People Meet The Terms Industrialization And Industrial Development So Frequently

1449 words - 6 pages

People meet the terms industrialization and industrial development so frequently are not they? In many countries the economy is based on these terms and these terms caused to divide the world as new world and the old world. It is possible to separate the world into two parts after industrialization and as it is possible for the world it is possible for countries too. South Africa the shining sun after Mandela and Turkey the pearl of Europe after Özal can be examples of this separation. Two of the developing countries, Turkey and South Africa divided into two parts too; before and after foreign investments and privatization to develop economy especially industry. Some changes occurred in both of countries' development.. There are some similarities and differences between these countries on the way of development of industry. These similarities and differences should be argued in two parts;; before 1994 and after 1994. Until 1994 Turkey seems to be more developed country with a more developed industry in contrast with South Africa and after 1994, South Africa started to develop faster than Turkey and it was able to catch Turkey.Republic of South Africa's industrial development before 1994 is slower than Turkey's industrial development before 1994. Before 1994, there are some problems with the government because of the racist attributes in South Africa and Apartheid regime. Also, the election and management system was not democratic and these were the handicaps on the way of developing the industry. Turkey's economic situation and especially industrial development was better than South Africa's economic situation and development until 1994. In Turkey, there were more job opportunities for people to invest in private sector. Beginning from 1980 the government started to improve the privatization. By the way of privatization both the government and the investors benefited. The government sold some industrial fabrics, which were causing to loose money, to the private companies, who give the highest amount of money. For instance, TESTAÞ Türk Elektronik San. A.Þ.(30/03/1989), SEK Türkiye Süt Endüstrisi Kurumu(20/05/1992) and T.Gemi Sanayi A.Þ.(10/08/1993) were privatized. (Aug 14, 2001) New job areas occurred for unemployed people. So, we can see that privatization had a crucial part in development of Turkey. If we take South Africa into consideration we see that during the 1970s, 80s and early 90s, the economy in the Republic of South Africa was beleaguered by economic sanctions and policymakers who had little formal training in economics. The leaders followed an attentive policy of low interest rates, which were generally negative. The results of these actions was high money supply growth and inflation (around 15 percent), a growing and spreading budget deficit and domestic debt level, a rejecting currency, and the unavoidable demolition of economic growth and employment. (McClure, Julie Wise, Summer 2000)...

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