Turkey and the European Union: Economic Reforms for Accession

Abstract

Turkey has endured many reforms in its economic policies. This thesis examines the economic reforms of Turkey as they relate to the European Union accession process. Some of these reforms have furthered Turkey's goal of EU membership, while others have undermined the economy of Turkey, setting the country's development back several years. In the 70s and 80s, for instance, the reforms that Turkey implemented to cure hyperinflation actually worsened the situation. The section on the Customs Union discusses the benefits of the customs union and the positive effect on Turkish welfare, including growth in Turkish exports. Turkey and the EU have already entered into a Customs Union, which means free trade of industrial goods between the two countries. The end of this section takes an in-depth look at the textile and clothing industry, one of Turkey's leading industries, and emphasizes how the customs union has helped that industry flourish in Turkey. In 2004, Turkey was finally recognized as a candidate state ready for accession. The EU informed Turkey that reforms were still necessary. The economic reforms section examines current reforms to the economy, and the ways in which Turkey successfully met EU standards. This section focuses on the banking sector because of its drastic reforms in an effort to comply with the EU standards. The agricultural section explores Turkish agricultural policies and how they converge and diverge with those of the EU. Agricultural policies in Turkey are not up to EU standards in many areas. While Turkey has adopted most aspects of EU agricultural policy, there are some areas, such as food safety and quality, which Turkey must first tackle before they can gain EU accession. The final section concludes by assessing Turkey's potential and future status with the European Union. While Turkey's economic policies are on the path to EU accession, the reform process must continue for Turkey.