Deutsche Welle: Turkey’s Referendum Result Could Scare Off Investors

Turkish voters narrowly approved a referendum, by 51 percent, to replace its parliamentary system with a strong presidency. That could cement power for the current president over the next decade, though opposition leaders object to last-minute changes in voting procedures. Investors will watch closely how political leaders handle the transition as well as minorities, including Kurds who make up about 20 percent of the population. “Economic growth of just under three percent is not sufficient to reduce unemployment - currently 11 percent - and reach the ambitious development targets set for 2023,” reports Rolf Wenkel for Deutsche Welle, who adds that foreign direct investment fell by 31 percent last year. “[M]ore direct investment requires political stability and a reliable legal framework.” A coup in July 2016 deterred tourism, but travelers and investors also avoid countries that impose harsh crackdowns extending to educators, the media, court officials and any that could check those in power. Criticism and free debate over policies spur innovation. Turkey’s state of emergency has been extended for three months. – YaleGlobal