tag:blogger.com,1999:blog-88828853774622713952024-03-14T16:42:03.439+03:00Emre Deliveli's Blog on EconomicsThis blog is a collection on my ramblings on Economics. I plan to write on current economic issues, recent research (sometimes mine, but more often others’), and issues of interest to economists. As I am writing from Turkey, I will try to focus more on the Turkish economy. While I will write in English, I will refer to articles in Turkish and might occasionally invite a guest blogger to write in Turkish. So, apologies for the semi-bilingual nature of the blog if you do not speak Turkish...Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.comBlogger942125tag:blogger.com,1999:blog-8882885377462271395.post-71475205608263593202011-07-14T13:25:00.001+03:002011-07-14T13:25:38.334+03:00Invitation to connect on LinkedIn<table border="0" width="550" cellpadding="0" cellspacing="0" style="max-width:550px; border-top:4px solid #39C; font: 12px arial, sans-serif; margin: 0 auto;"><tr><td> <h1 style="color: #000; font: bold 23px arial; margin:5px 0;" >LinkedIn</h1> <div style="font:13px arial, sans-serif; width:540px"> <p> Emre,<br/> <br/> I'd like to add you to my professional network on LinkedIn.<br/> <br/> - Emre </p> <table cellpadding="0" cellspacing="0" style="margin-bottom: 10px;"> <tr> <td style="font: 13px arial, sans-serif; width: 490px;"> <div style="padding: 5px 5px 5px 0"> Emre Deliveli<br> Freelance Consultant & Economics Columnist at 'Self-Employed' <br> Turkey </div> </div> </td> </tr> </table> <p> <a style="background-color:#ffcc00; display:inline-block; border-right: 1px solid #7a5a20; border-bottom: 1px solid #7a5a20; padding:10px; text-decoration: none; color: #000; text-align: center; white-space:none; font-weight: bold;" href="https://www.linkedin.com/e/fkbvuq-gq3kpa2z-2o/isd/3535540557/tgyim0p9/EML-invg_59/">Confirm that you know Emre</a> </p> </div> <p style="width: 550px; margin: 3px auto; font: 10px arial, sans-serif; color: #999;">© 2011, LinkedIn Corporation</p> <img src="http://www.linkedin.com/emimp/fkbvuq-gq3kpa2z-2o.gif" style="width:1px; height:1px;"/>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com12tag:blogger.com,1999:blog-8882885377462271395.post-63371397430600941172011-05-21T12:01:00.000+03:002011-05-21T12:01:59.336+03:00MIGRATION of the BLOG<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">It is time to say goodbye... Well not really: <a href="http://www.economonitor.com/">Nouriel Roubini's new Economonitor site</a> is up:</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.economonitor.com/">http://www.economonitor.com/</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">So are the new blog sites, including <a href="http://www.economonitor.com/emredeliveli/">that of your friendly neighborhood economist</a>:</div><div style="text-align: justify;"><a href="http://www.blogger.com/goog_358761532"><br />
</a></div><div style="text-align: justify;"><a href="http://www.economonitor.com/emredeliveli/">http://www.economonitor.com/emredeliveli/</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">All my previous Roubini columns have been transferred there, and I set mobile blogging on my Bberry as well with Wordpress for Bberry....</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">In short, I am all set to go. Therefore, starting today, this blog will no longer be active, as I will be blogging <a href="http://www.economonitor.com/emredeliveli/">over at my new blog</a>.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Why did I decide to do that? Two reasons, mainly: First, I wanted to open myself up to new readers by joining forces with Roubini's Economonitor to satisfy <a href="http://emredeliveli.blogspot.com/2011/04/attention-attention-ego-getting.html">my inflated ego</a>. Second, I was sick of <a href="http://emredeliveli.blogspot.com/2011/04/sad-situation.html">Blogger getting banned in Turkey</a> from time to time. While I could easily <a href="http://emredeliveli.blogspot.com/2011/03/i-am-back.html">work around the ban</a>, thanks to my computer-whiz brother, my readers couldn't, so basta with that! So I was thinking of switching to Wordpress anway, so Wordpress + Roubini seemed like a good deal:)</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Anyway, thanks a lot for following this blog, and I'll be glad if you <a href="http://www.economonitor.com/emredeliveli/">follow me at Economonitor</a> as well. The upside is that if you get tired of my mumbo jambo ramblings, more serious columnists, including Nouriel himself, i.e. those who don't squeeze football (soccer for you Yanks) to every third or fourth column and those without a huge eagle tattoo on their back, are only a click way...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">If you were subscribed to this blog through email or RSS and can not do that in the <a href="http://www.economonitor.com/emredeliveli/">new blog</a>, or if there are other inconveniences, please let me know via a comment here or just emaling me @ emre.deliveliATgmail.com. I am very new to Wordpress, but Roubini has IT guys who are quite proficient, judging by design of the Economonitor site in general and more specifically, my header:), so I will forward any requests to them...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">It has been a good run here at Blogger for almost 3 years. See you <a href="http://www.economonitor.com/emredeliveli/">over at Economonitor</a>!!!</div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com40tag:blogger.com,1999:blog-8882885377462271395.post-65969079420097506422011-05-20T22:52:00.003+03:002011-05-21T00:07:27.988+03:00The end of an era or two<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">I learned this week that <a href="http://www.hurriyetdailynews.com/">Hurriyet Daily News & Economic Review</a>'s <a href="http://www.hurriyetdailynews.com/t.php?t=south%20weekly">South Weekly</a>, to which <a href="http://www.imdb.com/title/tt0145487/quotes?qt0437314">your friendly neighborhood economist</a> was a regular contributor, is no more:( Monday's issue was the last. I learned this when I called in the editor on Wednesday to keep my promise of a column for next week...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Anyway, I am listing below, along with hyperlinks, all my South Weekly editorials: </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.hurriyetdailynews.com/n.php?n=what-lies-beneath-turkey8217s-stellar-tourism-statistics-2010-08-26">What lies beneath Turkey’s stellar tourism statistics?</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.hurriyetdailynews.com/n.php?n=water-politics-what-is-so-special-about-being-near-the-water-2010-09-17">Water Politics: What is so special about being near the water?</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.hurriyetdailynews.com/n.php?n=the-dismal-science-for-a-dismal-sector-2010-10-20">The dismal science for a dismal sector</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.hurriyetdailynews.com/n.php?n=the-pursuit-of-happiness-by-economists-2011-01-05">The pursuit of happiness by economists</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.hurriyetdailynews.com/n.php?n=nothing-quiet-on-the-south-western-front-2011-03-23">Nothing quiet on the (south)western front</a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But there is another end of an era, which is even more important, at least for me: Roubini's new Economonitor site, which will include outside bloggers, including your friendly neighborhood economist, is opening doors today. So I will not be blogging to this blog anymore. I am not erasing it; in fact, all my posts until now will stay, but I will be blogging at Roubini's from now on.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I will be sharing with you my new address later today or tomorrow...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Hadi hayirlisi:)....</div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com5tag:blogger.com,1999:blog-8882885377462271395.post-17200255687207907602011-05-19T23:29:00.000+03:002011-05-19T23:29:50.582+03:00Roubini Post: Jordanian Lessons for a Turkish Economist<div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: justify;" trbidi="on"><a href="http://www.roubini.com/emergingmarkets-monitor/260999/jordanian_lessons_for_a_turkish_economist">This post</a> already <a href="http://www.hurriyetdailynews.com/n.php?n=jordanian-lessons-for-a-turkish-economist-2011-05-15">appeared in Hurriyet Daily News this week</a>; <a href="http://www.roubini.com/">Roubini Global Economics</a> <a href="http://www.roubini.com/emergingmarkets-monitor">Emerging Markets EconoMonitor</a> is just <a href="http://www.roubini.com/emergingmarkets-monitor/260999/jordanian_lessons_for_a_turkish_economist">republishing it</a>, but I just wanted to cross-link for the readers who might have missed it the first time around...<br />
<br />
This column is the result of my two-week consulting gig in Jordan and the second of two columns on the country. <a href="http://www.hurriyetdailynews.com/n.php?n=impressions-from-jordan-2011-05-08">The first column</a>, just my impressions on Jordan, is a fun and easy read and would make a nice supplement to this one.<br />
<br />
I will have an extensive addendum in the next few days, where I will address reader critiques that I should have mentioned corruption as well as add in a few general observations on Jordan... </div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com8tag:blogger.com,1999:blog-8882885377462271395.post-89611692959594832852011-05-17T21:21:00.000+03:002011-05-18T21:21:45.600+03:00I really seem to have found my niche...<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">...in the popularity department that is: Unless I write <a href="http://emredeliveli.blogspot.com/2011/04/attention-attention-ego-getting.html">a controversial column</a>, I seem to have settled down in the lower parts of Hurriyet Daily News & Economic Review's top-10 rankings:</div><div class="separator" style="clear: both; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjM-Az0KnND6ggmlQhuqR85QgSki4VEW_t4X5WMKiSAFmyNvzK4O5N5IP3tr1K_sEqWzbwSsdXz80CG7GjWMrtEmBVNS-J9JgSFhjJxRs5yErc83Kos-9KPEysu4s71t95nqYWhcLq5gA/s1600/Hurriyet_110516_1803_9.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjM-Az0KnND6ggmlQhuqR85QgSki4VEW_t4X5WMKiSAFmyNvzK4O5N5IP3tr1K_sEqWzbwSsdXz80CG7GjWMrtEmBVNS-J9JgSFhjJxRs5yErc83Kos-9KPEysu4s71t95nqYWhcLq5gA/s320/Hurriyet_110516_1803_9.png" width="320" /></a></div><div style="text-align: justify;">I got <a href="http://www.hurriyetdailynews.com/n.php?n=jordanian-lessons-for-a-turkish-economist-2011-05-15#commenting">quite a few comments</a> with this one as well....</div><div class="separator" style="clear: both; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQ_wyrSOwYo1EjhccWcQWpa5_qK36Q2D-RHxTjgQTK3z0DYnr-r1EnqxjbjLDYKY4zRRf7JuXqE01YGMbO6kt-4OBU7A4Xjw_aTz0vp8CMcv12rzwI7lQwB87cAUQVEJXmCLh5eNw1KdU/s1600/Hurriyet_110516_1803_9_comments.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQ_wyrSOwYo1EjhccWcQWpa5_qK36Q2D-RHxTjgQTK3z0DYnr-r1EnqxjbjLDYKY4zRRf7JuXqE01YGMbO6kt-4OBU7A4Xjw_aTz0vp8CMcv12rzwI7lQwB87cAUQVEJXmCLh5eNw1KdU/s320/Hurriyet_110516_1803_9_comments.png" width="320" /></a></div><div style="text-align: justify;">...although <a href="http://www.hurriyetdailynews.com/n.php?n=jordanian-lessons-for-a-turkish-economist-2011-05-15#commenting">most comments</a> weren't all that positive:) In fact, they were positive- in the sense that I learned that I have readers who care enough to tell me that they are disappointed with the column. And I appreciate all feedback, so I was happy at the end of the day:) As for the critiques, as I <a href="http://emredeliveli.blogspot.com/2011/05/weekly-hurriyet-column-jordanian.html">mentioned earlier</a>, I will be addressing them in an extensive addendum in the next few days. </div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com12tag:blogger.com,1999:blog-8882885377462271395.post-77819227091966178012011-05-17T19:07:00.002+03:002011-05-17T19:07:27.841+03:00Pardon my appreance...<div dir="ltr" style="text-align: left;" trbidi="on">.... while I am in construction, of the blog that is...<br />
<br />
I just came back from a two-week consulting gig in Jordan and will be posting several posts in the next few days...<br />
<br />
</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com4tag:blogger.com,1999:blog-8882885377462271395.post-79400185934586777392011-05-16T19:22:00.021+03:002011-05-18T20:55:33.558+03:00Weekly Hurriyet Column: Jordanian lessons for a Turkish economist<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;"><i>Below is my Hurriyet Daily News & Economic Review column for this week, which you can also read <a href="http://www.hurriyetdailynews.com/n.php?n=jordanian-lessons-for-a-turkish-economist-2011-05-15">at the Daily News website</a>.</i></div><div style="text-align: justify;"><br />
<i>I just returned from Jordan after a two-week consulting gig. Among other goodies, like lots of hummus and felafel, and of course Petra (I am still mesmerized, it definitely lives up to its hype), I ended up with two columns, one on my impressions on Jordan, the other on an informal comparison on the Turkish & Jordanian economies.This is the second column. If you'll look at <a href="http://www.hurriyetdailynews.com/n.php?n=jordanian-lessons-for-a-turkish-economist-2011-05-15#commenting">the comments</a> under <a href="http://www.hurriyetdailynews.com/n.php?n=jordanian-lessons-for-a-turkish-economist-2011-05-15">the column</a>, you'll see that I got quite a few arrows from my readers for failing to mention corruption in Jordan. I'll address those issues, as well as my general impressions on Jordan, in an extensive addendum, but first on to the column:</i></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><a href="http://www.hurriyetdailynews.com/n.php?n=impressions-from-jordan-2011-05-08">Two weeks in Jordan</a> is enough to make you throw two decades of Economics down the drain. At least, part of it.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">We teach in economics classes that a fixed exchange rate is not a good idea. You make yourself open to speculative attacks and lose monetary policy autonomy. It is argued that corner solutions, such as a fully flexible exchange rate or leaving one’s currency altogether, by adopting a common currency or another country’s, are preferable to in-between solutions like a fixed exchange rate.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">However, being pegged to the dollar seems to have been working rather well for Jordan. Government officials and <a href="http://www.imf.org/external/pubs/cat/longres.aspx?sk=24233.0">the IMF</a> agree that not only has the peg played a vital role in anchoring inflation expectations, it has also helped maintain financial stability in a volatile region. As for monetary autonomy, Samar Maziad of the IMF <a href="http://www.imf.org/external/pubs/cat/longres.aspx?sk=23245.0">finds that</a> there is some room for flexibility in operating monetary policy in the short-run.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But some things never change. My time in Jordan has also reminded me that there is no secret formula for development. Each country has its own specific circumstances that it needs to take into account. Otherwise, you would be hard-pressed to explain why <a href="http://www.youtube.com/watch?v=LN3tfdlEV-E&feature=related">Jordan doesn’t fly and touch the sky</a> despite an open economy, an educated workforce and <a href="http://www.jordaninvestment.com/">success in attracting foreign direct investment</a>.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Of course, Jordan has many constraints on growth as well, such as its small size and lack of water. But Singapore and Dubai have been able to overcome arguably tougher challenges. I must admit that size does matter, especially when you try to understand Turkish industry’s edge over Jordan’s, or make a comparison of the two stock exchanges.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">The latter story is quite interesting. As Nader Azar, Deputy CEO of the <a href="http://www.ase.com.jo/">Amman Stock Exchange</a>, noted, when the <a href="http://www.ise.org/Home.aspx">Istanbul Stock Exchange</a> opened 25 years ago, Turks would come to the ASE to learn. Now, the ASE sends people to the ISE for training, where average daily trading volume was 136 times higher in April, despite both exchanges having more or less the same number of listed companies. No wonder you see wild price swings at the ASE.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Another lesson is that just as you can’t force banks to lend less, you also can’t oblige them to lend more, either. Jordan is one step ahead of Turkey in that regard, as it is, to my knowledge, only depending on market mechanisms rather than <a href="http://www.hurriyetdailynews.com/n.php?n=turkey8217s-top-banker-resigns-after-criticizing-minister-2011-03-31">Ali Babacan-like outright threats</a>. While reducing required reserves in exchange for loans to small and medium-sized enterprises has not been deemed sufficient by bankers, it is nevertheless a useful first step.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">You also appreciate the wisdom of the 1990s sitcom Seinfeld. <a href="http://www.youtube.com/watch?v=8T4t3eNxrIk">As Kramer explains</a>, “when there is no work, people are restless. Who do you think they come after? El Presidente!” While this is an oversimplification of events in the region, it also explains quite well the recent extra budgetary measures in Jordan, which have not only widened the deficit, but also have pushed debt dangerously close to the 60 percent legal ceiling.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Finally, seeing Jordan so serious about the reform agenda makes me wonder why Turkey’s ruling Justice and Development Party, with the extra security of <a href="http://www.hurriyetdailynews.com/n.php?n=the-economic-consequences-of-mr.-erdogan-2011-04-17">robust macroeconomic fundamentals under its belt</a>, has <a href="http://www.hurriyetdailynews.com/n.php?n=turkey8217s-long-forgotten-reform-agenda-2010-02-28">shied away from structural reforms</a>. With their new investment law, the Jordanians are actively targeting the variables that factor into the World Bank’s <a href="http://www.doingbusiness.org/">Doing Business</a> and World Economic Forum’s <a href="http://www.weforum.org/issues/global-competitiveness">Global Competitiveness</a> rankings. Many other countries are engaged in this rat race as well, so I am worried that Turkey is falling behind.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">There is one more thing that Turkey lacks in comparison to Jordan: Decent <a href="http://en.wikipedia.org/wiki/Falafel">falafel</a>. You haven’t had falafel until you have had it at <a href="http://www.lonelyplanet.com/jordan/amman/restaurants/felafel/hashem-restaurant">Hashem</a> in downtown Amman. And now I need to go and get some before my flight back.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>Emre Deliveli is a freelance consultant and columnist for <a href="http://www.hurriyetdailynews.com/c.php?c=emre-deliveli">Hürriyet Daily News & Economic Review</a> and <a href="http://search.forbes.com/search/colArchiveSearch?author=emre+and+deliveli&aname=Emre+Deliveli">Forbes</a> as well as a contributor to <a href="http://www.roubini.com/author/emre_deliveli">Roubini Global Economics</a>. Read his economics blog at <a href="http://emredeliveli.blogspot.com/">http://emredeliveli.blogspot.com</a>.</b></div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2tag:blogger.com,1999:blog-8882885377462271395.post-74451444528195560482011-05-11T22:52:00.000+03:002011-05-17T22:52:47.621+03:00Another decent performance<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">I again made it to the top 10 with my <a href="http://www.hurriyetdailynews.com/n.php?n=impressions-from-jordan-2011-05-08">impressions from Jordan</a>:</div><div class="separator" style="clear: both; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmYYSgBw3o7oUlFG33AYX8bZz7EFTfiRPjtrF2t20APEcfl5Noqb6AD1NWA5Hp_zuHZ38ECGYmZx-zINJcHqgi7DLoGTC2lrOkK4riOSnCX5ceUhv00kEOPWHEmOy4WtOXjaNWWFH_q9k/s1600/Hurriyet_110509_1913_8.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmYYSgBw3o7oUlFG33AYX8bZz7EFTfiRPjtrF2t20APEcfl5Noqb6AD1NWA5Hp_zuHZ38ECGYmZx-zINJcHqgi7DLoGTC2lrOkK4riOSnCX5ceUhv00kEOPWHEmOy4WtOXjaNWWFH_q9k/s400/Hurriyet_110509_1913_8.png" width="400" /></a></div><div style="text-align: justify;">Speaking of the column: If you thought I have an <a href="http://emredeliveli.blogspot.com/2011/04/attention-attention-ego-getting.html">inflated ego</a> (I know of at least one person who does), you are finally right: I do have an inflated ego after two week in Jordan: Being treated like the citizen of a regional superpower just felt great: Everyone was praising Turkish companies & products and of course the Turkish PM. Speaking of the PM, I am convinced that having him move to Jordan and become the PM there would be a definite <a href="http://en.wikipedia.org/wiki/Pareto_improvement">Pareto improvement</a>: Most Jordanians would love to have him, as I have heard some say that they would prefer him even to their beloved King. I and people who think like would love to see him go away. Of course, there is the problem of his supporters, but I believe they can be convinced to let him go under the pretext that he will help regional stability and even world peace...</div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com4tag:blogger.com,1999:blog-8882885377462271395.post-56065402918225532042011-05-09T10:26:00.015+03:002011-05-17T22:38:36.660+03:00Weekly Hurriyet Column: Impressions from Jordan<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;"><i>Below is my Hurriyet Daily News & Economic Review column for this week (it is actually last, as I am posting this exactly a week late, but I am sticking to its original date for archiving purposes), which you can also read <a href="http://www.hurriyetdailynews.com/n.php?n=impressions-from-jordan-2011-05-08">at the Daily News website</a>.</i></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><i>I just came returned from Jordan after a two-week consulting gig. Among other goodies, like lots of hummus and felafel, and of course Petra, I ended up with two columns, one on my impressions on Jordan, the other on an informal comparison on the Turkish & Jordanian economies. So without further chit-chat, here is the first column:</i></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I was rather surprised to see a deserted city when I landed in Amman on Tuesday night for a two-week consulting gig on the Jordanian economy, banking sector and capital markets.</div><div id="printReady"><div> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">My curiosity was satisfied soon enough: I found my hotel’s bar packed, with people glued to the screen watching the Barcelona-Real Madrid game. I learned from an analyst I was meeting with the next day that both teams are very popular in Jordan, and that as many as 1 million people (from a population of 6.5 million) may have watched the game on Tuesday.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">The <a href="http://en.wikipedia.org/wiki/Ricardo_Quaresma">abundance</a> of <a href="http://en.wikipedia.org/wiki/Guti_%28footballer%29">players</a> <a href="http://en.wikipedia.org/wiki/Sim%C3%A3o_Sabrosa">with</a> <a href="http://en.wikipedia.org/wiki/El_Cl%C3%A1sico"><i>El Clasico</i></a> <a href="http://en.wikipedia.org/wiki/R%C3%BC%C5%9Ft%C3%BC_Re%C3%A7ber">experience</a> on its squad may explain <a href="http://en.wikipedia.org/wiki/Be%C5%9Fikta%C5%9F_J.K.">Beşiktaş’s</a> popularity in Jordan over its two Istanbul rivals, who have <a href="http://answers.yahoo.com/question/index?qid=20091025082925AA41ubI">their own version of El Clasico</a>. But two Turks are more popular in the JK than any member of <a href="http://www.newyorker.com/online/2011/03/07/110307on_audio_batuman">my beloved team</a>.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Everyone here knows the actor <a href="http://en.wikipedia.org/wiki/Kivanc_Tatlitu">Kıvanç Tatlıtuğ</a>, although he is often mentioned as the “blond guy,” as his name is a challenge for Jordanians. The Turkish soap operas, <i>mosalsas</i> as they are called here, that made him famous are a <a href="http://www.jordantimes.com/?news=9599">big hit</a> in Jordan as in many other countries in the region, and I was told that Jordanians watched the closing episode of <a href="http://en.wikipedia.org/wiki/Ask-i_Memnu">Aşk-ı Memnu</a> with teary eyes Wednesday night.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But even Tatlıtuğ’s popularity is dwarfed by that of Prime Minister <a href="http://en.wikipedia.org/wiki/Recep_Tayyip_Erdo%C4%9Fan">Recep Tayyip Erdoğan</a>. The first thing taxi drivers do when they learn I am Turkish is to mention his name with a big smile. I receive a much more sincere “Wa alaykum salam” to my “<a href="http://en.wikipedia.org/wiki/Salaam_alaykum">As-Salamu Alaykum’s</a>” (I have used the phrase more in the past week than the rest of my life) when it is known beforehand that I am Turkish.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">It seems the “<a href="http://www.youtube.com/watch?v=h3HeHOJkiuk">one minute</a>” and “<a href="http://en.wikipedia.org/wiki/Gaza_flotilla_raid">flotilla</a>” incidents have won the hearts of Jordanians as in the rest of the Arab world. Although I had dismissed both as cheap politics at the time, I have to admit I do like the free respect they have brought me here. Yes, I am such a spineless opportunist!</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Joking aside, seeing the teary-eyed refugees looking at the Golan Heights and the Sea of Galilee from the lookout point at the <a href="http://en.wikipedia.org/wiki/Decapolis">Decapolis</a> city Gadara/<a href="http://en.wikipedia.org/wiki/Umm_Qais">Umm Qais</a> is worth reading a dozen books on the Palestinian problem. But I am still not convinced that Erdoğan’s outbursts have brought us closer to a solution at all.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">However, even the analysts, economists and executives I have been speaking to, all with fancy U.S. degrees and flawless English, think highly of Erdoğan. They may start with disclaimers such as, “I don’t know your political inclinations, but…” showing that they are well aware of the controversies surrounding him and his policies. Still they praise his zeal to make Turkey a regional leader by increasing its political and economic power in the Middle East.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">That economic power is apparent in the statistics: According to the <a href="http://www.cbj.gov.jo/">Central Bank of Jordan’s</a> <a href="http://www.cbj.gov.jo/pages.php?menu_id=11&local_type=0&local_id=0&local_details=0&local_details1=0&localsite_branchname=CBJ">Monthly Statistical Bulletin</a>, Jordan’s imports from Turkey increased from around $450 million in 2009 to $600 million last year. The 28 percent yearly increase puts Turkey at the number six spot, but the countries whose exports to Jordan have increased more than Turkey’s all have much smaller absolute figures. In fact, Turkey is now the seventh-largest exporter to Jordan, and I am not sure the mosalsas are in these official statistics.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But even casual observation reveals a strong Turkish business presence: For one thing, hearing Turkish regularly at my hotel speaks volumes. Many Jordanian ready-wear apparel companies have clothing manufactured in Turkey, to which they affix their own labels. <a href="http://www.sarar.com.tr/en/index.html">Sarar’s</a> suits are highly regarded by professionals, although the $200-$300 price tag is deemed a bit expensive. Supermarkets are full of Turkish products, mainly by the <a href="http://en.wikipedia.org/wiki/Ulker">Ülker</a> group. There are also several construction companies in Jordan.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">As for Jordan’s economy, that’s for next week.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b>* Emre Deliveli is a freelance consultant and columnist for <a href="http://www.hurriyetdailynews.com/c.php?c=emre-deliveli">Hürriyet Daily News & Economic Review</a> and <a href="http://search.forbes.com/search/colArchiveSearch?author=emre+and+deliveli&aname=Emre+Deliveli">Forbes</a> as well as a contributor to <a href="http://www.roubini.com/author/emre_deliveli">Roubini Global Economics</a>. Read his economics blog at <a href="http://emredeliveli.blogspot.com/">http://emredeliveli.blogspot.com</a>.</b></div></div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2tag:blogger.com,1999:blog-8882885377462271395.post-30923539389549003632011-05-09T06:51:00.000+03:002011-05-09T06:51:56.433+03:00Another update in process<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">As I mentioned before in the column, I am in Jordan, in the middle of a consulting gig for the Jordanian economy, banking sector and capital markets.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">My hotel does have super-fast internet, a nice work table with audio/video, S and HDMI cables on the wall and even free coffee and tea to help me with the long blogging sessions, but time is the binding constraint: As a result, I have neglected my blog a bit. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I will not be able to blog much until I am back to Turkey on Monday, but I will at least put my Hurriyet / Roubini columns in so that my readers who follow me from the blog can have a look at them.</div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2tag:blogger.com,1999:blog-8882885377462271395.post-58625928223464153962011-05-05T23:59:00.019+03:002011-05-19T23:46:52.653+03:00Roubini Post: Turkey: Financial Center Dreaming - II<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">I just noticed I forgot to put this Roubini column, which was published exactly two weeks ago, to the blog. Uppsss.... But I will still post it, as it is not time-sensitive at all. I am using the date it was published, just for archiving purposes...</div><div style="text-align: justify;"> </div><div style="text-align: justify;">Anyway, <a href="http://www.roubini.com/emergingmarkets-monitor/260934/turkey__financial_center_dreaming_-_ii">it</a> already <a href="http://www.hurriyetdailynews.com/n.php?n=financial-center-dreaming---ii-2011-05-01">appeared in Hurriyet Daily News</a>; <a href="http://www.roubini.com/">Roubini Global Economics</a> <a href="http://www.roubini.com/emergingmarkets-monitor">Emerging Markets EconoMonitor</a> is just <a href="http://www.roubini.com/emergingmarkets-monitor/260934/turkey__financial_center_dreaming_-_ii">republishing it</a>, but I just wanted to cross-link for the readers who might have missed it the first time around...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">And please note that the column is numbered "II" because <a href="http://www.hurriyetdailynews.com/n.php?n=financial-center-dreaming-2009-10-04">I had written on the subject before</a>. </div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com1tag:blogger.com,1999:blog-8882885377462271395.post-65480938816194454802011-05-02T07:01:00.000+03:002011-05-09T07:01:51.956+03:00Weekly Hurriyet Column: Financial Center Dreaming - II<div dir="ltr" style="text-align: left;" trbidi="on"><i>Below is my Hurriyet Daily News & Economic Review column for this week (it is actually last, as I am posting this exactly a week late, but I am sticking to its original date for archiving purposes), which you can also read <a href="http://www.hurriyetdailynews.com/n.php?n=financial-center-dreaming---ii-2011-05-01">at the Daily News website</a>. As for the title, yet another cheesy one, or at least one mildly so: I was loosely referring to the <a href="http://www.imdb.com/title/tt0106307/">Kusturica movie</a>.</i><br />
<i> </i><br />
<i> As for the addendum, I have ten pages of notes from the meetings, some of which are quite interesting, but have no time to add them. The good thing is that they are not time-sensitive at all, so it will be OK even if I add those in a couple of weeks.</i><i></i><br />
<br />
<i>Anyway, on to the column:</i><br />
<br />
<br />
<div style="text-align: justify;">The government has been dreaming about carving a financial center out of Istanbul ever since economy czar Ali Babacan first disclosed the Istanbul Finance Center, or IFC, strategy and action plan, or SAP, to great fanfare on the eve of the <a href="http://www.imf.org/external/am/2009/index.htm">IMF-World Bank meetings in Istanbul</a>.</div><div></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">That press conference was marked by a lack of foreign journalists, hinting that they had taken the idea with a grain of salt. The foreign economists I talked to during the meetings humorously (and politely) mentioned the traffic as the biggest obstacle, and I and <a href="http://kaansariaydin.com/">Kaan Sarıaydın</a> <a href="http://www.hurriyetdailynews.com/n.php?n=financial-center-dreaming-2009-10-04">shared that skepticism in a column at the time</a>.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">One and a half years later, I had an opportunity to learn how much ground has been covered with that SAP in the <a href="http://dl.dropbox.com/u/16789346/IFC%20son%20program_TR.doc"><i>Istanbul Finance Center: Perspectives and Creating Stimuli</i></a> conference organized by the Foreign Economic Relations Board, or <a href="http://www.turkey-now.org/">DEİK</a>.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">In the keynote address, Babacan noted that they have covered 9 of the 71 action plans in the SAP and are working on 13 others. In the second session of the conference, representatives of the different state agencies involved in the project summarized their work. But the show-stealers were the morning and afternoon panels, which brought together a very impressive list of professionals sharing their views on the IFC.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I am happy to take Babacan’s word on the progress of the SAP so far and that it would be completed in the next five years. However, I do have serious reservations about such a laundry list approach that not only does not prioritize among the action plans, but also fails to take IFC’s objectives and its competition into consideration.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">For one thing, one of the highlights of the conference for <a href="http://www.imdb.com/title/tt0145487/quotes?qt0437314">your friendly neighborhood economist</a> was to learn that <a href="http://en.wikipedia.org/wiki/Jeju-do">Jeju</a> is not a <a href="http://en.wikipedia.org/wiki/Jedi">Jedi</a> knight. It is a special autonomous province in South Korea that <a href="http://joongangdaily.joins.com/article/view.asp?aid=2925155">would like to become a financial center</a>. In fact, the panelists noted that many other countries, all the way from Russia to Colombia and Peru, have financial center aspirations.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">According to them, the largest financial centers have lost some of their share to smaller ones as a result of over-regulation and a loss of confidence in developed economies after the crisis. In addition, several panelists highlighted that capital will no longer be as bountiful and cheap as in the past, which should strengthen this trend.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Therefore, as <a href="http://en.wikipedia.org/wiki/Domenico_Siniscalco">Domenico Siniscalco</a> of Morgan Stanley noted, becoming a financial center is not an exercise in creation, but one in competition. And in that regard, Istanbul does not fare well: It is ranked 71st in the <a href="http://www.zyen.com/GFCI/GFCI%209.pdf">Global Financial Centers index</a> prepared by the <a href="http://www.zyen.com/">Z/Yen</a> Group for the City of London, up one place from its latest ranking before the SAP was enacted.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">If the government enacted the SAP and leapfrogged in these rankings, Istanbul would certainly attract more capital, but it would need more than that to become a financial center. As the panelists argued, Istanbul, and other contenders for that matter, needs to find its niche. Those specialties could be geographic or product-based: Commodities, derivatives, exchange-traded funds and Islamic finance were some of the recommendations.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">It is at least positive that the government is willing to engage the private sector in the process. In fact, Laura Cox of PricewaterhouseCoopers noted that she was impressed by the level of consultation. I have learned that Babacan met the panelists in private the previous night, and State Planning Organization Undersecretary Kemal Madenoğlu confided in his closing remarks that the conference has shown him the need to hold discussions with domestic stakeholders right away.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Let’s hope that all this advice is made well use of before IFC turns into yet another one of the government’s “<a href="http://www.hurriyetdailynews.com/n.php?n=the-crazy-project-2011-04-27">crazy</a>” <a href="http://www.hurriyetdailynews.com/n.php?n=erdogan8217s-8216mad-project8217-2011-04-28">projects</a>.</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Emre Deliveli is a freelance consultant and columnist for <a href="http://www.hurriyetdailynews.com/c.php?c=emre-deliveli">Hürriyet Daily News & Economic Review</a> and <a href="http://search.forbes.com/search/colArchiveSearch?author=emre+and+deliveli&aname=Emre+Deliveli">Forbes </a>as well as a contributor to <a href="http://www.roubini.com/author/emre_deliveli">Roubini Global Economics</a>. Read his economics blog at <a href="http://emredeliveli.blogspot.com/">http://emredeliveli.blogspot.com</a>.</div></div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com3Amman, Jordan31.949381 35.93291099999999-3.6728005000000046 -23.83271400000001 67.5715625 95.69853599999999tag:blogger.com,1999:blog-8882885377462271395.post-77622096267583631552011-04-29T08:40:00.001+03:002011-04-29T08:41:26.087+03:00Live-semi-live blogging and/or a future column<div style="text-align: justify;">I am at the Sabanci Center in Istanbul (home of <a href="http://www.youtube.com/watch?v=_KfFaTpEYQ4">Akbank</a>), waiting for the <a href="http://dl.dropbox.com/u/16789346/%C4%B0FM%2029%20Nisan.doc">Istanbul as Financial Center conference</a>.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Other than being pissed at denied entry to the world's (probably, unless there is one in Langley) only limited-access Starbucks, I am in quite good spirits, as I will be hearing about a topic that first came about at IMF-World Bank meetings in Istanbul in one and a half years ago. I had <a href="http://www.hurriyetdailynews.com/n.php?n=financial-center-dreaming-2009-10-04">written a joint column</a> on the subject at the time, so I will be looking forward to seeing (or rather listening) for myself whether things have changed since then. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I am not sure if I will do a live or semi-live (i.e. in the lunch break, or right after the break) post, but I will be listening carefully and taking notes, as this is a great opportunity for a <a href="http://www.hurriyetdailynews.com/n.php?n=financial-center-dreaming-2009-10-04">follow-up column</a>- in fact, I should append my <a href="http://emredeliveli.blogspot.com/2011/04/in-store-for-next-few-weeks.html">writing schedule for the next few weeks</a>...</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2tag:blogger.com,1999:blog-8882885377462271395.post-26484730899473500232011-04-28T08:20:00.000+03:002011-04-29T08:21:01.006+03:00Roubini Post, Turkey: These Economists Are Crazy!<div style="text-align: justify;"><a href="http://www.roubini.com/emergingmarkets-monitor/260889/turkey__these_economists_are_crazy_">This post</a> already <a href="http://www.hurriyetdailynews.com/n.php?n=these-economists-are-crazy-2011-04-24">appeared in Hurriyet Daily News this week</a>; <a href="http://www.roubini.com/">Roubini Global Economics</a> <a href="http://www.roubini.com/emergingmarkets-monitor">Emerging Markets EconoMonitor</a> is just <a href="http://www.roubini.com/emergingmarkets-monitor/260889/turkey__these_economists_are_crazy_">republishing it</a>, but I just wanted to cross-link for the readers who might have missed it the first time around...</div><div style="text-align: justify;"></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I don't have much to add, just a few small points, which I will be sharing in the next 24 hours or so...</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com3tag:blogger.com,1999:blog-8882885377462271395.post-57193818521139804572011-04-27T19:44:00.001+03:002011-04-27T19:49:38.913+03:00In store for the next few weeks<div style="text-align: justify;">I will be traveling to Jordan for a consulting gig in the first two weeks of May. Since I will be quite busy there and will be concentrating on an economy other than Turkey for a change, I am planning ahead my columns for the next three weeks. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">For next week, I plan to do a comparison of the three main parties' (AKP, CHP, MHP) economic programs- I could call it <i>Econ Wars, The Revenge of the Gandhiji</i>:).... I plan to devote the following week to the <a href="http://emredeliveli.blogspot.com/2011/04/fridays-conference.html">IMF paper I discussed last Friday</a>. This will take me to the end of my two weeks Jordan: I would like to do at least one column on the Jordanian economy, but I would need to somehow relate it to Turkey. One obvious direction would be Jordan-Turkey trade relations.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">As if this were not enough, I also need to write an editorial for South Monday. Since I don't have a brilliant idea, I'll probably just write about the latest tourism statistics...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Since none of these depends on the latest data, I could do these right away. In fact, I am planning to do the Gandhiji and IMF pieces tonight. Let's see how it goes!...</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com5tag:blogger.com,1999:blog-8882885377462271395.post-50372719029665400152011-04-26T19:01:00.000+03:002011-04-27T19:12:35.788+03:00Another decent performance<div style="text-align: justify;">With not sufficient power in my Bberry to run the radio, I was completely bored at the Adana airport, waiting for my flight in a terminal with a density of at least 3 people per square meter, so I just wanted to see how popular <a href="http://www.hurriyetdailynews.com/n.php?n=these-economists-are-crazy-2011-04-24">my column</a> was, using the screen grabber application:</div><div class="separator" style="clear: both; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVDqnB3peM-nB00WMDCSW5CsT-k98pFcT-7DbSZB7wTNDFqtMX3ci2aiIOpYq_1L_H5hA1kq8zY3V2q9soPtCbsO3GXQCdXAWTQdNLbBXGWyAX-B-YmJrwPOm2pe20rPrJDZJDOja30n8/s1600/Screen_20110426_00016.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVDqnB3peM-nB00WMDCSW5CsT-k98pFcT-7DbSZB7wTNDFqtMX3ci2aiIOpYq_1L_H5hA1kq8zY3V2q9soPtCbsO3GXQCdXAWTQdNLbBXGWyAX-B-YmJrwPOm2pe20rPrJDZJDOja30n8/s400/Screen_20110426_00016.jpg" width="300" /></a></div><div style="text-align: justify;">Not as popular as last week, but still a bronze medal. Can't complain!:)</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">BTW, it is amazing how Adanites (Adana natives) defend their crappy airport: According to them, if it were bigger, it would not be so central and the security checks would not be so light. Go figure:).... But there are indeed great kebap places only 3 minutes from the airport, so I can sympathize with them:)...</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com1tag:blogger.com,1999:blog-8882885377462271395.post-39497200268646945412011-04-25T19:09:00.000+03:002011-04-25T19:09:33.329+03:00My favorite Turkey graphs<div style="text-align: justify;">I was having lunch on Friday with a group on non-Turkish economists interested in the Turkish economy. Based on their questions, I have chosen my favorite graphs of the Turkish economy.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I. Seeing the Central Bank's policies in action (all about interest rates):</div><div class="separator" style="clear: both; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuok1E9d5CZe2IhkSCB0vk98K12X-u5Yr23Epj7BJzbS6vEKVj0IJ03l3a-XPGbYpcoa7JpO2ZJCjKWfQvLAhM597HeZcsxQ4NHZCoQ4GJYS7oY7SFIb6WHQKrB-M1OMHnlyWSRzO_Ng4/s1600/Rates_110425.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuok1E9d5CZe2IhkSCB0vk98K12X-u5Yr23Epj7BJzbS6vEKVj0IJ03l3a-XPGbYpcoa7JpO2ZJCjKWfQvLAhM597HeZcsxQ4NHZCoQ4GJYS7oY7SFIb6WHQKrB-M1OMHnlyWSRzO_Ng4/s400/Rates_110425.jpg" width="400" /></a></div><div style="text-align: justify;">The Central Bank borrowing and lending rates are natural bands for the overnight rate. If the Central Bank does not provide enough liquidity, the overnight rate will continuously hover above the policy rate, which kind of beats the goal of a volatile overnight to deter hot money.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">If you want more on the Central Bank's policy dilemma, you can have a look at <a href="http://emredeliveli.blogspot.com/2011/03/seeing-cbts-dilemmas-in-action.html">my post from last month</a>, which has two complimentary graphs.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">II. FX deposits and the exchange rate: Anyone who studies the Turkish economy sooner or later hears that FX deposits of residents act as a buffer against lira depreciation. Here's the appropriate graph:</div><div class="separator" style="clear: both; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCCb-rHcID6L9xjg4w4X2IHIsgmXW7vyF2J8hAZswPRF_MJpLojI2NixPOVuCGbjMq0m6PnmKpnZqjEM3PdwFAF02xTLSbi20vjZTyDTfl76ZH7hsX-kSkpXz0a4I5HYmwt_8Exbhs7vU/s1600/FX+deposits_110425.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCCb-rHcID6L9xjg4w4X2IHIsgmXW7vyF2J8hAZswPRF_MJpLojI2NixPOVuCGbjMq0m6PnmKpnZqjEM3PdwFAF02xTLSbi20vjZTyDTfl76ZH7hsX-kSkpXz0a4I5HYmwt_8Exbhs7vU/s400/FX+deposits_110425.jpg" width="400" /></a></div><div style="text-align: justify;">There is a relationship, but it is not as strong as some people believe it to be. At the end of the day, it all depends on expectations, as well as the level at which locals bought their beloved foreign currencies. It is quite possible that if they expect more FX appreciation, they may want to hold on rather than engage in profit-taking.</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2tag:blogger.com,1999:blog-8882885377462271395.post-46333370641391405202011-04-25T17:46:00.000+03:002011-04-25T17:46:48.720+03:00My-CHP hype cools down...<div style="text-align: justify;">.... after Kemal Kilicdaroglu started with the populist promises such as giving SMEs interest-free loans and he like. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">So although I am not as hyped-up with the CHP's economic agenda <a href="http://emredeliveli.blogspot.com/2011/04/why-i-am-voting-for-chp.html">as before</a>, I still like their program. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">In any case, I plan to devote next week to a comparison of the three main parties' economic manifestos. I could maybe call the column <i>The War of the Economic Manifestos</i>:)...</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com0tag:blogger.com,1999:blog-8882885377462271395.post-31695483270377767052011-04-25T11:27:00.000+03:002011-04-25T11:27:58.941+03:00Weekly Hurriyet Column: These economists are crazy!<div style="text-align: justify;"><i>Below is my Hurriyet Daily News & Economic Review column for this week, which you can also read <a href="http://www.hurriyetdailynews.com/n.php?n=these-economists-are-crazy-2011-04-24">at the Daily News website</a>. As for the title, yet another cheesy title, which I explain in the first sentence of the article (and the first "picture")<br />
<br />
As for the addendum, I don't have anything urgent to add for a change, so I will be waiting for the reader comments to post my addendum- so that I can integrate them into the addendum as well.</i><i> </i></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><i>Anyway, on to the column:</i></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">That’s what <a href="http://en.wikipedia.org/wiki/Obelix">Obelix</a> would have said if he were living in our times, and I would have had to agree.</div><div> </div><div style="text-align: justify;"><img alt="" height="400" src="http://www.hurriyetdailynews.com/images/obelix_edited.jpg" width="317" /></div><div style="text-align: justify;"> </div><div style="text-align: justify;">I know that, with this provocative phrase, I sound like the Cretan philosopher who said <a href="http://en.wikipedia.org/wiki/Epimenides_paradox">all Cretans were liars</a>. After all, if I am, as an economist, crazy as well, there would be no reason for you to take my bold claim at face value.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But it is not such a bold claim at all. Unlike <a href="http://en.wikipedia.org/wiki/Nassim_nicholas_taleb">Nassim Nicholas Taleb</a>, the <a href="http://www.amazon.com/Black-Swan-Improbable-Robustness-Fragility/dp/081297381X/ref=sr_1_1?s=books&ie=UTF8&qid=1303663796&sr=1-1"><i>Black Swan</i></a> guy, I hold no everlasting grudges against the economics profession or economists. If I were, I would have to be against myself, similar to the <a href="http://en.wikipedia.org/wiki/Be%C5%9Fikta%C5%9F_J.K.">Beşiktaş</a> support group <a href="http://en.wikipedia.org/wiki/%C3%87ar%C5%9F%C4%B1_%28supporter_group%29">Çarşı</a>, who had to disband, after years of being against everything led to being against itself.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Such an <a href="http://en.wikipedia.org/wiki/Existentialism">existentialist</a> approach, which would lead to self-denial, is just not my cup of tea. However, I am totally perplexed by the declaration of almost all the market economists covering Turkey that the first quarter budget figures are positive and that the government is running a tight fiscal ship.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">It is true that the raw numbers look impressive. The central government budget deficit turned out to be 4.1 billion liras in the first quarter, quite an improvement over the deficit of 11.3 billion liras in the same period last year. You can see the same pattern in the primary balance, which excludes interest payments: A surplus of 9.8 billion liras compared to a more modest figure of 3.7 billion liras.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But once you start digging into the data, things don’t look as pretty: For one thing, the primary surplus, as defined by the Ministry of Finance, includes one-time revenues. To get a better idea of the budget, such non-recurring items should be excluded. The IMF-defined primary balance, which does exactly that, paints a much more sobering picture.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><img alt="" height="235" src="http://www.hurriyetdailynews.com/images/pb_imf_mof_110424.jpg" width="400" /></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Besides, these central government figures exclude items like the spending spree by the Housing Development Administration of Turkey, or <a href="http://www.toki.gov.tr/">TOKİ</a>. Neither is the arrears build-up of energy enterprises included in the bill, as this too is outside the realm of the central government budget.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Even if you decide to ignore these technicalities, the rise in expenditures is hard to overlook. Primary expenditures, which exclude interest payments, have been growing faster than GDP for a while.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><img alt="" height="235" src="http://www.hurriyetdailynews.com/images/nonint_exp_gdp_110424.jpg" width="400" /></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Despite this robust expenditure growth, the headline budget numbers look healthy because of the strong increase in tax revenues. In fact, over the last few months, non-interest expenditures and tax revenues have risen more or less at the same rate, at around 15 percent. In other words, the Justice and Development Party government is spending more or less what it is collecting in taxes.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><img alt="" height="235" src="http://www.hurriyetdailynews.com/images/tax_nonint_exp_110424.jpg" width="400" /></div><div style="text-align: justify;"> </div><div style="text-align: justify;">Due to the unnatural (at least by developed country standards) share of indirect taxes in total, tax revenues are extremely cyclical in Turkey. Once you adjust for this cyclicality, it turns out that the fiscal balance has been on the fall, and that fiscal policy is rather loose.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><img alt="" height="235" src="http://www.hurriyetdailynews.com/images/tax_composition_110424.jpg" width="400" /></div><div style="text-align: justify;">In any case, you should look at a country’s economic circumstances in judging its fiscal position. Given that the government is worried about the country’s growing current account deficit, it should adopt a tighter fiscal stance, one that will rein in domestic demand and support the Central Bank’s efforts to cool off the economy. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">So you now know why I am perplexed by all this fiscal optimism. But I find comfort in the fact that there is at least one entity, other than my friends at <a href="http://www.turkeydatamonitor.com/">Turkey Data Monitor</a>, who share my concerns about the budget: The suspicious delay of the IMF's latest Turkey Staff Report suggests to me that we are not the only ones who are <a href="http://www.hurriyetdailynews.com/n.php?n=8216ay-aman-of8217-on-monetary-fiscal-policies-2011-02-20">worried about the fiscal stance</a>.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Anyone who knows me can testify that I am one crazy fellow, and my last name <a href="http://www.seslisozluk.com/?word=deli">proves it</a> as well. But the fiscal optimists are challenging me in the insanity department.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Emre Deliveli is a freelance consultant and columnist for <a href="http://www.hurriyetdailynews.com/c.php?c=emre-deliveli">Hürriyet Daily News & Economic Review</a> and <a href="http://search.forbes.com/search/colArchiveSearch?author=emre+and+deliveli&aname=Emre+Deliveli">Forbes</a> as well as a contributor to <a href="http://www.roubini.com/author/emre_deliveli">Roubini Global Economics</a>. Read his economics blog at <a href="http://emredeliveli.blogspot.com/">http://emredeliveli.blogspot.com</a>.</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com4tag:blogger.com,1999:blog-8882885377462271395.post-41549241082216967312011-04-25T10:30:00.000+03:002011-04-25T10:30:28.139+03:00Friday's conference<div style="text-align: justify;"><a href="http://emredeliveli.blogspot.com/2011/04/reminder-launch-of-imf-reports-at-koc.html">Friday's conference</a> did take place, although I was late for my own presentation: I left home (Cengelkoy) at 8.55, hoping to comfortably make it to the 10.30 presentation. It was 11.45 or so when I was entering the gates of Koc University in Sariyer: I was victim to the Friday morning accident at the entrance of the Fatih Sultan Mehmet Bridge. It is beyond me why an accident that took place at 6.30 am could not be cleared at 9.30, but as a result I spent three hours sitting behind the wheel, less than 12 hours after I had arrived from Marmaris. If I had been driving from Marmaris instead, I would have been at the outskirts of Manisa- made me really depressive when I noticed this:)...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But on the bright side, I now know, as I explained in the intro. to my discussion, all the summer concerts advertised on the billboards. So if you would like to know when Bon Jovi or Elton John is in town, I am your guy:)</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">As for the conference, I am eternally grateful to Sumru Oz for shifting the schedules so that I could do my discussion. She has also put all the presentations and discussions <a href="http://www.ku.edu.tr/ku/index.php?option=com_content&task=view&id=5338&Itemid=2334&lang=en">at the ERF web site</a>. As for mine, you can <a href="http://dl.dropbox.com/u/16789346/IMF%20ERF%20Discussion_110422.pptx">have a look at it in PPT as well</a> if the Pdf on their web site is not good enough- gotta love Dropbox!....</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">And I plan to cover the paper I wrote in <a href="http://www.hurriyetdailynews.com/c.php?c=emre-deliveli">my Hurriyet column</a> in the next couple of weeks, although I am also considering to wait until the Staff Report is out- see <a href="http://dl.dropbox.com/u/16789346/IMF%20ERF%20Discussion_110422.pptx">my discussion</a> for why and <a href="http://www.hurriyetdailynews.com/n.php?n=these-economists-are-crazy-2011-04-24">today's Daily News column</a> for <a href="http://www.hurriyetdailynews.com/n.php?n=8216ay-aman-of8217-on-monetary-fiscal-policies-2011-02-20">other possible goodies</a> in the Staff Report.</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com0tag:blogger.com,1999:blog-8882885377462271395.post-19099157382834948292011-04-21T21:05:00.000+03:002011-04-21T21:06:00.838+03:00Why I am voting for the CHPI am at the Dalaman Airport, waiting for my flight to Istanbul and reading the CHP's Economic Manifesto.
<br>
<br>I am impressed! There are parts I don't like, and a few that need clarification, but it is overall way ahead of the AKP's economic agenda, not in terms of promises but solid economic analysis.
<br>
<br>So the CHP has made me eat my words, i.e. the last sentence of my last Daily News column.
<br>
<br>And loyal readers would know that I am no CHP fanatic; in fact, I am not a fan of anything except my beloved Besiktas. And as some readers will remember, I have been a staunch critic of some of their policies, leading one fanatic to insult me blatantly once.
<br>
<br>But I have to render unto the CHP what is the CHP's and that's why I will be voting for them in June; if I didn't, I would not be able to call myself an economist. And I definitely need to do a column on their economic policies soon, although it may have to wait until the following week, as I already wrote next week's column...
<br>Sent by BlackBerry Internet Service from TurkcellEmre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2tag:blogger.com,1999:blog-8882885377462271395.post-13814697638825715922011-04-21T16:38:00.000+03:002011-04-21T16:38:19.995+03:00Reminder: Launch of IMF reports at Koc University tomorrow (with paper links)<div style="text-align: justify;">As <a href="http://emredeliveli.blogspot.com/2011/04/invitation-to-hear-my-ramblings-live.html">I mentioned earlier</a>, you have a chance to hear <a href="http://www.imdb.com/title/tt0145487/quotes?qt0437314">your friendly neighborhood economist</a> live at the <a href="http://www.ku.edu.tr/ku/images/EAF/20110422_en.png">launch of two IMF reports</a> at Koc University tomorrow in an event organized by the <a href="http://www.ku.edu.tr/ku/index.php?option=com_content&task=view&id=1314&Itemid=2319&lang=en">ERF</a>. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">As you can see at the hyperlink, I will be discussing the <a href="http://dl.dropbox.com/u/16789346/021411b%5B1%5D.pdf">reserves adequacy paper</a>. And if you are interested, there is also a <a href="http://dl.dropbox.com/u/16789346/021411c.pdf">technical supplement</a> for the paper as well.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Sorry for the long title, but quite a few readers asked me for the link to the paper, and I wanted to make sure they know it is in this post. As for the other paper (capital flows), I don't have it in my harddrive, but it is publicly available (both papers were released a couple of weeks ago), so I am sure a google search will direct you towards it....</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com0tag:blogger.com,1999:blog-8882885377462271395.post-26379295787418227392011-04-21T15:14:00.000+03:002011-04-21T15:14:25.771+03:00So much for Central Bank independence<div style="text-align: justify;">Nope, I am not going start on the new Central Bank governor Erdem Basci's long-time (four decades or so) friendship with economy czar Babacan and jump to some kind of "ingenious" conclusion that CBT is no longer independent!</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">But a sentence from the AKP's brochure on their policies so far, which was published along with their election manifesto, speaks for itself: " We have reduced interest rates! We have decreased the Central Bank policy rate, which was 44 percent back in 2002, to 6.25 percent in 2011"...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">This does not show CBT's independence (or lack of it), but it does show how the AKP top brass see the Central Bank!</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">And BTW, the policy rate in 2002 is not the same as the one in 2011, but I guess that is not as important as the general logic of the statement itself.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">HT to Radikal columnist Ugur Gurses for mentioning this <a href="http://www.radikal.com.tr/Default.aspx?aType=RadikalYazar&Date=20.04.2011&ArticleID=1046754">in his column from yesterday</a>.</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com0tag:blogger.com,1999:blog-8882885377462271395.post-30703436657918294132011-04-20T17:35:00.000+03:002011-04-20T17:35:22.956+03:00Roubini Post, Turkey: The economic consequences of Mr. Erdoğan<div style="text-align: justify;"><a href="http://www.roubini.com/euro-monitor/260850/turkey__the_economic_consequences_of_mr__erdo__an">This post</a> already <a href="http://www.hurriyetdailynews.com/n.php?n=the-economic-consequences-of-mr.-erdogan-2011-04-17">appeared in Hurriyet Daily News this week</a>; <a href="http://www.roubini.com/">Roubini Global Economics</a> <a href="http://www.roubini.com/emergingmarkets-monitor">Emerging Markets EconoMonitor</a> is just <a href="http://www.roubini.com/euro-monitor/260850/turkey__the_economic_consequences_of_mr__erdo__an">republishing it</a>, but I just wanted to cross-link for the readers who might have missed it the first time around...</div><br />
<div style="text-align: justify;">I noticed, unfortunately after it had been published, that the column needed some clarifications/expansions, partly owing to my usual space constraints, and partly due to, I must admit, bad planning and prioritization on my part. Therefore, I posted an <a href="http://emredeliveli.blogspot.com/2011/04/addendum-to-hurriyet-column-economic.html">extensive addendum over at my blog</a> right away... </div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com0tag:blogger.com,1999:blog-8882885377462271395.post-32381332801599805842011-04-19T20:04:00.070+03:002011-04-20T12:31:39.132+03:00Competition Indices<div style="text-align: justify;">I just finished all the contracts for my <a href="http://www.emrehotels.com/indexEN.php">moonlighting activities</a>, and all the haggling has given me a complete new look into Industrial Organization, one that never crossed my path during my undergrad and grad studies of the subject.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Empirical IO has pretty standard measures for measuring the degree of competition in any industry. But once you dig into "the field", you see that simple measures are flawed.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">For one thing, measures based on the number of competitors or profits do not work at the local level. For example, there are quite a few major wine producers in Turkey, but there are only several serving Marmaris, and out of those, only three selling bag-in-the-box wine.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">To give another example, most small-scale services guys are working almost like monopolies, despite the huge number of suppliers. For example, I found out, when we were looking into to have a simple ladder for our new pier, that chrome craftsmen were charging twice the prices in Izmir. We ended up working with a guy from Izmir, who was in town for a big job at another hotel; he would have never come for our small job...</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Nor is market share a perfect measure: Mey, <a href="http://ftalphaville.ft.com/thecut/2011/02/21/493906/diageo-acquires-turkeys-mey-icki-for-2-1bn/">recently acquired by Diageo</a>, has around 90% of the hard drinks market, but the presence of even two very small producers guaranteed that their prices were competitive. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Then, there are the micro concerns: It depends on how much a firm is battling its competitors, i.e. willing to forgo profits just to increase its portfolio. And timing is everything, at least in tourism: The suppliers have "budgets" early in the season, which they can use to offer better prices for hotels they really would like to add to their portfolio. As for the hotels, being big always helps, so a sector that looks monopolistic to a small apart hotel can seem perfect competition to a 2000-bed resort.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Here are my small notes from field work, with my subjective competitiveness grade (0 being no competition, 10 being perfect competition):</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><i>Coffee/Tea and Concentrated juices</i> (9): 4 producers serving, one well-known brand unwilling to lower her prices, but the other three behaving as if in perfect competition<i>.</i></div><div style="text-align: justify;"><i>Raki/ hard drinks</i> (7): Quite competitive, when you consider one producers has 90% of the market.</div><div style="text-align: justify;"><i>Beer</i> (3): Two major brands, but entry of a third, low-cost producers increases competitiveness considerably. I would have given a "1" last year.</div><div style="text-align: justify;"><i>Coke</i> (7): Only two major brands, a couple of local smaller guys, but still rather competitive.</div><div style="text-align: justify;"><i>Ice Cream</i> (8): Only two producers, but really cutthroat (toward each other)</div><div style="text-align: justify;"><i>Wine</i> (2): As I said above, only three guys that can make offers, but one can offer prices much lower the others, and since he knows it, he can easily dictate his still-quite-high price.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">I have no idea if I will ever make use of this in a more concrete context, maybe a column or something else, but I can just leave them here for the time being...</div>Emre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.com2