QUICK FACTS
How Do We Measure Economic Freedom? See Chapter
4 (page 39) for an explanation of the methodology or
visit the Index Web site at heritage.org/index.
373
2005 data unless otherwise noted.
World Average = 60.3
Europe Average = 66.8
100
80
60
40
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1995
2008
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Turkey’s economy is 60.8 percent free, according to our
2008 assessment, which makes it the world’s 74th freest
economy. Its overall score is 2.5 percentage points higher
than last year, reflecting improved scores in more than half
of the 10 economic freedoms. Turkey is ranked 32nd out of
41 countries in the European region, and its overall score
is lower than the regional average.
Turkey is near the world average in most areas but has
very strong trade freedom, with a low average tariff rate
and some non-tariff barriers. The environment for young
companies is business-friendly, although licensing and
bankruptcy procedures are difficult. The top income and
corporate tax rates are moderately high, and overall tax
revenue is relatively moderate as a percentage of GDP.
Property rights are well protected.
Turkey is very weak in labor freedom; laying off workers
is difficult, and work rules are highly inefficient. Freedom
from corruption, financial freedom, and monetary free-
dom score slightly below average. Inflation is fairly high,
and the government distorts the prices of a variety of agri-
cultural goods through direct subsidies. Total government
expenditures equal more than a third of GDP. Corruption
is not as serious as it is in some nearby Middle Eastern
countries.
BACKGROUND: Ever since Mustafa Kemal Ataturk found-
ed modern secular Turkey in 1923, the country has sought
a more Western-oriented approach to policy, especially in
its vigorous attempts to join the EU. In recent years, the
government has sought with partial success to reverse
decades of corruption, economic mismanagement, and
authoritarian intervention with more market-b