Globalization, crises and policy reform: lessons from the Turkish experience

Ukraine and Turkey, located on the south and north of the Black Sea, have so far not been able to develop a strategic economic partnership. Prior to 2002, the Turkish economy had been characterized by volatile growth rates, high inflation and a weak fiscal position. These, along with political instability (and coups), led to a number of financial and economic crises culminating in a major one in 2001. Following the latter, structural and macroeconomic reforms were implemented with persistence. Positive results were attained in a relatively short period of time. The reforms strengthened Turkey’s economic resilience in the face of the global financial crises of 2007/8. This paper 1) analyzes the level of bilateral relations between Ukraine and Turkey, and it gives a comparative description of main macroeconomic indicators of these countries; 2) analyzes the principal factors influencing the development of the strategic partnership between countries Turkey and Ukraine in the economic sphere; 3) presents a selective background of the Turkish economy with a view to underline key macroeconomic weaknesses prior to 2001 crises; 4) reviews and assesses macroeconomic and structural reforms in Turkey after 2001 which made it among the least affected counties when the global crises hit the world economy; 5) presents key lessons learned from the Turkish experience which may prove valuable for policy design and implementation for Ukraine and other emerging economies.