SAFETY APPROACH IN MANAGING CURRENT ACCOUNT DEFICIT CRISIS IN TURKEY

Abstract

Turkey's economy has entered into an outreach process since 1983, the transformation period so called by the prime minister of that era. Economic crises seen in Turkey until 1983 were mainly caused by the crisis nature of shortness of foreign exchange shortages. After this date, Turkey's economy is subject to a major structural change and transformation in all sectors accordingly. The main purpose of the transformation process is to restructure the economy and to accelerate the integration with the European Union and enter globalization path. In this context, the economic problems which were taken as allocation problems before the 1983 are significantly started to be solved the market rule through the operation of the law of supply and demand. In contrast, after 1983, major economic crisis are emerged due to the current account deficit. In this study, the management of the current account deficit crisis are handled an implementation of the concept of job security issue. The problem of current account deficit crisis has been dealt with an analogical approach. In the study Turkey's economy is examined under the relationship between political stability and economic crises caused by the current account deficit. Considering the current account deficit is to be unsustainable and the periods of economic crisis that overlaps the emerging political turmoil were investigated. The political crises seen during each prominent current account deficit crisis show the relation between economic crisis and political instability. Therefore, a strong bond has been demonstrated between current account deficit and political crises. This approach of job security of workers and attitudes of management of business processes can be applied to the deficit crisis and the attitudes of economy governments due to the similarity of the relation. Thus acting in linewith the current account current account safety principles of economic management to all segments of the individuals managing the deficit could be moved to a manageable risks are set forth in the context of the danger elimination.