In the face of a global economic slowdown and after undershooting growth and investment targets in 2007, Turkey’s government has reaffirmed its commitment to reform and privatization. The administration of Prime Minister Recep Tayyip Erdogan and his Justice and Development Party (AKP) had been accused of taking its eye off the economic reform ball amidst verbal warfare with the army, two elections and a referendum as well as military losses in a series of clashes with Kurds across the border with Iraq. However, the worsening global outlook and an impressive mandate appear to have reinvigorated the government’s appetite for change, with a raft of reforms including a reduction in social security payments by employers and a possible cutback in expenditure and a restructuring of agricultural subsidies. Economy minister Mehmet Simsek has also announced that a series of privatizations will commence this year. The scope of reforms is still unclear and
