On the sustainability of the economic growth path of Turkey: 1995–2009

Abstract

Abstract This paper aims to bring afront the economical and the ecological consequences of the growth path of Turkey with the help of a sectoral dataset provided by the World Input–Output Database available for the period of 1995–2009. By simple Input–Output accounting, it is found that the economic growth path taken in the 2003–2009 period has gradually become both more energy and pollution intensive as compared to the 1995–2002 period. Moreover, the gradual deterioration in environmental, as well as labor standards, so as to gain competitive edge in export markets led to a rapid increase in environmental degradation and deadly workplace accidents during the post-2002 period. From the viewpoint of the long-term development plans, i.e. Vizyon 2023 which targets to bring Turkey among the 10th biggest economy in the world by 2023, past experiences, therefore, hint that the insistence on an unsustainable and dependent economic growth path which has been re-designed under the neoliberal framework of deregulation, flexibilization and privatization will aggravate not only social and ecological problems but also the current account imbalance. It is concluded that the economic growth path towards the ambitious targets set by Vizyon 2023 should be redefined in accordance with the economic, social and environmental sustainability principles. The existing subsidies to fossil fuels should be channelled to support renewable energy production.