Restructuring Istanbul: Historical City, Modern ‘Profitpolis’, and Byzantine Risk Management Financial Infrastructure
Bahcesehir Univeritei Law Review, Hukuk Fakultesi Dergisi, Istanbul Turkey, Special Issue: Planning for Disaster: Place, Population, Culture and the Environment, Forthcoming
16 Pages Posted: 2 Jun 2014
Date Written: January 30, 2014
Turkey’s risks and uncertainties are amplified when foreign investors calculate that Istanbul is located very near the North Anatolian Fault Zone that runs within less than a mile from the city through the Sea of Marmara. The discussion is then recalibrated to concerns regarding public expectations of government in preparedness, and recovery in times of natural disaster. In particular, central bank’s response to financial disaster, compared to actual government and private sector preparedness, as well as effective capabilities to protect returns on investments, and human capital — human lives. Istanbul’s financial preparedness, and recovery are being discussed in boardrooms, in government committees, and in the proverbial streets of Taksim Square. Foreign investors are aggressively pursuing returns on their investments while the Turkish Government, and the World Bank have begun to focus on fiscal policies that will guide Turkey’s trade driven economy through inevitable natural disasters such as earthquakes and floods as well as domestic, and man made disasters such as banking uncertainties, risks and financial disasters. The Turkish Government has issued fiscal policies and rules, which are anticipated to decrease public debt, attract foreign direct investments, and increase the global competitiveness of Turkey’s banking sector. However, one area is particularly weak with regard to Turkey’s financial viability — Turkey’s risk management financial infrastructure especially in the context of disaster preparedness and recovery.
Keywords: financial disaster, financial recovery, developing economy, banking, Turkey
JEL Classification: F20, K33, N15, N45, O23, R14, R52
Suggested Citation: Suggested Citation