"Turkey's chance
Published: December 22 2004 02:00 | Last updated: December 22 2004 02:00
Small step by small step, Turkey is shedding the legacy of past economic crises and becoming a more normal economy. This week's cut in interest rates and moves to revamp monetary policy mark a further stage on this long journey. Another comes on January 1 when redenomination will turn 1m old lira into one new lira, a change authorities hope will cement a dramatic decline in inflation expectations. The new International Monetary Fund programme agreed earlier this month sets out the way forward. It is demanding. But there is much to play for.
Successful graduation from the IMF programme is essential for Turkey's success in EU accession talks. Relapse would give opponents of Turkish entry the excuse they need to prolong negotiations indefinitely. The hope is that EU-inspired administrative reforms and IMF-mandated structural reforms work to reinforce each other in transforming fashion to unleash Turkey's long-suppressed economic potential."
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