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Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges

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This paper aims to analyze potential future areas of greater cooperation between Turkey and the other OIC member economies. It then provides some specific policy recommendations. In particular, the paper aims to contribute to economic policymaking efforts in terms of the potential future areas of increased cooperation. Broadly speaking, the Muslim world has immense savings-holding accumulated over the past few decades. Human and physical capital potentials are extremely high. Yet, there are also huge economic disparities and extremely diverse demographic dynamics. This paper is built on the idea that a crucial strategy to boost economic development and social prosperity is an intense economic, financial and strategic integraton of the OIC members. In particular, countries with common historical, cultural and even religious backgrounds have much to gain from such specific collaboration efforts. In that line, this paper deals with opportunities and challenges regarding the strategic position of Turkey. It focuses on sectors in which Turkey has a comparative advantage within the OIC league. It further analyzes the reasons Turkey and the other OIC economies must cooperate and build stronger economic ties. The paper suggests that such a modern economic cooperation or a strategic union that is strengthened by historical, social and cultural roots is both inevitable and to the benefit of all parties.
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SAM Papers
Dr. Bilal Bağış & Dr. Çağlar Yurtseven
Bingöl University & Bahçeşehir University
Turkey and the OIC:
Greater Economic Cooperation,
Opportunities and Challenges
No.13
May 2017
Contents
About the Authors
Abstract
Introduction
2. Organisation of Islamic Cooperation
2.a. The Muslim World
2.b. A Broad Picture of the OIC Member Economies
2.c. From Politics to Economics: The post WWI Muslim World
3. The Global Economy: Then and Now
4. Potential Areas of Economic Cooperation
4.a.Turkey Central: On the Importance of Strategic Location
4.b. Energy
4.c. Industry and Trade
4.d. Transportation
4.e. Construction
4.f. The Tourism Sector
4.g. Health
4.h. Education
4.i. Financial Operations
4.j. And Many Others
5. Summary
6. Concluding Remarks
References
Appendix
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SAM Papers present scholarly analysis by Turkish and international academics on topics
of interest to the policy community. e views expressed in this article are those of the
author and should not be attributed to the Center for Strategic Research. SAM Papers is
published by Center for Strategic Research (SAM).
SAM Papers
No.13
May 2017
Tables
Table 1: Full list of OIC countries and their membership years
Table: 2 GDP per capita, PPP (current international $) of OIC countries
Table 3: Population Structure of the OIC countries
Table 4: Unemployment (% of total labor force) in the OIC members
Table 5: Rule of Law (Overall score and representative factors)
Table 6: Pipelines in the region
Table 7: Trade with OIC countries and Russia
Table 8: Global OIC Exports by Destinations (Share, Top 15)
Table 9: Global OIC Exports by Products (Top 10, Share, %, 2014)
Table 10: Global OIC Imports by Destinations (Share, Top 15)
Table 11: Intra-OIC Exports by Destinations (Share,Top 10)
Table 12: Intra-OIC Exports by Products (Top 10,Share,%,2014)
Table 13: Intra-OIC Imports by Destinations (Share,Top 10)
Table 14: A comparative look at the Intra-OIC and Global OIC total export figures.
Table 15: Number of tourists coming from OIC ountries to Turkey.
Table 16: Crudeoil exports in barrels per day (bbl/day).
Table 17: Total oil supply. (Thousand Barrels Per Day)
Table 18: Natural gas exports.
Table 19: Natural Gas Supply
Table 20: Overall energy self-sufficiency
Table 21: Energy intensity
Table 22: Proved oil reserves (billion barrels)
Table 23: Proved natural gas resources (trillion cubic feet)
Figures
Figure 1: Major members of the OIC on the world map
Figure 2: Economic and political relationship between the 57 OIC member
economies
Figure 3: The Middle East after the Sykes-Picot agreement
Figure 4: Sect differences among the OIC members in the Middle East
Figure 5: Projection of electricity demand in Turkey until 2030
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1
About the Authors
Dr. Bilal Bağış
Bilal Bağış was born in Bingol in 1984. He
has a multidisciplinary B.Sc. (combining
engineering with a business degree) from
ITU (2006), a theoretically focused M.A. in
Economics from Sabanci University (2009)
and a Ph.D. degree in Economics from the
University of California (2014). His research
interests lie in international nance, monetary
economics, and macroeconomics. He has
taught various graduate and undergraduate
level Economics, Math and Finance courses at prestigious
universities. Since his return back to academia, in 2015, he has
had numerous domestic and international presentations and
publications.
Dr. Çağlar Yurtseven
Çağlar Yurtseven obtained his B.S degree
from Middle East Technical University in
Ankara,Turkey. He obtained his economics
PhD at Boston College in USA under the
supervision of Prof. Hideo Konishi and Prof.
Utku Ünver. He is currently working as an
assistant professor of economics in Bahcesehir
University, Istanbul Turkey. His main research
interests are in microeconomics, applied
economics and Turkish economy. Among his
various publications, he is the author of Market Share Regulation?
(2014) in Japan and the World Economy (SSCI) and e Causes
of Electricity eft: An Econometric Analysis of the Case of
Turkey (2015) in Utilities Policy (SSCI).
2
Abstract
is paper aims to analyze potential future areas of greater cooperation
between Turkey and the other OIC member economies. It then
provides some specic policy recommendations. In particular, the
paper aims to contribute to economic policymaking eorts in terms of
the potential future areas of increased cooperation. Broadly speaking,
the Muslim world has immense savings-holding accumulated over the
past few decades. Human and physical capital potentials are extremely
high. Yet, there are also huge economic disparities and extremely
diverse demographic dynamics. is paper is built on the idea that a
crucial strategy to boost economic development and social prosperity
is an intense economic, nancial and strategic integraton of the OIC
members. In particular, countries with common historical, cultural
and even religious backgrounds have much to gain from such specic
collaboration eorts. In that line, this paper deals with opportunities
and challenges regarding the strategic position of Turkey. It focuses
on sectors in which Turkey has a comparative advantage within the
OIC league. It further analyzes the reasons Turkey and the other
OIC economies must cooperate and build stronger economic ties. e
paper suggests that such a modern economic cooperation or a strategic
union that is strengthened by historical, social and cultural roots is
both inevitable and to the benet of all parties.
Keywords
OIC, Turkey, International Trade, Economic Cooperation,
Comparative Advantage
3
Turkey and the OIC: Greater Economic
Cooperation, Opportunities and Challenges
Dr. Bilal Bağış1 & Dr. Çağlar Yurtseven2
Introduction
Is Turkey’s Muslm dentty, ts proxmty to the Muslm world and ts
OIC membershp an advantage that should be utlzed? Does t provde
any head start regardng economc, socal, technologcal and cultural
development? Are there any potental gans from ncreased cooperaton
and soldarty wth the rest of
the Muslm world? What are
the potental opportuntes and
challenges regardng a future
greater economc cooperaton
and ntegraton among the
economes of the Muslm
natons? s paper analyzes
some fundamental ssues
regardng Turkey’s potental
future economc path and the
opportuntes awatng the
country. It analyzes possble
polcy optons and mplcatons of varous choces the country faces
today.
e paper provides a critical analysis of the current economic
relations and potential opportunities regarding further economic
cooperation between Turkey and the other OIC member
economies. It summarizes the current economic and political
relations, and then discusses potential areas of future cooperation.
e paper digs into politics, economics, and geography; and
addresses challenges and opportunities the countries in question
face today. It predominantly focuses on Turkey’s relations with
the energy rich and geographically closer Middle-Eastern Muslim
economies, but also summarizes potential areas of cooperation
with the other Muslim countries.
1 Bingol University. Email: bilalbagis@yahoo.com
2 Bahcesehir University. Email: cayurtseven@yahoo.com
Are there any potential gains from increased
cooperation and solidarity with the rest of
the Muslim world? What are the potential
opportunities and challenges regarding a
future greater economic cooperation and
integration among the economies of the
Muslim nations?
4
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
e idea itself stems from Turkey’s recently increasing interest
over regional economic and political transformation. It
therefore builds on an earlier article (Bagis, 2015) discussing
Turkey’s strategic position and the potential gains from possible
coordination mechanisms with the (mostly Muslim) neighboring
economies. Altough still a very strong western ally, member of
some of the most inuential Western clubs such as NATO and
the OECD, and a strong candidate for the EU; the Turkish public
and its government have recently coincided to diversify and
expand the country’s focus. It is hoped that this new viewpoint
may lead to more independent policymaking. ey have, for
instance, rediscovered their long-forgotten connections and
deep interest in their neighboring Muslim relatives as well as the
Asian connections in the Shanghai Cooperation Organization. A
critical analysis of this relatively new and improving focus is of
necessity. To this end, this paper aims to contribute to the eorts
regarding understanding the region’s strengths and weaknesses,
and potential areas of collaboration.
One thing is for sure, the
Muslim world today has
amassed huge savings (as
is clear from the sizeable
Sovereign Wealth Funds -
SWFs) over the past few
decades due mainly to
huge energy exports. e
human and physical capital
potentials are extremely
high. e OIC countries’
traditional multicultural identity and cultural diversity are a
huge asset for the OIC countries, and they also possess the most
strategic locations and transportation routes on earth. Yet, as two
primary charateristics of the Muslim world today there are also
huge economic disparities and intensely diverse demographic
dynamics.
e paper analyzes the extent to which relations between Turkey
and the other OIC member economies have improved in recent
years and formulates some specic policy recommendations for
further integration and strategic cooperation. e study points
to importance of these options, in particular, in the context
of the new era following the Great Recession of 2007-09. e
Turkey has much to gain from transforming
into an energy hub within the energy rich
MENA and Caucasian regions. Turkey
should position itself both as a bridge and
a hub between energy exporters in the East
and importers in the West.
5
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
paper attempts to foresee the potential future implications of
these options and build strategic policy recommendations. As an
answer to the question of whether the Muslim world, in general,
will be able to create solidarity, prosperity and to have a voice in
international platforms: we underline the importance of stronger
cooperation mechanisms that extend the currently existing
entities around the OIC.
e paper, in particular, underlines:
• Further integration with the OIC: e paper points to
Turkey’s strategic and potential gains from a focus on the
Middle East and the extended Muslim world, in addition
to its traditional yet currently relatively weak and stagnant
partners in Europe and the West in general.
• Need for transformation into an energy hub: Another
outcome of this paper is the claim that Turkey has much
to gain from transforming into an energy hub within
the energy rich MENA and Caucasian regions.3 It
recommends that Turkey should position itself both as a
bridge and a hub between energy (gas and oil) exporters
in the East and importers in the West.
• Becoming a center of attraction in the Muslim
world: e paper claims Turkey has much to gain from
transformation into a center of attraction for all of the
other Muslim countries in most of the other signicant
sectors such as education, health, tourism, nance and
industry.
• Exchanging its technology with the natural resources
and capital accumulated in the others: Each member
country of the OIC is unique in terms of its areas of
comparative advantage, resources and the other elds it
lacks. erefore, all the member economies can benet
greatly from greater cooperation.
• e need to improve on Turkey’s soft power: Main
elements of soft power (namely tourism education,
congress and fairs tourism, health industry, TV shows
and transportation) should be fully utilized.
3 MENA stands for the Middle East and North Africa, which includes countries
from Morocco to Iran, including all Middle Eastern, Mashriq and Maghreb coun-
tries.
6
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
• And nally: that Turkey should benet from the
demographic advantages and natural resources of the
other OIC member economies. e Muslim world has
always been at the center of focus mainly for these two
resources.
In addition to these objectives, it is of great importance to
provide a good theoretical background, analytical reasoning and
a strong strategic and sociological basis for the ideas presented in
this work.
Theoretical Background
e world is changing. Europe is dealing with the post-Brexit
eects on the continental European economies. e USA, on the
other hand, has just recently kicked o its own USexit with the
presidency of Trump. e BRIC economies, in particular China
and India, are rising. Meanwhile, nancial markets are getting
used to the new normal of the post-Great Recession period.
Economic integration mechanisms, interconnectedness in all
markets, integration of the nancial markets, and synchronization
of economies in general have all led to a new world in this era of
the 4th industrial revolution. But then, to what extent will this
integration process run? Is it really what we need the most?
e exchange of goods and services, and more generally
economic cooperation and the integration of markets and trade
among nations or even among various tribes is indeed as old as
human history itself. From basic trading activities to the salt
roads, and from the Silk Road to modern transportation lines,
various forms of cooperation mechanisms, market integrations
and connection lines has always been critically essential. Yet its
theory and understanding the cases when and where countries
should denitely focus on exchange of specic goods and services
have been more popular with the works of, for example, Ricardo
(1817) and McKenzie (1954), and more recently, Krugman
(1979, 1980, 1981 and 1991). We do not intend to review the
fully theory of comparative advantage and international trade
here,4 but will leave that discussion for future work and instead
focus directly on various ways to exploit its benets.
4 See Boudreaux (2008), among others.
7
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
e idea developed here is very much related to the early works of
Alfred Weber (1909), on geographic location, and to more recent
studies of mainstream economists like Krugman and Sachs on
the new economic geography theory. Western contributions are
of signicant essence. Despite this western dominance however,
the Muslim world was actually always at the center of these
trading and cooperation activities. Recent studies reveal early
Chinese Muslim traders’ activities even towards the Americas,
much before the likes of Colombus and Amerigo Vespucci.5
Market integrations, international cooperation mechanisms
and global trade volumes are very much related to globalization
trends. Globalization trends, on the other hand, are as old as
the start of modern civilizations. Most economic historians date
globalization trends to as far back as the early trade deals between
the Sumer and Indus
civilizations of the 3rd century
BC. Trade links between
China and Europe, as in the
Silk Road example, furthered
this trend especially after the
Hellenistic age. e modern
globalization trends, though,
started with the 19th century,
as transportation costs declined and commodity prices were
equalized around the world (O’Rourke and Williamson, 2002).
e rst broad globalization trend occurred right before WWI,
between the mid-1800s and up until the 1910s; and the second
wave started after the 1960s and continued up until the 2000s
(O’Rourke and Williamson, 2002).
On the theoretical side, as an answer to the question of when
countries should consider cooperating with each other, Ricardo
(1817) focused on comparative advantage. Krugman (1979, 1980,
1981 and 1991), on the other hand, focused on the importance
of geographical location and the distribution of production,
and examined various patterns of international trade as well as
the costs of trade. On the eastern front, though, contributions
were considerably older. Al-Shaybani and Ibn Khaldun were
among the rst Islamic scholars to develop an advanced
5 See for instance: https://www.1843magazine.com/content/places/rosie-blau/re-
writing-history-map
Al-Shaybani and Ibn Khaldun were
among the rst Islamic scholars to develop
an advanced theory of international law
and cooperation.
8
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
theory of international law and cooperation. Meanwhile, early
contributions to the practice of international trade paved the way
for some signicant Muslim regional powers (Empires) including
the Umayyad, Abbasid and the Fatimid countries. Chinese
Muslims traders followed the trend later on.
Economic integration and intense cooperation mechanisms are
rather a necessity today, as borders are losing their meaning.
e internet revolution and a growing international network of
shipping companies and transportation channels, enable quicker
exchange of ideas, goods, information and capital around the
world. e current extent
and this historical trend
of international trading
activities provides critical
lessons for modern unions.
One thing is for sure, the
industrialization trend of the
post 18th century has surely
sped up these developments.
e recent examples of the
EU, NAFTA and even the
Shanghai Cooperation Organization are just the most recent
examples of this long history. e Muslim World should denitely
not miss this opportunity.
Following this long history, what we recommend here is that
Turkey should be one of the countries leading a supranational
union of an intense integrated economic and strategic cooperation
among the OIC economies. is new cooperation mechanism is
not meant as an alternative organization, but rather an attempt
to improve the currently complete political entity and dialogue
mechanism of OIC. However, this economic integration and
cooperation organization, if you will, should be more intimate
than the existing current examples, such as the rich countries
club of the OECD; but at the same time should not include
any political union like that aimed at in the EU, or even any
military collaborations like that in NATO.6 We recommend
6 We recommend that this solely economic union should be the ultimate goal. Yet,
if societies prefer more, then it could be extended. Still, in the short-run, an eco-
nomic cooperation organization is the unique solution (See Sorhun (2013), Bagis
(2016a) and Bagis (2016c), among others, for potential problems with a political
union).
What we recommend here is that Turkey
can be one of the countries leading a
supranational union of an intense integrated
economic and strategic cooperation among
the OIC economies.
9
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
that the national borders should not be an obstacle preventing
further economic cooperation and economic integration of the
OIC countries with their common cultural, strategic and even
religious base.
Having such a intense economic integration with the vast Muslim
world, provides great opportunities for both side, but in particular
for Turkey. Turkey should use its cultural connections; tourism,
transportation potential and even its strong nance, education
and health industry to boost its dormant soft power.7 New means
to fully utilize its crispy summer and cultural tourism, health
infrastructure are of signicant importance. Meanwhile, Turkey’s
relatively modern and high quality education infrastructure and
long tradition of nancial industry, trade and business as well
as the recent congress and fairs tourism potentials also deserve
attention.
One thing should be made clear at this step. Indeed, the OIC
already has various operational mechanisms and a relatively
well established institutional setup, including a number of
subsidiaries, aliated institutions and mechanisms of operation.
Nevertheless, we argue that there is still room to improve the
current operational setup, make it more functional and hence
build a greater and stronger cooperation mechanism. All the
current primary cooperation elds of the OIC could be extended
to build higher welfare and higher standards of living for the
relative economies.
In particular, the economc cooperation and trade potential
is yet to be fully exploited. In that sense, the current Islamic
Summits, Council of Foreign Minister (CFM) meetings,
Ministerial Conferences and
Committee for Economic
and Commercial
Cooperation (COMCEC)
strategy meetings should re-
organized to maximize the
benets. Particularly, the
COMCEC strategies, plans
of actions and the operation
mechanisms should be
made more eective. e
7 A concept originally coined by Nye (1990).
We aim to point to the potential
mechanisms a country such as Turkey could
use to achieve greater cooperation and more
interdependence, thus creating a union of
mutual benets with such a signicantly
large portion of the world.
10
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
current relatively limited cooperation mechanisms such as
the COMCEC Project Funding (COMCEC PCM) and the
current responsibilities of OIC institutions such as the Islamic
Educational, Scientic and Cultural Organization (ISESCO)
should be extended. e potential areas we list below are meant to
give an idea about specic areas and the sort of channels available
for Turkey to consult in order to improve its relations and build
stronger integration with the other OIC member economies.
We identify below a summary policy recommendations list on
various areas. ese particular policy suggestions are supported
with alternative channels that show which particular areas and
mechanisms would provide the best use. We aim to point to
the potential mechanisms
a country such as Turkey
could use to achieve
greater cooperation and
more interdependence,
thus creating a union of
mutual benets with such
a signicantly large portion
of the world. We would also
like to underline numerous diculties and problems regarding
such a greater cooperation mechanism. Potential deciencies of
these various measures that countries could use should also be
analyzed in detail.
2. The Organisation of Islamic Cooperation
2.a The Muslim World
e OIC world is an extremely diverse and intensely colorful
world with varying cultural, economic, political and sociological
dierences. Hence, the authors of this paper are absolutely not
aiming at explaining all the aspects of advantages or disadvantages
of being part of the OIC club. A single paper would surely not
be sucient to analyze and summarize the full economic and
political picture of the Muslim world.
Moreover, the Muslim world has always been at the heart of
world politics and economics, since its emergence in the early 7th
century. at said, the predominantly Muslim Middle-East can
still be considered as the epicenter of world politics, economics and
e OIC world is an extremely diverse
and intensely colorful world with
varying cultural, economic, political and
sociological dierences.
11
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
history as well as a great number of unfortunate current popular
disputes. is increasing tension and political turmoil surely has
a number of causes, ranging from
economics and politics to religion.
Energy, as well, is most denitely at
the heart of most of these issues, as it
is the ultimate source of power in this
current new era of the 4th industrial
revolution. Energy rich countries, be
it in oil or gas, dominate the regions
of focus in this work. Moreover, most
of these energy rich, yet still relatively
weak, economies are Muslim countries.
e primary natural resource of the Muslim world is, at the same
time, the ultimate source of power in the modern era. e physical
energy demand has surged as industrial activity and technology
have improved and the urban residency has risen. After all, as
a critical ingredient in the industrial revolution, energy has
increasingly become a more signicant factor in production
processes and hence in economic activity. In that sense, the 20th
century marked a turning point in international cooperation
mechanisms and strategic alliances, as well as in mutual relations
and trade deals. Over the last century, energy was placed at the
heart of inter-country relations.
Energy, nowadays, largely determines much of the economic
and political relations among the regional and global powers.
Demand for new energy sources directed the attention of the
Western Powers towards the energy-rich Middle East starting
from the late 18th century. It also marks the beginning of the
political disputes on the
Southern and Eastern corners
of the then Ottoman Empire.
Meanwhile, the Middle
East is not necessarily just
a center of physical energy,
but also the spiritual heart of
humanity, through which all
main ley lines are also passing. Indeed, humanity has throughout
its history gathered, left, and then re-gathered again around this
unique region. It is therefore most natural that this unique region
would not be left alone at peace.
e OIC is the second biggest international
organization after the UN. e 57 member
countries of the OIC produce 9% of the
world’s economic output.
12
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
2.b A Broad Picture of the OIC Member Economies
As this study covers potential future areas of cooperation with
the OIC members, it makes the most sense that the OIC’s
structure and member base should also be critically analyzed.
Understanding the strengths and weaknesses of the region in
general and of each country specically is important in building
up a strong background for policy recommendations.
e OIC is the second biggest international organization after
the UN. e 57 member countries (and 5 observers) of the OIC
produce 9% of the world’s economic output.
As shown in Table 1, below, the OIC currently comprises all the
existing 57 Muslim world economies. Cooperation with all these
countries means dealing with a population of over 1.7 billion
people. e economic, sociological and political implications of
such a move is in fact much more inuential than it seems. e
list of OIC countries and their membership years are given in the
table below:
Table 1: Full list of OIC countries and their membership years
Countries Member
since Countries Member
since Countries Member
since Countries Member
since
AFGHANISTAN 1969 EGYPT 1969 Libya 1969 SENEGAL 1969
ALBANIA 1992 GABON 1974 MALAYSIA 1969 SIERRA LEONE 1972
ALGERIA 1969 GAMBIA 1974 MALDIVES 1976 SOMALIA 1969
AZERBAIJAN 1992 GUINEA 1969 MALI 1969 SUDAN 1969
BAHRAIN 1972 GUINEA-BISSAU 1974 MAURITANIA 1969 SURINAME 1996
BANGLADESH 1974 GUYANA 1998 MOROCCO 1969 SYRIAN 1972
BENIN 1983 INDONESIA 1969 MOZAMBIQUE 1994 TAJIKISTAN 1992
BRUNEI-DARUSSALAM 1984 IRAN 1969 NIGER 1969 TOGO 1997
BURKINA-FASO 1974 IRAQ 1975 NIGERIA 1986 TUNISIA 1969
CAMEROON 1974 JORDAN 1969 OMAN 1972 TURKEY 1969
CHAD 1969 KAZAKHSTAN 1995 PAKISTAN 1969 Turkmenistan 1992
COMOROS 1976 KUWAIT 1969 PALESTINE 1969 UGANDA 1974
COTE D’IVOIRE 2001 KYRGYZ 1992 QATAR 1972 UNITED ARAB
EMIRATES 1972
DJIBOUTI 1978 LEBANON 1969 SAUDI ARABIA 1969 UZBEKISTAN 1996
YEMEN 1969
Source: OIC
13
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Figure 1: Major members of the OIC on the world map.
Source: OIC
Meanwhile, the question of why an organization specically
for the Muslim world would be desirable, is of signicant
importance as well. Although
predominantly an outcome
of the Israeli occupation
of Jerusalem; for some, the
foundation of the OIC was
indeed a long considered
necessary step to keep the
culturally similar Muslim
world economies together.
is is true in particular
after the end of the Ottoman
Empire and the Caliphate
system. is new era
necessitated the formation of an entirely new institutional system
that would keep the Muslim world in close communication.
As mentioned earlier, theoretically, the OIC was formed as a
response to the occupation of the holy city of Jerusalem and the
endangered security of the Al-Aqsa Mosque in Jerusalem. Yet,
in practice, it was also formed as a result of the need for greater
economic and political cooperation among the Muslim word
economies. Indeed, in a world where many regional economic
cooperation organizations are following one another; it is most
natural that the 1.7 billion people composing the Muslim world
In a world where many regional economic
cooperation organizations are following
one another; it is most natural that the
1.7 billion people composing the Muslim
world would likewise work towards some
kind of a similar economic and political
cooperation.
14
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
would likewise work towards some kind of a similar economic
and political cooperation.
A well-considered and well-planned economic cooperation
organization would contribute to the eorts regarding an improved
welfare of the entire Muslim world. Economic cooperation
within the Muslim world
and even with non-Muslim
regional powers such as
Israel (over gas imports and
pipelines, for instance) is of
crucial importance. After all,
it should be kept in mind
that, for instance, almost the entire Turkish current account
decit comes from energy imports. Energy supply is therefore of
critical importance.
e OIC is comprised of a large geographic region. While it is
a major economic power, it has still far greater potential. Even
today, the OIC represents 11.7% of exports and 10.8% of the
total FDI across the world economies (World Bank data). Yet, of
the 48 least developed countries (LDC) worldwide, 21 are also
OIC members. is contradiction is a valuable lesson for the
OIC member economies to contemplate when looking forward.
While some of the member economies benet from vast natural
resources and attract billions in capital ows per annum; others
are resource poor and are plagued with problems ranging from
drought to fraud and bribery, resulting in huge economic and
nancial deciencies. e richest and the poorest member states
have an almost 200 times dierence in economic size (the OIC
countries’ income per capita is given in Table 2 below).
Table: 2 GDP per capita, PPP (current international $) of
OIC countries
Country Name 2011 2012 2013 2014 2015
AFGHANISTAN 1712.58872 1934.285634 1941.898323 1939.954125 1934.193634
ALBANIA 9640.144593 10361.43322 10412.44172 11167.02257 11305.41742
ALGERIA 13026.19166 13452.55261 13779.82274 14259.02894 14687.39021
AZERBAIJAN 15754.15236 16180.88715 17174.31088 17584.68535 17739.95474
BAHRAIN 39676.71702 40992.55678 43400.02246 45666.48945 46946.33519
BANGLADESH 2579.335048 2764.781928 2942.810045 3134.154252 3332.803445
It should be kept in mind that, for instance,
almost the entire Turkish current account
decit comes from energy imports.
15
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Country Name 2011 2012 2013 2014 2015
BENIN 1761.574331 1826.808935 1931.929514 2037.586205 2109.845957
BRUNEI-DARUSSALAM 73265.12163 74195.02119 73005.55546 71444.89878 70817.01851
BURKINA-FASO 1470.435184 1547.649372 1583.161865 1626.266913 1659.220243
CAMEROON 2614.495561 2715.35411 2840.743075 2983.08304 3122.643965
CHAD 1862.351166 1997.410939 2075.44088 2181.852455 2171.400812
COMOROS 1347.797753 1379.715987 1416.462203 1434.500524
COTE D’IVOIRE 2546.906812 2803.700937 3037.257692 3270.137389 3495.829746
DJIBOUTI 2782.971292 2932.233342 3087.463317 3282.360241
EGYPT 10071.20526 10252.52298 10402.00384 10571.33526 10891.25775
GABON 17100.70052 17919.06448 18808.28602 19501.11764 20010.13975
GAMBIA 1532.494004 1599.179616 1648.427687 1636.453571
GUINEA 1183.855846 1219.547152 1233.98142 1225.744058 1206.529509
GUINEA-BISSAU 1416.311777 1382.504336 1382.288548 1405.989893 1452.845457
GUYANA 6077.186038 6465.612628 6890.291231 7245.244693 7506.445072
INDONESIA 8870.284189 9453.698228 10011.34642 10553.18735 11035.09244
IRAN 17949.24442 16853.78282 16584.31251 17365.77894
IRAQ 13203.0478 14813.56491 15503.62904 14914.65466 14894.81115
JORDAN 10324.44669 10432.1751 10569.17544 10774.86823 10880.32008
KAZAKHSTAN 22134.09211 23248.99259 24640.55805 25689.22066 25876.50868
KUWAIT 76308.59071 78492.39685 76779.28856 73513.29039 71311.99355
KYRGYZ 2920.60321 2922.702873 3229.828815 3347.16262 3426.645611
LEBANON 15683.58332 15221.44686 14537.89914 14172.66533 13937.94587
Libya 11023.43714 22975.87562 20241.97198 15654.09887 14154.25826
MALAYSIA 21866.34075 23124.66048 24238.99939 25732.26523 26891.44323
MALDIVES 11126.94559 11373.46296 11855.75046 12575.45396 12636.52353
MALI 1862.940401 2048.073917 2163.055483 2301.321664 2428.289964
MAURITANIA 3403.534526 3575.986354 3760.419674 3885.693365
MOROCCO 6746.899456 6979.899079 7323.950688 7518.058667 7821.396498
MOZAMBIQUE 951.8253639 1010.221252 1069.495168 1135.732688 1185.816012
NIGER 807.1930209 883.2513773 907.7233886 948.6713168 953.541841
NIGERIA 5230.598854 5407.323956 5638.549164 5932.831332 5991.69054
OMAN 42479.20132 41944.99918 40195.51762 38771.8381 38234.05359
PAKISTAN 4322.534383 4460.923073 4632.392815 4828.942438 5041.715264
PALESTINE 4356.341825 4931.002184 4655.840516 4544.245659 5009.919041
QATAR 134117.4309 135421.724 138067.097 141442.2155 143788.242
SAUDI ARABIA 47474.04338 49729.51749 50678.23953 52200.2268 53430.04533
SENEGAL 2159.022888 2225.296028 2267.825681 2330.459641 2430.798929
SIERRA LEONE 1414.860083 1620.89897 1941.223964 2019.003748 1590.602119
SOMALIA
16
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Country Name 2011 2012 2013 2014 2015
SUDAN 3478.252239 3873.597398 3981.901907 4084.213616 4173.215898
SURINAME 15119.74355 15718.13299 16276.30618 16698.36521 16969.54529
SYRIAN
TAJIKISTAN 2229.445742 2386.327474 2546.586587 2700.584241 2779.876143
TOGO 1255.087825 1304.187972 1341.614534 1406.764974 1459.796727
TUNISIA 10203.80122 10672.5676 10984.91321 11307.80017 11397.23515
TURKEY 17796.47519 18449.25002 19042.88042 19390.38114 19618.22471
Turkmenistan 11360.50215 12689.34383 14029.49479 15529.86446 16498.89295
UGANDA 1648.531066 1696.494424 1723.446179 1777.32719 1825.307071
UNITED ARAB EMIRATES 57594.12668 61172.99479 64229.46499 67921.39946 70237.94775
UZBEKISTAN 4412.474193 4791.189289 5177.333578 5593.475486 5995.873011
YEMEN 3616.243909 3675.563373 3791.603195
Source: e World Bank
To better understand the
OIC economies, in general,
here are some summary
statistics to keep in mind
(from OIC and World Bank
publications):
• e top 10 member economies attract 70% of the FDI,
• e top 10 member economies claim 70% of the total
production,
• e top 10 member economies also carry 70% of
industrial production,
• 54% of the population across the OIC members is below
24 years old,
• 23% of the world population is Muslim (1.7 billion),
• OIC member states possess 60% of the oil reserves, 61%
of the gas reserves and 30% of the lands on Earth,
• ey have huge savings accumulated over the past few
decades,
• Human and physical capital potentials are extremely
high,
• e strategic location of most of the member countries of
the OIC is excellent,
• Long history of multi-cultural identity is also a plus,
e OIC member states possess 60% of the
oil reserves, 61% of the gas reserves and
30% of the lands on Earth.
17
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
• Most OIC members have potential for substantial
economic growth, notably in the nancial industry,
• Financial industry of OIC in general is small and
shallow, and growth rates are high; whereas in advanced
economies nancial industry is very large and deep while
growth rates are falling.
Figure 2: Economic and political relationships between the
57 OIC member economies
Source: OIC
e OIC countres, broadly, could best be defned as havng unty
n relgon and pluralty n culture, economc and poltcal
development aspects. Islam is the unique dominant religion of
the region and the building block of unions such as the OIC.
Varying cultural norms and geographic positions also necessitate
some form of collaboration.
is is predominantly true in the MENA economies, yet it should
be kept in mind that the
Muslim world is substantially
bigger than MENA. e
OIC’s member base stretches
from the Americas to Europe;
and from the Middle East to
Far East Asia. In terms of
cultural diversity, there is the
pax-Ottomana (Turkey, part
of the Middle East and Balkans), the Persian sphere of inuence
(Iran, Iraq, Azerbaijan and segments of central Asia), the Arab
e OIC countries, broadly, could best be
dened as having unity in religion and
plurality in culture, economic and political
development aspects.
18
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
cultural zone of the Middle East and North Africa, the African
sub-saharan culture and the East-Asian Pacic region of Malay
and Indonesian culture. Recently, the western cultural zone was
also added to this list.
Table 3: Population Structure of the OIC countries
Countries
Population Population Age Composition (%) Crude Death
Rate Crude Birth
Rate
Millions Ages 0-14 Ages 15-64 Ages 65+ Per 1,000
people Per 1,000
people
2014 2014 2014 2014 2014 2014
AFGHANISTAN 31.6 45 53 2 8 34
ALBANIA 2.9 19 69 12 7 13
ALGERIA 38.9 28 66 6 5 24
AZERBAIJAN 9.5 22 72 6 6 18
BAHRAIN 1.4 21 76 2 2 15
BANGLADESH 159.1 30 65 5 5 20
BENIN 10.6 42 55 3 9 36
BRUNEI-DARUSSALAM 0.4 24 72 4 3 16
BURKINA-FASO 17.6 46 52 2 10 40
CAMEROON 22.8 43 54 3 11 37
CHAD 13.6 48 50 2 14 45
COMOROS 0.8 40 57 3 8 34
COTE D’IVOIRE 22.2 43 54 3 14 37
DJIBOUTI 0.9 33 63 4 9 25
EGYPT 89.6 33 62 5 6 28
GABON 1.7 37 58 5 9 30
GAMBIA 1.9 46 51 2 9 42
GUINEA 12.3 43 54 3 10 37
GUINEA-BISSAU 1.8 41 56 3 12 37
GUYANA 0.8 30 65 5 8 19
INDONESIA 254.5 28 67 5 7 20
IRAN 78.1 24 72 5 5 18
IRAQ 34.8 41 56 3 5 35
JORDAN 6.6 36 60 4 4 27
KAZAKHSTAN 17.3 26 67 7 8 23
KUWAIT 3.8 22 76 2 3 20
19
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Countries
Population Population Age Composition (%) Crude Death
Rate Crude Birth
Rate
Millions Ages 0-14 Ages 15-64 Ages 65+ Per 1,000
people Per 1,000
people
2014 2014 2014 2014 2014 2014
KYRGYZ 5.8 31 65 4 6 28
LEBANON 4.5 24 68 8 5 15
LIBYA 6.3 30 66 4 5 21
MALAYSIA 29.9 25 69 6 5 17
MALDIVES 0.4 28 68 5 4 21
MALI 17.1 48 50 3 10 44
MAURITANIA 4 40 57 3 8 33
MOROCCO 33.9 27 67 6 6 21
MOZAMBIQUE 27.2 46 51 3 11 39
NIGER 19.1 50 47 3 9 49
NIGERIA 177.5 44 53 3 13 40
OMAN 4.2 21 76 3 3 20
PAKISTAN 185 35 60 4 7 29
QATAR 15 84 1 1 12
SAUDI ARABIA 2.2 29 68 3 3 20
SENEGAL 30.9 44 53 3 6 38
SIERRA LEONE 14.7 43 55 3 14 36
SOMALIA 6.3 47 50 3 12 44
South Sudan 10.5 42 54 3 12 37
SUDAN 39.4 41 56 3 8 33
SURINAME 0.5 27 66 7 7 18
SYRIAN 22.2 37 59 4 6 23
TAJIKISTAN 8.3 35 62 3 6 31
TOGO 7.1 42 55 3 9 36
TUNISIA 11 23 69 7 6 19
TURKEY 75.9 26 67 7 6 17
Turkmenistan 5.3 28 67 4 8 21
UGANDA 37.8 48 49 2 10 43
UNITED ARAB EMIRATES 9.1 14 85 1 2 11
UZBEKISTAN 30.8 29 67 5 5 23
YEMEN 26.2 41 57 3 7 32
Source: e World Bank
20
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
e current demographics are a key threat and yet also provide
an opportunity for the OIC member economies. Demographic
diversity (along with religious, cultural dierences) threatens
stability of especially the MENA economies (as was observed
during the Arab Spring), yet, it meanwhile provides various
economic opportunities regarding further cooperation, as most
of the population is extremely young (See Table 3 for the age
distribution of the OIC countries).
OIC member economies have observed high population
growth rates post WWII. e young population and relatively
much lower dependency
ratios (retirees/workers),
contributes to the economic
dynamism and wellbeing of
the economies. High growth
rates are expected to continue
at least up until the 2030s
(World Bank projections, for the current population gures see
Table 3).
ese considerable population growth rates have led to high
unemployment, increased urbanization, and signicant
structural movements among the
populations as well as specic social
issues. Ignoring the following social
issues over time has resulted in louder
pronouncement of equal employment
rights for women and youth.
Fundamental structural issues such as
unemployment among women and
youth are mostly ignored as even the
other primary issues remain unsolved,
that is, the unemployment rate in
general, problems in productivity,
GDP growth, education, health, economic output per household
and high population growth rates, among others.
Just as the unemployment rates climbed up and social issues
increased, governments had to step in to increase employment,
often at the expense of the eciency of public institutions.
Government expenditures (mostly in form of public sector
employment), budget decits and hence the weight of the public
sector in respective economies are much higher within the
Muslim world (Munawar and Liewellyn, 2002).
e current demographics are a key threat
and yet also provide an opportunity for the
OIC member economies.
21
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Available resources is another critical issue to contemplate.
Huge populations and increasing adverse gures regarding the
demographic structure of
these countries indicate
negative signs on the
adequacy of the resources
available for the population.
Water and energy supplies
along with education and
health services will prove
insucient as the population
continues to soar. With the ongoing high population growth
rates, water and land are the two main resources that could prove
insucient in the near future.
Employment in the Muslim Arab world has been growing on
average at 3.3% per annum (World Bank statistics). is is the
highest gure among the developing economies. Meanwhile, the
OIC member economies still have
the lowest labor force participation
rates. Cultural norms and life-style,
along with low human capital,
lack of opportunities (in terms of
funding opourtunities, staggering
bureaucratic ineciencies and
hierarchy) and insucient daily
working hours per worker lead
to sizeable downward trends in
economic activity. Unemployment
gures are high as well. e Muslim
Arab world has an average ocial
unemployment rate of 9.3% (see
Table 4 below for the unemployment ratios of the members),
an improvement on the above 10% unemployment rate of the
1990s. However, the gure gets worse when one includes the
un-ocial jobless citizens. An average developing economy, on
the other hand, had a mere 6.6% unemployment rate between
2010-11.
Even the recent investment trend has failed to provide adequate
room for increased employment. For instance, the post-
1990s investment expenditure has increased slightly, yet total
employment has changed very little. Even new investment
projects consist of low-skill and low productivity jobs that do
not contribute signicantly to society and to the labor market in
particular.
With the ongoing high population growth
rates, water and land are the two main
resources that could prove insucient in
the near future.
22
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Table 4: Unemployment (% of total labor force) in the OIC
members
COUNTRY 2011 2012 2013 2014
AFGHANISTAN 8.9 8.5 9.2 9.1
ALBANIA 14 13.9 16 16.1
ALGERIA 10 11 9.8 9.5
AZERBAIJAN 5.4 5.2 5 5.2
BAHRAIN 4 3.7 3.7 3.9
BANGLADESH 4.5 4.5 4.5 4.3
BENIN 1 1 1 1
BRUNEI-DARUSSALAM 3.7 3.8 3.8 3.8
BURKINA-FASO 3.3 3.3 3.3 3.1
CAMEROON 4.1 4.1 4.1 4.3
CHAD 7.1 7 7.1 7
COMOROS 6.5 6.5 6.5 6.5
COTE D’IVOIRE 4.1 4.1 4.1 4
DJIBOUTI
EGYPT 12 12.7 13.2 13.2
GABON 20.4 20.3 20.3 19.7
GAMBIA 7.2 7 7 7
GUINEA 1.7 1.7 1.7 1.8
GUINEA-BISSAU 6.8 6.9 6.8 6.9
GUYANA 11.1 11.2 11.1 11.1
INDONESIA 6.6 6.1 6.3 6.2
IRAN 13.3 13.1 12.9 12.8
IRAQ 15.2 15.2 15.1 16.4
JORDAN 12.9 12.2 12.6 11.1
KAZAKHSTAN 5.4 5.3 5.2 4.1
KUWAIT 3.6 3.4 3.2 3
KYRGYZ 8.5 8.4 8.3 8.1
LEBANON 6.2 6.2 6.2 6.4
LIBYA 17.7 19.2 19.2 19.2
MALAYSIA 3.1 3 3.2 2
23
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
COUNTRY 2011 2012 2013 2014
MALDIVES 11.6 11.7 11.3 11.6
MALI 8.1 8.1 8.1 8.1
MAURITANIA 31.1 31.1 31.1 31
MOROCCO 8.9 9 9.2 10.2
MOZAMBIQUE 22.6 22.6 22.5 22.6
NIGER 5.1 5.1 5.1 5.1
NIGERIA 7.6 7.5 7.5 7.5
OMAN 7.5 7.4 7.3 7.2
PAKISTAN 5.1 5.1 5.1 5.2
PALESTINE
QATAR 0.6 0.5 0.3 0.3
SAUDI ARABIA 5.8 5.6 5.7 5.6
SENEGAL 10.4 10.3 10.3 10
SIERRA LEONE 3.4 3.4 3.4 3.3
SOMALIA 6.9 6.9 6.9 6.9
SURINAME 6.9 6.3 4.8 5.6
SYRIAN 11.5 11.4 11.3 10.8
TAJIKISTAN 11.4 11.1 11.2 10.9
TOGO 7 7 6.9 6.9
TUNISIA 18.3 14 13.3 13.3
TURKEY 9.8 9.2 8.7 9.2
Turkmenistan 11 10.8 10.7 10.5
UGANDA 4.2 4.2 4.2 3.8
UNITED ARAB EMIRATES 4.1 4 3.8 3.6
UZBEKISTAN 10.9 10.8 10.8 10.6
YEMEN 17.6 17.7 17.7 17.4
Source: e World Bank
Regional disparities is another signicant factor contributing
to volatile unemployment rates among OIC members. Oil-
rich GCC member states have lower unemployment rates while
those in the North African economies are much higher (roughly
24
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
twice those in the GCC member economies). Tunisia (where
a young unemployed man
burned himself alive, an act
credited with kicking o
the Arab Spring), with an
unemployment rate of 18%,
is an example of these North
African high unemployment
economies.
In particular, the youth unemployment rate is unacceptably high
among these economies. According to the World Bank DataBank,
the youth unemployment rate, at above 20%, is almost double
the average of the rest of the world. is considerable youth
unemployment rate, especially, causes various unfavorable social
issues and leads to various tensions in all of the relevant societies.
2.c From Politics to Economics: The post WWI Muslim
World
One hundred years after the world infamous Sykes-Picot
agreement, political scientists, analysts, and politicians alike
have started talks on restructuring the end of one of the most
controversial agreements of the past 150 years, the Sykes-Picot
agreement. e accord itself marked the death of the centuries-
long empire of the Ottoman Turks.
Figure 3: e Middle-East after the Sykes-Picot agreement
Source: e Economist and e Gulf2000 project
Oil-rich GCC member states have lower
unemployment rates while those in the
North Africa are much higher (roughly
twice those in the GCC member economies).
25
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Before any further discussion, one thing should be made clear.
e Sykes-Picot deal was never actually eectively implemented,
although discussions over
its implications have never
ended (İnalcık, 1973 and
Lewis, 1965).
Due to the core subject of
this study and the limitations
on content, we will not be
going into the details of the
historical context. We still nd it necessary to mention that: e
First World War was a turning point (start of the end) for the
then singular regional power (and former global power), the
Ottoman Empire. e Empire lost nearly all of its power in the
Middle East, and later on ceased to exist. e other parts of the
Muslim world were already apportioned. e Western powers
were extremely careful with their calculations. e British, despite
their failures at Gallipoli and Kut, still had the energy rich Mosul
after the Ottomans lost the war.
e negative outcome of this partition is still felt deeply today.
Policies of the then global powers are, indeed, the primary
reasons behind the ongoing turmoil and the chronic disputes in
the region. e negative outcomes of the post-WWII formation
of the Muslim world continue still today. Very recently, this
articial formation in the Middle East led to an unprecedented
unrest in the MENA economies, one which has come to be called
the Arab Spring.
Following the Second World War, even the new world order (led
by new Western Powers such as the USA replacing the ‘Empire on
which the sun never sets’, the UK) seemed not to be that helpful
in eliminating the political disputes over the land, energy and
the other resources in the Muslim world. In particular, the post
1980s liberalism trend has failed to bring peace and prosperity to
the region. At least up until 2016, the post-1980s trend of neo-
liberalism seemed not to help with any of the ongoing political
and strategic issues. Political tensons are still alive. Furthermore,
most of these chronic issues seem to even be exacerbated in
relatively liberal regional economies.
Along with its global trend of the post-1980s, as neoliberalism
spread across the Middle East, the world observed an
e Sykes-Picot deal was never actually
eectively implemented, although
discussions over its implications have never
ended.
26
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
unprecedented transformation in the Middle East and the Arab
world. From economic and
sociological structure to
politics and information
technologies, the MENA
region has undergone a
fundamental structural
renovation. Today, most of
the OIC member economies
are still going through a signicant transformation.
e reasons why the post-1980s trend of neo-liberalism has not
been able to resolve any of these issues is worth a separate analysis.
Yet, one thing is for sure. Across most of the developing world, in
particular, the post-1980s trend of neo-liberal economic policies
brought increased unemployment and poverty. Piketty and
Stiglitz are just two of those who have written extensively on the
subject. Broadly speaking;
• People have lost their real income level,
• Social adequacy (in terms of access to services) got worse,
• Equality and equal treatment lost its standing,
• Freedom of expression was lost; people today are mostly
afraid to speak their mind.
e Post-WW II politics and institutional structure of the Middle
East and the various Muslim countries, in general, may be dened
by lack of ‘rule of law’, and by protectionism, superpower based
kingdoms and poor business models as opposed to democratic
governance, advanced market economy and more democratic
liberal management. Religion and culture-based customs and
rules are mostly criticized.
Economies have naturally struggled under these volatile
conditions. Predominantly rent-based economies have naturally
failed to create signicant value-added in GDP. Poor governance
and poor business models plague the region and seem to be
the unique common features of most of these economies. e
governments are unable to even collect taxes properly and are
mostly heavily dependent upon the PetroDollar. As the average
citizen does not pay any taxes, they are not represented in the
governing bodies of their countries.
Across most of the developing world, in
particular, the post-1980s trend of neo-
liberal economic policies brought increased
unemployment and poverty.
27
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Although, some Muslim countries moved to more liberal
economies after the 1980s, as was mentioned before, it did not
prove that they would be
riot or crisis free. Even the
idea that a strong military
will minimize riots over time
was eliminated by the Arab
Spring. Almost all of the
Muslim world countries have
fundamental issues such as income inequality, wealth inequality
and low rates of economic growth. ese chronic issues naturally
led to a bust around 2010-11. at said, some countries such
as Turkey and Iran that have deeper, stable and stronger state
customs, were able to avoid most of these external shocks, and
some of the other basic issues and disputes.
Most importantly, institutional development, helping create
better governance, a liberal democracy and the rule of law, is
still mostly missing within the Muslim world (see Acemoglu et
al. 2001, 2005 and 2012). Institutional development (for stable
political and economic development) theory, currently led by
Turkish-American economist Acemoglu and his coauthors, argues
that it is man-made political and economic institutions (such as
political parties that form pluralistic political structures, public
institutions that collect reliable data, a legal system that every
citizen can count on and a security service that makes everyone
feel safe and equally treated) that determine the economic and
political success of nations.8Locke’s property rights, North and
Weingast’s theoretical basis for modern institutional structures
and more recent analysis by Acemoglu and his co-authors, help
lay the theoretical basis for deciencies in the institutional quality
within the OIC.
Institutional development is of critical importance for the fate of
a country or even a civilization (Acemoglu and Robinson, 2012).
After all, the economic and political institutions are proven to
be the main drivers of economic development (Acemoglu et al.,
2001, 2005). If the legal system is too weak and basic rights such
as property rights, enforcement of contracts, political stability and
even quality are not protected, the addition of growing religious
extremism to this volatile mix can easily cause unprecedented
economic, social and political turmoil.
8 See Acemoglu and Robinson (2012), among others.
e economic and political institutions are
proven to be the main drivers of economic
development.
28
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
A Pew research survey from the summer of 2012 shows strong
public support for democracy in the Middle Eastearn countries,
most of which are still governed by monarchies (PEW, 2012).
Democracy, itself, is of critical importance for institutional
development. Yet, many OIC members are still far from
being democratic societies with strong political and economic
structures. erefore, political pluralism and democracy is one of
the rst structural reforms that should be supported.
Table 5: Rule of Law (Overall score and representative factors)
COUNTRY
Overal
Score
Factor 1:
Constraints on
Government
Powers
Factor 2:
Absence of
Corruption
Factor 3:
Open
Government
Factor 4:
Fundamental
Rights
Factor 5:
Order and
Security
Factor 6:
Regulatory
Enforcement
Factor 7:
Civil
Justice
Factor 8:
Criminal
Justice
Global
rank
/102
AFGHANISTAN 0.34 0.43 0.24 0.34 0.39 0.42 0.33 0.27 0.28 101
ALBANIA 0.49 0.47 0.34 0.44 0.58 0.74 0.45 0.5 0.36 53
BANGLADESH 0.39 0.41 0.27 0.36 0.43 0.64 0.37 0.36 0.29 93
BURKINA-FASO 0.51 0.45 0.45 0.41 0.58 0.69 0.55 0.54 0.38 78
CAMEROON 0.39 0.39 0.26 0.33 0.46 0.63 0.36 0.34 0.31 97
COTE D’IVOIRE 0.46 0.44 0.41 0.34 0.5 0.6 0.47 0.48 0.4 76
EGYPT 0.45 0.45 0.46 0.44 0.39 0.67 0.42 0.39 0.41 86
INDONESIA 0.52 0.64 0.36 0.54 0.54 0.77 0.52 0.47 0.37 52
IRAN 0.44 0.36 0.5 0.34 0.23 0.63 0.53 0.56 0.38 88
JORDAN 0.57 0.5 0.57 0.43 0.47 0.85 0.54 0.62 0.56 41
KAZAKHSTAN 0.47 0.35 0.43 0.35 0.48 0.79 0.46 0.47 0.4 65
KYRGYZ 0.45 0.47 0.27 0.41 0.52 0.74 0.44 0.42 0.33 74
LEBANON 0.51 0.57 0.4 0.44 0.62 0.76 0.44 0.45 0.42 68
MALAYSIA 0.58 0.55 0.64 0.48 0.45 0.87 0.51 0.57 0.53 39
MOROCCO 0.51 0.56 0.43 0.48 0.45 0.76 0.54 0.5 0.35 55
NIGERIA 0.39 0.47 0.26 0.4 0.42 0.36 0.4 0.5 0.31 96
PAKISTAN 0.36 0.46 0.29 0.32 0.38 0.3 0.35 0.36 0.37 98
SENEGAL 0.54 0.63 0.48 0.42 0.63 0.67 0.55 0.55 0.42 38
SIERRA LEONE 0.44 0.58 0.35 0.29 0.55 0.59 0.39 0.47 0.32 87
TUNISIA 0.55 0.58 0.5 0.47 0.54 0.77 0.52 0.54 0.45 43
TURKEY 0.5 0.46 0.55 0.42 0.47 0.67 0.54 0.52 0.39 80
UGANDA 0.41 0.41 0.3 0.33 0.37 0.61 0.37 0.48 0.37 95
29
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
e Muslim world economies should also be economically more
open and transparent. An early 2000 UN Arab Development
Report has warned the regional economies that demographic
discrimination was leading to increasing wealth and income
inequality and weaker economic development. Unfortunately,
little was achieved up until the early 2010s, when the Arab Spring
erupted.
We also observe that there is a need to increase the rate of
accountability, particularly in political parties and the parliaments,
but more importantly in police forces and even the military.
Eciency, rule of law and
democratic governance are
key issues in a democratic
society. Equal treatment,
fairness, transparency in
governance and the justice
system are crucial factors to bear in mind.9 A new way of thinking
in political life which prioritizes the ght against corruption,
implementation of rule of law and institutional quality is of
critical importance for all the OIC members.
e public sector sets the
pace for growth rates.
After all, the public sector
is the primary employer
(~30% in Syria, Egypt and
Jordan, 20% in Tunisia,
e World Bank DataBank)
9 See table 5 for the rule of law performance of the OIC countries.
COUNTRY
Overal
Score
Factor 1:
Constraints on
Government
Powers
Factor 2:
Absence of
Corruption
Factor 3:
Open
Government
Factor 4:
Fundamental
Rights
Factor 5:
Order and
Security
Factor 6:
Regulatory
Enforcement
Factor 7:
Civil
Justice
Factor 8:
Criminal
Justice
Global
rank
/102
UNITED ARAB
EMIRATES 0.65 0.58 0.79 0.46 0.49 0.89 0.66 0.59 0.78 27
UZBEKISTAN 0.45 0.29 0.35 0.39 0.36 0.9 0.47 0.48 0.41 81
UNITED STATES
OF AMERICA 0.73 0.76 0.75 0.73 0.73 0.82 0.73 0.67 0.64 19
GERMANY 0.81 0.85 0.83 0.72 0.87 0.88 0.77 0.82 0.76 8
Source: http://worldjusticeproject.org/
Equal treatment, fairness, transparency
in governance and the justice system are
crucial factors to bear in mind.
Most of the OIC countries are democratic
countries with free elections but the rule
of law and liberal market economies will
take time to settle down.
30
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
and the main source of patronage among the OIC member
economies. Also, the low tax eort implies alienated citizens, by
keeping them out of the political and governmental structures.
Lower entrepreneurship and productivity of the public sector
have negative consequences on the overall productivity and
entreprenership levels of the OIC countries.
ese negative outcomes have been disrupting regional stability
and worsening challenges to a more prosperous and democratic
economy. Any improvement on these issues would help contribute
to the democratic freedom in all of these countries.
Figure 4: Sect dierences among the OIC members in the
Middle East
Source: e Economist and and e Gulf2000 project
In short, most of the OIC countries are democratic countries
with free elections but the
rule of law and liberal market
economies will take time to
settle down. is historical
overview which takes into
consideration many clashes
among the current members and the continuously changing
structure of the region should not stop the OIC members from
A greater economic cooperation mechanism
should be preferred over a political or even
military union.
31
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
seeking new means of cooperation and more integrated business
and social life.
We, therefore, believe that what the Muslim world needs the most
currently is more economic cooperation. A greater economic
cooperation mechanism should be preferred over a political or even
military union. National borders, sect dierences and political
disputes should not be an obstacle preventing the economic
cooperation and economic integration of OIC countries on a
common cultural, strategic and even religious basis.
3. The Global Economy: Then and Now
e global nancial crisis of 2007-09 was a turning point for
the world economy (El-Arian, 2016; King, 2016). e world
economy experienced the greatest nancial crisis since the
Great Depression of the 1930s. e
asymmetric nature of the shocks to
dierent world economies makes
it dierent from the comparable
crises of the 1930s and of 1907.
Meanwhile, as the global economy is
transforming and global economy’s
equilibrium is shifting (along with
the changing nature of the crisis); the subsequent responses are
also changing (Bagis, 2017; Pimco, 2015). While scal policies
were generally consulted during the Great Depression period of
the 1930s, during the Great Recession of 2007-09, monetary
policy and in particular unconventional measures were eectively
implemented to deal with the global nancial crisis.
e world economy has entered a new era following the 2007-09
crisis. It’s extremely important to read this new era correctly and
choose the appropriate policy measures. e world is changing.
Tension between Russia and the NATO bloc over Ukraine
and Syria is still aecting world trade. e Chinese economy
continues to slow down, while the Japanese economy remains
stagnant. e US (and to a certain extent, the UK) is the only
economy doing relatively well and it is growing much faster than
the rest of the Western bloc economies. is has led to economic
and nancial divergence among the world economies (Bagis,
2017). We therefore follow another earlier argument made in
32
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Bagis (2017), that the policy objectives and the primary concerns
have fundamentally shifted.
Frankly, history proves that most international and domestic
political tensions are indeed economically based. e fundamental
issues behind and the
primary reasons for these
tensions predominantly lie
with the institutional quality,
and with the economic and
welfare components. For
example, in Turkey, the post-
Ottoman-era relations with
the Muslim world, internal
disruptions such as the Kurdish issue (as was lately dened by the
government) and relations with its sphere of inuence as well as
its foreign policy are all dependent upon the country’s soft power.
is soft power itself is dependent upon the performance of the
economy at that time. From art to education and from business to
tourism, all of the components of soft power are directly related
to the economic circumstances.
As economic circumstances are of such paramount importance,
it is essential to understand how the relative economies and even
the global economy is currently performing. Economists mostly
agree that the Great Recession of 2007-09 was a turning point for
the world economy. Long-term growth rates, ination dynamics
and even interest rates are now much lower than the pre-2008
period. Most of the Emerging Market economies (EMs), today,
faced huge capital inows and have had to deal with the spillover
eects of the unprecendented quantitative easing policies of the
advanced economies.
Meanwhile, the rest of the world is not much dierent. After the
onset of the Great Recession of 2007-09; in most major world
economies, wages have remained at for the most part. Interest
rates are at historic low levels. Yet, investment is still weak, mostly
due to uncertainties and lack of funding. Funding shortages have
deferred investment projects and the resulting uncertainties have
led to much weaker investor sentiment. Businesses, meanwhile, are
too hesitant to commit to long-term investments and consumers
are too frightened about economic prospects to spend much
of their limited savings or wages. erefore, both demand and
We almost got used to the Great Moderation
period of steady upward growth trend. e
2007-09 crisis was a disturbing wake-up
call, in that sense.
33
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
investment are currently weak. Meanwhile, savings are too high
(as that in China) and in particular in most advanced economies
(such as the European economies) everyone is expecting another
downturn in the near future.
All these factors contribute to much lower growth rates. Growth
rates are low even in the emerging markets and recovering
advanced economies such as the US. So far, the world economies
have failed to provide any concrete solution to this critical
mortication. And according to both
El-Arian (2016) and King (2016),
this has led to central banks around
the world being the only players, and
monetary policy being the only game
in this new era.
Indeed, over the past few decades,
central banks around the world have
mostly achieved their goals. ey have
been able to lower nominal interest
rates, smooth GDP movements
from the growth trend and have also
lowered the ination rates. Macroeconomic stability has been the
key common characteristic of the advanced economies of post-
1980s. We almost got used to the Great Moderation period of
steady upward growth trend. e 2007-09 crisis was a disturbing
wake-up call, in that sense.
e Great Recession led the market to hit rock-bottom, followed
by a period of steady and low growth, which came to represent
a new normal (PIMCO, 2015). Yet, volatilities are once again
increasing. e steady and smooth new normal may soon be
over. e Chinese economy
is slowing down and the oil
markets are in turmoil. It
would not be completely
wrong to claim that the world
economies are currently still
dealing with the post-crisis
eects of the Great Recession
of 2007-09. Advanced
and emerging economies of the world, alike, are dealing with
extremely low growth rates and are desperate to nd new ways to
stimulate growth.
Turkey’s biggest trade partner, Europe, is
still dealing with the debt crisis, and Brexit
is likely to further deteriorate the region’s
economic outlook.
34
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
e global growth outlook is not promising currently in any
region of the world. Investment rates are down everywhere and
private sector consumption is much weaker than it has ever
been. New means and even integration mechanisms are required
to boost regional economies. Arguably one way to boost these
growth gures is to apply the rst-best currency devaluation
policies, but currency devaluations are deemed ‘beggar-my-
neighbor’ policies by many and hence are usually opposed (Bagis,
2016a). Currency devaluations are meant to steal growth from
the competitors and would therefore cause instability across the
other economies. erefore, currency wars and the accompanying
competitive devaluations leave all of the countries involved worse
o.
Another alternative is more eective use of monetary policy
(especially unconventional policies) and macro-prudential
regulations. Of these, alternative measures are usually preferred.
e Great Recession of 2007-09 was, in that sense, a critical point
in history, marking the start of the eective use of monetary policy
to ght with a business cycle of that extent. anks to former
Fed Governor Bernanke, an expert on the Great Depression, they
learned how to use monetary policy eectively.
e list of alternative solution methods could be increased. Yet,
this is not the primary objective of this paper. e point is that
the world economies are still recovering from one of the greatest
nancial crises in the history of humanity. Negative implications
are still alive even for most of Turkey’s neighboring countries.
Turkey’s biggest trade partner, Europe, is still dealing with the
debt crisis, and Brexit is likely to further deteriorate the region’s
economic outlook. Trump’s presidency in the US, USexit as we
may call it, is likely to keep the USA out of international politics
and markets alike. Russia and Iran are still suering from both
the Western sanctions and extremely low commodity prices. e
southern neighbors and the Middle East in general are suering
from the aftershock eects of brutal conicts, even civil wars in
some cases, following the Arab Spring. Greece and even Ukraine
are still struggling to emerge from the long-stagnant economic
cimcumstances.
ere are positive developments to report too, thankfully. Turkey
and Russia have recently ended their months-long dispute. is
much needed attempt is very likely to contribute, economically,
35
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
to both of the regional powers. After all, in today’s complicated
world, no country is able to thrive totally on its own. In this new
era, in which inter-country relations are dependent upon mutual
benets, new cooperation organizations and blocs are a necessity.
In this line, the natural resources rich OIC political dialogue
bloc with its very young population oers a great potential for a
succesful alternative to the existing economic unions.
In today’s complicated world, exploring new means to boost
regional and local economies is of the highest priority. Investment
rates and consumption levels
are still weak, and growth
rates and international trade
shares are much lower than
their pre-2008 levels. e
West is still dealing with the
post-2008 eects. Since all
of the world economies are
desperate to nd new ways
to boost growth rates and
stimulate economic activity, new forms of economic cooperation
organizations are a must.
4. Potential Areas of Economic Cooperation
e question at this point is, what potential areas of cooperation
and deeper economic integration are there? Various alternatives
will be discussed below, but to give a general idea, we basically
build a list of policy recommendations in various areas. ese
policy suggestions are supported with alternative channels that
show which particular areas and mechanisms would provide best
use. We aim to point to the potential mechanisms that could be
used to achieve greater cooperation and create a union of mutual
benets with such a large portion of the world.
4.a. Turkey Central: On the Importance of Strategic Location
“Geography is Destiny
Anonymous
Turkey is among the top-20 biggest economies of the world, both
in nominal and in PPP terms. As a member of the G-20, the
We aim to point to the potential
mechanisms that could be used to achieve
greater cooperation and create a union of
mutual benets with such a large portion
of the world.
36
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
rich-countries club of the OECD, and a candidate for the EU
members club, Turkey has a great potential, with the necessary
human capital and infrastructural frame to contribute to (maybe
even lead, in some cases) the Muslim world economies in specic
areas. is potential has been acknowledged in various OIC
documents as well (See various recent OIC Strategy, Islamic
Summit, COMCEC Strategy, Ministerial Conference and
other subsidiary OIC institutions’ documents). It has both the
required technological substructure, political acknowledgement,
international business and nancial connections as well as
the strategic position to serve a leading role. In particular, its
geographic position is of enormous help.
As pointed out in the economic geography theory, a country’s
geographic location is the most critical element in its economic
growth path, the distribution of its production activities, and
the patterns of its international trade (see for example Krugman,
1979). Geography, therefore, determines the destiny of a country.
While the saying itself is believed to originate from many
siginicant historical gures, including Ibn Khaldum, Napoleon
and others, it alludes to a deeper meaning.
From Heredotus to Ibn Khaldun and from Napoleon to Robert
Kaplan, scholars have written extensively on the eects of
environment and geographic
location on cultural
dierences and the fates of
countries.10 Accordingly, it is
claimed that, above anything
else, a country’s position on
the global map is the primary
factor determining where its
fate will head. For example,
the 14th century Islamic
scholar Khaldun, one of the
main scholars who laid the foundations of the idea of fair and
stable modern states, claimed that geographic location could
best be described as the destiny of a country, as it would bring
forth both challenges and opportunities (Khaldun, 1377). ese
opportunities and challenges are the exact focus of this study.
10 See, among others, Robert D. Kaplan’s 2012 book “e Revenge of Geography:
What the Map Tells Us About Coming Conicts and the Battle Against Fate”
Turkey’s fundamentals are strong and
its strategic position is unquestionably
of enormous help. It provides access to a
market of 1 billion people within a 6-hour
ight.
37
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
In light of these observations, we claim that Turkey has a
signicant comparative advantage due to its prime geostrategic
position at the crossroads of Europe and Asia and therefore is ripe
for potential gains in very dierent sectors, especially the ones
mentioned below. However, the country needs to act accordingly
to benet from all these opportunities. Turkey, as an economic
paragon among the EMs, has had an average growth rate of 5%
during the past 10 years. e country is headed towards becoming
a global power, in the near future, surpasssing its current regional
powerhouse position.
Turkey’s fundamentals are strong and its strategic position is
unquestionably of enormous help. It provides access to a market
of 1 billion people within a 6-hour ight. Istanbul is well on its
way to becoming a major business hub; providing access to all of
the MENA, Asian, European and African regions.
Below, we list some specic sectors that we believe should be
primarily considered when laying down the strategic plans for
future cooperation and collaboration eorts. We would like to
remind the readers that some of these cooperation areas have
already been pointed out in the relevant OIC strategy documents,
but to a limited extent. Meanwhile, there are numerous other
means to benet from. In the sections below, we provide a short
list of critical areas of collaboration.
4.b. Energy
Turkey is a net energy importer (Bagis, 2015; 2016b). Despite
its large natural resource reserves in general, Turkey is still
importing most of its energy needs. On the other hand, many
other OIC member economies are energy-rich. Turkey’s relatively
better technological infrastructure and human capital could be
beneted from to collaborate with the rich natural (in particular
energy rich) resources of the other OIC members.
Over time, such opportunities will most likely be an essential
part of discussions over long-term strategies in foreign policy as
well. One thing is for sure, Turkey’s strategic position makes the
country a strategically vital ally or trade partner for any country,
especially within the energy sector. Popular recent energy line
news and the changing balance of global power makes this
strategic location all the more vital.
38
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Turkey’s strategic position is very likely to help improve its stance
in international business and political relations. Indeed, most of
the regional and international
players are already aware of
this potential. For example,
in October 2016, Turkey and
Russia signed an agreement
for a new Turkish Stream
(Türk Akımı) natural gas
pipeline. e deal came just months after tension betwen the
two regional power-houses exploded, after downing of a Russian
jet on the Syrian border. Despite this undesirable incident, Russia
never broke o relations with Turkey. Shorthly after the evidence
and consensus over the international linkages in that military
strike, the deal sounded all reasonable and logical to both parties.
Table 6: Pipelines in the region
PIPELINES Capacity
bbl/d Mmcf/d Notes
ACTIVE
EGYPT-JORDAN-SYRIA-LEBANON
(ARAB GAS PIPELINE) 966 Egypt-Jordan flows intermittent and at volumes
less than contracted; flows to Syria, Lebanon
offline
IRAQ-SYRIA
(AIN ZALAH-SUFAYAH-SUWEIDIYA Small pipeline in the northeast of Syria; not a
significant international pipeline
INACTIVE
INACTIVE
EGYPT-ISRAEL (EL-ARISH-ASHKELON) 677 No flows since 2011
IRAQ-SYRIA (SCOTLINE),
TWO PIPELINES 1,400,000 Iraqi sections inoperable; status of Syrian
section uncertain
SAUDI ARABIA-JORDAN
(TRANS-ARABIAN PIPELINE
[TAPLINE])
315.000-
500.000
Section from Saudi Arabia to Jordan closed
since 1990; discussions on-re opening occur
occasionally
SYRIA-LEBANON(GASYLE1) 300 Not currently in operation, temporarily supplied
Arab Gas Pipeline volumes to Lebanon
PROPOSED
AZERBAIJAN-TURKEY-SYRIA 100-
300 Infrastructure build-out not completed; project
unlikely to move forward
Turkey’s strategic position is very likely to
help improve its stance in international
business and political relations.
39
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Despite its strategic position, Turkey is surely lacking in energy
resources. It currently ranks 61st in oil production and 194th in oil
exports. It further ranks 68th
in natural gas production,
and 42nd in gas exports (IEA
statistics). Turkey currently
consumes one-fourth of
average OECD per capita
energy consumption, and
half of the consumption
statistics for its European
counterparts. Over time, as
the economy matures, with increasing urbanization and high
population growth rates, these gures are projected to rise.
PIPELINES Capacity
bbl/d Mmcf/d Notes
CYPRUS-GREECE unkown Proposed export pipeline from Cyprus; could
connect to European distribution network
EGYPT-PALESTINIAN TERRITORIES unkown Intended to supply natural gas to PT generating
facilities; no details available
IRAN-IRAQ-SYRIA PIPELINE
(ISLAMIC GAS PIPELINE) 110 New reports indicate construction completed
by 2013, 20-25 MMcm/d to Syria, 20-25
MMcm/d to Iraq (power)
IRAQ-JORDAN (HADITHA-AQABA) 1,000,000 350 Export pipeline to Red Sea; same oil and
natural gas for use in Jordan
IRAQ-JORDAN (ZARQA SPUR LINE OF
HADITHA-AQABA PIPELINE) 98,000 Proposed as altemative to trucks on this route;
no significant progress
IRAQ-SYRIA (HADITHA-BANIAS), TWO
OIL PIPELINES,ONE NATURAL GAS
PIPELINE 2,750,000 unkown Two oil pipelines, one from norther Iraq
and one from southem Iraq; one natural gas
pipeline to aid operation
ISRAEL-TURKEY unkown Preliminary discussions on Israel-Turkey
natural gas pipeline as altemative to LNG
exports; no project proposal as of Jully 2013
SYRIA-LEBANON (HOMS-TRIPOLI) 378 Project abandoned
SYRIA-TURKEY (ALEPPO-KILIS) 145 Arab Gas Pipeline extension; project stalled
TURKEY-ISRAEL (CEYHAN-HAIFA) 800,000 265 mile pipeline would connect Israel to
Turkish energy hub in Ceyhan; no significant
progress
Source: http://www.eia.gov/
Turkey is currently the 6th largest
electricity market in Europe. By 2030, it
is expected to be within the top 3 due to
the approximately 5% growth of energy
demand in Turkey each year.
40
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Turkey is currently the 6th largest electricity market in Europe. By
2030, it is expected to be within the top 3 due to the approximately
5% growth of energy demand in Turkey each year. A projection
of electricity demand in Turkey is given in the gure below.
Figure 5: Projection of electricity demand in Turkey until
2023.
Source: Republic of Turkey, Ministry of Energy
Dependence on energy and the strategic position of a country
has deeper meanings, both in terms of domestic politics and
international relations. Dependence on various resources and
production factors may
limit a country’s areas
of maneuverability in
international relations.
Meanwhile, the strategic
position may help with
ecient cooperation
mechanism. After all, you
cannot analyze a country without its economic and strategic
connections, its strategic cooperation and integrations into the
international political and nancial system.
Turkey’s surrounding Middle-East and Caucasian regions hold
up to 70% of the world’s oil reserves and 75% of the natural gas
resources.11 With the right moves, Turkey could be an energy hub
11 See for example Bagis (2016b). For further details on oil and natural gas reserve
and production gures see Appendix.
Turkey’s surrounding Middle-East and
Caucasian regions hold up to 70% of the
world’s oil reserves and 75% of the natural
gas resources.
41
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
and an important player in the energy market both regionally
and, potentially, worldwide. In addition to power and esteem,
such a transformation would bring with it many other economic
and strategic advantages.
Turkey’s rise as a signicant energy hub is of critical importance
for many reasons. It will decrease Turkey’s dependence on energy
imports and its sensitivity to international disputes. e outcome
could result in a decrease in the country’s energy gap and lessening
its foreign dependency, especially to countries such as Russia and
Iran, both of which have historically been considered long-time
competitor of Turkish states and empires.
Turkey could potentially be a major player in international politics
and economic policy-making. Meanwhile, its inuence over
regional and global policies
and cooperation mechanisms
will be extended. At the same
time, Turkey could use its
critical position to contribute
to Europe’s energy safety and
help improve and stabilize
energy supply, in which
Turkey is in a critical position. is is strategically important in
terms of international politics, global peacekeeping eorts and
security.
Another possible outcome that would boost Turkey’s international
reputation and add to its potential, is a decrease in the natural
gas prices in the retail market. is will be possible once energy
begins to be provided from the south rather than the northern
source of Russia (challenging Russia’s near monopoly over this
coveted natural resource). Gas from the south costs nearly half
that of gas coming from Russia (Erdil, 2013). With this strategic
move, Istanbul or Ceyhan could potentially be an energy hub for
Europe, which in turn will bring stronger political and economic
recognition to Turkey.
At this point, the most critical issue is the southern gas corridor,
which comprises the Kurdish Region of Iraq. Northern Iraq is
acting independently nowadays in terms of its energy policy,
essentially refusing to cooperate with the Baghdad government.
Turkey is the most suitable route for Israel’s, Southern Cyprus’
and Northern Iraq’s gas and petrol exports. Hence, new projects
Northern Iraq is acting independently
nowadays in terms of its energy policy,
essentially refusing to cooperate with the
Baghdad government.
42
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
will also support this currently favored route. Construction of a
new pipeline through Northern Iraq has recently started. Besides
TANAP, this new pipeline is intended primarily for domestic
demand, which is great news for Turkish consumers. Nevertheless,
regional politics will play a critical role in the success of these
projects.
A few years ago, the construction of a new Erbil-Turkey oil
pipeline signalled a reform in regional politics. With the planned
new pipelines and connections to the existing Kirkuk-Yumurtalık
pipeline, the Kurdish Region of Iraq is poised to export around
16 billion dollars of petrol and 10 billion dollars of natural gas
annually, through Turkey. Similarly, the north of Syria also has
the potential to export its oil through Turkey. Policy-makers,
politicians, and industry leaders alike, should keep this balance
in mind when formulating policies for the region.12
e lines from the East are equally important. e Baku-Tbilisi-
Ceyhan pipeline and the Baku-Tbilisi-Erzurum pipelines are
already active. e Trans-Anatolian gas project (TANAP) will
carry the gas of Azerbajian from the Caspian Sea to Europe via
Turkey. With the project, Turkey will be the most important
energy player in the region. Turkey will, additionally, gain a
few billion dollars per year. In addition, consumer prices are
expected to decrease courtesy of cheaper wholesale contracts with
Azaerbaijan.
Oil is surely not the only critical energy source we should be
concerned with. e following quote from Cenk Pala of TAP
(2013, http://www.hurriyet.com.tr/pipelineistan-24881558) is a
good summary of the importance of various other energy sources:
e 20th century was the
century of oil, there we missed
the train. is century, is
the century of natural gas.
We should be active in its
production, ownership,
marketing and trade.”
e Financial Times’s energy columnist Butler (2013, http://
blogs.ft.com/nick-butler/2013/10/02/the-turkish-choice-
rhetoric-or-relevance/) adds that:
12 See the table above for the pipelines in the region.
If Turkey keeps successfully transforming
its previously narrow vision of foreign
policy, it will have a profound and positive
impact on the region.
43
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
“Turkey for the rst time in more than century can have a critical
role in the world economy, through its position as a transit route for
many dierent gas and oil projects. ...transnational role of Turkey
is the greatest opportunity in the history of Turks since Ottoman
times. ...e volume of energy passing through Turkey, may exceed
the volume passing through Strait of Hormuz.”
ese comments both point to an opportunity and also to
an important responsibility on the part of policy-makers.
e authors of this paper believe if Turkey keeps successfully
transforming its previously narrow vision of foreign policy, it will
have a profound and positive impact on the region. is will
bring about stronger relations with OIC countries and improved
economic opportunities in turn.
4.c – Industry and Trade
Since the foundation of the modern Republic in 1923, Europe
has always been Turkey’s primary trade partner. e new post-
revolution country turned to the West for guidance in all areas.
With this transformation it was aimed to ensure the country
would progress and catch up with the Western standards of
technological and scientic development as quickly as possible.
Ninety years after its foundation, Turkey’s biggest trading
partner is still the European Union. Additionally, the recent
tension between Turkey and Russia, the geopolitical issues with
the Iraqi government, civil war in Syria as well as the political
transformation in Egypt has placed some barriers on economic
cooperation eorts between Turkey and the other Muslim
economies. However, the OIC market is of extreme importance
for Turkey and there exists a great potential to increase trade
volume, which will help create and develop more high value-
added industries. e key points of Turkey’s foreign trade with
major OIC partners can be summarized with the following table.
For comparative purposes, information on Russia is included as
well.
44
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Table 7: Trade with OIC countries and Russia
COUNTRY Rank
(2014)
(Rank
2013)
2013
(billion $) Main Items (in 2014) Details
IRAQ
Export 2 2 11.9 bn$ Food:30%, Iron&Steel&their products: 16%
Machinery & Electric: 13%
Last year export to Iraq increased 10% (11.9 bn$).
In the first half of 2014 total export to Iraq is 5,8
bn$
Import 62 81 0.1 bn$ Petrol&Natural gas: 43%, Gold: 39%
Volatile trend: 2011:-43%, 2012:+72%, 2013:-2%
RUSSIA
Export 7 4 7 bn$ Food:19%, Machinery&Electric:19%,
Motor land vehicles: 13%
The momentum of increase in Russia export
decreased: 2013:4%, 2012:11%, 2011:29%
Import 1 1 25 bn$ Petrol&Natural gas:67%, Food: 10%,
Iron&Steel&their products: 11% 2011&2012 11% increase imports, 2013:-6%
BAE
Export 8 8 5 bn$ Gold:46%, Iron&Steel&their products:15%,
minerals:12%
Elevated gold export: In 2012 % 69 (5 bn$), in
2013 %50 and in 2014 %46 (1,2 bn$) of total
export
Import 22 14 5.4 bn$ Gold: 88% Imports increasing exponentially: 2013:%50,
2012:118%, 2011: 136%
SAUDI
ARABIA
Export 13 14 3.1 bn$
Carpet: %14, Machinery&Electric: %14, Food: %13,
Textile: %13, Iron&Stell&their products: %12
2013: -13%. In the first half of 2014 total exports to
S. Arabia is 1,5 bn$
Import 25 26 2 bn$ Plastic: 76%, Chimicals: 17%
EGYPT
Export 16 13 3.2 bn$ Minerals: 18%, Machinery&Electric: 11% Exports decreased 13% in 2013, but in 2012 and
2011 increased respectively 33% & 23%
Import 31 32 1.6 bn$ Plastic: 25%, Inorganics: 10%, Textile: 12%
IRAN
Export 18 10 4.2 bn$ Machinery&Electric: 21%, Wood&Paper: 12%,
Plastic: 8%, Food: 6%
2012: 66% of total export gold, 2013: 40% gold.
But in 2014, the effect of gold export diminished.
Import 7 7 10.4 bn$ Petrol&Natural gas: 86% In last 2 years decreased: 2013: -13%, 2012: -4%
LIBYA
Export 20 16 2.8 bn$ Iron&Steel&their products: 18%,
Machinery&Electric: 15%, Furnish: 10% Exports increased 29% in 2013
Import 65 61 0.3 bn$ Petrol&Natural gas: 36%, Gold: 32% Volatile trend
ALGERIA
Export 22 22 2 bn$ Machinery&Electric: 25%, Motor land vehicles:
19%, Food: 75 Export increasing 2013: 10%, 2012: 23%
Import 43 48 0.7 bn$ Petrol: 98% In last 2 years imports decreasing: -23%, -20%
MOROCCO
Export 25 27 1.2 bn$ Iron&Steel&their products: 24%, Motor land
vehicles: 17%, Machinery&Electric: 12% 2013: 18%, 2012: 10% increase in total exports
Import 51 52 0.6 bn$ Motor land vehicles: 31%, Chemicals: 13%, Salt:
12%, Feed: 10%
33% increase in imports in 2013. Previous years
2%, 6%
SYRIA
Export 28 32 1 bn$ Food: 45% (mainly from animal&cereals)
Exports doubled in 2013 (2013: 1 b$, 2012: 0,5
bn$). In the first half of the year, export to Syria
become 0,7 bn$
Import 92 98 0.08 bn$ Cotton: 80% 2013: +26%, 2012: -80%, 2011: -26%
TUNIS
Export 35 37 0.9 bn$ Textile: 15%, Machinery&Electric: 12%, Motor
land vehicles: 12%
Exports increased 10% ain 2013 after a flat year
in 2012
Import 76 64 0.3 bn$
Machinery&Electric: 26%, Petrol&Natural gas: 25%
2013: 48% increase, but in 2012: -21%, 2011: -11%
Source: TUIK and TIM
45
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
On the other hand, within the OIC member economies, Turkey’s
main export market is Iraq, with 30% of total exports (at least
until very recently). Turkey sells food, iron, steel and iron-steel
products, machinery and equipment, electric devices and motor
land vehicles to the OIC. Turkey mainly imports oil, petroleum
products and gold from the OIC.
To have a better understanding of the current trade and
production opportinities within the OIC we need to carefully
examine the OIC’s trade gures. A comparative look, which
includes both the intra and global gures of the OIC’s trade,
is especially important. For this reason global and intra-OIC
exports and imports by destinations, by products and market
concentrations are given in the tables below.
Table 8: Global OIC Exports by Destination (Share, Top 15)
COUNTRY 2014 2015
CHINA 10.2 12.8
JAPAN 9 9.1
INDIA 7.3 8.7
USA 7 8
KOREA 5.8 5.9
SINGAPORE 4.7 4.9
ITALY 3.5 3.4
GERMANY 2.4 3.3
FRANCE 3 3.2
SPAIN 2.9 2.6
THAILAND 2.5 2.7
UK 2.4 2.7
NETHERLANDS 2.6 2.6
TAIPEI, CHINESE 2.5 2.6
TURKEY 1.4 1.6
Total Share of Top 15 Partners in 2015: 75%
Source: e WorldBank, OIC and IFC
46
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Table 9:
Global OIC Exports by Products (Top 10, Share %, 2014)
Mineral fuels, oils 58.9
Electronic equipment 4.8
Plastics 2.8
Machinery 2.6
Precious stones, metals 2.5
Animals, vegetable fats and oils 1.9
Organic chemicals 1.7
Vehicles other than railway 1.7
Apparel, accessories, knit 1.7
Apparel, accessories, not knit 1.5
Herfindahl product concentration of exports: 0.35
Source: e WorldBank, OIC and IFC
Table 10: Global OIC Imports by Destinations (Share, Top 15)
COUNTRY 2014 2015
CHINA 15.2 20.7
USA 7 7.4
GERMANY 5.6 5.8
INDIA 5.3 5.4
SINGAPORE 4.1 4.3
KOREA 4 4
JAPAN 4.1 4
FRANCE 3.5 3.7
RUSSIA 3.7 3.7
ITALY 3.6 3.7
TURKEY 2.8 2.9
UK 2.5 2.6
THAILAND 2.2 2.3
SPAIN 2 2.1
NETHERLANDS 1.9 2
Total Share of Top 15 Partners in 2015: 75%
Source: e WorldBank, OIC and IFC
47
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Table 11: Intra-OIC Exports by Destinations (Share, Top 10)
COUNTRY 2014 2015
TURKEY 14.4 30.8
MALAYSIA 7.5 14.7
UAE 16 13.9
QATAR 3.8 7.5
INDONESIA 7.1 7.4
SAUDI ARABIA 12.4 4.9
IRAN 7.3 4.7
OMAN 2 4.6
EGYPT 3.5 1.5
KUWAIT 3.9 1
Source: e WorldBank, OIC and IFC
e global gures, presented here, reveal dominance of the
Asian countries, EU members and the USA as the major trading
partners of the OIC. For a rational economist, this should clearly
indicate the great potential to improve trade relations within the
OIC countries.
Table 12: Intra-OIC Exports by Products
(Top 10, Share %, 2014)
Mineral fuels, oils 28.8
Plastics 6.1
Precious stones, metals 4.5
Machinery 4.2
Animal, vegetable fats and oils 3.9
Iron & steel 3.8
Electronic equipment 3.8
Vehicles other than railway 3.3
Aluminium 2.4
Articles of iron & steel 2.3
Herfindahl product concetration of Intra-OIC exports: 0.10
Source: e WorldBank, OIC and IFC
Table 13: Intra-OIC Imports by Destinations (Share,Top 10)
COUNTRY 2014 2015
TURKEY 8 16.3
MALAYSIA 6.5 12.2
UAE 9.2 10.6
OMAN 4.2 10
IRAQ 6.4 6.7
INDONESIA 8.6 6
QATAR 2 4.9
SAUDI ARABIA 5.3 4.5
EGYPT 4.1 4.2
IRAN 5.6 4.2
Total Share of Top 10 Partners in 2015: 78%
Source: e WorldBank, OIC and IFC
Table 14: A comparative look at the Intra-OIC and Global
OIC total export gures.
Years Share of Intra-OIC Exports (%) Intra-OIC EXPORTS (billion $) Global OIC EXPORTS (billion $)
2001 9.2 (just over) 0 500
2002 9.6 (just over) 0 500
2003 12.2 (just over) 0 (approx.) 600
2004 10.1 (under) 100 (approx.) 800
2005 12.7 (approx.) 100 (approx.) 1000
2006 12.2 100 (approx.) 1200
2007 12.1 (just over) 100 (approx.) 1400
2008 10.7 (approx.) 200 (approx.) 1700
2009 13.1 (under 200 (approx.) 1300
2010 13.6 200 1500
2011 11.8 (just over) 200 (approx.) 2200
2012 11.8 (just over) 200 (approx.) 2300
2013 13 (approx.) 300 (approx.) 2200
2014 15.4 300 (approx.) 2100
2015 10 100 (approx.)1300
Source: e WorldBank, OIC and IFC
48
Greater Economic Cooperation, Opportunities and Challenges
49
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
A careful look into the trade relations between the OIC members
reveals that Turkey and Malaysia are the top two exporters and
importers of intra-OIC
trade. However, even though
Turkey ranks rst on the intra
OIC list, it ranks only 15th
on the global list. is clearly
shows the necessity and also
the potential for stronger
economic cooperation
between the OIC countries.
Turkey, Malaysia and
Indonesia have state of the
art production facilities and
know-how in many dierent
industries that could
compete quite well with their counterparts in the West, in China
and India. In addition, the abundance of raw materials in the
Gulf area makes the OIC a potentially self sucient - in the sense
of not being dependent on the rest of the world - organization in
most of the industries.
Better economic cooperation within the OIC will help the
current major producers such as Turkey, Malaysia and Indonesia
to have higher production standards. Improving the standards in
these countries will eventually help all the other OIC members
with their industries, know-how and production quality. We
believe that by enhancing trade between its members, the OIC
can increase the welfare of all parties. In particular, investment in
high-tech industries by capital abundant OIC members with the
support of all members and their large markets, know-how and
human capital is especially seen as an important opportunity that
must not be missed.
On the other hand, the intra-OIC trade still depends upon lower
technology sectors such as fuels, minerals and plastics. Turkey has
a comparative advantage in the machinery (automobile, trucks,
railways, white goods, electronic devices), textile, defense and
chemical industries. Considering the OIC’s huge consumption
and import gures in these sectors, with improved cooperation,
Turkey could become a major competitor to Germany, the USA
and some emerging countries such as China and India. To note
again, for more economic cooperation, each OIC country must
strengthen their ties with the other members.
In particular, investment in high-tech
industries by capital abundant OIC
members with the support of all members
and their large markets, know-how and
human capital is especially seen as an
important opportunity that must not be
missed.
50
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Indeed, the OIC strategy
documents already mention
a specic intra-OIC trade
vision. Yet, the member
economies are still far from
achieving even these limited
targets. Particular customs
regulations, such as PRETAS
and TPS-OIC, are yet to be
implemented. Trade volumes
and market integrations will not improve much until each
country takes responsibility for implementing these measures.
4.d Transportation
anks to its strategic location, Turkey is a natural hub for
transportation. Renovated railways and airports as well as the
recent double-ways, have increased the transit passage role of
the Turkish economy. Istanbul’s new airport will substantially
help Turkey increase its share of the transit ights to the OIC
market. Istanbul has the optimal transit location connecting
Africa, Europe, Asia and the Middle-East. Further investment in
transportation will boost this potential.
Transportation of goods and services is another critical area in
which Turkey holds signicant competitive advantage. For Western
companies, Turkey is the gateway to Iraq, Syria and most other
Middle-Eastern countries. Even trade with Iran predominantly
needs to pass through the Turkish territory. Overall, while the
new pipelines carry eastern
natural resources, including
energy exports, to the West;
the transit location of Turkey
in the meantime helps
transfer western goods and
services to the East as well.
e list includes various
goods and services, from high-tech appliances to internet services
and even automobiles.
As a result, if Turkey could support its unique location with
a well connected transportation system including airways,
seaways and railways, it can potentially become a world leader
If Turkey could support its unique location
with a well connected transportation system
including airways, seaways and railways,
it can potentially become a world leader in
transportation volume.
e construction sector, despite its limited
direct share of around ~5% of GDP in
Turkey, aects almost all aspects of the
Turkish economy.
51
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
in transportation volume by serving as the primary transporter
country of the rest of the OIC countries.
Recent mega projects such as the Yavuz Sultan Selim Bridge, the
Osman Gazi Bridge, the Marmaray and Avrasya tunnels, as well
as the CanalIstanbul Project, are all unprecedented and huge
infrastructure projects aimed at improving Turkey’s transportation
and logistics infrastructure.
4.e Construction
Construction sector, despite its low-skill density and traditional
identity, is still one of the main sectors of modern economies. Many
OIC members have recently started to use their accumulation
of foreign exchange reserves for construction of new planned
cities, and have heavily invested in huge transformation with
unprecedented transportation and infrastructure projects. New
airports, railway systems and highway projects are following
one another. Turkey, as a leading OIC member economy, has an
obvious competitive advantage in the construction sector.
e past performance of Turkish construction companies in
Russia, Saudi Arabia, the Middle East and North Africa is a good
example of this comparative advantage. e construction sector,
despite its limited direct share of around ~5% of GDP in Turkey,
aects almost all aspects of the Turkish economy. erefore,
further cooperation in this sector will both boost the Turkish
economy and help transfer the experience and know-how of
Turkish companies to the rest of the Muslim world. is is one
area in which Turkey could use its comparative advantage.
Political stability may lead to even higher investments in the
construction industry, which Turkey may benet from the most.
Turkish construction companies, most of which usually start
to operate in Turkish governmental related projects, are now
able to complete projects all over the world. Companies such
as Enka, Rönesans, Polimeks and Öztürk are among the top
100 construction companies in the world based on their size of
operations.13
In short, the Turkish construction companies already have the
necessary experience and willingness to actively participate in
13 See: http://www.tmb.org.tr/tr/duyuru-ve-haber/bilgilendirme/enr-2015/352
52
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
projects all over the Muslim world and in any corner of the OIC
countries. Better relations with these countries will inevitably
give way to more opportunities for Turkish companies to tackle
big projects in the region. e Turkish construction industry
as a whole is ranked third world-wide behind the construction
industries of the USA and China.14 Considering all these
fundamentals and the proximity of these companies to the region
both in terms of distance and understanding, we may safely argue
that Turkey can indeed lead the region in its construction eorts.
is will help with the employment eorts, both in partner
countries and in Turkey, and help Turkey overcome its current
account decit.
4.f The Tourism Sector
e OIC member economies, geographically, vary from the
Americas to Europe and Africa; and from Europe to Far East Asia.
Regional geographic climatic types therefore vary signicantly.
ese varying geographic and climatic dierences provide a
huge opportunity for the member economies of the OIC. It is,
therefore, another area for greater cooperation.
Even in Turkey, the country’s amazing geography is extremely
colorful. It has dierent climates in its various regions. e
eastern part of Anatolia,
for instance, hosts extremes
of temperatures where
summers are hot and dry and
winter months are long and
intensely snowy. e West,
on the other hand, is milder
and much hotter during the
summers. Meanwhile, the
Black Sea region is famous
for its cool summer weather
opportunities, and the far South provides a partly tropical
Mediterranean taste of climate.
All these geographic, cultural, sociological and even climate
divergences, therefore, provide for a plethora of opportunities for
14 For instance, check out: http://www.enka.com/Pdf/2014_ENR-Top-250-Interna-
tional-Contractors-List.pdf
Regional geographic climatic types therefore
vary signicantly. ese varying geographic
and climatic dierences provide a huge
opportunity for the member economies of
the OIC.
53
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
touristic tours to Turkey. As an example, Turkey’s Black Sea region
has recently become an extremely popular destination for tourists
from the southern MENA region economies. Historical sites
and authentic voyages are another
strategic advantage the Anatolian
region provides. Turkey hosts
numerous ancient sites and structures
from the Hittites to Lydians; and
from the Romans to the Ottomans
(Yurtseven, 2012). Historical sites are
particularly popular with Japanese
and American tourists.
Considering the hot and dry weather
and ora of most of the OIC countries,
we could expect the weather and ora
of especially the Black Sea region of
Turkey to be appealing to OIC tourists. In addition to historical
sites and cities such as İstanbul and Bursa, signicant increases
have been observed in the number of OIC tourists to the green
Black Sea cities of Trabzon, Ordu, Rize and Bolu.15
Turkey should not lose its position in the world’s top ten spot
in the total number of touristic visits per annum. Commercials,
various other ads and other new instruments should be utilized
to promote touristic visits to Turkey. Newly emerging Afrikan,
MENA and other far east Muslim countries should be targeted
and attracted to Turkey. e total number of tourists from
dierent OIC countries is increasing in recent years. e list of
OIC countries that send the highest number of tourists to Turkey
are given in the table below.
15 Check: http://www.milliyet.com.tr/son-3-yilda-turkiye-ye-7-milyon-arap-trab-
zon-yerelhaber-1218004/
54
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Table 15: Number of tourists coming from OIC ountries to
Turkey.
COUNTRY 2012 2013 2014
ALBANIA 59 565 65 113 76 273
ALGERIA 104 489 118 189 160 052
AZERBAIJAN 593 238 630 754 657 684
BAHRAIN 13 342 16 230 24 305
BANGLADESH 6 652 8 856 12 706
EGYPT 112 025 107 437 108 762
INDONESIA 56 113 57 385 59 486
IRAN 1 186 343 1 196 801 1 590 664
IRAQ 533 149 730 639 857 246
JORDAN 102 154 102 871 131 329
KAZAKHSTAN 380 046 425 773 437 971
KUWAIT 65 167 88 238 133 128
KYRGYZ 42 866 64 905 81 941
LEBANON 144 491 143 629 161 274
LIBYA 213 890 264 266 267 501
MALAYSIA 41 169 55 139 69 968
MOROCCO 77 884 82 579 89 562
QATAR 13 971 18 630 29 743
SAUDI ARABIA 175 467 234 220 341 786
SUDAN 8 161 9 319 10 714
TUNISIA 86 595 91 683 100 612
TURKMENISTAN 135 168 148 709 180 395
UNITED ARAB EMIRATES 48 071 52 424 53 736
UZBEKISTAN 105 976 129 292 143 354
YEMEN 11 826 17 354 26 033
Source: TurkStat
Diversication is another critical factor in the tourism industry.
Turkey’s tourism industry has a high dependence on European
countries such as Germany and England, and on former Soviet
countries such as Russia and the Ukraine. is high dependence
ratio on a small set of countries makes Turkey’s tourism sector
more vulnerable to political and economic crises aecting these
55
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
regions. Hence, adding the OIC countries as an alternative
international market for Turkey will actually strengthen the
industry in Turkey. Limiting
the focus and the market to
just a few countries has the
potential to cause various
challenges. It should also be
kept in mind that Turkey
suered greatly from the political crisis with Russia in 2016, as
well as from warnings by Western embassies (of the countries
with the biggest touristic visits) to their citizens.
Infrastructure investments, better access and quality of roads, hotels
and service companies is of equal importance. To attract more
tourists, we believe in the necessity of promoting the expansion
and improvement of the roads that will connect the uplands
in the Black Sea region to
the South; and the East to
the West. In the summer
of 2015 construction of
these roads was protested by
some residents of the region.
However, a carefully planned
road system, supported
by hotels respecting the nature and matching the fabric of the
region is not expected to have a substantial negative impact on
the natural beauty and integrity of the region.
In addition, that same region does not provide many job
opportunities to its residents due to its geography, and thus
suers from high migration to big cities, mostly to Istanbul. e
understanding that new housing can be constructed for these
people in Istanbul, which already has a population of over 15
million, but not in their homelands makes little sense in terms of
regional development. Residents of the region should be better
informed about the processes, and their consent should be taken
for these projects.
4.g Health
e authors of this paper also suggest that Turkey has a lot to
gain from focus on investments in health tourism, in particular
Limiting the focus and the market of
tourism to just a few countries has the
potential to cause various challenges.
Longer-term green investment projects have
a much higher multiplier and stability
eects than a basic monetary transaction
seeking higher yields.
56
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
considering the number of Middle-Eastern tourists coming
mainly for aesthetic procedures to the Turkish hospitals. Turkey
has long been known well for the
quality of its top medical schools and
the medical education in general.
More investment in the health sector
and improving quality of the touristic
hotels and villages will attract all
the tourists owing to the similar
Mediterranean destinations such as
Spain and France.
We believe health tourism and new
investments in huge health projects is
at least as important as creating new
nancial districts or cities to attract
hot money. Longer-term green investment projects have a much
higher multiplier and stability eects than a basic monetary
transaction seeking higher yields.
Meanwhile, both tourism and health industries should not just
be considered as a main source of cash foreign exchange reserves;
but, more as an instrument to boost its soft power. e recent
monumental city hospitals projects are a good outset to promote
the industry. Yet, still, further innovation and marketing is needed
to support the sector. Investment in the health sector should be
considered in addition to new huge projects and investments in
the nancial sector.
4.h Education
A well articulated education system is essential for the well-being
and prosperity of a nation. It therefore determines the fate of a
country’s economic, political and social transformation as well as
its long-term future path. Education systems among most of the
OIC member economies have failed to provide the required labor
force with the necessary skills and background to contribute to
the economy. Turkey, on the other hand, has followed the western
education standards for more than a century, most notably after
the establishment of the modern republic. is has allowed
Turkey to gain experience and to enjoy a comparative advantage,
especially in higher education.
57
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Due to its young population and thanks especially to investments
in the education sector after 2002, Turkey now has better
universities and much better educated human capital than ever
before. e number of universities has tripled over the past 20
years. In Turkish universities, the number of available seats for
the incoming class was a little over half a million in the early
2000s. By 2013, that number had almost doubled. e number
of university students has also increased signicantly, from 1.8
million to 5 million over the last 15 years (Gunay and Gunay,
2011).
Turkey, currently, has over 5 million university students. Apart
from these increases, universities in Turkey are improving in
quality as well. Turkey now has
ve universities in the top 500
universities of the world list.16 e
yearly number of articles covered in
the omson Reuters database has
increased from 10,000 to 30,000 in
the last 10 years.17 As the Turkish
Higher Education system expands,
many new collaboration programs
such as academic exchange programs,
cultural events, housing opportunities, housing services and
entertaintment opportunities targeting university students have
experienced a huge increase.
In addition, most universities, especially those in big cities
such as Istanbul, Ankara, Izmir, Antalya, Kayseri and Konya
use English as their primary medium of instruction. All these
positive developments make Turkey a new hub for international
students. Especially, students from the OIC countries easily adapt
to the daily life in Turkey, feeling at home in an environment
which shares so many cultural values. As a result, the number
of international students has increased from 15,000 in 2000 to
50,000 in 2015 (Tüzen and Yurtseven, 2016).
Being a hub for international students is extremely important
for many reasons. For example, just economically, a student who
lives in Turkey for, on average, about four years for his higher
16 Times Higher Education: https://www.timeshighereducation.com/world-universi-
ty-rankings
17 See for instance: http://www.tubitak.gov.tr/sites/default/les/bty60.pdf
58
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
education, will spend on average 20,000 dollars per year if he
attends a private foundation university.18 is obviously helps
the economy of Turkey both in terms of production of services
and decreasing the size of the current account decit. We believe
that supporting universities in their eorts in the international
education market will help Turkey become one of the top
countries in the international education market in the near future.
Just to give another example about the importance of high quality
higher education; in many OIC countries, American universities
have satellite campuses
and in the university
villages established by the
Arab countries we see the
existence of many American
universities as well. It is true
that the American higher
education system has a
better brand name then Turkish higher education in many of
these countries. However considering the cultural life, religion
and proximity, government support of these eorts will help the
Turkish players to better compete in the international market.
e education system is also important for improving the soft
power of a country, by
promoting and transfering
cultural and sociological
values. Having a bigger
impact on the education life
of the OIC will help Turkey in these contexts as well.
4.i Financial Operations
Apart from the previously mentioned real sector opportunities for
deeper cooperation and gains from further economic integration,
we should also consider Turkey’s role as an important nancial
center of the Muslim world. A greater potential in nancial
services has much to do with the quality of the education system
and stronger means for capital formation. Human capital is
another critical factor here.
18
Check: http://www.milliyet.com.tr/her-yabanci-ogrenci-kisi-basi-universite-1946127/
e education system is also important for
improving the soft power of a country, by
promoting and transfering cultural and
sociological values.
Turkey could potentially play an important
role in the newly emerging Islamic Finance.
59
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Recently, the AK Party government of Turkey initiated a long-
term project to transform Istanbul into a world nancial center.
Istanbul’s Atasehir region and Umraniye districts were selected as
main areas for building new nance centers. ese new centers,
supported by government eorts to attract companies and public
institutions to them, are very likely to boost the nancial system
of Turkey.
Turkey could use these new projects to be a center for the new
trends in nance. Islamic nance is just one example here. Turkey
could potentially play an important role in the newly emerging
Islamic Finance. at said, as many
of us are aware, the nancial center
of Western capital markets, London,
is also the current capital of this
newly emerging trend of Islamic
Finance. Although, Malaysia and
the Gulf regions have developed
their own schools of Islamic nance,
the new trend of Islamic Finance is
still not that much dierent than
the traditional British applications
of conventional banking. Islamic
nance has scarcely distinguished
itself from the conventional banking activities in general. is is
predominantly related to the history of nancial development in
those economies.
Turkey could improve on its nancial markets and provide new,
safer means to the Muslim
world to attract the excess
savings accumulated over
the past few decades. Islamic
nance is a critical gateway to
access the nancial markets
of the OIC economies.
erefore, Turkey should
denitely improve on its islamic nance background and gain
the trust and the primary location role of the Muslim economies.
Once it does, Turkey has a huge opportunity to attract capital
savings from the wealthy Muslim economies, as it has the capacity
to provide the right instruments to the investors. Deeper nancial
Providing Islamic nancing options such
as sukuks and other alternative sharia-
compliant papers is necessary to attract
huge Islamic funds.
60
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
markets and experience with modern nancial instruments are
all huge pluses for Turkey. Yet, to understand the signicance of
Turkey’s opportunity to become a nancial center, one must grasp
the importance of past experiences of ‘Saudi Arabia example as
the USA’s major nancial partner’. For many decades, the Saudi
Kingdom has been investing a signicant portion of its earnings
from oil exports (which itself is an outcome of Saudi-American
cooperation) into the American bonds market. is is, indeed,
similar to the USA-China trade cooperation of the past 40 years.19
Most of the oil-rich gulf and other Muslim countries are providing
huge energy supplies at extremely low costs. Saudi Arabia enjoys
the lowest oil production costs in the world, coupled with the
highest reserve capacity. Saudi Arabia, traditionally has had the
highest spare capacity. ey have the ability to increase and
decrease their production as they wish or whenever needed. is
unique opportunity to play with the production amount of oil
has recently caused some budget issues as well. e Kingdom of
Saudi Arabia had a budget decit of around 15% (equivalent
to $100bn) in 2015. eir FX reserves are down from $746bn
(August 2014) to $587 (as of May 2016). As oil prices fell,
income dropped, yielding the high budget decit (and the
resulting reserves decrease).
Despite its similarities with the China-USA relationships,
it is actually interesting to observe that a country nominally
ruled by strict Sharia rule is in practice investing in interest-
paying papers. e absence of safe Sharia compliant papers or
instruments features a lot of lessons for the Muslim world. e
Saudi Arabian Kingdom claims they have a total of $750bn in
American bonds (the total of US bonds kept outside the US is
about $6.3tn). Yet ocial gures, released recently by the US
Treasury Department, show the Saudi holdings at just $116bn.20
e Kingdom is suspected of having various satellite companies
with large US bond holdings, shielded from scrutiny in various
tax shelters small countries. Meanwhile, any attempt to punish
the US by dumping bonds, will negatively aect the bond holders
themselves, namely the Saudi Kingdom. It therefore adds extra
security to the nancial markets of the home economy.
19 Check the Bretton-Woods argument.
20 e release came right after the recent tension between the USA and the Saudi
Kingdom, as part of an ongoing investigation and passing of a law related to the
9/11 attacks in the USA.
61
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
is example proves the importance of new means to attract
Islamic funds into a strong
Muslim economy such as
Turkey. Providing Islamic
nancing options such as
sukuks and other alternative
sharia-compliant papers, is
necessary to attract huge Islamic funds. It will provide a signicant
mean for investing in non-interest-paying papers.
On the other hand, the total amount of capital needed to nance
huge projects in Turkey over the next seven years (up until the
100th anniversary of the foundation of Turkey) is around a few
hundred billion USD (over 300-400 billion USD). Considering
the above mentioned points and bearing in mind Turkey’s human
capital and experience in nance, Turkey has a comparative
advantage to be a nancial center. However, there are some
requirements for a country to truly become a center of nance.
In that sense;
• First, Turkey and then the other OIC member economies
need more nancial deepening and integration: e more
nancially developed an economy is, the more likely it is
to attract more capital,
• e private sector should be supported: A strong private
sector is needed for an ecient market economy,
• Freedom of entrepreneurship: Property rights and rule of
the law are critical factors for attracting new investment,
• Institutional development: e role of institutions in
increasing cooperation and development should not be
undermined,
• Free trade and free movement of factors of production:
Weak in practice now in the OIC, despite many attempts
and rules passed. It should therefore be improved
throughout the OIC,
• Proliferation of nancial tools: Investments in tools that
are Sharia-compliant are necessary,
• Political stability: A political environment that creates
trust for international investment is important,
Freedom of entrepreneurship, property
rights and rule of the law are critical factors
for attracting new investments.
62
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
• Rule of law: Law enforcement should be fair and in
line with the universal rules mostly implemented in the
Western world.
4.j And Many Others
Institutional quality is one of the most critical issues for better
governance and economic development. is is necessary
for sustainable long-term growth and well-being, and should
absolutely be improved. A new way of thinking in daily, nancial
and political life that prioritizes the ght against corruption,
implementation of rule of law, and institutional quality, is
necessary for all the OIC members.
Greater cooperation in decreasing uncertainties, increasing
trust in nancial markets, political stability and more dynamic
economies is necessary. Cooperation in peacekeeping eorts,
conict resolution, poverty alleviation, agricultural production,
liaison and solidarity in general is of substantial importance. Joint
projects and collaboration in especially higher education, R&D,
and other forms of trade, will enhance solidarity, create higher
value added and more interdependent countries within the OIC.
Creating high value, investing in the IT sector, supporting
innovation and the high tech
industries as the aerospace
industries will also add
signicantly to the country
economies. ese are some
other signicant sectors that
need further studies.
5. Summary
e world is witnessing a momentous transformation. Europe is
dealing with the post-Brexit eects and the USA has just recently
kicked o its own USexit. e BRIC economies, in particular
China and India, are candidates for becoming new potential
rising powers. Meanwhile, nancial markets are getting used to
the new normal of the post-Great Recession period. But then,
Intense economic integration and mutual
cooperation eorts are indeed more crucial
than any political or military union.
63
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
to what extent will this transformation process continue? Will
Turkey be able to join this club of new players in the international
political and economic arena? We believe the answer is entirely
dependent upon whether Turkey and the other OIC members
will be able to build a stronger cooperation mechanism that
extends the currently existing entities within or around the OIC.
is paper claims that, looking forward and over the next few
decades, the Muslim world needs greater economic cooperation
above all else. Intense economic integration and mutual
cooperation eorts are indeed more crucial than any political
or military union. A modern economic cooperation that is
strengthened by historic, social, cultural roots and mutual
benets would provide enough boost to foster economic growth.
is paper focuses on Turkey’s potential gains from a focus on
economic partnerships with the Middle East and the rest of the
Muslim world, in the face of a weak and stagnant Europe (Turkey’s
current biggest trading partner) and the West in general.
e modern world is a small village, with all countries in a very
small proximity, and its economy is globalized more than it has ever
been. In this new era of more open and transparent economies,
a critical question is how countries should be governed and how
foreign relations and economic relations should be managed.
Our basic answer to the short question of ‘what could be done
is “building a greater and deeper economic cooperation”.
is is true in particular for neighboring countries and those
with common cultural and religious bases. In that line, further
cooperation is suggested among the OIC member economies.
As is clear from the discussion in this paper; there are still many
areas for further economic integration. Trade, capital mobility,
labor mobility, a single common market are just a few areas
demanding increased cooperation. Relative OIC COMCEC
Strategy and COMCEC PCM documents provide examples for
some areas of further cooperation, yet we believe there is much
more to achieve.
Turkey should be able to use its cultural and religious ties and
most importantly its technological superiority, to increase
economic and nancial relations with the rest of the Muslim
world. e OIC, as an organization specic to the Muslim
countries of the world, provides all the necessary structural basis
for such eorts. Considering that most of the domestic issues are
64
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
caused by lack of economic opportunities or the distribution of
resources, a supranational framework will not only help alleviate
economic issues but also
function as a catalyst for
resolving domestic conicts
and solving most of the
regional and international
conicts. Eorts to build a
fully functioning integrated
economic organization
will require persistence and diligence, and must be started
immediately.
Meanwhile, Turkey should promote its position as a bridge
between energy (gas and oil) exporters in the East and the
importers in the West. Indeed, Turkey has a great deal to gain,
not only from being a transition country, but also as a hub that
guarantees a sustainable energy supply to the rest of the world. In
that sense, Turkey should aim to be an energy hub as well as being
a center of attraction for education, real economic production,
and nancial activities.
More cooperation on trade, education, science, nance,
technology and even telecommunication is necessary. Turkey’s
political system and its policy-makers, in particular, have an
important responsibility when determining how eectively the
country is run domestically as well as how its relations with the
other countries are managed. Turkey has a huge potential to
benet from. It is time for Turkey to exploit its potential, and
move forward to even boost the economies of the other OIC
members of the Muslim world. is win-win game is a long
forgotten and missed opportunity that should be brought to the
table today.
Following the discussion in this paper; we could recommend
a wide range of policy suggestions, yet our goal is to provide a
general picture of the most critical problems and issues. In that
regard, we recommend that Turkey should at least follow the
following specic suggestions:
It should solve its energy problems: Turkey needs sucient and
cheap energy if it wants to be a global power. In other words,
Turkey’s economic progress is tied to uninterrupted supplies of
fuel and gas. ere are many options to focus on here, but the
Eorts to build a fully functioning
integrated economic organization will
require persistence and diligence, and must
be started immediately.
65
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
OIC members are of critical importance. It should, meanwhile,
be kept in mind that most of the CA decit of Turkey comes from
energy imports. Considering the CA decit is just the dierence
between savings and investments, new means to decrease this gap
are urgently needed.
More capital inows and imports are also of critical
importance: e Muslim world has amassed huge savings over
the past few decades. Human and physical capital potentials
are extremely high. Turkey
should provide all the
necessary infrastructure and
safe instruments to attract
the nancial, physical capital
and the green money to
benet from. e Muslim world capital holdings are mostly
looking for new safe harbors. While some OIC members, such as
the oil rich Gulf economies, have huge capital formation; others
such as Egypt, Pakistan and even Turkey have intensely young
and dynamic populations and hence labor forces. ese forces
should be united.
Further impoving relations with the neighboring economies:
is is of critical signicance due to the importance of political
relations and interaction with the neighbors as well as for providing
solutions to regional issues. Relations with geographically far but
culturally close economies are also extremely important. Turkey
is surrounded by many chronic problems, and is meanwhile in
close proximity to most of the global gas and fuel energy stocks.
Invest in energy projects and extraction elds: Turkey is
currently improving relations with Israel and strenghtening ties
with the Regional Government of Northern Iraq. Turkey has,
in the past, kept economic ties with Iran alive to maintain its
access to cheap and continuous energy supplies, despite criticism
and the sanctions imposed by the West. Bilateral trade deals and
investment in huge gas elds and energy sectors are among the
means for cooperation opportunities. As an example, Iran’s South
Pars gas eld could be a good opportunity to invest in.
Turkey should focus primarily on importing natural
resources: Turkey should build stronger relations with natural
resource exporter OIC members and build renery and advanced
technology factories to process these resources. Turkey should
Particular customs regulations, such as
PRETAS and TPS-OIC, are yet to be
implemented.
66
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
focus on becoming an energy hub. It should have inuence
over energy prices and maintain sustainable energy ow to its
economy, while providing a secure energy supply to Europe and
the West as well.
No barriers and more cooperation in trade agreements:
Huge trade barriers and retro closed economy approaches
should be avoided. Free-Trade-Zones and lower taxes should be
implemented, as well as the removal of quotas. If possible, all
barriers to free-trade should be removed. Alternatively, new fee
trade zones should be built in an eort to enable free ow of goods
and services. Particular customs regulations, such as PRETAS
and TPS-OIC, are yet to be implemented. Trade volumes will
not improve much until each country takes responsibility in
implementing these measures.
More investment in the tourism industry is required:
diversication and improvement in quality of tourism is required.
In particular, tourism investments in the Black Sea and central
Turkey regions, which attracts the attention especially from OIC
members, should be planned carefully and, if needed, subsidized
in the initial stages. Diversication is also of extreme importance.
Tensions with Israel and Russia have recently signicantly aected
the industry.
Tourist demographies should also be changed: Tourism should
be made more attractive to citizens of the wealthier Western
economies and oil-rich Arap
countries. Rather than an
emphasis on all-inclusive
packages, luxury tourism
attractions should be made
available. Turkey should be
promoted as an elite tourist destination for wealthy European
and Arab tourists.
Military spending could also be technologically improved:
Public expenditures on the warfare industry (as a share of GDP)
should be decreased in general. Resources should be directed
to the other sectors such as high-tech industries, education
and health in general. Still, the defense industry and military
equipments is another sector Turkey should denitely consider
developing. e defence industry is one of the primary areas
the OIC members and the Muslim world in general are lacking
Turkey should export this institutional
quality, liberal market economy and its
democratic society.
67
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
in. Military expenditures are known to have a much higher
multipliers eect, as for the economic stimulator impacts.
Joint projects, huge infrastructure investments and
cooperation in big construction projects: Turkey should try to
have an even greater share of the construction projects in the
OIC countries, utilizing its important role in the OIC. More
lessens should be taken from the building of huge international
projects such as the “channel” linking France and England, the
Panama Canal, the Suez Canal, etc.
Creating high value-added and technological improvement.
Product diversication and high quality production: as
diversication increases, the eect of a particular shock is
minimized. In that sense, more product diversication and more
cooperation across the OIC member economies, as seen in the
D-8 conomies is paramount. Eciency of particular sectors
should be improved: Energy and construction industries should
be more ecient.
e OIC member economies should cooperate in their
education systems, in particular in higher education: Turkey
should open its education system to the regional economies.
is would both increase its role in regional economic and
political issues and help improve the quality of its education
system. Turkey should use its higher education standards to
attract more brainpower. Better education institutions and
opportunities to study and work in a country are major incentives
for bright brains to immigrate to Turkey.
Improve its institutional quality and build a more liberal
market economy: Institutional quality is another critical area
of further cooperation. As the Turkish Industry & Business
Associations (TUSIAD) Chair of the Board of Directors of the
time Muharrem Yılmaz stated: “Turkey should improve its free
market institutions and governance system to reach its target of being
a centre for energy.” Although, not yet elite, Turkey has the best
institutional quality among the OIC members. Turkey should
export this institutional quality (which is at least better than
that in the other OIC economies), liberal market economy and
its democratic society.
Share its democracy experience: Turkey could share its long-
standing democracy experience with its OIC partners: A long
68
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
and deep democratic experience is unfortunately not common
amongst the OIC members.
Turkey’s mostly passive soft power should be evoked and
utilized: Main elements of soft power should be eectively used
and fully beneted. Cultural and historical tourism potential,
education, congress and fairs tourism, health industry, TV shows
and transportation industry are just a few examples of means of
thi power to be used.
Production factors should be shared and beneted from by
all: e capital and labor force is distributed among the OIC
member economies unevenly. Beneting from the demographic
opportunities of the OIC members is therefore important.
Turkey could benet from the young and dynamic demographic
opportunities of the region. Countries with younger and more
educated labor force should be able to use this factor of production
in collaboration with the other capital and technology rich OIC
member economies
Transforming tensions into opportunities: e Syrian or Iraqi
crisis and the other regional political disputes and civil wars
could be turned into new opportunities. e refugee crisis could
be transformed so that all the parties benet from the ongoing
situation. For instance, educated Syrians could be a big advantage
for the Turkish economy.
Overall, as is clear from the discussions in this paper, there are
actually numerous sectors and areas for further economic and
nancial cooperation. Yet, there are also huge economic disparities
and extremely diverse demographic dynamics (as the two primary
characteristics of the Muslim world). What we recommend
here is that countries such
as Turkey should lead a
supranational union of
more intense strategic and
economic cooperation. e current OIC which is mainly a
political entity and a dialogue union should be strengthed with
an economically interdependent cooperation mechanism. A
union that works to the benet of all. e Muslim world has all
the reasons to start such a union or cooperation organization.
Apart from the demographic, technological infrastructure and
abundance of natural resources, the traditional multicultural
identity and cultural diversity are a huge plus. e OIC members
Turkey’s mostly passive soft power should
be evoked and utilized.
69
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
club also possesses the most strategic locations and passageways
of the world.
6. Concluding Remarks
is paper has provided a summary analysis of the potential
areas of cooperation between Turkey and the other OIC member
economies. It recommends that Turkey should be one of the
countries leading a supranational union of integrated economic
and strategic cooperation among the OIC economies. Yet, it
should be made clear that we
mainly point to alternative
measures to improve the
eciency of the OIC. is
economic integration and cooperation organization, if you wish
to call it as such, should be more intimate than the current
examples such as the rich-countries club of the OECD; but,
meanwhile should not include any political union such as that
aimed at in the EU or even any military collaborations such as
that of NATO. We recommend that national borders should
not be an obstacle preventing further economic cooperation and
economic integration among OIC countries of common cultural,
strategic and even religious bases.
Meanwhile, we make clear that, indeed the OIC already has
various theoretical operational mechanisms and a relatively well
suited institutional setup including a number of subsidiaries,
aliated institutions, specialized institutions and mechanisms
of operation. Yet, we argue that there is still much to achieve
in practice, more room to improve this operational setup, and
build a greater and stronger cooperation mechanism. All the
currently determined primary cooperation elds (in the related
COMCEC strategy documents, for instance) could be extended
to build higher welfare for the relative economies. In particular,
the economc cooperation and trade potential is yet to be fully
exploited. e current relatively limited cooperation mechanisms
such as the COMCEC PCM and the current responsibilities of
the OIC institutions such as ISESCO should be extended.
is research has covered a broad set of topics within an extremely
short analysis paper. We therefore are aware of the weaknesses of
covering so much in such a short paper. In that sense, this study is
e economc cooperation and trade
potential is yet to be fully exploited.
70
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
just a summary analysis of potential areas of cooperation between
Turkey and the other OIC member economies. It just aims to
increase interest in this important area of focus, which we
believe has been long-neglected.
While it is relatively harder to focus on all the potential areas
at once, strategically noteworthy areas could be prioritized. We
would, also, like to clarify that there are certainly numerous
potential challenges, negative outcomes and problems regarding
such a greater cooperation mechanism. Deciencies of these
various measures countries could use should also be taken into
account and analyzed in detail.
In this new era in which Turkey’s increasing interest over regional
economic and political transformation is becoming more obvious,
analysis reports like this one are of signicant importance. at
said, it is of certain precision that each and any of the topics
mentioned in this study deserve a separate, detailed study. Future
studies on this subject should focus on more detailed analysis of
the specic cooperation areas such as trade, health, education,
nancial services etc., each of which deserve a separate analysis.
71
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
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75
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
APPENDIX
Table 16: Crudeoil exports in barrels per day (bbl/day).
Rank Country bbl/day DATE OF INFORMATION
1 SAUDI ARABIA 7658000 2012 EST.
2 RUSSIA 4594000 2013 EST.
3 CANADA 2733000 2013 EST.
4 UNITED ARAB EMIRATES 2500000 2013 EST.
5 NIGERIA 2411000 2012 EST.
6 IRAQ 2390000 2013 EST.
7 KUWAIT 1824000 2012 EST.
8 ANGOLA 1815000 2012 EST.
9 KAZAKHSTAN 1365000 2012 EST.
10 VENEZUELA 1358000 2012 EST.
11 IRAN 1322000 2013 EST.
12 QATAR 1232000 2012 EST.
13 MEXICO 1220000 2013 EST.
14 NORWAY 1218000 2013 EST.
15 ALGERIA 1158000 2012 EST.
16 OMAN 833400 2013 EST.
17 AZERBAIJAN 811300 2012 EST.
18 LIBYA 735000 2013 EST.
19 UNITED KINGDOM 703100 2013 EST.
20 UNITED STATES 629400 2013 EST.
21 COLOMBIA 624600 2012 EST.
22 BRAZIL 533300 2012 EST.
23 ECUADOR 413000 2013 EST.
24 EQUATORIAL GUINEA 318100 2012 EST.
25 INDONESIA 296100 2012 EST.
26 SOUTH SUDAN 291800 2010 EST.
27 CONGO, REPUBLIC OF THE 278400 2012 EST.
28 MALAYSIA 244600 2012 EST.
76
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Rank Country bbl/day DATE OF INFORMATION
29 AUSTRALIA 235400 2013 EST.
30 GABON 226800 2012 EST.
31 EGYPT 189000 2013 EST.
32 VIETNAM 179500 2012 EST.
33 BAHRAIN 152600 2012 EST.
34 DENMARK 136600 2013 EST.
35 BRUNEI 131200 2012 EST.
36 CHAD 104500 2012 EST.
37 GHANA 83870 2012 EST.
38 TIMOR-LESTE 77280 2013 EST.
39 SPAIN 75640 2013 EST.
40 CUBA 74000 2013 EST.
41 TURKMENISTAN 60910 2012 EST.
42 ARGENTINA 59630 2012 EST.
43 TUNISIA 56060 2012 EST.
44 BELGIUM 54900 2013 EST.
45 CAMEROON 52060 2012 EST.
46 NETHERLANDS 48820 2013 EST.
47 COTE D’IVOIRE 47900 2012 EST.
48 THAILAND 43140 2012 EST.
49 YEMEN 43000 2014 EST.
50 BELARUS 32320 2012 EST.
51 TRINIDAD AND TOBAGO 30800 2012 EST.
52 UZBEKISTAN 30000 2012 EST.
53 NEW ZEALAND 29620 2013 EST.
54 ITALY 28770 2013 EST.
55 PERU 27500 2012 EST.
56 PAPUA NEW GUINEA 25400 2012 EST.
57 ALBANIA 23320 2014 EST.
58 NIGER 20000 2012 EST.
59 CONGO, DEMOCRATIC REPUBLIC
OF THE 20000 2012 EST.
60 SVALBARD 16070 2012 EST.
77
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Rank Country bbl/day DATE OF INFORMATION
61 PHILIPPINES 13990 2012 EST.
62 SWEDEN 12590 2013 EST.
63 CHINA 12000 2014 EST.
64 ESTONIA 11680 2013 EST.
65 MAURITANIA 11250 2012 EST.
66 MONGOLIA 9780 2012 EST.
67 GUATEMALA 9640 2012 EST.
68 POLAND 8170 2013 EST.
69 SINGAPORE 5900 2012 EST.
70 KOREA, SOUTH 5578 2013 EST.
71 SUDAN 5355 2012 EST.
72 ISRAEL 5352 2013 EST.
73 IRELAND 4866 2013 EST.
74 TURKEY 4176 2013 EST.
75 FRANCE 3664 2013 EST.
76 BELIZE 3240 2012 EST.
77 BURMA 2717 2012 EST.
78 ROMANIA 2077 2012 EST.
79 GREECE 1863 2013 EST.
80 LITHUANIA 1552 2012 EST.
81 HUNGARY 1485 2013 EST.
82 COSTA RICA 1300 2012 EST.
83 UKRAINE 1218 2012 EST.
84 BARBADOS 765 2012 EST.
85 GEORGIA 727 2012 EST.
86 GERMANY 671 2013 EST.
87 CZECH REPUBLIC 464 2013 EST.
88 BANGLADESH 313 2012 EST.
89 SLOVAKIA 186 2013 EST.
90 LATVIA 118 2012 EST.
91 BOLIVIA 61 2013 EST.
Source: e Energy Atlas
78
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Table 17: Total oil supply. (ousand Barrels Per Day)
COUNTRY 2010 2011 2012 2013 2014
UNITED STATES 9695,589 10128,47 11118,69 12342,77 14020,82
SAUDI ARABIA 10908,35 11469,9 11840,68 11701,51 11623,7
RUSSIA 10279,49 10401,69 10588,96 10757,91 10847,1
CHINA 4377,132 4393,059 4465,208 4561,115 4598,052
CANADA 3441,73 3596,914 3855,924 4073,071 4383,315
UNITED ARAB EMIRATES 2814,832 3216,473 3401,312 3443,705 3473,705
IRAN 4243,072 4214,979 3519,748 3194,301 3376,61
IRAQ 2397,543 2624,166 2979,494 3050,545 3364,202
BRAZIL 2722,988 2699,05 2668,661 2710,633 2966,442
MEXICO 2978,599 2960,011 2940,717 2915,075 2811,932
KUWAIT 2449,106 2680,692 2783,587 2798,642 2767,204
VENEZUELA 2599,489 2684,373 2684,55 2684,55 2684,55
NIGERIA 2459,453 2554,664 2524,542 2371,912 2427,747
QATAR 1787,779 1936,284 2032,451 2067,14 2054,565
NORWAY 2144,44 2042,515 1921,719 1845,054 1904,383
ANGOLA 1908,114 1755,027 1786,27 1841,879 1755,837
ALGERIA 1881,051 1862,69 1875,227 1762,765 1720,984
KAZAKHSTAN 1608,714 1637,327 1605,608 1658,004 1719,067
COLOMBIA 805,7786 938,172 968,5237 1027,943 1015,782
INDIA 970,4083 1006,965 1016,732 1015,81 1011,13
OMAN 869,417 891,5819 924,6843 946,0384 951,7646
INDONESIA 1041,808 1024,791 985,1764 926,2141 917,2141
AZERBAIJAN 1044,844 993,2605 931,756 880,475 855,7325
UNITED KINGDOM (OFF-
SHORE) 1318,737 1084,068 922,3808 827,3068 819,5625
ARGENTINA 788,8337 763,4674 722,722 707,434 717,6813
MALAYSIA 734,3783 669,9593 689,834 669,0411 696,7534
EGYPT 735,151 717,7122 709,5686 693,5288 664,7645
ECUADOR 488,8857 498,98 503,3961 525,9164 556,162
THAILAND 391,1313 384,2389 406,482 522,5059 521,7236
LIBYA 1784,892 500,7632 1482,473 983,0459 515,6075
AUSTRALIA 604,1056 530,6315 518,0069 445,5018 472,9402
VIETNAM 332,3641 323,8213 364,2318 354,3498 316,5279
TURKMENISTAN 203,2536 224,1191 245,0687 260,415 277,3547
79
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
COUNTRY 2010 2011 2012 2013 2014
EQUATORIAL GUINEA 322,7104 298,888 310,4 290,7973 269
SUDAN AND SOUTH SUDAN 488,9867 455,3603 114,8261 249,5533 261,4438
CONGO (BRAZZAVILLE) 311,913 298,912 291,892 273,892 258,892
GABON 245,5107 244,3603 241,9779 238,9075 239,65
PERU 163,8378 159,7849 161,589 176,1225 181,2314
DENMARK 249,4648 226,1744 207,1302 180,7202 170,5687
ITALY 156,1428 152,7214 150,9922 160,5093 169,4272
SOUTH AFRICA 181,8602 183,869 182,6586 182,3268 161,616
GERMANY 139,8673 158,1277 161,1564 162,7674 159,0359
JAPAN 142,5811 136,5279 127,7354 138,2118 137,2118
YEMEN 281,1076 216,76 169,0018 130,9736 125,3682
BRUNEI 158,4046 169,427 158,8225 135,312 123,9065
TRINIDAD AND TOBAGO 145,732 137,7821 117,9523 116,7553 115,1114
GHANA 8,46404 77,68933 79,20819 98,76533 105,8722
Source: e Energy Atlas
Table 18: Natural gas exports.
RANK COUNTRY (CU/M) DATE OF
INFORMATION
1 RUSSIA 201,900,000,000 2014 EST.
2 QATAR 125,500,000,000 2013 EST.
3NORWAY 106,600,000,000 2014 EST.
4 EUROPEAN UNION 93,750,000,000 2010 EST.
5 CANADA 77,960,000,000 2014 EST.
6 TURKMENISTAN 60,800,000,000 2013 EST.
7 NETHERLANDS 59,300,000,000 2014 EST.
8 ALGERIA 43,000,000,000 2013 EST.
9 UNITED STATES 42,730,000,000 2014 EST.
10 MALAYSIA 35,400,000,000 2013 EST.
11 AUSTRALIA 31,620,000,000 2014 EST.
12 INDONESIA 31,300,000,000 2013 EST.
13 NIGERIA 22,120,000,000 2013 EST.
14 TRINIDAD AND TOBAGO 19,800,000,000 2013 EST.
15 GERMANY 19,240,000,000 2014 EST.
16 BOLIVIA 17,600,000,000 2013 EST.
17 UZBEKISTAN 13,500,000,000 2013 EST.
80
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
RANK COUNTRY (CU/M) DATE OF
INFORMATION
18 OMAN 11,500,000,000 2013 EST.
19 KAZAKHSTAN 11,200,000,000 2013 EST.
20 UNITED KINGDOM 10,550,000,000 2014 EST.
21 YEMEN 9,600,000,000 2013 EST.
22 IRAN 9,584,000,000 2013 EST.
23 BRUNEI 9,500,000,000 2013 EST.
24 BURMA 8,500,000,000 2013 EST.
25 SPAIN 8,219,000,000 2014 EST.
26 UNITED ARAB EMIRATES 7,400,000,000 2013 EST.
27 AZERBAIJAN 7,290,000,000 2013 EST.
28 PERU 5,600,000,000 2013 EST.
29 LIBYA 5,513,000,000 2013 EST.
30 EQUATORIAL GUINEA 4,800,000,000 2013 EST.
31 MOZAMBIQUE 4,118,000,000 2013 EST.
32 EGYPT 3,823,000,000 2013 EST.
33 FRANCE 3,544,000,000 2014 EST.
34 CHINA 2,603,000,000 2014 EST.
35 COLOMBIA 2,591,000,000 2013 EST.
36 AUSTRIA 2,373,000,000 2014 EST.
37 DENMARK 2,093,000,000 2014 EST.
38 BELGIUM 845,000,000 2014 EST.
39 HUNGARY 740,000,000 2014 EST.
40 TURKEY 633,000,000 2014 EST.
41 CROATIA 422,000,000 2014 EST.
42 ROMANIA 241,700,000 2014 EST.
43 ITALY 237,000,000 2014 EST.
44 MEXICO 172,000,000 2014 EST.
45 BRAZIL 100,000,000 2014 EST.
46 ARGENTINA 100,000,000 2013 EST.
47 POLAND 76,000,000 2014 EST.
48 CONGO, REPUBLIC OF THE 39,000,000 2012 EST.
49 SLOVAKIA 3,000,000 2014 EST.
50 CZECH REPUBLIC 1,000,000 2014 EST.
51 MICRONESIA, FEDERATED
STATES OF 2,014
52 ARUBA 1 2013 EST.
Source: e Energy Atlas
81
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Table 19: Natural Gas Supply
Rank COUNTRY Natural gas Supply
(Thousand Barrels Per Day) Date of
Information
1 RUSSIA 201,900,000,000 2014 EST.
2 QATAR 125,500,000,000 2013 EST.
3NORWAY 106,600,000,000 2014 EST.
4 EUROPEAN UNION 93,750,000,000 2010 EST.
5 CANADA 77,960,000,000 2014 EST.
6 TURKMENISTAN 60,800,000,000 2013 EST.
7 NEPAL 59,300,000,000 2014 EST.
8 ALGERIA 43,000,000,000 2013 EST.
9 UNITED STATES 42,730,000,000 2014 EST.
10 MALAYSIA 35,400,000,000 2013 EST.
11 AUSTRALIA 31,620,000,000 2014 EST.
12 INDONESIA 31,300,000,000 2013 EST.
13 NIGERIA 22,120,000,000 2013 EST.
14 TRINIDAD AND TOBAGO 19,800,000,000 2013 EST.
15 GERMANY 19,240,000,000 2014 EST.
16 BOLIVIA 17,600,000,000 2013 EST.
17 UZBEKISTAN 13,500,000,000 2013 EST.
18 OMAN 11,500,000,000 2013 EST.
19 KAZAKHSTAN 11,200,000,000 2013 EST.
20 UNITED KINGDOM 10,550,000,000 2014 EST.
21 YEMEN 9,600,000,000 2013 EST.
22 IRAN 9,584,000,000 2013 EST.
23 BRUNEI 9,500,000,000 2013 EST.
24 BURMA (MYANMAR) 8,500,000,000 2013 EST.
25 SPAIN 8,219,000,000 2014 EST.
26 UNITED ARAB EMIRATES 7,400,000,000 2013 EST.
27 AZERBAIJAN 7,290,000,000 2013 EST.
28 PERU 5,600,000,000 2013 EST.
29 LIBYA 5,513,000,000 2013 EST.
30 EQUATORIAL GUINEA 4,800,000,000 2013 EST.
31 MOZAMBIQUE 4,118,000,000 2013 EST.
32 EGYPT 3,823,000,000 2013 EST.
33 FRANCE 3,544,000,000 2014 EST.
34 CHINA 2,603,000,000 2014 EST.
82
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Rank COUNTRY Natural gas Supply
(Thousand Barrels Per Day) Date of
Information
1 RUSSIA 201,900,000,000 2014 EST.
35 COLOMBIA 2,591,000,000 2013 EST.
36 AUSTRIA 2,373,000,000 2014 EST.
37 DENMARK 2,093,000,000 2014 EST.
38 BELGIUM 845,000,000 2014 EST.
39 HUNGARY 740,000,000 2014 EST.
40 TURKEY 633,000,000 2014 EST.
41 CROATIA 422,000,000 2014 EST.
42 ROMANIA 241,700,000 2014 EST.
43 ITALY 237,000,000 2014 EST.
44 MEXICO 172,000,000 2014 EST.
45 BRAZIL 100,000,000 2014 EST.
46 ARGENTINA 100,000,000 2013 EST.
47 POLAND 76,000,000 2014 EST.
48 CONGO (BRAZZAVILLE) 39,000,000 2012 EST.
49 SLOVAKIA 3,000,000 2014 EST.
50 CZECH REPUBLIC 1,000,000 2014 EST.
Source: e Energy Atlas
Table 20: Overall energy self-suency
COUNTRY 2012 COUNTRY 2013
rank rank
REPUBLIC OF THE CONGO 1 692 ANGOLA 2 638
NORWAY 2 684 REPUBLIC OF THE CONGO 3 613
ANGOLA 4 621 NORWAY 4 586
COLOMBIA 10 394 COLOMBIA 10 397
MONGOLIA 11 352 MONGOLIA 14 313
BOLIVARIAN REPUBLIC OF VENEZUELA 18 266 BOLIVARIAN REPUBLIC OF VENEZUELA 19 279
AUSTRALIA 20 250 PLURINATIONAL STATES OF BOLIVIA 20 268
PLURINATIONAL STATES OF BOLIVIA 21 249 AUSTRALIA 21 266
TRINIDAD AND TABAGO 25 207 TRINIDAD AND TABAGO 25 204
ECUADOR 27 197 ECUADOR 26 194
Source: e Energy Atlas
83
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
Table 21: Energy intensity
COUNTRY 2012 COUNTRY 2013
rank rank
ZIMBABWE 1 2,72 ZIMBABWE 1 2,67
CURACAO 2 1,25 CURACAO 2 1,1
TRINIDAD AND TABAGO 3 0,56 TRINIDAD AND TABAGO 3 0,56
ICELAND 4 0,48 ICELAND 4 0,48
DEMOCRATIC REPUBLIC OF CONGO 5 0,47 DEMOCRATIC REPUBLIC OF CONGO 5 0,45
ETHIOPIA 7 0,45 ETHIOPIA 7 0,43
UKRAINE 11 0,36 UKRAINE 10 0,34
RUSSIAN FEDERATION 12 0,34 RUSSIAN FEDERATION 11 0,33
HAITI 14 0,28 HAITI 13 0,27
MOLDOVA 15 0,26 ESTONIA 17 0,24
Source: e Energy Atlas
Table 22: Proved oil reserves (billion barrels)
COUNTRY 2011 2012 2013 2014 2015
VENEZUELA 211,17 211,17 297,57 297,74 298,35
CANADA 175,214 173,6252 173,1052 173,2 172,4809
UNITED STATES 25,181 28,95 33,403 36,52 NA
CHINA 20,35 20,35 23,7168 24,3756 24,64884
BRAZIL 12,857 13,98671 13,1542 15,0499 15,3142
MEXICO 10,42 10,3591 10,2639 10,073 9,812
ANGOLA 9,5 9,5 10,47 9,06 9,011
INDIA 5,682 5,60635 5,47614 5,64279 5,67479
NORWAY 5,67 5,32 5,366 5,825 5,49729
AUSTRALIA 3,318 1,42566 1,43325 1,43325 1,193
Source: Energy Information Administration
84
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
Table 23: Proved natural gas resources (trillion cubic feet)
COUNTRY 2011 2012 2013 2014 2015
RUSSIA 1680 1680 1688 1688 1688,228
UNITES STATES 304,625 334,067 308,036 338,264 NA
VENEZUELA 178,86 195,1 195,1 196,411 197,087
AUSTRALIA 110 27,85 43,037 43,037 30,4
CHINA 107 107 141,256 155,382 163,959
NORWAY 72 70,87 73,1 73,806 72,358
CANADA 61,95 61,004 68,166 66,721 71,794
NETHERLANDS 49 46 43,436 33,744 31,702
UKRAINE 39 39 39 39 39
INDIA 37,928 40,745 43,825 47,842 50,398
Source: Energy Information Administration
85
Dr. Bilal Bağış & Dr. Cağlar Yurtseven
NOTES
86
Turkey and the OIC: Greater Economic Cooperation, Opportunities and Challenges
NOTES
SAM Papers
Republic of Turkey Ministry of Foreign Affairs Center for Strategic Research
Dr. Sadık Ahmet Cad. No. 8 Balgat- 06100 Ankara/ Turkey
www.sam.gov.tr strategy@mfa.gov.tr
Tel: (+90) 312 253 40 76 Fax: (+90) 312 253 42 03
About SAM
Center for Strategic Research of the Ministry of Foreign Affairs of the Republic of Turkey (SAM) is
a think-tank and a research center which is chartered by law and has been active since May 1995.
SAM was established as a consultative body to provide Turkish Foreign Policy decision makers with
scholarly and scientific assessments of relevant issues, and reviews Turkish foreign policy with a
futuristic perspective.
SAM conducts research, organizes scholarly events relevant to the ever expanding spectrum of Turkish
Foreign Policy in cooperation with both Turkish and foreign academicians, its counterparts from around
the world as well as various universities and government agencies. SAM provides consultancy to the
foreign ministry departments as well as some other state institutions in foreign policy issues while also
establishing regional think-tank networks.
In addition to its role of generating up-to-date information, reliable data and insightful analysis as a
think-tank, SAM functions as a forum for candid debate and discussion for anyone who is interested in
both local and global foreign policy issues. Increasingly, SAM has become a center of attraction since
it successfully brings scholars and policy makers together for exchange of ideas in panels, in-house
meetings, seminars and training programs for young diplomats.
SAM has a widening range of publications. Along with its traditional publication, Perceptions, which is
a quarterly English language journal that hosts distinguished Turkish and international scholars within
its pages, SAM recently initiated Vision Papers which expresses the views of the Minister of Foreign
Affairs of the Republic of Turkey, and SAM Papers that covers the current debates of foreign policy by
various scholars.
With its commitment to contribution to the body of knowledge and constructive debate particularly in
Turkish Foreign Policy, SAM will continue to serve as an indispensible think-tank and research center
given its role promoting interaction and mutual benefits among the MFA, NGOs, other think-tanks and
the broader scientific community and hence strengthen the human and intellectual capital of Turkey.
Full-text available
Chapter
2018 yılı, Nisan ayının son haftasında, Anadolu’nun kendi halinde küçük şehirlerinden biri olan Bingöl’den prestijli bir uluslararası 'Yerel Kalkınma Çalıştayı' geçti. Bingöl’de düzenlenen ‘Yerel Kalkınma Çalıştayı’, doğrudan TÜBİTAK destekli organize edilen; üniversitenin iktisat fakültesinde de bu ölçüde, bugüne dek düzenlenen en büyük ve en kapsamlı program olmuş oldu. Konuşmacıları ve bilim kurulunda ABD, İngiltere ve Avrupa’dan alanlarında dünyanın önemli okullarından ve uluslararası tecrübesi olan isimleri içeren prestijli bir uluslararası faaliyet olarak il tarihindeki haklı yerini aldı. TÜBİTAK destekli yerel kalkınma çalıştayı, aynı zamanda Bingöl’de düzenlenen TÜBİTAK destekli ilk çalıştay veya konferans olma özelliğini de taşıyordu.