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MICRO FINANCE, FEMALE LITERACY, AND SELF SUSTAINING ECONOMIC GROWTH IN TURKEY

Year 2008, Volume: 3 Issue: 1, 39 - 51, 01.06.2008

Abstract

Among the middle income emerging countries Turkey has one of the lowest rates of female literacy and participation rates in business enterprises, according to the World Bank's Human Development Report. In order for Turkey to become one of the leading economies in the world these anomalies must be corrected. This task cannot be left alone on the shoulders of the Government and/or government sponsored agencies, but should be vigorously undertaken by the socially conscious public, especially by the intelligentsia and the nation's youth. This paper examines some of the programs that were undertaken to promote rural awakening, education, and entrepreneurship in Bangladesh, China, India, the Philippines, and Thailand, over the last two and a half decades or so, that helped to promote sustainable economic development in these emerging nations, and to show that how such efforts can bear substantial fruits for Turkey. Of special interest is the process of organizing groups and maintaining group cohesion for accessing micro credit for enterprise development in the model of Grameen Bank (Bangladesh) or other micro finance organizations in the emerging East Asian countries. This paper contends that liberalization of trade and large inflows of foreign direct investment may be necessary for accelerating economic growth for a time, but not sufficient for ensuring sustainable development in the long run. Economic prosperity can only be assured when the majority of the population, both male and female, actively participate and benefit from it. For this to happen, a systematic plan of action for Turkey, in line with successful programs in the emerging and developed economies, is proposed in this study. For a better appreciation of the Turkish socio-economic position vis-à-vis the emerging economies and the developed ones, the study starts with a comparative analysis of some key macro statistics of the selected countries. The emerging economies, EE, are: China, India, Malaysia, the Philippines, Thailand, Turkey, and Vietnam – all from Asia/Europe region, and the developed economies, DC, are: France, Germany, Italy, Japan, the United Kingdom, UK, and the United States of America, USA. References are also given from the micro-credit and female literacy experience of Bangladesh—a country yet to achieve an emerging nation status due to its frequent bouts with natural and man made disasters.

References

  • Afriyie, K. 1998. “Foreign Direct investment in Ghana’s Emerging Market Economy,” In Dunning, J. H. edited, Globalization, Trade and Foreign Direct Investment, Oxford: Elsevier Science, Ltd.
  • Agarwal, P.2005. “FDI is South Asia: Impact on Growth and Local Investment,” in Multinationals and Foreign Investment in Econonmic Development, edited by Graham, E.M. London: Palgrave/ MacMillan.
  • Ahmad, M.M. 2003. “Distant Voices: The Views of the Field Workers of NGOs in Bangladesh on Microcredit,” The Geographical Journal. V.169:1.
  • Alamgir, D.A.H. 2000. “Financing the Microcredit Programs of Non-Governmental Organizations (NGOs): A Case Study,” Journal of Development Entrepreneur- Ship. V.5: 2.
  • Amin,S., Rai, A.S., and Topa, G. 2003. “Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh,” Journal of Development Economics. V.70:1.
  • Baughn, C.C., Cao, J.S.R., Le, L.T.M., Lim, V.A., and Neupert, K.E. 2006. “Normative, Social, and Cognitive Predictors of Entrepreneurial Interest in China, Vietnam and the Philippines,” Journal of Developmental Entrepreneurship. V.11:1.
  • Borensztein, E., De Gregorio, J., and Lee, J.W. 1998. “How Does Foreign Investment Affect Growth?” Journal of International Economics. 45.
  • Business Week 2007. “China: The Tech Dragon Stumbles,” Business Week. May 14,pp. 44-45.
  • Carpio, M.A. 2004. “The Experience of Financial Institutions in the Delivery of Micro- credit in the Philippines,” Journal of Microfinance. V.6:2.
  • Chen, G., Li, J., and Matlay, H. 2006. “Who are the Chinese Private Entrepreneurs? A Study of Entrepreneurial Attributes and Business Governance,” Journal Of Small Business and Enterprise Development. V.13: 2.
  • Chen, J. 2006. “Development of Chinese Small and Medium-Sized Enterprises,Journal of Small Business and Enterprise Development. V.13: 2.
  • Chow, I.H. 2006. “The Relationship Between Entrepreneurial Orientation and Firm Performance in China,” S.A.M. Advanced Management Journal. V. 71: 3.
  • Chowdhury, M.M.R. 2001. “The Emerging Women Entrepreneurs of Bangladesh,’ Federation of Bangladesh Chamber of Commerce and Industry Journal, V.2: 5-6.
  • Dowla, A. and Alamgir, D. 2003. “From Microcredit to Microfinance: Evolution of Savings Products by MFIs in Bangladesh,” Journal of International Development. V. 15: 8.
  • Dunning, J.H. 1981. “Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Developmental Approach, Weltwirtschaftlic- Hes Archiv, 119: 30-64.
  • Dunning, J.H. 1992. “The Global Economy, Domestic Governance, Strategies and Transnational Corporations: Interactions and Policy Implications, Transnational Corporations, I: 7-45.
  • Dunning, J.H. 1993. Multinational Enterprises and the Global Economy, Wokingham: Addison Wesley.
  • Dunning, J.H. 1998. Globalization, Trade and Foreign Direct Investment. Oxford: Elsevier Science, Ltd.
  • Elahi, K.Q. 2004. “Microcredit and the Third World: Perspectives from Moral and Political Philosophy,”International Journal of Social Economics. V.31.
  • Grameen Bank 2007. Microfinance-credit Models. www.grameen-info.org/mcredit/ cmodel.html.
  • Grameen Bank 2007. Role of Microcredit in the Eradication of Poverty: Report of the [UN] Secretary General. www.grameen-info.org/mcredit/unreport.html.ü
  • Gray, P.H. 1998. “International Trade and Foreign Direct Investment: The Interface,” In Dunning, J.H. edited, Globalization, Trade and Foreign Direct Investment. Oxford:Elsevier Science, Ltd.
  • Hill, H. 2004. “Six Asian Economies: Issues and Lessons,” in Managing FDI in a Globalilzing Economy: Asian Experiences, edited by Brooks, D.H. and Hill, H. New York: Palgrave/ MacMillan.
  • Hoque, M.Z. 2004. “Stagnated Growth of Microenterprises and Flawed Role of Credit NGOs: Evidence from Bangladesh,” Humanomics. V.20. International Monetary Fund 2006. World Economic Outlook: Financial Systems and Economic Cycles, Sept 06. Washington, D.C.: International Monetary Fund.
  • Kurtulus, K. 1987. “Entrepreneurship in Turkey,” Journal of Small Business Management. V.25: 4.
  • Mohapatra, S., Rozelle, S., and Goodhue, R. 2007. “The Rise of Self-Employment in Rural China: Developmenmt or Distress?” World Development. V. 35: 1.
  • Mondal, W.I. 2000. “Privatization and the Growth of Entrepreneurship in Bangladesh,” International Journal of Commerce & Management. V. 10: 2.
  • Moran, T.H., Graham, E.M., and Blomstrom, M. editors, 2005. Does Foreign Direct Investment Promote Development? Washington, D.C.: Institute for International Economics.
  • O’Neill, H.M., Rondinelli, D.A., and Wattanakul, T. 2004. “Ownership and Its Impact On Coping with Financial Crisis: Differences in State-, Mixed-, and Privately- Owned Enterprises in Thailand,” Asia Pacific Journal of Management. V.21: 1-2.
  • Ong, L. 2004. “China, India: Difference in the Details,” Asia Times online. April 30. www.atimes.com/atimes/China/FD30Ad04.html.
  • Ozar, S. 2003. “Barriers to Women’s Micro and Small-Enterprise Success in Turkey,
  • Somaj, P. Unpublished manuscript. “Entrepreneurship in Thailand.” Tan, J. 2007. “Phase Transitions and Emergence of Entrepreneurship: The Transformation of Chinese SOEs Over Time,” Journal of Business Venturing. V.22: 1.
  • Tsai, K.S. 2002. Back-Alley Banking: Private Entrepreneurs in China. Ithaca,N.Y.: Cornell University Press.
  • Today’s Zaman 2007. “Micro Credit Project Opening New Windows.” www.today’szaman.com, August 10.
  • UNDP 2005 and 2006. Human Development Reports 2005 and 2006. New York: United Nations Development Program.
  • UNCTAD 2007. World Investment Report 2007. New York: United Nations Conference on Trade and Development.
  • Unitus 2007. Poverty and Microfinance. www.unitus.com/sections/poverty/ poverty_mf_main.asp.
  • Woolcock, M.J.V. 1999. “Learning from Failures in Microfinance: What Unsuccessful Cases Tell Us About How Group-based Programs Work,” The American Journal Of Economics and Sociology. V.58:1
  • World Bank, The. 2006. World Development Report 2007: Development and the Next Generation. Washington, D.C.: The World Bank.
  • Yang, K. and Xu, Y. 2006. “Regional Differences in the Development of Chinese Small and Medium-sized Enterprises,” Journal of Small Business and Enterprise Development. V.13: 2.
  • Zaman, M.R. 1998. “Impact of Trade and Investment Policies on Economic Transformation in East Asia, the Middle East and Latin America,” in Dunning, J.H., edited, Globalization, Trade and Foreign Direct Investment. Oxford: Elsevier Science, Ltd.
  • Zaman, M.R. 2002. “Trade and Investment Climate in Economic Transformation of Selected Countries,” in Fatemi, K., and Jourdan, D. edited Contemporary Developments in International Business, Paris: Editions ESKA, Ch. 6.
  • Zaman, M.R. 2005. “Foreign Direct Investment in West Asia and Emerging Alliance For Growth and Transformation,” Journal of Global Business, 16, 21-30.
  • Zaman, M.R. 2005. “Globalization, FDI Flows, and Economic Development: Alter- native Scenarios for the Developed and Emerging Economies,” The Association for Global Business. Published as conference proceedings.
  • Zaman, M.R. and Unsal, F. 2007. “FDI and Micro Credit as Engines for Promoting Growth of Indigenous Entrepreneurs in Selected Emerging Economies,” International Trade & Finance Association. Awaiting publication.
  • Zhang, Y. and Yang, J. 2006. “New Venture Creation: Evidence from an Investigation into Chinese Entrepreneurship,” Journal of Small Business and Enterprise. V.13:2.
Year 2008, Volume: 3 Issue: 1, 39 - 51, 01.06.2008

Abstract

References

  • Afriyie, K. 1998. “Foreign Direct investment in Ghana’s Emerging Market Economy,” In Dunning, J. H. edited, Globalization, Trade and Foreign Direct Investment, Oxford: Elsevier Science, Ltd.
  • Agarwal, P.2005. “FDI is South Asia: Impact on Growth and Local Investment,” in Multinationals and Foreign Investment in Econonmic Development, edited by Graham, E.M. London: Palgrave/ MacMillan.
  • Ahmad, M.M. 2003. “Distant Voices: The Views of the Field Workers of NGOs in Bangladesh on Microcredit,” The Geographical Journal. V.169:1.
  • Alamgir, D.A.H. 2000. “Financing the Microcredit Programs of Non-Governmental Organizations (NGOs): A Case Study,” Journal of Development Entrepreneur- Ship. V.5: 2.
  • Amin,S., Rai, A.S., and Topa, G. 2003. “Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh,” Journal of Development Economics. V.70:1.
  • Baughn, C.C., Cao, J.S.R., Le, L.T.M., Lim, V.A., and Neupert, K.E. 2006. “Normative, Social, and Cognitive Predictors of Entrepreneurial Interest in China, Vietnam and the Philippines,” Journal of Developmental Entrepreneurship. V.11:1.
  • Borensztein, E., De Gregorio, J., and Lee, J.W. 1998. “How Does Foreign Investment Affect Growth?” Journal of International Economics. 45.
  • Business Week 2007. “China: The Tech Dragon Stumbles,” Business Week. May 14,pp. 44-45.
  • Carpio, M.A. 2004. “The Experience of Financial Institutions in the Delivery of Micro- credit in the Philippines,” Journal of Microfinance. V.6:2.
  • Chen, G., Li, J., and Matlay, H. 2006. “Who are the Chinese Private Entrepreneurs? A Study of Entrepreneurial Attributes and Business Governance,” Journal Of Small Business and Enterprise Development. V.13: 2.
  • Chen, J. 2006. “Development of Chinese Small and Medium-Sized Enterprises,Journal of Small Business and Enterprise Development. V.13: 2.
  • Chow, I.H. 2006. “The Relationship Between Entrepreneurial Orientation and Firm Performance in China,” S.A.M. Advanced Management Journal. V. 71: 3.
  • Chowdhury, M.M.R. 2001. “The Emerging Women Entrepreneurs of Bangladesh,’ Federation of Bangladesh Chamber of Commerce and Industry Journal, V.2: 5-6.
  • Dowla, A. and Alamgir, D. 2003. “From Microcredit to Microfinance: Evolution of Savings Products by MFIs in Bangladesh,” Journal of International Development. V. 15: 8.
  • Dunning, J.H. 1981. “Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Developmental Approach, Weltwirtschaftlic- Hes Archiv, 119: 30-64.
  • Dunning, J.H. 1992. “The Global Economy, Domestic Governance, Strategies and Transnational Corporations: Interactions and Policy Implications, Transnational Corporations, I: 7-45.
  • Dunning, J.H. 1993. Multinational Enterprises and the Global Economy, Wokingham: Addison Wesley.
  • Dunning, J.H. 1998. Globalization, Trade and Foreign Direct Investment. Oxford: Elsevier Science, Ltd.
  • Elahi, K.Q. 2004. “Microcredit and the Third World: Perspectives from Moral and Political Philosophy,”International Journal of Social Economics. V.31.
  • Grameen Bank 2007. Microfinance-credit Models. www.grameen-info.org/mcredit/ cmodel.html.
  • Grameen Bank 2007. Role of Microcredit in the Eradication of Poverty: Report of the [UN] Secretary General. www.grameen-info.org/mcredit/unreport.html.ü
  • Gray, P.H. 1998. “International Trade and Foreign Direct Investment: The Interface,” In Dunning, J.H. edited, Globalization, Trade and Foreign Direct Investment. Oxford:Elsevier Science, Ltd.
  • Hill, H. 2004. “Six Asian Economies: Issues and Lessons,” in Managing FDI in a Globalilzing Economy: Asian Experiences, edited by Brooks, D.H. and Hill, H. New York: Palgrave/ MacMillan.
  • Hoque, M.Z. 2004. “Stagnated Growth of Microenterprises and Flawed Role of Credit NGOs: Evidence from Bangladesh,” Humanomics. V.20. International Monetary Fund 2006. World Economic Outlook: Financial Systems and Economic Cycles, Sept 06. Washington, D.C.: International Monetary Fund.
  • Kurtulus, K. 1987. “Entrepreneurship in Turkey,” Journal of Small Business Management. V.25: 4.
  • Mohapatra, S., Rozelle, S., and Goodhue, R. 2007. “The Rise of Self-Employment in Rural China: Developmenmt or Distress?” World Development. V. 35: 1.
  • Mondal, W.I. 2000. “Privatization and the Growth of Entrepreneurship in Bangladesh,” International Journal of Commerce & Management. V. 10: 2.
  • Moran, T.H., Graham, E.M., and Blomstrom, M. editors, 2005. Does Foreign Direct Investment Promote Development? Washington, D.C.: Institute for International Economics.
  • O’Neill, H.M., Rondinelli, D.A., and Wattanakul, T. 2004. “Ownership and Its Impact On Coping with Financial Crisis: Differences in State-, Mixed-, and Privately- Owned Enterprises in Thailand,” Asia Pacific Journal of Management. V.21: 1-2.
  • Ong, L. 2004. “China, India: Difference in the Details,” Asia Times online. April 30. www.atimes.com/atimes/China/FD30Ad04.html.
  • Ozar, S. 2003. “Barriers to Women’s Micro and Small-Enterprise Success in Turkey,
  • Somaj, P. Unpublished manuscript. “Entrepreneurship in Thailand.” Tan, J. 2007. “Phase Transitions and Emergence of Entrepreneurship: The Transformation of Chinese SOEs Over Time,” Journal of Business Venturing. V.22: 1.
  • Tsai, K.S. 2002. Back-Alley Banking: Private Entrepreneurs in China. Ithaca,N.Y.: Cornell University Press.
  • Today’s Zaman 2007. “Micro Credit Project Opening New Windows.” www.today’szaman.com, August 10.
  • UNDP 2005 and 2006. Human Development Reports 2005 and 2006. New York: United Nations Development Program.
  • UNCTAD 2007. World Investment Report 2007. New York: United Nations Conference on Trade and Development.
  • Unitus 2007. Poverty and Microfinance. www.unitus.com/sections/poverty/ poverty_mf_main.asp.
  • Woolcock, M.J.V. 1999. “Learning from Failures in Microfinance: What Unsuccessful Cases Tell Us About How Group-based Programs Work,” The American Journal Of Economics and Sociology. V.58:1
  • World Bank, The. 2006. World Development Report 2007: Development and the Next Generation. Washington, D.C.: The World Bank.
  • Yang, K. and Xu, Y. 2006. “Regional Differences in the Development of Chinese Small and Medium-sized Enterprises,” Journal of Small Business and Enterprise Development. V.13: 2.
  • Zaman, M.R. 1998. “Impact of Trade and Investment Policies on Economic Transformation in East Asia, the Middle East and Latin America,” in Dunning, J.H., edited, Globalization, Trade and Foreign Direct Investment. Oxford: Elsevier Science, Ltd.
  • Zaman, M.R. 2002. “Trade and Investment Climate in Economic Transformation of Selected Countries,” in Fatemi, K., and Jourdan, D. edited Contemporary Developments in International Business, Paris: Editions ESKA, Ch. 6.
  • Zaman, M.R. 2005. “Foreign Direct Investment in West Asia and Emerging Alliance For Growth and Transformation,” Journal of Global Business, 16, 21-30.
  • Zaman, M.R. 2005. “Globalization, FDI Flows, and Economic Development: Alter- native Scenarios for the Developed and Emerging Economies,” The Association for Global Business. Published as conference proceedings.
  • Zaman, M.R. and Unsal, F. 2007. “FDI and Micro Credit as Engines for Promoting Growth of Indigenous Entrepreneurs in Selected Emerging Economies,” International Trade & Finance Association. Awaiting publication.
  • Zhang, Y. and Yang, J. 2006. “New Venture Creation: Evidence from an Investigation into Chinese Entrepreneurship,” Journal of Small Business and Enterprise. V.13:2.
There are 46 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Prof. Dr.m. Raquibuz Zaman This is me

Publication Date June 1, 2008
Published in Issue Year 2008 Volume: 3 Issue: 1

Cite

APA Zaman, P. D. R. (2008). MICRO FINANCE, FEMALE LITERACY, AND SELF SUSTAINING ECONOMIC GROWTH IN TURKEY. Bilgi Ekonomisi Ve Yönetimi Dergisi, 3(1), 39-51.