Kikapu wrote:Tim,
Tim Drayton wrote:The reality is that Turkey is a fast developing country. At the time of the invasion in 1974 it had a per-capita GDP of 928 dollars; the equivalent figure for 2006 was 7,500. That is an eight-fold increase in just over thirty years.
Tim Drayton wrote:I am sure that most people are familiar with the predictions made in a recent report by Goldman Sachs that, by 2050, Turkey will have a per capita GDP of 60,000 dollars
These figures you gave are hardly anything to write home about. From 1974 to 2006, the inflation factor in Turkey was anywhere from 80% to about 12% today, therefore the purchasing power of the $928 GDP US Dollars in 1974 has not increased too much and it will barely keep in pace in 2050 at $60,000 GDP Dollars with today's $7,500 GDP Dollars at today's 12% inflation rate.
The most expensive petrol I have ever bought in the world so far, was in Turkey 4 years ago at $10 US Dollars a gallon. When my sister and her husband drove up from Ankara to Antalya to visit me 3 years ago in their family car, it cost them $200 US Dollars in petrol to make the round trip of about 500 miles / 800 kilometers.
Tim Drayton wrote:These figures are in US dollars not Turkish lira, so inflation in Turkish lira terms is irrelevant.
It doesn't matter if they are in Bananas, US Dollars or Turkish Liras, Tim. Inflation is inflation of that country and the US Dollars as an International currency is used to make the calculation, where GDP's, GDP's (PPP), NGP's reflect the values of that nation's currencies worth. You are not saying are you, that in 2050, the $60,000 US Dollars per capita will be obtained based on ZERO inflation from now until 2050, are you.? But aside from that, even if we take the figures you have given us in US Dollars, the comparisons are made with purchasing power in the US versus, in this case, Turkey, which it would cost more, by as much as 50% more to buy the same item in Turkey than as it does to buy it in the US. Petrol was one of those examples. I do not claim to be an economist, but just on surface, this is how I interpret the figures you given us.
Tim Drayton wrote:Are you seriously telling me that you did not notice a huge difference in living standards in Turkey when you went there three years ago compared to what you witnessed in the sixties?
Well of course some things have changed in Turkey since the 1960's when I first went to live there. The rich have gotten richer, a small rise in the middle class and the overwhelming poor basically remained where they were, even though their living standards rose, but their overall situation has not. They are able to exist to get by only because families tend to stay together so to pool their earnings, but their disposable income is non existence, therefore they are stuck where they are with very little hope to move up the economic ladder into the middle class.
In the area where I used to live, on the hills of Ankara, there were only few homes back then, but now people are living on top of each other in a very disorganized and unplanned developments. Those who had some land and development took on them, made out pretty good and have reached the middle class level, but for the average person on the street, they are just existing, which is no different than any other developing countries in the world. I have a cousin who is a lawyer and another who is a doctor, and they are hardly considered to be living a middle class life. They just exist with the necessities of life. Neither one can afford to travel abroad for a vacation. Lawyer cousin was hard pressed to find $5,000 US Dollars for a medical treatment she needed not too long ago. I don't know if you know Tim, but professional people in Turkey are not covered by the National Health service, and not certain if they can even buy private health insurance. In the cousins situation, it was "cash on delivery" basis.
The tourist industry with mega hotels, which are tops most of the time, can be a misleading in what the tourist get with their foreign money in Turkey, and how the average Turk lives. To most, it is a struggle and I do not need to tell you since you have spent more time there than me. There are many aspects of Turkey where it is very modern, but a country where labour is cheap, the economic ladder for success to most are just not there. Most of the wealth are in the hands of very few with some middle class thrown in for decoration, but the rest belong in the "developing world" status.