turkish lira (Photo credit: Wikipedia)
This is a very important article in the FT. It’s a must-read. Check it out!
via Turkish lira hit by political risk concerns – FT.com.
The article echoes what I’ve been saying on this blog consistently for over a year, Western businesses are wary of Turkey‘s current policies and are increasingly factoring in political risk in decisions about Turkey.
Turkey has grown quickly in recent decades on the back of foreign inbound investment from US multi-nationals. This in turn has created jobs and raised living standard for many people in Turkey – on this basis the current government has a popular mandate.
However, we are now seeing that the number one worry for people in Turkey is jobs, so matters are quickly coming to a head.
The citizens of Turkey must try to understand the rising political risk in Turkey. In my experience, US multi-nationals can move out of a country very quickly if they don’t like the political risk.
In short, the foreign policy objectives of the current government in Turkey are no longer consistent with attracting inbound investment – this puts a growing number of jobs in Turkey at risk.