting,
and the structure of family-owned Turkish business.
On the political front, Turkey has been rowing
against the current under a democracy, which hardly
reflects the will of the people, is unable to attract
quality to its stall and, more importantly, is 'unable
to govern.' The civilians do not seem to possess
the capacity to govern the country without frequent
(open or discreet) intervention from the military,
which remains one of the few strategic thinkers
and trusted organizations in Turkey. Since the state
justice system fails to work, "privatized laws"
have taken root. Almost everything the elite Turks
boast of is imported. No matter how many determined,
ambitious and qualified people there may be around,
the world-class politicians, bureaucrats, businessmen,
industrialists, artists and scientists are either
in short supply or they face difficulties in reaching
the stage. Despite their rich civilization, traditions
and ethics, Turks have not been able to offer much
to the global culture, arts and commonly upheld
values.
Since the end of the Cold War, Turkey has moved
from the periphery to the center of Eurasian and
Middle Eastern security. With a landmass and population
larger than France's, Turkey is regarded as a pivotal
actor in Southeastern Europe, the Middle East, and
the Caucasus. Its growing role in these regions
will likely have profound implications for the international
arena and spawn debates over the future trajectory
of Turkish foreign policy. However, it is difficult
to argue that, based on its performance so far,
Turkey has risen to the delicate challenges confronting
its foreign and security policies towards these
regions as well as the EU, the United States and
the emerging centers of power in Asia over the past
decade. Creative, foresighted, flexible, and well-articulated
strategies are needed to redefine the national interests,
commensurate with the country's strengths and needs,
as well as in keeping with the global trends.
Why Such a Poor Strategic Thinking?
Clearly, Turkey needs a strategic vision to
(i) give a commonly shared sense of direction, (ii)
inspire self-confidence and hope for young generation,
(iii) achieve "efficient" growth and sustainable
development, (iv) develop benchmarks for judging
its achievements, and (v) become an innovative society
able to proactively cope with emerging challenges
and grasp future opportunities ahead of other competitors.
Yet, Turks usually have inadequate data, analyses,
projection tools, inventory studies or scientific
support before making key decisions or fateful choices.
The long-term strategies they attempt to develop
are often frozen in time. Centrally taken decisions
are usually far removed from the genuine circumstances
of life. They are often short-lived and grounded
on the unquestioned fate and destiny. Matters, embarked
upon with great hope and enthusiasm, soon end in
disappointment, and the wait begins for miraculous
solutions to work their ways. Strategic and tactical
steps are hardly taken in tandem with the perceived
future goals. It is for these reasons that Turkey's
vast potential cannot be duly exploited, and people
continue to naively wonder "why?".
If one key reason for Turkey's being laggard is
the slipperiness of its political and economic base
over the past decades, another is the lack of self-confidence,
strategic planning and a culture of systematic analysis.
The way that for many years elections have failed
to offer the opportunity for one single party to
take power and implement its own vision has also
been a serious handicap. Consecutive coalition governments,
based on fragile balances, were unable to think
of anything but surviving for a few more months
by continuous recourse to populist policies. However,
the November 2002 elections delivered a strong one-party
government, which has the legislative majority behind
it - essential for achieving any significant visionary
movement. It remains to be seen how the new government
will make use of this historic opportunity in tackling
the critical challenge of forging and moving towards
a viable future vision for Turkey, but the prevailing
signals do not offer much hope.
Just like in most other countries, Turkish political
leaders tend to avoid the future as much as possible
which they fear and perceive as a waste of time,
when their immediate priority is to cope with the
day-to-day management of the country's pressing
challenges and preparing for the next elections.
In every society, therefore, there is a need for
brainstormers to rise above the barren day-to-day
arguments and short-term perspectives, to evaluate
the country's future strategic challenges and opportunities,
and to chart practicable long-term strategies compatible
with global trends and national interests in the
light of alternative scenarios.
In a nutshell, Turkey is yet at another crossroad
in history. Situated in such a valuable piece of
real estate on the planet as it does, Turkey will
not be let carry on in a business-as-usual mode.
If Turks fail to set their own internal dynamics
in motion and keep up the momentum for change, then
sooner or later the system will be forced to reinvent
itself under imposition from the outside - probably
at a higher price. Such a radical change, prompted
by the forces of globalization and the altering
domestic balance of power, may get out of Turks'
own control. Hence, Turkey must blow the starting
whistle for change itself and blow it well; otherwise,
what will transpire may not reflect the country's
foremost national interests and priorities.
Vast Potential to Be Harnessed
Under a competent leadership who understands the
country's strengths and weaknesses, as well as the
sweeping changes that are unfolding in the global
system, Turkey has the potential to move fast on
the way to become a strong regional economy and
power to be reckoned with. In fact, the Turkey of
the 2000s is already experiencing large-scale positive
changes in its demography, culture, social diversity
and economic integration, despite many internal
and external constraints. Clearly, under a trust-inspiring
vision, a lot better can be achieved.
One should not forget that in terms of purchasing
power parity Turkey is still among the world's top
17 economies. In arable land, it stands 10th in
the world. It is the world 17th most populous nation
- that is, one in every 1100 world citizens live
in Turkey. The fear of an 'aging population', which
so concerns the West, has not yet reached Turkey.
According to the forecasts by DRI/McGraw-Hill, its
population will be 74-77 million in 2010 and 92
million in 2023. The fact that between 1990 and
2030 the elderly population in the OECD countries
will nearly double from 13 to 25 percent may make
Turkey a principal source of Europe's well-educated
young workforce and brainpower. (Bear in mind that
an uneducated, fast growing young population with
little sense of direction for its future could conversely
a serious headache for the nation).
It is no longer predominantly a rural and agricultural
society, but increasingly an urban and industrial
one. Income levels in the "metropolitan"
areas and their hinterlands are close to those of
Europe. Turkey's economy showed great progress between
1960 and 1975. According to World Bank data, its
national income increased tenfold between 1970 and
1980. However, during the twelve years between 1980
and 1992 it barely increased twofold and stood still
in the following "lost" decade. According
to some estimates, Turkey's GDP could rise six-fold
to $1.2 trillion by 2023. This, divided by a population
estimated to have reached 92 million by that time,
means that average per capita income would be around
$13,000. In other words, a business-as-usual scenario
will allow Turkey only to attain the per capita
income enjoyed by Greece in 1999 only a quarter
of a century later. That, of course, is without
bearing in mind negative changes, wars, or natural
disasters such as earthquakes that might occur anytime.
However, Turkey can strive for a more ambitious
and robust strategy, based on "high growth"
(at least 9 percent per annum), "investment
in people" and "a leap to the highest
levels in technology". Under normal circumstances,
Turkey could grow by an average of 6 percent per
year until 2010 and then step it up to 9 percent
by 2023. The fast catch-up is possible in this age
of speed and technology. Turkey is projected to
become a major world consumer market. In the coming
twenty years, alongside other big emerging markets
-- Mexico, Argentina, Brazil, China, India, Indonesia,
South Korea, Poland, and South Africa -- which will
likely absorb 40 percent of all the imports in the
world.
While Turkey is often seen as a failure story in
inward FDI attraction, Turkish firms have been very
successful in investing abroad - from Arcelik's
takeovers in Germany, Austria and Romania, to Efes
Beverage Group's facilities in nine countries. Not
all Turkish outward FDI is carried out by large
Turkish firms. Many small firms, especially in the
textile and apparel sector, which still accounts
for the lion's share of Turkish manufacturing exports,
have been investing in central and eastern Europe,
especially in the Czech Republic, Bulgaria and Romania,
attracted by these countries' more favorable business
environments and in anticipation of their EU membership
ahead of Turkey.
Turkey stands a good chance to become an attractive
location of production for its own entrepreneurs,
as well as for foreign investors. It already has
many top multinationals and can interest even more
from several perspectives, specifically as a manufacturing
or service provision base from which to supply European,
Central Asian and Middle Eastern markets, as a source
of raw or processed materials, as a pool of talent
and innovation to be deployed in a Turkish "Silicon
Valley" that is readily transferred abroad,
as a market for both imports and domestic goods
and services, and as a potential joint venture partner
anywhere in the world. These all suggest that it
should be performing better. One should also add
to these advantages the dynamism of Turkey's entrepreneurs,
the quality of management and the discipline of
workers, which are no less important factors in
attracting FDI.
Turkey's playing an active role in Caspian energy
politics is closely related to its foreign policy
approach that considers energy security in the region
as a top national interest. Several factors continue
to hinder Turkish efforts to increase its role and
influence in the region:
o First, Turkey's own domestic problems, in particular
Kurdish separatism, the growth of Islamic influence,
and economic weaknesses, diverted attention away
from the region.
o Second, Turkish diplomatic energy in the Caspian
region was drained by other more pressing security
challenges, including threats to the south from
Syria, Iraq, and Iran, instability to the north
in the Balkans, and disputes to the west with Greece
over Cyprus and the Aegean.
o Third, Turkey's lack of geographic proximity
to Central Asian countries limited Ankara's ability
to project greater influence there.
o Fourth, as it became abundantly clear that cash-strapped
Turkey lacked capital for large-scale economic aid
and investments, Central Asian countries lost much
of their interest in Turkish proposals for regional
economic integration.
o Fifth, Turkey's pretensions to leadership offended
the sensibilities of many Central Asian leaders,
especially in the face of fewer common cultural,
social, or even linguistic links than many of the
parties expected. The peoples of the south Caucasus
and Central Asia have a strong sense of national
pride, and-having suffered for years under the Soviet
Union-were not about to become the "little
brothers" of Turkey or any other outside power.
o Sixth, as many of the Central Asian countries
developed their own relations with Western countries,
they felt less need to rely on Turkey as an intermediary
with the West.
o Seventh, Turkey's capabilities to project military
power are limited, especially beyond the south Caucasus.
o Finally, Ankara remains wary of taking actions,
especially in Georgia and Azerbaijan that might
antagonize Russia, a major trading partner and significant
source of energy and the only country still capable
of bringing heavy military pressure to bear on Turkey.
So, Turkey is playing on a crowded Caspian chessboard,
but its engagement in the region remains substantial,
and the long-term prospects are promising for increased
bilateral co-operation and a steady, if unspectacular,
expansion of Turkish influence. For now, Ankara
has a more realistic appreciation of the difficulties
it faces and has trimmed its policies and expectations
to fit these realities. The challenge that has recently
opened up after the Iraqi war is not a less complicated
one as it raises the question about the future of
the Kerkuk-Ceyhan oil pipeline and how the additional
future oil and gas production from western Iraq
could be piped through the Turkish territory to
the international markets. The goal must be to make
Turkey a regional hub for energy trade, transportation
and investment with oil, natural gas and electricity
inter-connection deals involving Russia, Azerbaijan,
Kazakhstan, Turkmenistan, Iraq and Iran.
Another asset Turkey has is its unique synthesis
of Western and Eastern cultures unparalleled anywhere
in Europe. It straddles between the east and the
west, between Islam, Christianity and Judaism. The
mixture of Turks with the already assorted population
of Anatolia and later with the Balkan peoples has
produced a collection of faces and a variety of
cultures visibly different from anything else in
Asia and Europe. Samuel Huntington's " clash
of civilizations " theory should not be allowed
to come true. Vilification of Islam asserting that
this religion is synonymous with backwardness, terrorism
and authoritarian regimes serves no purpose, but
only deepens the mutual mistrust. The issue is not
just of Islamic fundamentalism. It occurs in other
religious traditions. And it exists within cultures
as much as between them. Turkey as the "only
model of a European state, which combines modern
capitalism and secular democracy with a moderate
brand of Islam", could find a credible role
for itself as a bridge between the two communities.
To complete the picture, we should not forget to
add Turkey's other precious assets: key geostrategic
position linking the Balkans, the Middle East, the
Mediterranean and Caucasus; NATO's second largest
army; water reserves; deep-rooted institutions and
distilled traditions that go back hundreds of years;
natural environment, touristic attractions; and
rare mineral resources such as chromium, bor and
torium. The picture, which emerges from the foregoing,
is a Turkey whose basic fundamentals are sound.
Indeed, this country has almost all the ingredients
to build a better future if it always looks forward
and selectively use part of its past as a "pivot"
to get to the future, while leaving behind part
of its past considered to be "excess baggage".
All nations, Turkey included, have parables about
the good that can come from the bad. There are increasing
reasons for cautious optimism in Turkey. The financial
system has been materially overhauled thanks to
a stringent IMF program. The commitment to market
liberalization remains very strong. For the first
time in more than a decade, Turkey has a single
party government, one apparently committed to change.
Labor, business, and government constituents are
aligned, as they have not been in a generation,
in the desire to break Turkey's "boom-and-bust"
cycle and "debt trap".
It is a demanding time, but also a time for new
ideas and bold reforms. Such periods of crisis in
which the dust is yet to settle may well serve to
spark off great leaps forward. History has witnessed
striking examples of this in Japan, Germany, Korea
and South East Asia. In its very darkest days Russia
too began the process of carrying out difficult
changes under a young leader, and reforms are currently
under way. It is time for Turks, too, to do likewise.
At the beginning, there may be a need for the winds
of radical change to blow from the top down. Hence
the key question is how the Asian Tigers did and
Dragons get their act together when their fundamentals
50 years ago looked even worse than Turkey's? What
determined the critical path there? Following the
Japanese model - the key reform was compulsory primary
education, especially women-swiftly enforced by
the sanction of the sword. The same holds true for
Singapore from cess pool to modernity!
What Do We Know About The Future?
Before proceeding to Turkey's 2023 priorities and
the process to make them happen, it is essential
to understand better what the future holds for us.
Trying to predict, project, propose and sometimes
pre-empt the trajectories of the planet's future
has become somewhat of a growth industry. Tarot-card
readers, astrologers and palmists have been joined
by a whole army of scholars and academics who claim
expertise in being able to read the signs of the
stars-or certainly the data spreadsheets-to tell
us not only where the world is heading, but where
it should be going instead, and how to get there.
While some futurists do indeed border on the absurd,
there is also significant work in this genre that
is not only sensible but absolutely essential. The
utility and relevance of such scholarship tends
to be directly proportional to the rootedness of
one's projections in an understanding of the constraints
and the predicaments we face today as much as in
their talent from conjuring up new opportunities
for tomorrow.
Presenting a comprehensive picture of what the
world and Turkey are likely to look like in 2023
is not our goal here. We want the reader to imagine
a future made possible by changes in technology,
life style, geopolitics, regulation and the like.
And there are many viable futures as there are imaginative
countries, companies, institutions and individuals
that can understand deeply the dynamics at work
right now which hold opportunities to become the
author of the new. The future is not what will happen.
The future is what is happening. The present and
the future do not abut each other, neatly divided
between the x-year plan and the great unknown beyond.
The long-term is not something that happens someday;
it is what every country is building by its daily
decisions. As a prominent writer once said, "Destiny
is no matter of chance. It is a matter of choice:
It is not a thing to be waited for; it is a thing
to be achieved. Only those who can imagine and preemptively
create the future will be around to enjoy it".
Beyond the simple endeavors of fortune-tellers,
forecasting has gained considerable respectability
and momentum in the last quarter of the 20th century
with 'futurist' interventions based on scientific
foundations. Skeptical writers still consider it
risky to raise such efforts to the level of a "science".
In one sense, astrologers, physicists and men of
religion are the true founding fathers of this science.
Recall that Dr. Nostradamus of St. Remy de Provence
made such wide-ranging predictions concerning a
time 500 years after his own. His 1550 'Almanac'
apparently foresaw the French Revolution, the Spanish
Civil War, the Second World War, the Apollo 13 space
mission and the Watergate scandal.
Paradigm shifts during the 20th century such as
those associated with relativity, genetics and fractals
could not have been predicted, so how can we presume
to predict those of the 21st century? There are
many foresighted writers just trying to do that:
Lester Brown's warnings on sustainable development;
Stephen Millett and William Kopp's scenarios regarding
the top 10 technologies that they believe will revolutionize
the next decade; Gregory Stock's "Redesigning
Humans", which provides a sweeping overview
of possibilities afoot in the biotech revolution,
elaborating upon developments for improving health,
preventing disease, boosting longevity, and enhancing
quality of life; Nancy Ramsey's alternative forecasts
as to the future of women; The extraordinary developments
that Clement Bezold says will give rise to a radically
different health system in the next quarter of a
century; GM's new car designs that will run on fuel
cells and electricity, and then on solar power and
finally hydrogen; the genetic garden in Yalding
in southern Britain, and many other developments
point to what's awaiting us in the future.
True, the immediate unknowns of today are of more
interest and relevance to us than projecting the
future trends. Some may argue that predicting the
future should be best left to prophets or fortune-tellers,
considering who knows whether we will still be around
in 10-year time, let alone after 2023. However,
as the speed of change increases, individuals and
institutions will inevitably feel the need for perspectives
on the future, in order both to survive in the increasingly
competitive environment and to turn the emerging
opportunities to their full benefits. Practically
speaking, many respected organizations - primarily
foresighted dynamic business groups - are diligently
considering what the future may hold for them and
what preparations they need to be making as from
today. Some companies even recruit futurologists,
and others use them as external advisors. The entry
into a new millennium has stepped up curiosity in
the offerings of the future - more so than in the
past. In short, it can be safely said that the future
is becoming a "growth business".
Scientists who make their living from the future
generally take a 10 to 50-year period as the basis.
Statisticians look at the present and the short
term and hesitate to go beyond three years. For
centuries, theorists and historians have attempted
to predict future economic conditions, but with
only limited success, because the economy is both
complex and unstable: It is constantly changing
in unexpected ways. Yet, producing long-term projections
regarding the future is not as difficult as is thought.
Forecasting methods range from sophisticated econometric
systems to plain guesswork. One can simulate 'golden
age' or 'doomsday' scenarios and drown the reader
in a sea of statistical projections. For example,
'scientific' projections concerning the size of
Turkey's GDP in 2023, export to import ratio, per
capita income level, volume of external debt and
similar figures can be generated through extrapolation
from today's statistics and trends. At the end of
the day it is only a matter of data being loaded
to computer in such a way as to support the pre-destined
scenario option.
But, the right approach is, instead of resorting
to modern-day fortune-telling, to identify the strategic
vision's common denominators, parameters and goals.
The rest can be fleshed out according to this or
that preference through a dynamic process as exercised
successfully in many countries without reinventing
the wheel. Furthermore, these exercises should not
be too much obsessed about being "scientific"
for the simple reason that a static, dogmatic approach
may condemn us to stay where we stand. Unconventional
views and radical changes can only emerge from the
brains of those who are not the prisoners of fixed
moulds, but who are innovative, revolting and creative.
Innovation has become a lot more important to government
and corporate leaders, in the last decade in particular,
because of the changes in the global environment
brought on by increased technological capabilities,
speed, hyper-competition, and faster rates of diffusion
enabled by greater connectivity.
Where Are We Heading For?
This is the fundamental question that many strategists
have been bedeviling with. In their book '2020 Visions,'
two futurologists, Richard Carlson and Bruce Goldman,
stress that technology, change and economic conflict
are propulsive forces and predict that a 'technotopian'
society will emerge from the unification of television,
computers and telephone; biotechnology will compete
with information technology as regards influence;
nation states will turn into mega-states; the 21st
century will go down in history as the 'European
Century'; some Canadian states will join the United
States; China will maintain its rising trend; world
energy demand will go up by 50 percent; and the
use of drugs will gradually cease to be a criminal
offence. Some others foresee a convergence of monotheist
religions, arguing that "The God is too big
to fit into one religion".
We anticipate that the following forces for change
will deeply influence all of us from today to 2023
and hence, will likely determine (and step up) the
evolution of Turkey's future vision:
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World Population and Its Geographical Distribution.
The in-built population momentum will ensure that
despite falling growth rates, the planet will be
home to considerably more people - possibly several
billions more by 2023. The impact of these people
will be a function not only of how many there are
but of who they are and where they live. Economically,
they will be mostly poor; socio-culturally, they
will be nearly entirely non-white (i.e., non-Western);
and politically, they will mostly be in the developing
countries. In essence, they are likely to compound
rather than sooth the existing faultlines in today's
global society.
The existing econometric models indicate that the
world population will rise from its present 5 billion
to 8 billion by 2023 and exceed 10 billion by 2032.
This, of course, rests on the assumption that there
is no natural or human disaster in the meantime.
The greatest population rise will be seen in the
equatorial and southern hemisphere. Developing countries
will represent 87 percent of the world population
in 2030. The African population will double in 24
years, although Europe will have to wait 1,025 years
to see a comparable population expansion. The US
population is expected to rise from 261 million
in 1994 to 350 million in 2025.
The increasing age of the population in most post-industrial
societies will make its effects increasingly felt.
Advances in medicine and biomedical technology,
and a healthier lifestyle will extend the average
life expectancy. On the other hand, countries, which
have not completed their industrialization, will
continue to be unstable and unsatisfied societies
where the young and middle-aged prevail.
Geopolitical Balances In The World. Globalization
has created two different imperatives for policy-makers.
The more `technical' challenge is to adapt, reform
and establish international institutions to manage
new actors, forces, and vulnerabilities in the global
economy. The second, more political, challenge is
to find a way to 'connect' or reconnect these institutions
to voters and to a large number of citizens who
increasingly see globalization as a threat to welfare
and democracy in many parts of the world.
Politically, neither war, nor violence, nor authoritarianism,
nor the abject use of power (military, political
or economic) in the pursuit of self-interest is
likely to go out of currency. The essential nature
of the North-South distinction will remain relevant
in global politics, although minor changes in the
particular makeup of each might take place. Southern
unity (i.e., the G-77) is unlikely to disappear
despite internal differences. If anything, Northern
solidarity will face mounting stress. Nations will
be no more willing to cede on sovereignty; the powerful
will be no less inclined to impose their clout;
and the weak will be as wary as ever of the motivations
of the powerful. A most significant change is likely
to be in the evolution of civil society rather than
of the state. It is not clear how the increasing
'North-South' tensions within the ranks of the global
civil society will eventually manifest themselves;
however, this might well be the most important political
change of the next twenty years.
States will not become irrelevant or obsolete,
but the number, influence, and power of non-state
actors will increase. Criminal, ethnic, and religious
groups will be more active in the world stage. Air,
sea, and land piracy, smuggling, trafficking in
outlawed goods, blackmail, theft of information,
industrial espionage, technology sabotage, and other
activities will bring states into conflict with
these groups. The Sicilian, American, Colombian,
Turkish, Kurdish, Chinese and Iranian mafias and
their partners in Russia will form an unrestricted
underground world. It is currently estimated that
global organized crime makes an annual profit in
the region of $1 trillion (4 percent of the size
of the total world economy) and this "business"
will likely grow bigger and stronger.
With its capital, technological superiority and
military power, and its ability at establishing
consensus among other states, the United States
will likely remain the world's foremost power until
the middle of the 21st century. Among the other
regional power centers we may count China, Germany
(especially if a powerful EU identity emerges),
Japan, Russia, India, and perhaps Brazil. A multi-polar
world will emerge in which states are loosely organized
in the framework of confederations. Initiatives
aimed at regional integration, such as the European
Union, the Asia-Pacific Economic Cooperation, the
ASEAN, the Organization of American States and the
NAFTA will gain strength in this new order.
We must not expect traditional sources of conflict
such as the acquisition of land, regional rivalry
and former ethnic or religious hostility to disappear
entirely compared to the economic wars of the future.
Racial, ethnic, religious, social, political or
private interest differences between groups and
the fragmentation of society will prepare the groundwork
for conflict, both within states and between them.
It will come as no surprise if, as happened in the
former USSR and Yugoslavia, wars of ethnic self-determination
give rise to new states. The 'international community,'
which currently consists of some 180-190 states,
could turn into a 250-member 'global village' with
new states drawn up along tribal or ethnic lines
in Eastern Europe, the Middle East, Asia and Africa.
International Economic System. There is a tremendous
gap between the rich and the poor. People in low-income
countries mostly located in Sub-Saharan Africa,
South East Asia, and the Eastern Europe are still
suffering from small per capita incomes of less
than $700. There is also a large digital divide
between high and low-income countries in terms of
penetration rate of basic telecommunications technology.
However, there are fair grounds for optimism that
the world as a whole will be a richer and more prosperous
planet over the next two decades.
Trends indicate that markets will, indeed, expand.
One might safely predict that at least some corporations
that do not even exist today will be global giants
in products and services that have not even been
conceived yet. The world- despite its net prosperity-is
likely to be as, or more, unequal in 2023 as it
is in 2003. The distance between the richest and
the poorest-measured nationally and internationally-would
have increased. The attendant social and political
pathologies that go with gross inequity would also
increase.
The axes of the world economy, the US, Europe and
Japan, are all in a weak position and are likely
to remain as they are in the near future, but the
world's GDP is projected to double by 2023, assuming
an average annual growth of 3.2 percent. The US
will remain the world's largest national economy,
but its percentage of the world's GDP could be less
than the current 22 percent. New players are rapidly
advancing in the global economy. China might overtake
the US as the planet's largest economy on the basis
of purchasing power calculations by 2023. New international
linkages will take place through multinational outsourcing,
stock markets' interaction, foreign direct investment
and increased information flows.
Economic security will preoccupy the world leaders
more than military security. The fact that the importance
of the economy in national security will keep rising
may bring this more and more onto the agenda as
a source of conflict. The trade wars of the present
will be as nothing. It is becoming hard to think
of international and national security in separate
terms as multinational companies join the economies
of the world together. Despite the crisis, the strongest
GDP growth in the world is still in the Pacific
Basin. It appears that, albeit with a little delay,
the slogan 'Pacific century' is on the way to becoming
fact.
A great part of the world will use more intensive
technology, and will continue to live in a more
materialistic and selfish manner. Wealthy countries
will try to raise the well-being of their own people
by means of information control. These countries
will also try to assist poorer nations, but since
they will be unwilling to make sacrifices for others,
these efforts will fail to have the desired effects.
Indeed, due to a rise in individualism there may
be a crisis of values caused by a clash between
concern over education, transport, justice and public
heath and the individual's desire to obtain capital.
New Technologies. We are standing on the verge
of a revolution as profound as that which gave birth
to modern industry. It will be the environmental
revolution, the genetic revolution, the materials
revolution, the digital revolution and, most of
all, the information revolution. Entirely new industries
will soon be born and existing industries will be
dramatically transformed. No single nation is likely
to control all the technologies and skills required
to turn these opportunities into reality.
Immense technological advancements are nearly certain
in every area. The greatest of these advancements
will be in health related technologies. The benefits
of technology will remain as unevenly distributed
as ever. In the health domain, for example, the
persistent misery of millions was entirely and affordably
avoidable in the last twenty years, and will remain
so in the next. Predictions for the post-genome
era are made by increments of 10 years, from 2010
to 2030. In 2010 there will be numerous aging-related
genes discovered and there will also be artificial
heart implants that do not require an external power
source. Moreover, human cloning will exist but no
one will know where or when it will happen. In 2020,
we will enter the era of the genomic therapy revolution.
Human life expectancy will increase a few years,
and the problems of wrinkles and baldness will disappear.
And finally in 2030, intelligence enhancement using
molecular chips will be available.
The 'global' challenge in terms of technology is
not about the providing opportunities for technological
advancement; that will happen of its own accord,
without need of assistance from the international
system. The challenge relates to the creation of
political and social will so that technology and
its benefits are shared wide and equitably. Advances
in micro-electronics will speed up communications
all over the planet and provide the basis for the
existing social and economic relations to turn into
a 'global information society.' Such a society could
spark off impressive changes in industry and social
relations, in the same way that the Industrial Revolution
transformed the agricultural societies of the time.
When computer chips' micro-miniature and nano-technology
are combined with artificial intelligence, this
will lead to another revolution in the product development
process. It will be possible for robots to be more
widely used in our daily lives. Information technology
and supercomputers will assist the understanding
of the genetic architecture of our lifestyles. By
2023 the world will witness the beginning of a genetic
engineering revolution. This new technology will
greatly improve the quality of life.
Biotechnology has the potential to open the way
to great advances in agricultural productivity,
health services and environmental protection. Advanced
materials could create a revolution in the aerospace,
automotive, electronics, textile and construction
sectors. Alternative energy sources for transport,
heating and electrical manufacturing could be developed.
Thanks to advances in transport infrastructure and
the use of information technology in services, far
wider opportunities will be created in tourism and
international commerce, and global transport will
lower costs. Increasingly lower costs will bring
even developing countries to a level whereby they
can attain these developed technologies.
Even though the knowledge revolution gives low-income
countries opportunities to develop their economies,
they cannot use and implement knowledge. Therefore,
there is a serious gap between the rich and the
poor in terms of knowledge. Low income countries'
investment and industrial development in knowledge
will likely lag behind high-income countries over
the next decades.
Challenges for Energy Security. In the aftermath
of the events of 11 September 2001 and the Iraqi
war, it is now widely appreciated that volatility
in the oil market poses significant risks to economies.
Adding to this, world energy consumption is projected
to increase by 60 percent (mainly in developing
countries) between 1999 and 2020. During this period,
it can be anticipated that near-to-market reserves
will be depleted and that the need for additional
volumes to be transported long distances will increase.
The balancing of oil supply and demand is therefore
likely to become more delicate than it is at present.
The scene is being set for a potentially serious
conflict between oil producers, which could lead
to great instability in the oil markets. To some
extent, oil prices have become desensitized to the
geopolitical alarm bells that are frequently sounded
in the market.
The future investment in the global energy sector
is potentially the most important single issue of
international economic development other than the
management of the world economy itself. As noted
in a recent UNCTAD report: "… energy is one
of the most important drivers of economic development
and is a key determinant for the quality of our
daily lives … it is probably the biggest business
in the world economy, with a turnover of at least
$1.7 - 2 trillion a year … global investment in
energy between 1990 and 2020 will total some $30
trillion at 1992 prices." Any delay in investment
will seriously affect the future supply and lead
to eventual energy insecurity.
The common concern is still the possibility that
new events such as in Iraq could produce a reoccurrence
of the price shocks. Nor has the strategic importance
of energy, and oil and gas in particular, diminished
because the world economy is as dependent, or even
more so, on energy than in the 1970s. Even though
the share of oil in the world energy mix has been
reduced, oil remains a strategic commodity critical
to national strategies and international politics.
The fundamental link between economic growth and
energy consumption remains in place.
The present day energy security problems have their
roots in the fundamental imbalance in the location
of world oil reserves. Three quarters of the world's
oil reserves are located in the Gulf region, and
these represent the lowest cost supplies. Middle
East producers accounted for 31 percent of world
oil supply in 2000, and this figure could grow to
63 percent in 2020, so there is still scope for
OPEC to act as a cartel, as it did in the 1970s.
In general, this interdependence means that events
in the Middle East will appear to threaten, or will
actually threaten, large quantities of oil and hence
produce price reactions larger than might be expected
from other areas.
Policymakers in most economies have been complacent
about the energy security risk for decades. In almost
30 years since the 1973 energy crisis, the main
focus of international efforts to reduce energy
supply risk has been on short-term responses and
on producer-consumer dialogue, principally through
the OPEC and the IEA. However, because of demand
growth and shifts in centers of global demand, the
vulnerability of economies to supply disruptions
and price shocks has been increasing at a greater
rate than any short-term measures could ever have
hoped to control. There is a pressing need to move
beyond short-term responses and to find sustainable
solutions to the causes of energy insecurity. This
requires amongst other things, a co-operative search
for mechanisms to overcome impediments to exploration
and development, to accelerate the development of
cross-border power and gas projects and to enhance
national self-reliance.
Ecological Restrictions And Natural Environment.
Environmentally, twenty years is too short a period
for planetary changes. However, catastrophe can
always strike suddenly and trends tend to exacerbate
over time. The world would not have become a greenhouse,
just yet; biodiversity would not have all gone extinct;
the forest cover would not have been all cleared.
However, each of these and other vital ecological
systems would most likely have gone somewhat worse
even though technological and policy interventions
may well make some minor headway in certain areas.
However, the two most important environmental tests
for the near future relate not to 'environmental'
indices but to political and social choices. First,
would the leadership of the world-North and South-have
mustered the political will to meaningfully respond
to these and such challenges? Second, would the
affluent societies-North and South, but obviously
more in the former-be willing to change their excessive-consumptive
lifestyles? Much as one would be like to wrong,
there is little evidence to suggest that, absent
a major ecological crisis, either of those questions
could be answered in the affirmative by 2023.
As the world population rises, its pressure on
the environment will also increase. Past civilizations
were forced to live as nomads because of poor use
of resources - recall why early Turks were forced
to migrate to Anatolia from Central Asia. Environmental
pollution will reach terrible dimensions in those
countries, which will experience the most powerful
population rises. Some regions will experience extreme
changes in climate, and that will inevitably impinge
on water and food production capacity. The major
natural resource loss can be expected in fresh drinking
water. These regions may be dragged into chaos and
people may be forced to migrate. Just like today,
the poor will be left to deal with the serious problems
facing them on their own.
Scientists draw attention to the fact that global
climate change has the potential to affect human
beings' bio-systems. A new super Ebola virus or
currently threatening SARS could spread across the
whole world. The rapid consumption of energy sources,
particularly fossil fuels, will speed the search
for alternative and renewable sources of energy.
Giant steps will be taken to harness energy and
raw materials from space, and in that context, lunar,
solar, wind and hydrogen energy will be increasingly
used.
Bleak as it might sound, the above projections
are based on past trends and current indications.
In terms of broader aspects, it is likely to be
a world that is strikingly similar to our own. Just
as the basic pathologies of the planet have not
changed at all significantly in the last twenty
years; they are also unlikely to change dramatically
in the next twenty. Sure enough, there will be innumerable
changes-many of them positive-in the gadgets and
gizmos some of us would be using, or the brands
and products that would be holding sway, or the
nature and means of interpersonal communications.
But the fundamental questions that the international
system will be faced with are unlikely to be at
all different from what they are today. The central
challenge to the international system, then as today,
is not about how best to cope with emerging issues,
but how to tackle the enduring fundamental problems.
Questions For Strategists
Some of the questions regarding the future that
keep most strategist minds busy include:
· How much longer can the United States remain
as the world's only superpower? Might Turkey be
compelled to choose between the EU and the US in
order to avoid being a "Trojan Horse"
in Europe and the Middle East, particularly after
the Iraqi war? Or will Turkey develop into a truly
strong regional power in its own right, which can
interact with all groups of countries?
· Will the EU head in the direction of a 30-member
federal state, or will the existing cracks between
"old" and "new" Europes open
still further? Can Turkey become a full member of
the EU in the true sense? Will it be condemned to
a watered down, loose integration strung out by
intermediate phases? Or will the EU continue to
fabricate new excuses to keep Turkey at bay?
· Is there a danger of the euro threatening the
dollar and yen zones? Could the EU leave behind
its identity as an 'economic giant but political
and military dwarf' and engage in interventions
in the Middle East and Caucasus to the exclusion
of Washington?
· Will China be economically divided into eastern
and western regions, or will it continue growing
at the same speed to achieve the long cherished
goal of a superpower status by 2023? Is the Greater
China Economic Area a dream or becoming a reality?
Will China and Japan settle their historical animosity
when Beijing will be able to flex its muscles economically
and militarily?
· Can Russia sustain its stable economic course
under the Putin administration and draw the former
Soviet republics in its 'near abroad' back to the
Moscow line through new regional integration initiatives?
How will the new generation of leaders that will
replace the existing regimes in the Turkic republics
in Central Asia behave? Will Turkey become the regional
focus for these nations' future orientation and
continue rivalry with Russia and Iran?
· Might Syria and Iraq unite? Could the Iranian
Azeris, said to number 25 million, unite with Azerbaijan
to the north? Can Turkey remain silent in the face
of the Russian and Armenian reaction to this move?
· Is it possible for a new group of countries including
China, Russia, India, Indonesia and Brazil to challenge
the G-7 group? Could the 'Shanghai Five' group formed
under the umbrella of China and Russia turn into
a defense mechanism to rival NATO/the United States
in Central and East Asia? Will Iran be China's strategic
"bridge head" partner in the Middle East/Caucasus?
Where will Turkey stand in this newly emerging equation?
· Can the emerging markets generate unique syntheses
to invalidate the blind, 'fanatical' free market
approach to democracy and free market economy? Will
globalization fuel further nationalism or greater
liberalization? How can its benefits be fairly shared?
· Will there still be a risk for democracy in Turkey
to be marginalized due to the Kurdish separatist
movement and Islamic fundamentalism, or will the
polarization in the country recede?
· Does OPEC have a future in the world oil market?
Could the supply of oil be endangered in the decades
to come? How will alternative sources of energy,
space and ocean energy technologies affect the world
oil/gas markets?
· Can wars over the security of food, energy and
water supplies be prevented, particularly in Turkey's
part of the world? Will Turkey be a main exporter
of genetically modified food? What will Turkey's
role be in the transportation of water by pipelines
and tankers to the needy regions, and the setting
of prices on the international water market?
· How realistic is the UN plan to eradicate hunger
from the face of the earth by 2025 in the framework
of its 'War against Hunger' plan of action? Will
access to water and sanitation be possible for all
by 2015, as targeted by the United Nations?
· Why is foreign capital not going to poor countries?
Would multinational enterprises continue affecting
domestic policy-making more than elected governments?
Is a new international economic architecture realistic?
What about an international police force in the
fight against corruption and protecting the global
environment?
Experiences Of 'Visionary' Countries
There are a variety of country or business visions
that may carry lessons for Turkey such as Singapore's
21st century projects, Mahathir Muhammad's Malaysia
2020 vision, Iowa's 2010 strategy, Dubai Internet
City, APEC eminent persons' 2020 Vision, EU 2020
goals, Future City of 2020-Reading, South Africa's
vision for growth, employment and redistribution,
Poland's Strategy for Growth to 2020, Australia's
2020 Business Vision, 'Destino Colombia' project
and Shell's 2050 future scenarios. The track record
varies considerably, with some considering their
visions as holy book and sticking to them while
some others do not even open its pages after publication
and have little relevance to country's real prospects.
They may not be directly relevant to Turkey's particular
circumstances but still could inspire some ideas
as to the process, which set these visions in motion
and their substance.
21st Century Singapore
In the context of future vision, Mr. Lee Kuan Yew
is probably the best example of a living visionary.
He is remarkably down-to-earth, and yet a man with
telescopic vision. Just after Singapore separated
from Malaysia in 1965, he delivered an emotional
speech, which was not really an exceptional performance.
But what was remarkable was his choice of the word
'robust' to describe the kind of society that he
wanted to build. The transformation of Singapore
from an Asian have-not to a developed nation within
50 years is his greatest achievement.
The rulers of this tiny island state today see
that their future in the new millennium lies in
knowledge-based industries such as information technology,
biotechnology, medical sciences, logistics and finance.
In its vision for the 21st century, unveiled in
March 1999, the Economic Development Board issued
a call for 'Singapore's knowledge industries to
be a lively and enterprising global connection center.'
The aim is for Singapore's manufacturing industry
and service sector to make major investments in
technology, renewal and value-added capabilities,
and for Singapore to be made attractive for multinationals
engaged in knowledge-intensive activities. In this
way, it will be possible for 40 percent of Singapore's
annual GDP to consist of knowledge-based activities
within the next 10 years.
As has been seen in the successes of Silicon Valley
and Boston-Route 128, world-class universities are
of critical importance in the construction of an
information-based economy. They invited the world's
10 best universities to build schools, advanced
research facilities and powerful industrial links
in Singapore by 2010. Six universities have so far
responded positively: MIT, Johns Hopkins, Wharton,
University of Chicago, Georgia Institute of Technology
and INSEAD.
Singapore currently provides talented engineers,
social scientists, industrialists and entrepreneurs
with all kinds of material and professional opportunities
to attract them to the island. The existence of
world famous educational institutions means that
the improvement of Singapore's intellectual and
educational standards is also targeted. Companies
will make use of this high quality, increasingly
growing human resources pool. Moreover, this will
make the commercialization of new technologies and
the clearing of the way for companies and industries
possible. The emphasis in Singapore's vision of
the future lies on human capital and advanced technology.
Malaysia on Track for 2020 Vision
The Malaysian government wants to transform this
developing nation of 22 million people into a first-world
country within the next generation. At the heart
of the government's future national architecture
is the "Vision 2020", which is an aggressive,
comprehensive project. While Malaysia faces many
challenges as a developing country-primarily, a
slow recovery from the Asian economic crisis and
difficulty in retaining skilled information technology
workers-its prospects for first-world success built
on a high-tech foundation are good. The population
is well educated, the country is politically stable,
and, perhaps most important, the government has
demonstrated a real commitment to establishing Malaysia
as a global information technology hub.
Rounding out its investment in infrastructure along
the Multimedia Super Corridor, the Malaysian government
is keen to stimulate Internet usage among its entire
population. With a variety of innovative programs-for
example, giving employees the opportunity to purchase
computers through their pension plans, and bringing
Internet-enabled computer workstations to remote
villages via a "cyber bus"-the government
hopes to bring the entire country into the information
age. The government expects its programs to help
increase Internet penetration rate to 25 percent
by 2005 from about 7 percent today. Economic crisis
may have delayed the rapid Internet adoption that
Malaysia initially hoped for, but its vision is
ultimately of a more connected country, and its
ambitious approach seems to be paying off. The result
is not only a positive outlook for the country's
first-world aspirations, but a wealth of investment
and business opportunities for global companies.
In the 10 years before the economic turmoil of
1997-1998, Malaysia was growing at 8 percent plus,
higher than its 7 percent growth target needed to
double its per capita income every 10 years for
30 years. (Note that China's vision envisages a
quadrupling of GDP between 2000 and 2020). Even
if growth for the next 10 years averages slightly
less than 7 percent, Malaysia will still be on target.
Its domestic savings rate has always been high at
almost 40 percent of GDP, while its foreign debts,
both public and private, are very low.
Under the Vision 2020, there is also liberalization
of educational policies leading to the democratization,
privatization and decentralization of the Malaysian
educational system. In conjunction with mass education,
both the primary and secondary school curricula
were revised with great emphasis on the development
of an all-round individual, the acquisition of basic
skills, the inculcation of moral values, and the
abolishment of early specialization. The educational
administrative system has been decentralized to
promote school-based management and teacher empowerment.
Furthermore, the private sector has been encouraged
to play an active role in providing higher education.
Poland's Strategy for Growth to 2020
Poland, which is set to become a full EU member
in May 2004, aims to achieve a level of development
in 2020 similar to that represented by the current
weakest members of the EU, namely Portugal and Greece.
The level of per capita GDP in Poland in dollars,
in terms of the zloty purchasing power, was estimated
in 2000 at about 37 percent of the average level
in EU countries. In order to maintain this level,
GDP should grow annually by at least 3 percent to
match the growth forecast in other EU member states.
In Poland, average annual growth of 4-6 percent
of GDP can be expected over the next two decades.
This would not enable Poland to catch up with the
average level in the EU countries by 2020, but it
would greatly narrow the gap.
The Polish vision group believes that through 2005
the prevention of unemployment growth needs special
attention from the government in view of the imminent
arrival of the young generation on the labor market.
In 2006-2008, foreign debt repayment should be the
government's main priority, involving higher domestic
savings and a pro-export orientation for the Polish
economy. Lower debt levels after 2008 should be
used as an opportunity to increase investment and
speed up structural economic reform. Demographic
changes due in 2016-2020, expected to reduce unemployment,
will permit the faster migration of rural population
employed in agriculture to towns.
Poland's economy today, in European terms, features
a relatively high proportion of sectors with no
developmental prospects and dwindling economic importance.
In Poland, every eighth employee works in such sectors
of the economy, while in EU countries-only every
twentieth. At the same time, the share of sectors
capable of stimulating economic growth and featuring
fast-growing demand is insufficient. However, limited
budgets will only permit technological modernization
within existing sectors. The best remedy for the
shortage of economic restructurization funds should
be foreign capital attracted for direct investments
in Poland, as well as the reorientation of budgetary
spending in the wake of foreign debt payment reductions.
The strategy of Poland's development through 2020
is so far-sighted that it has not yet aroused much
interest on the part of state authorities.
A New Japan by 2010
In the 1970s, Japan's Keidanren recommended the
'Programme for the Creation of a New Japan by 2010.'
The recommendation stressed that it was essential
to take action for the development of a long-term
vision of how the economy and society would take
shape and for this vision to be realized. The main
objectives of this programme, known as 'Action 21,'
include:
· The building of a society free of strict state
regulations by means of a regulatory reform,
· The implementation of administrative, financial
and tax reforms for a transparent, small and effective
government, and a revision in this context of the
relative weights of direct and indirect taxation,
· A reconsideration of the functions of capital
and the building of a decentralized state structure,
· The development of a national resources policy,
which makes effective use of natural and regional
characteristics,
· The raising of urban standards, the construction
of new national arteries and the improvement of
local transport networks,
· The construction of airports equipment to allow
connections between domestic and international lines,
and the modernization of existing ones,
· The improvement of the communications infrastructure
and the wider use of information technologies in
public administration,
· The building of a recycling-oriented socio-economic
system,
· The consolidation of the R&D mechanism conducive
to a leading global power,
· The development of creative human resources for
the construction of a society, which regards diversity
as a source of national strength,
· The declaration of a ceasefire in the educational
'entry exam wars',
· The creation of an environment, which encourages
workforce mobility,
· The building of effective, achievable and transparent
money and capital markets befitting an international
finance center, and the encouragement of the global
use of the yen,
· The taking of measures to cope with an aging population
and falling birth rate and allowing people to live
longer,
· The encouragement of the independent activities
of non-profit-making civil organizations in a flexible
and tolerant society,
· Strengthening the diplomatic staff and resources,
accepting the responsibilities of a dynamic and
global state, and
· The launch of new initiatives within the World
Trade Organization, the OECD and APEC for further
liberalization in trade and investment.
Old Leaders And Young Society
No doubt, one of Turkey's great assets is its young
population - 44 percent of the people are under
24 and 35 percent under 15. Yet, for this population
to be a "real" asset at a time when industrial
world is aging, they should be better educated and
trained if we do not want to used once again as
a source of crude labor. They should also be drawn
increasingly into the existing governance structures
so as to make best use of their dynamism.
No matter how well intentioned they may be, it
is very difficult for Turkey's aging and relatively
unsophisticated cadre of leaders both to deal with
the current problems and to seize the opportunities
offered by the 21st century. Their interests lay
more in maintaining the status quo and enriching
their own supporters than in upgrading their country's
competitiveness and human capital. Turkish politicians
are generally conditioned to share out the unearned
revenues of the state, to channel anger and express
reactions to day-to-day problems. Whereas starting
from common foundations and values, new designs
for the future would make the society look more
warmly on the system and bring forth the hope, which
nobody has been able to raise for such a long time
in a credible manner.
In societies such as Turkey, in which the institutions
have not yet firmly settled and acquired an established
order, leaders who can be a driving force are of
crucial importance. If they are able to put together
teams devoted to their ideals, then they can deploy
democratic mechanism in the direction of specific
objectives. In the hands of ill-prepared, authoritarian
and visionless leaders, the trend will inevitably
be downward. Yet the example of kicking a man when
he is down should not be attributed to politicians
alone. All sections of society bear a greater or
lesser share of responsibility for the present difficulties.
The current weakness of civil society, the lack
of a strong middle class to take on radical change
and be the driving force for progress (and which
itself receives no favors from the state) and the
way society has become apathetic and indifferent
all add to the culprit sheet.
The emergence of brand new, young, qualified figures
on the right, left and center spectrum, who are
capable of carrying Turkey forward will provide
some hope for the future. Firing the starting gun
for a visionary movement depends on the existence
of such a core leadership team, which does not hesitate
to tell the public the truth, is capable of keeping
its promises, and is charismatic, knowledgeable,
honest and capable. They should have a dream, a
mission, and a strategic objective, capable of explaining
that vision to the public, manage effectively those
who will carry it out and interact with the outside
world on the same wavelength. Successful people
are usually reluctant to enter politics in order
not to "waste" their energies in an area,
which is so much despised and seen as corrupt.
Since new generation leaders cannot be grown in
laboratory conditions or be imported, the ground
should be prepared for the emergence of a political
system, which will reward the quality and merit.
Furthermore, what is also needed is a clear articulation
of the final goals and good communication skills
to mobilize public opinion behind it. Then a major
drive, with much greater resources, needs to be
devoted to education. In other words, how does Turkey
stack up on human capital and institutional infrastructure
relative to the large pack of emerging market economies
that are seen as future heavy weights? And why do
we think that Turkey will do better or worse than
this group?
Prerequisites For A Rapid March Towards Turkey
2023
If Turkey does not wish to be aimlessly carried
along hither and thither by the wind, as has been
the case so far, to drown in a swamp of chronic
problems awaiting solution, and to avoid the efforts
of interest groups/advisors to constantly divert
decision-makers in the direction they consider to
be 'important,' it is imperative to draw up a list
of priority actions on which energies, abilities
and resources can be squarely focused - particularly,
a clear roadmap to set a hierarchy of priorities,
guidelines, necessary conditions, an operational
timeframe and implementation mechanisms to drive
the reform process via transparency and political
accountability.
We believe that the rapid march towards 2023 should
focus on achieving the following key priorities:
> Building New Political Architecture, Good Governance
and Domestic Peace
Turkey's current governance structures are largely
inadequate, outdated and ineffective in meeting
the new challenges of the 21st century. We are all
aware that they must be reconstructed to respond
to evolving realities and requirements. We also
know that Turkey's macroeconomic performance is
not unrelated to its weak governance and regulatory
structures. The reforms that have thus far been
proposed, and much less frequently implemented,
are usually ad hoc adaptations. To remedy these
disconnects in a more fundamental way, Turkey needs
a novel political paradigm in a comprehensive package.
The foremost priority is the transition to a 'democracy
capable of effectively governing', be it in a presidential,
semi-presidential or reinforced parliamentary system,
with checks and balances in place. The new political
structure should open the country to competition,
innovation, dynamism, accountability, transparency,
and greater democracy. It should be designed in
such a way to attract the nation's best brains and
talents. Unless these reforms are sufficiently debated
in the public arena, unless participants are open
to practical measures, unless majority concerns
are fairly addressed, they will fail to receive
general acceptance and will not be implemented effectively.
In this vein, the ongoing EU accession process
can serve as a powerful incentive for stepping up
internal reform as Turkey strives to meet membership
criteria by December 2004. In spite of all obstructions,
vulnerabilities, deficiencies and hardships of Turkey's
political and economic system, the long march towards
a more democratic and efficient rule of law still
remains a national priority. In this process, different
dimensions of the democratic system as well as its
forms and means of materialization have been debated
in Turkey while various political bodies have brought
suggestions for constitutional and legal amendments.
The success of these changes is contingent upon
the continuation of this process, the idea of a
transparent and efficient state and maybe even a
new understanding of the state-individual relationship.
The restructuring of the public sector in Turkey
is also a serious concern for the private sector.
The need for public reform is better understood
when we take into account that the changes will
help establish a more effective and efficient public
governance, curb corruption, and shrink public spending
waste. However, limiting the reform process in Turkey
only to the public sector or to the macro-economic
matters and expecting change only from these sectors
is not right. No sector of the society can be excluded.
There absolutely must be change at the micro level
as well. Companies that cannot keep up with the
restructuring process will need to surrender their
positions to those who can keep up with the change.
Another overriding goal is to achieve lasting reconciliation
in Turkey, riddled with multitude of domestic conflicts.
'Peace is not merely the absence of conflict, but
it is the existence of justice,' says one Turkish
thinker. Both the climate of conflict and widening
income and regional disparities pose a serious threat
to the country's long-term political and economic
health. Turkey needs to have an open welcoming approach
to its citizens, irrespective of their political
persuasion, gender, ethnicity and religious beliefs.
Diversity should be recognized as richness. Regions
should compete among themselves for attaining stronger
competitiveness both nationally and globally and
for achieving grass-roots democracy.
It is clear that, unless Turkey puts its own political
and administrative house in order at once, Turks
can forget about their ambitious 2023 goals.
Essential Pillars Of Good Governance For Future
What makes societies and economies successful -
availability of natural resources, climate, religion,
ethnic multiplicity, or access to foreign markets?
Intuitively, each of these variables seems influential,
even if a direct relationship between them and a
country's success is impossible to identify. Finland
and the United States both rank high on any scale
of success, even though their ethnic makeup is very
different. Norway and Nigeria both are endowed with
similar energy resources, but their success rates
could not be more different. There is, however,
a positive correlation between success and one variable:
good governance, which we believe rests on the following
essentials:
- Rule of law: A society needs to implement the
rule of law. This means that the law is above any
individual actor or group, even the most powerful.
The law must be equally valid for all members of
the society. The legal system must provide justice
and equal treatment for all groups and individuals
of the society.
- Functions of the state: The state must have a
monopoly over the legitimate use of force in society
and guarantee the enforcement of its laws. The state
must also offer a political process that guarantees
the participation of all members of its society
through some type of representative process, and
ensure that its checks and balances work properly.
Beyond these functions, the state is an institution
that must work to maximize the benefits of all of
its members.
- Securing fair competition: In order to make market
economies work efficiently, an effective economic
framework is required. The state has to assure that
contracts are enforced (which requires an efficient
legal and juridical system), a trusted medium of
exchange exists (which requires consistent monetary
policy and well-regulated financial markets), and
that fair competition is guaranteed (which requires
anti-trust legislation, consumer protection legislation,
intellectual property legislation).
- Internalization of external effects: The state
is responsible for minimizing the negative side
effects of production. If a producer is able to
shift the costs of environmental pollution to the
public, this externalization has the effect of an
(undesired) subsidy to the producer, thereby distorting
the market signals.
- Public goods: Good governance requires the state
to provide public goods which, by definition, are
not provided by a market, such as internal and external
security (police/military), a basic infrastructure
for transportation and communication, the preservation
of the society's cultural heritage, basic education,
and a social policy that guarantees residents a
minimum income and health care. Although the quality
and quantity of public goods depends on the economic
wealth and foundational philosophy of a society,
without these goods a successful society cannot
exist.
- Education: The state has the responsibility to
make optimal use of the intellectual resources of
its society. This includes giving all children access
to affordable education according to their abilities
and protecting them from exploitation for short-term
gains, thereby securing a society's longer-term
investment in adequate education.
- Regional integration and global compatibility:
In a globalizing world, economies and societies
cannot exist self-sufficiently. Therefore, they
need to make themselves more compatible to other
societies by adhering to global economic and social
standards and integrating into larger markets. This
requires a state structure that can guarantee fair
domestic competition even against powerful external
investors. Regional integration is not merely about
issues such as reduction of custom rates; it should
focus on the harmonization of legal rules and standards
in order to create viable markets and on accords
with neighbors centering on the provision of regional
public goods (security, water, and environment).
These seven essentials offer a guideline for states
to succeed in a globalizing world. They are compatible
with all cultures, even if the implementation of
these principles may not benefit every actor in
society equally. But the fundamental question is
how do we establish them?
>Investing In Human Capacity Development, Technology
And Sustainable Development
In the future, as in the present, a country's most
valuable asset will be the quality of its people.
Brainpower and imagination, invention, and the organization
of new technologies are the strategic ingredients
in the 21st century. Better education, health, social
security and employment will help propel countries
to the top ranks of the world competitiveness league.
Education for all is the driving force for change.
It is no longer thought of only in terms of the
initial phase, prior to full entry into adult life.
The need for continuing learning to maintain existing
skill levels and to develop new ones adds a strong
focus on life-long adult learning. Education is
increasingly important to social and economic development.
National competitiveness and social cohesion depend
on good education. Learning and creativity are qualities
of an intelligent society. Technology alters education
requirements, as does international trade, while
the supply of skills also affects investment decisions.
An education system which prepares the ground for
an inquiring mind, which encourages production rather
than consumption, which calls for sharing and cultural
enlightenment, and which teaches respect for common
values, is absolute necessity. The state has a leading
role in raising the educational standards and equality
of opportunity that will open the way for poorer
sections of society. A system must be developed
in which women and children are given particular
importance. Working people, housewives, senior citizens,
and others should be able to participate in interactive
distance education programmes that can bring them
lectures and classes delivered from the best schools
in the world.
Investing in children and the young, who will take
over from us, is actually an investment in our own
and the country's future. No sacrifices must be
spared in the use of public and private resources
for this purpose. The advancement of an education
system and ethical values compatible with the civilized
world, inspired by Turkey's rich cultural, religious
and historical variety, as well as by science and
technology, will produce people, who are self confident,
respectful of the diversity and hopeful for the
future.
We must also adopt an attitude that will reduce
peoples' uncertainty over retirement and health
problems. Furthermore, development must be carried
out in a sustainable way, from the future generations'
ecological perspective. Ensuring adequate and uninterrupted
energy supplies must be placed among the country's
priority objectives given that Turkey depend on
imported oil - 90 percent of its oil and 96 percent
of its gas requirements come from generally unstable
regions.
>Enhancing International Competitiveness
Closing the performance gap between Turkey and
other major economic partners should be a major
national goal. This is a job for business but government
must create the right environment for business success
by providing an economic framework, which is stable
and enterprising. The government should put in place
policies and programmes to help businesses innovate
and succeed as we all face the challenge of the
knowledge driven economy. Knowledge and knowledgeable
people have become the most determinant factor in
any economy.
Competitiveness - a dynamic process that could
be achieved, maintained, or lost over time - is
a growth industry. Presidents and prime ministers
vow to improve it, legislators debate it, and economists
measure it. It consists of all actions at different
levels from conventional macroeconomic polices to
questions related to technology, infrastructure
and human resources development. India developed
a niche market in software engineering that is highly
competitive without changing neither the landscape
of Indian industry nor its overwhelming poverty.
This example shows that all depends on the objective
to be assigned to competitiveness that a strategy
could be drafted.
Public sector activities (central government, public
enterprises, and public utilities) have a big influence
on the country's competitiveness capacity. At macro-level,
competitiveness policies should consist of driving
the economy to operate on the international efficiency
frontier by promoting liberalization and market
economy mechanisms that guarantee efficient resource
allocation. The package of the reforms would include,
among others, creation of competitive environment,
trade liberalization, privatization and divesture,
private sector development, flexible exchange rate
regime, sound monetary and fiscal policies, infrastructure
management, institutional liberalization, financial
sector management and prudent regulatory framework.
An open, honest, democratic, efficient and productive
state, whose institutions work together and in harmony,
is the guarantee of a sound economic system. This
vision requires sustained reforms of the market,
corporations, administrative and foreign investment
regulations, and labor-management relations. Economic
policies should be based on democratic values, that
is to say, principle, trust, autonomy, balance of
power and social integration. Policies should be
implemented through a democratic process based on
dialogue and compromise, and in a manner designed
to create a predictable, vibrant, free and fair
market order. The policy-making process should be
managed in a fully transparent manner through participation
of related parties and open discussions. Good governance
will not only accelerate the inflow of FDI; it will
also create a more competitive domestic market and
private sector.
Fiscal reforms designed to boost exports and investment,
by granting concessions, reducing rates, and simplifying
fiscal rules and procedures, are very strong tools
of international competitiveness enhancing. Expansionist
government spending lead to the accumulation of
unsustainable public debt. This in turn will create
balance of payment problems, high inflation, capital
flight, and weakening of the exchange rate, and
undermining international confidence. An enabling
domestic environment is vital for mobilizing domestic
resources, increasing productivity, reducing capital
flight, encouraging the private sector and attracting
and making effective use of international investment.
The key to unlocking Turkey's debt trap is to lengthen
public debt maturities on fiscally sustainable terms,
to reduce radically short-term foreign exchange
exposure, attract more FDI and to vigorously rehabilitate
the banking system.
In an increasingly interdependent world, countries'
success or failure has come to be viewed in light
of their 'efficient growth'. Those economies, which
will perform best in the future, are not those,
which support chosen or preferred 'strategic' industries,
but those able to use their assets in the most effective
manner. Turkey will enhance its global competitiveness
by capitalizing its considerable economic, political
and geographic assets. Its future role in the global
economy depends very much on its ability to further
integrate with the competitive international markets
through attraction of "quality" FDI, increased
exports over imports, deployment of advanced technology,
promotion of Turkish brands and trademarks and strategically
targeted investment abroad.
Production costs should not be allowed to reach
such levels as to damage Turkey's international
competitiveness, as is currently the case. New know-how
must be brought to renovate those industries in
which Turkey enjoys a relative superiority, such
as agriculture, tourism, textile/clothing, construction
and defense sectors, but also explore new industries
and technologies which will enhance its standing
over the next decades. The forward-looking energy
supply and demand scenario must be developed on
the basis of energy sources which are clean, renewable,
and whose costs do not impinge on competitiveness.
The impact of e-government at the broadest level
is simply better government. It enables better policy
outcomes, higher quality services and greater engagement
with citizens. Governments and public administrations
will, and should, continue to be judged against
these established criteria for success. Turkey can
take giant steps through the promise of digital
government, which will connect government actors
and the public in entirely new ways. The TUBITAK
could provide support to the further development
of digital and electronic government.
Turkey should also aspire to be a regional hub for
businesses, services, and transportation for the
countries of Eurasia, the Balkans, and the Middle
East. For many decades, Turkey has failed in assuming
its regional role; now, it has a unique chance to
position itself as a nerve center and switching
node for staging regional and international business
operations. Its competitive assets will be an efficient
information infrastructure and a work force equipped
with the skills and expertise to operate, manage,
and get the most out of the infrastructure. The
new information infrastructure will also enable
Turkey's air and seaports to reinvent value in the
movement of goods and passengers.
>'Fine Tuning' Foreign and Security Relations
The new parameters that will potentially shape
the course of events in the world system, such as
demographic developments and ethnic strife, politics
of oil and water, proliferation of mass destruction
weapons and terrorism at the doorsteps of NATO and
EU, are inevitably bringing Turkey's future into
view. The international sea change has vastly changed
Turkey's foreign and security policy environment.
As a result, Ankara is compelled to shoulder greater
responsibilities as a regional political, economic
and military power to be reckoned with in Eurasia,
the Balkans and the Middle East -- a vast area of
ancient civilizations that connects East and West
and the nexus of trade, investment and energy routes.
The three wars of the US Administration -- Al Qaeda,
Afghanistan, and Iraq -- have greatly elevated the
strategic significance of the greater Caspian basin,
Middle East and Turkey. There is currently a considerably
higher U.S. presence and profile in the region,
which is likely to be enduring over the next decades
if not permanent. Despite the difficulties faced
during the Iraqi war in bilateral relations with
the US, Turkey will likely continue to have strong
cards in maximizing its national interests and becoming
a powerful regional advocate for its neighbors in
the future. As US Secretary of State Colin Powell
said after the conclusion of the Iraqi war in April
2003, "all the nations of the region"
should now reconsider their position. The particular
terms of Turkish engagement in its region will,
of course, be dictated by the contingencies of its
history, economy, military, and multilateral circumstances.
One thing is certain that its "strategic"
partnership with the US and "membership"
quest with the EU cannot be taken for granted.
As Turkish economy becomes more competitive in the
international economy, as Turks resolve domestic
problems, invest heavily in human capital, and the
population of the industrial world ages, Turkey's
EU membership will be accomplished sooner than widely
believed in any case before 2012. This will have
to be on mutually agreed terms, rather than on the
imposition of standard blueprints on Turkey. Since
the opening of a line of credit in Helsinki and
then in Copenhagen Turkey has been working hard
putting its act together, through the achievement
of both the economic and political reforms. Make
no mistake: Turkey that will join the EU will be
different from the Turkey of today and the EU that
Turkey joins will have to be different from the
EU of today. Not only will Turkey's accession lead
to a stable, democratic and peaceful Europe, but
it will also make Europe more dynamic and resourceful
in the ongoing global economic and geopolitical
competition. A win-win situation should be created
for both sides. Otherwise, Turkey will not likely
consent to be an "annex" of the EU in
a diluted membership.
'Regional power' status obliges Turkey to recast
its foreign affairs strategy, organizations and
staff in line with new requirements and changes.
Turkey should aim at forming a genuine belt of peace
and security in its surrounding region in order
to be able to carry on its reform process. This
makes it essential for Turks to develop a new co-operative
mentality which places the re-building of trust
with their neighbors at the forefront, and to carry
out a long overdue 'fine tuning' as dictated by
the post-Cold War period and after the Iraqi debacle
in relations with emerging world and regional powers
- something that has not been fully reflected yet
in Turkey's existing policies and mentality.
Furthermore, at a time when economic and commercial
interests occupy a central position in foreign relations,
Ankara needs to forge a global culture as a 'trading'
and 'investing' country. Constructive co-operation
and a culture of dialogue must be stressed rather
than chauvinistic and challenging attitudes in foreign
and security policies. Competition between nations
is natural in the global economy, but the overriding
goal should not be creating one of the world's 'largest',
'strongest' economies and 'most modern' militaries.
What really matters is to be able to create one
of the world's "happiest" and "prosperous"
nations. For this to happen more energy should be
spent on the primacy of building interdependencies
on an equal footing in economy, security, culture,
human rights and people-to-people relations.
What Should Be The Guiding Principles?
It is important to develop a workable roadmap for
a result-oriented future architecture. Whoever you
speak to from the villager in Erzurum throwing dice
in the coffee house, the Istanbul lawyer representing
his client in court, to the youngster from Ankara
preparing for university entrance exams or else,
they all start by saying, 'If I were the prime minister…'
and then offer you dozens of recipes for making
'halva,' setting out the country's shortcomings
and what could be done to redress them. That is
all fine, but at the end of the day nobody has seriously
gotten down to how to make the 'halva.'
We believe that the following fundamental principles
to ensure the success of any longer-term strategic
vision for Turkey deserve particular attention:
· Leadership and commitment, at both political
(by the president, prime minister and parliament),
administrative, regional, municipal, enterprises
and civil society levels, are crucial to prioritizing,
managing change and monitoring progress in implementation.
Committed, visionary leaders are required to deal
with disruptive change, to persevere when benefits
take time to emerge, to respond when things go wrong,
and to establish visions and plans for the future.
· Integration of the longer-term vision into broader
national/international policy objectives, structural
and public management reform processes. Every government
programme should take as the base the 2023 goals
and pursue their step-by-step implementation.
· Instill sense of ownership, ensure it brings benefits
to everyone and build capacities. Precondition for
success is not just to elaborate a glossy vision
for the future, but is a focus on practical measures
whose impact can be felt, beginning from today,
and benefits reaped throughout the life of the current
generation. Otherwise, securing broad-based commitment
to goals will be an uphill struggle.
· The implementation is most effective when public/private
agencies work together within common frameworks
to ensure interoperability, maximize implementation
efficiency and avoid duplication. There should be
interactions with future-oriented counterparts in
other parts of the world to learn and adapt their
experiences to local needs.
· The vision can open up government policy processes
and enhance accountability and transparency. Arrangements
should ensure that it is clear who is responsible
for shared projects and initiatives. Similarly,
the use of private sector partnerships must not
reduce accountability.
· Any spending on the development of the vision,
its process and implementation needs to be treated
as an investment in the future. The initiative requires
a level of certainty of future funding to provide
sustainability to projects, avoid wasting resources
and gaining maximum benefit from given funding levels.
A central funding to be provided by government,
business and international development agencies
could help it to be self-sustaining.
· Monitoring, evaluation and public scrutiny. Identifying
the demand, costs, benefits and impacts of this
process is crucial if momentum is to be sustained.
The vision implementers cannot expect support if
they cannot articulate potential benefits and benchmark
their performance.
How Can The Process Work?
Far away though it may seem today, choosing the
100th anniversary of the Republic as the target
is essential in terms of fixing the nation's attention
on a highly motivating common goal. Our children
today will be the adults of the Turkey of 2023.
It goes without saying that an individual, a group
of researchers or a political group cannot (and
should not be expected to) design, advocate and
secure wide social acceptance for the vision. It
requires an all-out, collective initiative involving
key stakeholders (i.e., government, parliament,
business, regions, municipalities, military, civil
society groups, scientific community and media).
The result should not be producing new fancy reports,
which would hit the front-page headlines a few days
in the press and then fade away into dusty shelves.
The vision should spell out clear missions, be action-oriented,
with each step leading consciously towards the achievement
of the ultimate goals.
An architect is both a dreamer and a draftsman
capable of producing a blueprint for how to turn
the dream into reality. Strategic architecture is
not a detailed plan as it identifies the major capabilities
to be built and "what we must be doing right
now" to intercept the future. Creating a detailed
plan for a 20-year competitive quest is impossible.
By way of analogy, we can liken it to a high-level
map of inter-city highways, not a detailed map of
city streets. Our vision should inspire a novel
paradigm for a better tomorrow worth striving to
the present and future generations. It should begin
building the future through concrete actions with
time-bound targets, clearly identified line of responsibility
as to who will do what and how performance will
be measured and rewarded.
After the opinions and recommendations from relevant
brainstormers have been taken on board, a strategic
framework should be put in place. Then, the leaders
of the vision initiatives and public at large should
be offered the opportunity to reconsider all aspects
of this blueprint with a view to incorporating them
where possible into their own agendas. Their step-by-step
implementation will have to be closely monitored
by the mentors and stakeholders of that vision,
and will be subject to constant revision as deemed
necessary. Political parties' electoral success
should be measured on the basis of their relative
performance and a set of benchmarks/indicators to
achieve the commonly agreed goals.
To realize the objectives, the " 2023 Turkey
Vision " could focus initially on the following
actions:
· The prime minister must decide whether he will
be the driving force for launching, guiding and
supervising the implementation of such a commonly
shared vision, thus linking his/her political future
to the successful mobilization of the implementers
and the public at large towards achieving the 2023
priority projects. The mission and vision are clearly
non-partisan in the high interests of the nation,
but its priorities and successful implementation
will hinge on the government, which should effectively
take on board other "shareholders" of
the country. The progress in achieving the goals
between now and the end of the government's term
in office will certainly boost its re-election chances.
· On the government side, the prime minister should
appoint a powerful, respected, high-caliber executive
- reporting directly to him and the cabinet - to
manage the process. The State Planning Organization
could be reorganized as a dynamic and flexible "State
Strategy Development Center". TUBITAK could
well serve as the national focus for the 2023 technology
vision, which will feed into almost every domain.
A regional development agency, which should also
incorporate the GAP Authority, should focus on how
best empower the regions and municipalities and
develop region-specific future initiatives. The
prime minister could hold several special cabinet
meetings each year exclusively devoted to discuss
the priority actions, take decisions and monitor
the implementation.
· The Parliament could consider establishing a
special commission to provide the legislative umbrella
for the 2023 vision-related legislation and harmonize
the inter-party dialogue on this matter. The Commission
would also exert its scrutiny over the government
actions in implementing the vision projects.
· The private sector, civil society partners, and
universities should have their own vision task forces.
They, the government and the parliament could convene
once a year (or as frequent as necessary) possibly
under the umbrella of the Istanbul Forum, which
can serve as the "brain trust" clearing
house for the "2023 Turkey Vision". The
Istanbul Forum, as the national forum for informed
dialogue, debate, and consensus building among the
key stakeholders through its regular meetings and
conferences in major Turkish cities and abroad,
broadcasts and flagship publications, should continue
to:
-- generate timely, state-of-the-art information
on key topics related to global future trends and
emerging issues that have long-term implications
for the Turkish economy, diplomacy and society and
disseminate them effectively;
-- communicate the vision challenges and related
action programmes to raise awareness and what can
be done to solve them, paying special attention
to reaching not only the current generation of policymakers,
parliamentarians, business executives, researchers,
educationists, and other leaders, but also the next
generation;
-- help strengthen the capacity of the major stakeholders
to conduct their own vision research and development
and implement them effectively; and
-- engage in active international co-operation
projects with IFIs, think-tanks, business groups,
development agencies, universities and sister organizations
abroad.
Final Word
Today the uncertainty is the day of the order not
only in Turkey but all over the world as our generation
is witnessing significant geopolitical shifts, new
economic challenges, promises of technologies, systemic
risks and unconventional threats to our lives. So,
it is critically important that we interpret the
global trends correctly in the interests of our
current and future gains; then make the right assessments
and decisions in order to respond to the challenges
and opportunities of today and tomorrow.
In this context, the "2023 Turkey Vision",
with a multitude of alternative scenarios, can usher
Turkey in the road to increased prosperity and happiness
of its people, irrespective of ethnic, religious,
and social roots. True, it is a long way. Perseverance,
devotion and hard work is needed; but we should
not forget that the founding father of modern Turkey,
Kemal Ataturk, had accomplished the bulk of his
revolutionary vision only in a period of 15 years
(1923-1938) as he did between the two destructive
world wars and in great deprivation. Ataturk's vision
and the trust he inspired had unified the nation
behind his profound transformations.
Consider what more can be achieved in this age
of speed and information and think of the largely
wasted 15 years between 1988 and 2003. We believe
that the two terms of government will be sufficient
to put the essential pillars of this vision in place
and radically change the face of Turkey for better.
Turks can and should write the script for their
own future if they are united behind a common, ambitious
goal. In fact, the necessary broad consensus, rich
resources and potential do exist. The existing public,
private and local vision initiatives should achieve
synergies and cross-fertilization under the Istanbul
Forum mechanisms.
A dynamic and enlightened leadership can kick off
the process -- in the right order of priorities
(the top one being education at the primary and
secondary level and mechanisms so that the benefits
of technical change are not all captured by the
rentiers) -- to make the right taste 'halva' from
the abundant ingredients of oil, flour and sugar.
It cannot be only a top-down strategy as usual;
we need to engage all the dynamic forces of the
nation, as well as international partners. Otherwise,
Turks may likely continue complaining about "missed
opportunities" and unidentified "external
forces" attempting to ruin their country in
2023. They will likely play into other nations'
scenarios, often without even being aware of the
hidden agenda, and their 'roadmap' will be drawn
elsewhere, as has long been the case.
The future is now and in our hands. It can be won
or lost. Let us be clear: the short-term and long-term
do not abut one another with a clear line of demarcation,
as both are tightly intertwined. Failure to anticipate
and participate in the future will impoverish nations,
firms and individuals. So, between now and 2023
the central government, regions and private sector,
with strong support from other stakeholders, need
to make tangible progress each year, through perhaps
demonstration projects in different parts of Turkey,
to build up further support for other grandiose
projects in the making. Bear in mind that all great
achievements in history began initially as dreams
often ridiculed, but strong strategic vision, leadership,
sense of trust and vigorous follow-up have turned
them into realities.
Hence, our message is crystal clear: Prepare
and act now because "the future begins today".
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1. This paper builds on his earlier works including
the October 1998 strategy paper on "A new foreign
economic relations strategy for Turkey towards 2010",
published by TUSIAD, and "Turkey 2023 Vision"
in Dis Ticarette Durum, September 2002, as well
as on a series of discussions with key government
and business leaders. He is grateful to Ugur Yuce,
Mehmet Aktas, Mujdat Guler, Namik Erpul, Franz Traxler,
Zulal Izgin, Rainer Geiger, James Chan-Lee, Bozkurt
Aran and Ergun Pelit for sharing their comments
and suggestions on an earlier version of the paper.
The views expressed in this paper are his personal
and do not reflect those of any organisation he
is associated with.